Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>The WTR Sustainable Index fell by 0.5% W/W versus the S&amp;P 500 Index (down 2.5%), the Russell 2000 Index (down 2.6%), and the Nasdaq Index (down 2.6%).</li><li>Energy Technology (12.9% of the index) was down by 4.8%, while Industrial Climate and Ag Technology (48.9% of the index) was down 1.8%, ClimateTech Mining was down 6.8%, and Advanced Transportation Solutions was up 4.2%.</li><li>Top 10 Performers: NVVE, AZRE, GCEI, NEP, RE, ALTA, FIX, MULN, RIDE, CGRN</li></ul>

The WTR Sustainable Index fell by 0.5% W/W versus the S&amp;P 500 Index (down 2.5%), the Russell 2000 Index (down 2.6%), and the Nasdaq Index (down 2.6%).Energy Technology (12.9% of the index) was down by 4.8%, while Industrial Climate and Ag Technology (48.9% of the index) was down 1.8%, ClimateTech Mining was down 6.8%, and Advanced Transportation Solutions was up 4.2%.Top 10 Performers: NVVE, AZRE, GCEI, NEP, RE, ALTA, FIX, MULN, RIDE, CGRN

Weekly Sustainable Investing Surveyor - Week Ended October 27, 2023

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

<ul>
<li>The SPX is at 4165-4200 support, and the Nasdaq 100 (QQQ) is at $350-$355 support. No "decisive" breakdowns quite yet as supports show signs of holding.</li>
<li>Russell 2000 (IWM) is testing 1.5-year support at $162-$163, making this a logical spot for small-caps to bounce and an attractive risk/reward for buyers</li>
<li>Continue to see signs of breadth possibly bottoming-out. Both the SPX and Russell 2000 and the % of stocks above their 50-day and 20-day MAs display bullish breadth divergences.</li>
</ul>


The SPX is at 4165-4200 support, and the Nasdaq 100 (QQQ) is at $350-$355 support. No "decisive" breakdowns quite yet as supports show signs of holding.
Russell 2000 (IWM) is testing 1.5-year support at $162-$163, making this a logical spot for small-caps to bounce and an attractive risk/reward for buyers
Continue to see signs of breadth possibly bottoming-out. Both the SPX and Russell 2000 and the % of stocks above their 50-day and 20-day MAs display bullish breadth divergences.


Bullish Breadth Divergences Persist; Russell 2000 Testing 1.5-Year Support; Buys in Education Svcs

Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

Cross Asset Strategy

<ul>
<li>This week, the approval of a spot Bitcoin ETF took another leap forward. And a poll among investors reveals that this will be a game-changer. </li>
<li>Equities tumbled again, and earnings are to blame. Google is down hard as the ‘Magnificent 7’ delivered mixed earnings, nowhere near good enough, given they are priced for perfection! </li>
<li>And that’s not all. The spike in real yields suggests a whopping decline of 25%(!) of the P/E ratio of the S&amp;P 500 Index.</li>
</ul>


This week, the approval of a spot Bitcoin ETF took another leap forward. And a poll among investors reveals that this will be a game-changer. 
Equities tumbled again, and earnings are to blame. Google is down hard as the ‘Magnificent 7’ delivered mixed earnings, nowhere near good enough, given they are priced for perfection! 
And that’s not all. The spike in real yields suggests a whopping decline of 25%(!) of the P/E ratio of the S&amp;P 500 Index.


The Weekly Market Monitor – Reality Check!

<ul>
<li>Equities not yet out of the woods, but as long as SPX is above 4165-4200, most signs point to this being a normal pullback within the ongoing bullish SPX trend.</li>
<li>Similarly, the Nasdaq 100 (QQQ) is testing support at $350-$355 (the 4-month bull flag/falling wedge pattern). The Russell 2000 is also approaching 1+ year support at 1640.</li>
<li>Breakdowns would be our cue to get defensive, as it would likely lead to precipitous declines. However, if supports hold, this is where risk/reward is skewed in favor of buyers.</li>
</ul>


Equities not yet out of the woods, but as long as SPX is above 4165-4200, most signs point to this being a normal pullback within the ongoing bullish SPX trend.
Similarly, the Nasdaq 100 (QQQ) is testing support at $350-$355 (the 4-month bull flag/falling wedge pattern). The Russell 2000 is also approaching 1+ year support at 1640.
Breakdowns would be our cue to get defensive, as it would likely lead to precipitous declines. However, if supports hold, this is where risk/reward is skewed in favor of buyers.


S&P 500, Nasdaq 100 Back at Support; Downgrading Discretionary to Market, Materials to Underweight

<ul><li>The WTR Sustainable Index fell by 1.1% W/W versus the S&amp;P 500 Index (up 0.4%), the Russell 2000 Index (down 1.5%), and the Nasdaq Index (up 0.1%).</li><li>Energy Technology (13.8% of the index) was up by 1.3%, while Industrial Climate and Ag Technology (48.4% of the index) was down 1.7%, ClimateTech Mining was up 0.5%, and Advanced Transportation Solutions was down 1.7%.</li><li>Revolve Renewable Power is an owner, operator, and developer of renewable energy projects focused on the North American market.</li></ul>

The WTR Sustainable Index fell by 1.1% W/W versus the S&amp;P 500 Index (up 0.4%), the Russell 2000 Index (down 1.5%), and the Nasdaq Index (up 0.1%).Energy Technology (13.8% of the index) was up by 1.3%, while Industrial Climate and Ag Technology (48.4% of the index) was down 1.7%, ClimateTech Mining was up 0.5%, and Advanced Transportation Solutions was down 1.7%.Revolve Renewable Power is an owner, operator, and developer of renewable energy projects focused on the North American market.

Weekly Sustainable Investing Surveyor Week Ended October 13, 2023

United States

The NASDAQ-100 Index is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. No security can have more than a 24% weighting. The index was developed with a base value of 125 as of February 1, 1985. Prior to December 21,1998 the Nasdaq 100 was a cap-weighted index.

Nasdaq-100 Stock Index (NDX INDEX)

Weekly Sustainable Investing Surveyor - Week Ended October 27, 2023

The WTR Sustainable Index fell by 0.5% W/W versus the S&P 500 Index (down 2.5%), the Russell 2000 Index (down 2.6%), and the Nasdaq Index (down 2.6%).

Water Tower Research

Bullish Breadth Divergences Persist; Russell 2000 Testing 1.5-Year Support; Buys in Education Svcs

$RTY $IWM $SPX $SPY and the % of stocks above their 50-day MAs (and 20-day MAs) display bullish breadth divergences. Similar bullish divergences in...

Vermilion Research

The Weekly Market Monitor – Reality Check!

When something is 'priced for perfection,' disappointment is inevitable. Just ask Google. By the way, a spot Bitcoin ETF is inevitable, too. This...

Jeroen Blokland

S&P 500, Nasdaq 100 Back at Support; Downgrading Discretionary to Market, Materials to Underweight

Unchanged outlook: equities not yet out of the woods, but as long as the $SPX is above 4165-4200, most signs point to this being a normal pullback....

Vermilion Research

Weekly Sustainable Investing Surveyor Week Ended October 13, 2023

The WTR Sustainable Index fell by 1.1% W/W versus the S&P 500 Index (up 0.4%), the Russell 2000 Index (down 1.5%), and the Nasdaq Index (up 0.1%).

Water Tower Research