Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
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Cross-Asset & Quantitative Research

Cross Asset Strategy

The stock market has begun to pull back after an upper Bollinger Band ride. The clues to the next major directional move can be found in breadth indicators, which are mixed, and small-cap stocks, which remain range-bound. In addition, the small-size effect is indirectly linked to value. An upside breakout by small-cap stocks should be bullish for value stocks, while a downside breakdown should see leadership by large-cap growth.Stay tuned.

The stock market has begun to pull back after an upper Bollinger Band ride. The clues to the next major directional move can be found in breadth indicators, which are mixed, and small-cap stocks, which remain range-bound. In addition, the small-size effect is indirectly linked to value. An upside breakout by small-cap stocks should be bullish for value stocks, while a downside breakdown should see leadership by large-cap growth.Stay tuned.

The U.S. stock market is undergoing a “good overbought” momentum-driven advance. Readings are not overbought yet, indicating further upside potential. In addition, cross-asset internals are suggestive of a possible value and growth inflection point ahead in favour of value and cyclical stocks.

The U.S. stock market is undergoing a “good overbought” momentum-driven advance. Readings are not overbought yet, indicating further upside potential. In addition, cross-asset internals are suggestive of a possible value and growth inflection point ahead in favour of value and cyclical stocks.

Technical Analysis

A week ago, we highlighted the risk of stock market weakness because the correlation between the S&amp;P 500 and VVIX, or the volatility of the VIX, had spiked. The pullback duly arrived and the S&amp;P 500 briefly tested its 50 dma.Short-term market conditions have become sufficiently oversold that, barring an unexpected negative shock, the stock market should rebound. Based on our analysis of market internals, cyclical and reflation sectors are poised to be the next leadership and growth stocks have become increasingly vulnerable.If we are right in our tactical assessment, the minor panic last week was just a brief summer squall.

A week ago, we highlighted the risk of stock market weakness because the correlation between the S&amp;P 500 and VVIX, or the volatility of the VIX, had spiked. The pullback duly arrived and the S&amp;P 500 briefly tested its 50 dma.Short-term market conditions have become sufficiently oversold that, barring an unexpected negative shock, the stock market should rebound. Based on our analysis of market internals, cyclical and reflation sectors are poised to be the next leadership and growth stocks have become increasingly vulnerable.If we are right in our tactical assessment, the minor panic last week was just a brief summer squall.

We believe the stock market is poised for additional advances in early June. Expect value stocks to take a breather and a counter-trend rally by the lagging growth names. However, be prepared for the possibility for the S&amp;P 500 to churn sideways for the next two weeks as the market undergoes an internal rotation from value to growth stocks.

We believe the stock market is poised for additional advances in early June. Expect value stocks to take a breather and a counter-trend rally by the lagging growth names. However, be prepared for the possibility for the S&amp;P 500 to churn sideways for the next two weeks as the market undergoes an internal rotation from value to growth stocks.

The market is setting up for a bond market rally based on macro, technical analysis and sentiment perspectives of unknown magnitude and duration with the following implications for other asset classes:•         Bullish for growth stocks over value stocks;•         Expect a pause in the cyclical and reflation trade, which is highly correlated to value;•         USD bearish; and•         Gold bullish.

The market is setting up for a bond market rally based on macro, technical analysis and sentiment perspectives of unknown magnitude and duration with the following implications for other asset classes:•         Bullish for growth stocks over value stocks;•         Expect a pause in the cyclical and reflation trade, which is highly correlated to value;•         USD bearish; and•         Gold bullish.

United States

Invesco QQQ Trust Series 1 is an exchange-traded fund incorporated in the USA. The ETF tracks the Nasdaq 100 Index includes 100 of the largest non-financial companies by market cap listed on Nasdaq. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.

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Invesco QQQ Trust Series 1 (QQQ US)

Breadth Can Show the Way

The clues to the next major directional move can be found in breadth indicators, which are mixed, and small-cap stocks, which remain range-bound.

Cam Hui

A Consolation Prize for the Bulls

The U.S. stock market is undergoing a “good overbought” momentum-driven advance. Readings are not overbought yet, indicating further upside potential.

Cam Hui

The S&P 500 Endures A Summer Squall

Short-term market conditions have become sufficiently oversold that, barring an unexpected negative shock, the stock market should rebound.

Cam Hui

The Wall at S&P 4200

We believe the stock market is poised for additional advances in early June. Expect value stocks to take a breather and a counter-trend rally by...

Cam Hui

Poised For A Bond Market Rally

The market is setting up for a bond market rally based on macro, technical analysis and sentiment perspectives of unknown magnitude and duration...

Cam Hui

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