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

We continue to be encouraged by market dynamics that are supportive of an ongoing equity bull market. Additionally, there continues to be an absence of breakdowns on the major global indexes (MSCI ACWI, ACWI ex-US, EM, &amp; EAFE). As a result, our outlook remains bullish.  In this report we show some love to various Sectors that have not been big attention-grabbers for us in recent months, but still have plenty of attractive stocks. The stocks highlighted hail from a variety of countries. Sectors covered include Services, Communications, Staples, Financials, and Utilities.

We continue to be encouraged by market dynamics that are supportive of an ongoing equity bull market. Additionally, there continues to be an absence of breakdowns on the major global indexes (MSCI ACWI, ACWI ex-US, EM, &amp; EAFE). As a result, our outlook remains bullish.  In this report we show some love to various Sectors that have not been big attention-grabbers for us in recent months, but still have plenty of attractive stocks. The stocks highlighted hail from a variety of countries. Sectors covered include Services, Communications, Staples, Financials, and Utilities.

Global Equity Strategy: Market Dynamics Remain Positive, And So Are We

Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

Cross-Asset Liquidity Strategist

Implementing Research Using Alt Data & AI

CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


Cross Asset Strategy

<ul>
<li>World economy is enjoying a V-shaped rebound
</li>
<li>Bond markets are flat-lining, but look vulnerable to a post-Election sell-off</li>
<li>
Asset allocators remain skewed towards ‘safe’ assets</li>
<li>World equities are under-priced relative to both the expanding pool of Global Liquidity and the rising stock of ‘safe’ assets</li>
</ul>


World economy is enjoying a V-shaped rebound

Bond markets are flat-lining, but look vulnerable to a post-Election sell-off

Asset allocators remain skewed towards ‘safe’ assets
World equities are under-priced relative to both the expanding pool of Global Liquidity and the rising stock of ‘safe’ assets


Equity Markets Ahead of The US Presidential Election

<ul>
<li>World asset prices are supported by Global Liquidity. Historic correlation more than 0.7</li>
<li>
Wall Street is not into bubble territory</li>
<li>US Equity valuations against liquidity are 1.01 times versus long-term average 0.9x</li>
<li>
World equities look more compelling at a liquidity multiple of 0.51 times, against long-term average of 0.5 times</li>
</ul>


World asset prices are supported by Global Liquidity. Historic correlation more than 0.7

Wall Street is not into bubble territory
US Equity valuations against liquidity are 1.01 times versus long-term average 0.9x

World equities look more compelling at a liquidity multiple of 0.51 times, against long-term average of 0.5 times


Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

<ul>
<li>The worst and the best of 2020 may already be over for the financial markets  </li>
<li>
Global Liquidity remains buoyant, but growth is peaking</li>
<li>US broad liquidity expansion slowed markedly in June 2020</li>
<li>Still on-track for V-shaped economic rebound</li>
<li>Slower liquidity growth and large upcoming coupon issuance points to at best range bound Wall Street</li>
</ul>


The worst and the best of 2020 may already be over for the financial markets  

Global Liquidity remains buoyant, but growth is peaking
US broad liquidity expansion slowed markedly in June 2020
Still on-track for V-shaped economic rebound
Slower liquidity growth and large upcoming coupon issuance points to at best range bound Wall Street


United States

The MSCI World Index is a free-float weighted equity index. It was developed with a base value of 100 as of December 31, 1969. MXWO includes developed world markets, and does not include emerging markets. MXWD includes both emerging and developed markets.

MSCI World Index (MXWO INDEX)

Global Equity Strategy: Market Dynamics Remain Positive, And So Are We

We show some love to various Sectors that have not been big attention-grabbers for us in recent months, including Services, Communications,...

Vermilion Research

Equity Markets Ahead of The US Presidential Election

World Equities and the US Presidential Election: Set To Rally? We analyse recent drivers of stocks including Global Liquidity, investors' risk...

Michael J. Howell

Wall Street Is Not A Bubble

World asset prices are supported by Global Liquidity. Historic correlation more than 0.7 Wall Street is not into bubble territory US Equity...

Michael J. Howell

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and...

Vermilion Research

A Liquidity Peak With A View

The worst and the best of 2020 may already be over for the financial markets Global Liquidity remains buoyant, but growth is peaking US broad...

Michael J. Howell