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>Broad equity indexes booked their fourth straight week of positive returns, with the MSCI World Index and the S&amp;P 500 up 1.23% and 0.79%, respectively.</li><li>Small caps followed suit, with the Russell 2000 gaining 1.48% this week.</li><li>Cannabis stocks slid for the sixth straight week, with the MSOS ETF declining 0.56%. It was shaping up to be a good week until the MSOS ETF fell 3.97% on Friday.</li></ul>

Broad equity indexes booked their fourth straight week of positive returns, with the MSCI World Index and the S&amp;P 500 up 1.23% and 0.79%, respectively.Small caps followed suit, with the Russell 2000 gaining 1.48% this week.Cannabis stocks slid for the sixth straight week, with the MSOS ETF declining 0.56%. It was shaping up to be a good week until the MSOS ETF fell 3.97% on Friday.

The Highlights : Cannabis News for the Week Ending April 14, 2023

Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

Crypto

<ul><li>Last week, the Shapella upgrade went live without a hitch, enabling millions of staked ETH to be withdrawn.</li><li>While Ethereum's Merge upgrade last September was more of a "buy the rumor sell the news" type of event, Shapella appears to have had the opposite impact on price.</li><li>ETH spot prices dropped by nearly 18% post-Merge while they are up 11% since Shapella, despite fears of mass selling. </li></ul>

Last week, the Shapella upgrade went live without a hitch, enabling millions of staked ETH to be withdrawn.While Ethereum's Merge upgrade last September was more of a "buy the rumor sell the news" type of event, Shapella appears to have had the opposite impact on price.ETH spot prices dropped by nearly 18% post-Merge while they are up 11% since Shapella, despite fears of mass selling. 

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

US Treasury (10 Yr Generic) / Technical Analysis

<ul>
<li>Tactical synergies are aligning between topping equities, yield and DXY wedge formations and the USD reaching a range low (more so in Asia/ZAR).</li>
<li>We are approaching the end of the April buoyant cycle for risk with momentum due to start tapering off next week with late April a timeline for a turn.</li>
<li>Pay close attention to the bullish wedge in the dollar and the bull wedge in yield - some clear synergy and then we have gold topping. Late April/May clarity.</li>
</ul>


Tactical synergies are aligning between topping equities, yield and DXY wedge formations and the USD reaching a range low (more so in Asia/ZAR).
We are approaching the end of the April buoyant cycle for risk with momentum due to start tapering off next week with late April a timeline for a turn.
Pay close attention to the bullish wedge in the dollar and the bull wedge in yield - some clear synergy and then we have gold topping. Late April/May clarity.


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

<ul>
<li>US non-financial corporations' debt exposure has risen since the global financial crisis. Tighter bank lending standards will raise borrowing costs, while a higher federal funds rate raises debt servicing costs. </li>
<li>The 2023 Q1 US corporate earnings reporting season should confirm the arrival of a corporate profits recession, while another contraction is expected in Q2.</li>
<li>Labour hoarding and falling profits make the current environment similar to the onset of the 2001 recession: corporations were eventually forced to reduce headcount to stabilise earnings and stock prices.</li>
</ul>


US non-financial corporations' debt exposure has risen since the global financial crisis. Tighter bank lending standards will raise borrowing costs, while a higher federal funds rate raises debt servicing costs. 
The 2023 Q1 US corporate earnings reporting season should confirm the arrival of a corporate profits recession, while another contraction is expected in Q2.
Labour hoarding and falling profits make the current environment similar to the onset of the 2001 recession: corporations were eventually forced to reduce headcount to stabilise earnings and stock prices.


US Corporate Outlook: Credit and Labour Hoarding Profit Risks Lurk in the Background

Senior Equity Derivatives Trader

Simon Harris

Event-Driven

<ul>
<li>Weekly summary of vol changes and moves across Global Markets</li>
<li>Analysing ATM volatility and skew changes over the last 5 days</li>
<li>We suggest a few trades to take advantage of the implied vol surfaces</li>
</ul>


Weekly summary of vol changes and moves across Global Markets
Analysing ATM volatility and skew changes over the last 5 days
We suggest a few trades to take advantage of the implied vol surfaces


EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Nothing to See Here!

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)

The Highlights : Cannabis News for the Week Ending April 14, 2023

Broad equity indexes booked their fourth straight week of positive returns, with the MSCI World Index and the S&P 500 up 1.23% and 0.79%,...

Water Tower Research

ETH's Big Post-Shapella Rally

While Ethereum's Merge upgrade last September was more of a "buy the rumor sell the news" type of event, Shapella appears to have had the opposite...

Kaiko

Spx, Yield, USD and Gold Alignment

Tactical synergies are aligning between topping equities, yield and DXY wedge formations and the USD reaching a range low (more so in Asia/ZAR). We...

Thomas Schroeder

US Corporate Outlook: Credit and Labour Hoarding Profit Risks Lurk in the Background

US equities remain focussed on interest risks. Rising leverage and lower quality borrowers make corporations more vulnerable to credit risks,...

DeSaque Macro Research

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Nothing to See Here!

A weekly look at spot, vol and skew changes across 8 global Indices. We analyse the changes and try to identify the best trades based on the vol...

Simon Harris