Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Upside momentum continues to wane for global equities. Price action this week has indeed confirmed lower highs for now in the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes. These lower highs increase the probability for breakdowns and a deeper pullback, but we do not want to get ahead of ourselves. Until we see breakdowns we still view global equities as being in a period of consolidation. We outline important technical levels across markets and highlight actionable set ups within Technology, Health care and Staples.

Upside momentum continues to wane for global equities. Price action this week has indeed confirmed lower highs for now in the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes. These lower highs increase the probability for breakdowns and a deeper pullback, but we do not want to get ahead of ourselves. Until we see breakdowns we still view global equities as being in a period of consolidation. We outline important technical levels across markets and highlight actionable set ups within Technology, Health care and Staples.

Global Equity Strategy: Stay Defensive With Technology, Health Care, Staples

The risk of a pullback remains very real, however at this point the weight of the evidence suggests a meaningful pullback is not imminent. We recap important technical levels across market as well as Actionable Themes within the Consumer Staples, Health Care, and Technology sectors.

The risk of a pullback remains very real, however at this point the weight of the evidence suggests a meaningful pullback is not imminent. We recap important technical levels across market as well as Actionable Themes within the Consumer Staples, Health Care, and Technology sectors.

The global rally appears to be losing steam as the bearish rising wedge patterns we highlighted last week in the MSCI ACWI, ACWI ex-US, EM, and EAFE indexes ended up breaking down. Additionally, the aforementioned indexes and major indexes in Europe, Japan, and Hong Kong have been unable to break above longer-term resistance. While we believe global equities remain vulnerable to a pullback, some near-term consolidation is another possibility. For now we believe some consolidation makes sense as we remain in a sort of wait-and-see period as it relates to what will happen as countries and states aim to re-open.

The global rally appears to be losing steam as the bearish rising wedge patterns we highlighted last week in the MSCI ACWI, ACWI ex-US, EM, and EAFE indexes ended up breaking down. Additionally, the aforementioned indexes and major indexes in Europe, Japan, and Hong Kong have been unable to break above longer-term resistance. While we believe global equities remain vulnerable to a pullback, some near-term consolidation is another possibility. For now we believe some consolidation makes sense as we remain in a sort of wait-and-see period as it relates to what will happen as countries and states aim to re-open.

Global Equity Rally Losing Upside Momentum

Mark Artherton, CFA

Inteqres

Forensic Accounting

Following on from our analysis of Tencent and Alibaba's accounting for investments, we turn our attention to JD.com.  We are concerned about the growing influence of a particular category of long term investment, especially give JD's low net income margins and the growing influence of such items on the balance sheet.  This accounting choice, which in effect plugs a VC/PE firm into JD's accounts is in effect a black hole.  We also consider the invisible elephant that is JD DIgits.We also clarify some possible misunderstandings around accounting choices in this area.

Following on from our analysis of Tencent and Alibaba's accounting for investments, we turn our attention to JD.com.  We are concerned about the growing influence of a particular category of long term investment, especially give JD's low net income margins and the growing influence of such items on the balance sheet.  This accounting choice, which in effect plugs a VC/PE firm into JD's accounts is in effect a black hole.  We also consider the invisible elephant that is JD DIgits.We also clarify some possible misunderstandings around accounting choices in this area.

JD.COM Accounting for Investments - Black Holes and Invisible Elephants- Inteqres ESG Bite

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

We highlight that the stub value of Kingsoft (3888 HK) reached a record low since the listing of its main subsidiary Beijing Kingsoft (A) (Office (WPS)). The Office (WPS) has been outperforming the A-share market by a big margin recently, thanks to the work-from-home trend due to the coronavirus outbreak. We think there is a 19.5% upside from Kingsoft's current share price and would go long Kingsoft.

We highlight that the stub value of Kingsoft (3888 HK) reached a record low since the listing of its main subsidiary Beijing Kingsoft (A) (Office (WPS)). The Office (WPS) has been outperforming the A-share market by a big margin recently, thanks to the work-from-home trend due to the coronavirus outbreak. We think there is a 19.5% upside from Kingsoft's current share price and would go long Kingsoft. 

Kingsoft Stub Trade: Record Low Since Office Software Listing

China

Kingdee International Software Group Company Limited, through its subsidiaries, develops and sells enterprise management software, e-commerce application software and middleware software.  The Company also provides internet-based services and setting up e-commerce platforms for enterprises. In addition, Kingdee provides solution consulting and technical support services.

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Kingdee International Software (268 HK)

Global Equity Strategy: Stay Defensive With Technology, Health Care, Staples

Upside momentum continues to wane for global equities. Price action this week has indeed confirmed lower highs for now in the MSCI ACWI, ACWI...

Vermilion Research

Battleground Spot For Global Equities

The risk of a pullback remains very real, however at this point the weight of the evidence suggests a meaningful pullback is not imminent. We recap...

Vermilion Research

Global Equity Rally Losing Upside Momentum

The global rally appears to be losing steam as the bearish rising wedge patterns we highlighted last week in the MSCI ACWI, ACWI ex-US, EM, and...

Vermilion Research

JD.COM Accounting for Investments - Black Holes and Invisible Elephants- Inteqres ESG Bite

Following on from our analysis of Tencent and Alibaba's accounting for investments, we turn our attention to JD.com. We are concerned about the...

Mark Artherton, CFA

Kingsoft Stub Trade: Record Low Since Office Software Listing

We highlight that the stub value of Kingsoft (3888 HK) reached a record low since the listing of its main subsidiary Beijing Kingsoft (A) (Office...

Ke Yan, CFA, FRM

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52-week Range

Market Cap (USDm)

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