Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Nasdaq-100 Stock Index / Technical Analysis

Our base case called for buying risk on the January 4 dip into mid-January that sets up a peak in the risk cycle with a USD low front running this cycle as the SPX put the final touches on the topside of the rising wedge. Short call just above SPX 3,800.A mid-January risk peak to induce a decline that may surprise markets into late January/early February that sets up a fresh long entry point. Gold has reacted to the USD and now see oil peaking along followed by an equity inflection.NDX exhibits a more compelling top given the contracting rising wedge and mature divergence.

Our base case called for buying risk on the January 4 dip into mid-January that sets up a peak in the risk cycle with a USD low front running this cycle as the SPX put the final touches on the topside of the rising wedge. Short call just above SPX 3,800.A mid-January risk peak to induce a decline that may surprise markets into late January/early February that sets up a fresh long entry point. Gold has reacted to the USD and now see oil peaking along followed by an equity inflection.NDX exhibits a more compelling top given the contracting rising wedge and mature divergence.

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Macroeconomics

Since March, US financial markets have been slaves to news about COVID-19 and, consequently, have become susceptible to negative news stemming from other sources. Priced for perfection entering 2021, investors are largely ignoring adverse outcomes, such as higher inflation, stemming from non-pandemic sources.The Federal Open Market Committee (FOMC) will probably tolerate a 50 basis points inflation overshoot of the long-term target, even though members are not expecting this outcome before 2023 Q4. Aggregate demand exceeding supply is the most plausible route to higher inflation, but the economy remains in a sizeable negative output gap at present.Higher prices due to supply chain disruptions in Q1 will probably be overlooked by the FOMC. Meanwhile, narrow money supply (M1) has surged since March, suggesting significant pent-up spending firepower, that could impact inflation, particularly in services.Winter lockdowns will depress economic activity in Q1, thereby reducing global inflationary pressures, notably in Europe. While the FOMC is powerless to prevent economic weakness in Q1, leaving the responsibility to fiscal policy, the real issue facing investors is how long full economic recovery from the pandemic will ultimately require. According to their latest Summary of Economic Projections, FOMC members believe it will take three years for the economy to properly heal and, consequently, any future changes in policy will be signalled by alterations in asset purchases that could produce another taper tantrum.

Since March, US financial markets have been slaves to news about COVID-19 and, consequently, have become susceptible to negative news stemming from other sources. Priced for perfection entering 2021, investors are largely ignoring adverse outcomes, such as higher inflation, stemming from non-pandemic sources.The Federal Open Market Committee (FOMC) will probably tolerate a 50 basis points inflation overshoot of the long-term target, even though members are not expecting this outcome before 2023 Q4. Aggregate demand exceeding supply is the most plausible route to higher inflation, but the economy remains in a sizeable negative output gap at present.Higher prices due to supply chain disruptions in Q1 will probably be overlooked by the FOMC. Meanwhile, narrow money supply (M1) has surged since March, suggesting significant pent-up spending firepower, that could impact inflation, particularly in services.Winter lockdowns will depress economic activity in Q1, thereby reducing global inflationary pressures, notably in Europe. While the FOMC is powerless to prevent economic weakness in Q1, leaving the responsibility to fiscal policy, the real issue facing investors is how long full economic recovery from the pandemic will ultimately require. According to their latest Summary of Economic Projections, FOMC members believe it will take three years for the economy to properly heal and, consequently, any future changes in policy will be signalled by alterations in asset purchases that could produce another taper tantrum.      

US Inflation Risks in 2021: Supply Chain Pressures Dampened by Winter Lockdowns

The call to buy risk on the January 4 draw down has panned out. SPX sub 3,700 long now meeting the 3,800 objective representing the topside of the rising wedge. We also touted buying the Nikkei at 27,000. Keep in mind that rising wedge formations have a 70% probability of breaking lower. Our cycle works turns negative mid Jan into late Jan for a pullback that sets up a very nice long entry for a February rally. The next risk cycle would come in late February.

The call to buy risk on the January 4 draw down has panned out. SPX sub 3,700 long now meeting the 3,800 objective representing the topside of the rising wedge. We also touted buying the Nikkei at 27,000. Keep in mind that rising wedge formations have a 70% probability of breaking lower. Our cycle works turns negative mid Jan into late Jan for a pullback that sets up a very nice long entry for a February rally. The next risk cycle would come in late February.

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.

Jitters over today’s Georgia Senate runoff elections led to mild weakness on the first trading day of the year. As we explain below, this appears to be just a blip on the radar and our bullish outlook remains intact. We continue to view any weakness as a buying opportunity. In today’s report we highlight attractive Groups and stocks within Consumer Discretionary and Materials: Casinos &amp; Gaming, Large-Cap, Copper, Gold, Western Hemisphere, Large-Cap, and Silver, Platinum.

Jitters over today’s Georgia Senate runoff elections led to mild weakness on the first trading day of the year. As we explain below, this appears to be just a blip on the radar and our bullish outlook remains intact. We continue to view any weakness as a buying opportunity. In today’s report we highlight attractive Groups and stocks within Consumer Discretionary and Materials: Casinos &amp; Gaming, Large-Cap, Copper, Gold, Western Hemisphere, Large-Cap, and Silver, Platinum.

U.S. Equity Strategy: Bullish Outlook Intact

The COVID-19 pandemic imparted a severe demand shock that significantly misaligned inventory levels with sales. US business inventory levels are, however, currently too low relative to sales, thereby creating an environment where higher precautionary stock balances could become the new normal.
US consumer spending on goods has been less affected compared to services during the pandemic and, consequently, the low inventory-to-sales ratio at retailers should underpin a re-stocking cycle. Imports from Asia account for a significant portion of US consumer products and rising levels in recent months are indicative of resilient demand, as well as the seasonal influence of Christmas on retailers' inventories.
Strong imports into the US from Asia have had a significant impact on spot trans-Pacific freight rates and have also created container capacity shortages in Asia for other routes. High spot freight rates for the Asia-US route could eventually impact contract rates if the US economy surpasses growth expectations in 2021.
The shortage of container capacity could be exacerbated in 2021 Q1 by new vessel supply failing to match demand, as well as a shortage of vessels in China's leasing market. Furthermore, strict quarantine measures at Chinese ports in Q1 will effectively stymie the operation of foreign carriers, thereby threatening to dislocate global supply chains, while rising shipping costs could force upward pressure on selling prices across a range of final products.

The COVID-19 pandemic imparted a severe demand shock that significantly misaligned inventory levels with sales. US business inventory levels are, however, currently too low relative to sales, thereby creating an environment where higher precautionary stock balances could become the new normal.
US consumer spending on goods has been less affected compared to services during the pandemic and, consequently, the low inventory-to-sales ratio at retailers should underpin a re-stocking cycle. Imports from Asia account for a significant portion of US consumer products and rising levels in recent months are indicative of resilient demand, as well as the seasonal influence of Christmas on retailers' inventories.
Strong imports into the US from Asia have had a significant impact on spot trans-Pacific freight rates and have also created container capacity shortages in Asia for other routes. High spot freight rates for the Asia-US route could eventually impact contract rates if the US economy surpasses growth expectations in 2021.
The shortage of container capacity could be exacerbated in 2021 Q1 by new vessel supply failing to match demand, as well as a shortage of vessels in China's leasing market. Furthermore, strict quarantine measures at Chinese ports in Q1 will effectively stymie the operation of foreign carriers, thereby threatening to dislocate global supply chains, while rising shipping costs could force upward pressure on selling prices across a range of final products. 

US Re-Stocking Cycle Produces Tight Freight Capacity and Supply-Chain Related Inflation Risks

United States

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

S&P 500 INDEX (SPX INDEX)

Short Risk Call at Top of SPX Wedge

Base case called for buying risk on the January 4 dip into mid-January, setting up a peak in risk, USD low front running this cycle as the SPX put...

Thomas Schroeder

US Inflation Risks in 2021: Supply Chain Pressures Dampened by Winter Lockdowns

US financial markets are priced for perfection in early-2021. Near-term inflation risks stem from supply-chain dislocation. Winter shutdowns should...

DeSaque Macro Research

US Cycle January Event Risk

The call to buy risk on the January 4 draw down has panned out. SPX long meeting the 3,800 objective representing the topside of the rising wedge -...

Thomas Schroeder

U.S. Equity Strategy: Bullish Outlook Intact

mild weakness on the first trading day of the year appears to be just a blip on the radar and our bullish outlook remains intact. We continue to...

Vermilion Research

Short Risk Call at Top of SPX Wedge

Base case called for buying risk on the January 4 dip into mid-January, setting up a peak in risk, USD low front running this cycle as the SPX put...

Thomas Schroeder

US Inflation Risks in 2021: Supply Chain Pressures Dampened by Winter Lockdowns

US financial markets are priced for perfection in early-2021. Near-term inflation risks stem from supply-chain dislocation. Winter shutdowns should...

DeSaque Macro Research

US Cycle January Event Risk

The call to buy risk on the January 4 draw down has panned out. SPX long meeting the 3,800 objective representing the topside of the rising wedge -...

Thomas Schroeder

U.S. Equity Strategy: Bullish Outlook Intact

mild weakness on the first trading day of the year appears to be just a blip on the radar and our bullish outlook remains intact. We continue to...

Vermilion Research

US Re-Stocking Cycle Produces Tight Freight Capacity and Supply-Chain Related Inflation Risks

Respectable US consumer spending on goods has significantly lowered inventories at retailers. Re-stocking has boosted Asia-US freight rates and...

DeSaque Macro Research