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

EURO STOXX 50 Price EUR / Technical Analysis

<ul>
<li>It appears the recent pullback is over, and we could see the MSCI ACWI (ACWI-US) test YTD highs at $93. We still expect $93 to cap upside in 2023.</li>
<li>Overweight Europe/UK and non-U.S., we are buyers on pullbacks as long as FTSE 100 is above 7700, STOXX Europe 50 is above 3800, and EURO STOXX 50 is above 4000.</li>
<li>As long as these support levels are holding, we are constructive from a price perspective</li>
</ul>


It appears the recent pullback is over, and we could see the MSCI ACWI (ACWI-US) test YTD highs at $93. We still expect $93 to cap upside in 2023.
Overweight Europe/UK and non-U.S., we are buyers on pullbacks as long as FTSE 100 is above 7700, STOXX Europe 50 is above 3800, and EURO STOXX 50 is above 4000.
As long as these support levels are holding, we are constructive from a price perspective


Remain Overweight Europe/UK & Non-US Equities; Pullback Over?; Buys in Industrials and Financials

<ul>
<li>Market dynamics remain largely bearish/unchanged, and we are sticking with our call that breaks of supports on SPX, IWM,QQQ are likely to result in a test of the 2022 lows.</li>
<li>The Nasdaq 100 (QQQ) is already testing its 2022 lows, but the S&amp;P 500 and Russell 2000 (IWM) are still 6-9% above their 2022 lows.</li>
<li>Depending on how the market responds to its 2022 lows, that could be a better area to increase risk.</li>
</ul>


Market dynamics remain largely bearish/unchanged, and we are sticking with our call that breaks of supports on SPX, IWM,QQQ are likely to result in a test of the 2022 lows.
The Nasdaq 100 (QQQ) is already testing its 2022 lows, but the S&amp;P 500 and Russell 2000 (IWM) are still 6-9% above their 2022 lows.
Depending on how the market responds to its 2022 lows, that could be a better area to increase risk.


More Downside to Lead to Buying Opportunity?; Buy Ideas in Consumer Staples, EU Banks, Gold Miners

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>UK wealth manager Quilter PLC (QLT LN) is reportedly set to receive takeover bids from at least four different suitors, according to the Daily Mail. One of them is Natwest.</li>
<li>Interest in Quilter is not anything new: market share, investments in technology and a new platform make it appealing, in spite of headwinds for the industry.</li>
<li>My 136p TP is based on an average of comps-based P/E multiples. Considering valuation and potential interest, I would be long the shares.</li>
</ul>


UK wealth manager Quilter PLC (QLT LN) is reportedly set to receive takeover bids from at least four different suitors, according to the Daily Mail. One of them is Natwest.
Interest in Quilter is not anything new: market share, investments in technology and a new platform make it appealing, in spite of headwinds for the industry.
My 136p TP is based on an average of comps-based P/E multiples. Considering valuation and potential interest, I would be long the shares.


<ul>
<li>Indexes and Sectors remain extremely mixed which we believe is likely to remain the case moving forward.</li>
<li>Attractive Sectors include Energy and Financials, (and to a lesser extent Staples and Utilities) and these areas remain our primary focus.</li>
<li>Financials (XLF) and Energy (XLE) are hitting new RS highs amid rising rates and new highs in WTI crude oil -- Remain overweight/add exposure on pullbacks.</li>
</ul>


Indexes and Sectors remain extremely mixed which we believe is likely to remain the case moving forward.
Attractive Sectors include Energy and Financials, (and to a lesser extent Staples and Utilities) and these areas remain our primary focus.
Financials (XLF) and Energy (XLE) are hitting new RS highs amid rising rates and new highs in WTI crude oil -- Remain overweight/add exposure on pullbacks.


Alpha-Centric ESG Research

Kyle Rudden

COP26 – the United Nations' flagship international conference on climate change – takes place in Glasgow from 31 October to 12 November. World leaders will be discussing critical climate issues, and collaborating on aggressive plans to avert catastrophic climate change.Three core agenda items – mitigating global warming, financing climate action, and developing a global carbon market and pricing scheme – are mission-critical in combating climate change. But they also have significant implications for global capital markets and investing.This Insight is the first of several addressing COP26 from an investing perspective. This provides an overview of the COP26 conference, its key nation state players, core objectives and outcomes, and why there is such as palpable now-or-never sense of urgency; more so than ever before.Upcoming Insights, for which this report serves as context, will dive deeper into country-specific climate action plans, as well as discuss various investment themes and trading ideas around the COP26 conference and climate change in general. The first of those Insights are imminent.

COP26 – the United Nations' flagship international conference on climate change – takes place in Glasgow from 31 October to 12 November. World leaders will be discussing critical climate issues, and collaborating on aggressive plans to avert catastrophic climate change.Three core agenda items – mitigating global warming, financing climate action, and developing a global carbon market and pricing scheme – are mission-critical in combating climate change. But they also have significant implications for global capital markets and investing.This Insight is the first of several addressing COP26 from an investing perspective. This provides an overview of the COP26 conference, its key nation state players, core objectives and outcomes, and why there is such as palpable now-or-never sense of urgency; more so than ever before.Upcoming Insights, for which this report serves as context, will dive deeper into country-specific climate action plans, as well as discuss various investment themes and trading ideas around the COP26 conference and climate change in general. The first of those Insights are imminent.

COP26: U.N. Climate Conference to Address Mitigation, Financing, and Carbon Pricing

United Kingdom

NatWest Group plc operates as a banking and financial services company. The Bank provides personal and business banking, consumer loans, asset and invoice finances, commercial and residential mortgages, credit cards, and financial planning services, as well as life, personal, and income protection insurance. NatWest Group serves clients worldwide.

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NatWest Group (NWG LN)

Remain Overweight Europe/UK & Non-US Equities; Pullback Over?; Buys in Industrials and Financials

Remain overweight Europe/UK and non-US equities; we are buyers on pullbacks as long as the FTSE 100 is above 7700, the STOXX Europe 50 is above...

Vermilion Research

More Downside to Lead to Buying Opportunity?; Buy Ideas in Consumer Staples, EU Banks, Gold Miners

With market dynamics still bearish, we are sticking with our call that breaks of supports (3910 on SPX, $177.50 on IWM, and $279 on QQQ) are likely...

Vermilion Research

Potential Interest in Quilter

Deal activity in the sector from both trade and financial buyers continues, despite macro-related weaker markets YTD. Quilter seems attractive due...

Jesus Rodriguez Aguilar

Stick With Energy and Financials

Indexes and Sectors remain extremely mixed which we believe is likely to remain the case moving forward. Attractive Sectors include Energy and...

Vermilion Research

COP26: U.N. Climate Conference to Address Mitigation, Financing, and Carbon Pricing

Over the next two weeks, world leaders and Greta Thunberg will decide our fate. Dramatic perhaps, but not overly. The COP26 climate conference will...

Kyle Rudden

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