High Quality Stock Setups, Weekly Stock Bull Finder

Weekly Stock Bull Finder

High Quality Stock Setups

Finding high potential stock setups on quality companies

Thematic (Sector/Industry)

<ul>
<li>Sector allocations in 2023 have been highlighted by big money rapidly leaving the “inflation trade” of 2022 (dominated by all things oil and gas, coal, ag commodities, etc.) and plowing money in full force to the “disinflation trade” headlined by sectors exposed to technology, artificial intelligence, semiconductors, automation/robotics, and software.</li>
<li>In fact, the following sector ETFs are making new 6-month relative strength line highs this week compared to S&amp;P 500 index and are quickly emerging as new market leadership groups:</li>
<li>Technology: BOTZ, TECL, IXN, IYW, XLK, IGV, VGT; Homebuilders: NAIL, XHB, XL</li>
</ul>


Sector allocations in 2023 have been highlighted by big money rapidly leaving the “inflation trade” of 2022 (dominated by all things oil and gas, coal, ag commodities, etc.) and plowing money in full force to the “disinflation trade” headlined by sectors exposed to technology, artificial intelligence, semiconductors, automation/robotics, and software.
In fact, the following sector ETFs are making new 6-month relative strength line highs this week compared to S&amp;P 500 index and are quickly emerging as new market leadership groups:
Technology: BOTZ, TECL, IXN, IYW, XLK, IGV, VGT; Homebuilders: NAIL, XHB, XL


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>We still recommend a tactical overweight to defensives (Staples, Utilities, Healthcare, and gold miners) as the SPX tests our 4165-4200 resistance range, and also resistance from the prior 1.5-month uptrend.</li>
<li>As we await Wednesdays FOMC announcement, the DJIA and Nasdaq Composite are testing 1-year resistances at 34,280 and 12,300, the DXY appears to be inflecting higher, and breadth remains weak.</li>
<li>While we still see a reach to 4300-4325 as possible, we believe playing for more upside is akin to picking up pennies in front of a steamroller.</li>
</ul>


We still recommend a tactical overweight to defensives (Staples, Utilities, Healthcare, and gold miners) as the SPX tests our 4165-4200 resistance range, and also resistance from the prior 1.5-month uptrend.
As we await Wednesdays FOMC announcement, the DJIA and Nasdaq Composite are testing 1-year resistances at 34,280 and 12,300, the DXY appears to be inflecting higher, and breadth remains weak.
While we still see a reach to 4300-4325 as possible, we believe playing for more upside is akin to picking up pennies in front of a steamroller.


S&P 500 Testing 4165-4200, DJIA Testing 34,280, Nasdaq Composite Testing 12,300; Stay Defensive

iShares Russell 2000 ETF / Technical Analysis

<ul>
<li>Our 2023 outlook remains unchanged; we see the market indexes consolidating within broad horizontal ranges, and we expect the top-end of the range to be 4165-4200 on the S&amp;P 500.</li>
<li>The bottom-end of the range is at the 2022 lows (3490). Another possible support level we are monitoring is at the December 2022 lows (3765).</li>
<li>The Russell 2000 (IWM) is testing important support at $170 (the Dec. 2022 lows and the prior downtrend from 2022), suggesting this is a logical time for an oversold bounce.</li>
</ul>


Our 2023 outlook remains unchanged; we see the market indexes consolidating within broad horizontal ranges, and we expect the top-end of the range to be 4165-4200 on the S&amp;P 500.
The bottom-end of the range is at the 2022 lows (3490). Another possible support level we are monitoring is at the December 2022 lows (3765).
The Russell 2000 (IWM) is testing important support at $170 (the Dec. 2022 lows and the prior downtrend from 2022), suggesting this is a logical time for an oversold bounce.


Russell 2000 (IWM) Testing $170; Downgrading Energy; 10-Yr Treasury Yield Testing 3.4% Support

<ul>
<li>The bear market rally we have been discussing since our Sept. 27 Compass report has begun.</li>
<li>Over half of the Sectors and all the major indexes (S&amp;P 500, Nasdaq 100, DJIA, and S&amp;P 600 Small Caps) display bullish 2+ month inflections.</li>
<li>As referenced last week, we expect the aforementioned indexes to rally to their 200-day MAs; longer-term, this is still a bear market until they can break above their 200-day MAs.</li>
</ul>


The bear market rally we have been discussing since our Sept. 27 Compass report has begun.
Over half of the Sectors and all the major indexes (S&amp;P 500, Nasdaq 100, DJIA, and S&amp;P 600 Small Caps) display bullish 2+ month inflections.
As referenced last week, we expect the aforementioned indexes to rally to their 200-day MAs; longer-term, this is still a bear market until they can break above their 200-day MAs.


Another Bear Market Rally Begins; Indexes and Sectors With Bullish 2+ Month Inflections

<ul>
<li>Despite a few tumultuous trading days, the S&amp;P 500 remains above its 200-week MA (3590-3600) and the Russell 2000 (IWM) remains above $163 -- both important support levels moving forward.</li>
<li>We continue to see potential for a bear market rally (~+10% from the lows) as long as these support levels hold.</li>
<li>Bear market rallies would be confirmed by bullish reversals of the 2-month downtrends, or above 3810 on the SPX and above $174 on the IWM, and the latter happened today.</li>
</ul>


Despite a few tumultuous trading days, the S&amp;P 500 remains above its 200-week MA (3590-3600) and the Russell 2000 (IWM) remains above $163 -- both important support levels moving forward.
We continue to see potential for a bear market rally (~+10% from the lows) as long as these support levels hold.
Bear market rallies would be confirmed by bullish reversals of the 2-month downtrends, or above 3810 on the SPX and above $174 on the IWM, and the latter happened today.


Bear Market Rally Remains in Play; Russell 2000 (IWM) Short-Term Breakout; Buys in Banks & Insurance

United States

Technology Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The ETF tracks the performance of The Technology Select Sector Index. The ETF holds large and mid-cap technology stocks. Its largest investment allocation is in the United States. The ETF weights the holdings using a market capitalization methodology.

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Technology Select Sector SPDR (XLK US)

Weekly Stock Bullfinder - Week of 5/22

Sector allocations in 2023 have been highlighted by big money rapidly leaving the “inflation trade” of 2022 (dominated by all things oil and gas,...

Weekly Stock Bull Finder

S&P 500 Testing 4165-4200, DJIA Testing 34,280, Nasdaq Composite Testing 12,300; Stay Defensive

$SPX testing our 4165-4200 resistance range, $DJI testing 34,280 1-yr resistance, Nasdaq Comp $COMPQ testing critical 12,300 resistance. All while...

Vermilion Research

Russell 2000 (IWM) Testing $170; Downgrading Energy; 10-Yr Treasury Yield Testing 3.4% Support

Our 2023 $SPX outlook remains unchanged: rangebound trade between 4165-4200 and 3490, with Dec. 2022 lows (3765) also possible support. Bears in...

Vermilion Research

Another Bear Market Rally Begins; Indexes and Sectors With Bullish 2+ Month Inflections

The bear market rally we have been discussing since Sept. 27 has begun, with over half of the Sectors and all the major indexes $SPX $QQQ $NDX...

Vermilion Research

Bear Market Rally Remains in Play; Russell 2000 (IWM) Short-Term Breakout; Buys in Banks & Insurance

A bear market rally (+10% from the lows) remains in play as long as the $SPX remains above its 200-week MA (3590-3600) and the $IWM remains above...

Vermilion Research

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