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

With the S&amp;P 500 breaking above the June highs and the Russell 2000 bullishly inflecting topside a ~1-month base, it signals a continuation of the uptrends that began in March... see charts below. Therefore, we continue to have a bullish outlook and we believe the path of least resistance remains higher. In today’s report we highlight attractive Groups and stocks within Health Care and Materials: Biotech, Large-Cap, Biotech, Mid-Cap, Gold, Western Hemisphere, Small-Cap, and Silver, Platinum.

With the S&amp;P 500 breaking above the June highs and the Russell 2000 bullishly inflecting topside a ~1-month base, it signals a continuation of the uptrends that began in March... see charts below. Therefore, we continue to have a bullish outlook and we believe the path of least resistance remains higher. In today’s report we highlight attractive Groups and stocks within Health Care and Materials: Biotech, Large-Cap, Biotech, Mid-Cap, Gold, Western Hemisphere, Small-Cap, and Silver, Platinum.

U.S. Equity Strategy: Bullish Outlook Intact

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

Wheaton Precious Metals / Equity Bottom-Up

After an exceptional Q419, WPM’s operational performance moderated in Q120, but was nevertheless robust within the broader macro-environment with underlying net earnings during the quarter within 2.6% of our prior forecasts. They would have exceeded our forecasts (by 6.0%) had it not been for a rare (albeit non-cash) tax charge relating to a reversal of deferred income tax assets. In the wake of Q120 results, we have reduced our precious metals price expectations for the balance of FY20 fractionally and our production expectations by 5koz AuE (ie <1%). However, these changes are more than balanced by a lower anticipated interest charge for the remainder of the year, such that our adjusted EPS forecast for FY20 has increased by 1.9c, from 84c to 85.9c. Note that, on its current trajectory, there is a real possibility that WPM could become net debt free in a year’s time, which could presage a change in its dividend policy.

After an exceptional Q419, WPM’s operational performance moderated in Q120, but was nevertheless robust within the broader macro-environment with underlying net earnings during the quarter within 2.6% of our prior forecasts. They would have exceeded our forecasts (by 6.0%) had it not been for a rare (albeit non-cash) tax charge relating to a reversal of deferred income tax assets. In the wake of Q120 results, we have reduced our precious metals price expectations for the balance of FY20 fractionally and our production expectations by 5koz AuE (ie 

Ahead of Wheaton's Q120 results, which are scheduled to be released on Wednesday 6 May, after the bell, we have refined our forecasts. They now take account of four factors: 1) the anticipated outlook for gold production from Salobo during the period 2020-25, as disclosed in Wheaton's release of a technical report on 30 March, 2) the timing of mine closures as a result of anti-coronavirus measures, in particular, in Peru and Mexico, 3) updated precious metals forecasts and 4) the possible effects of the recent rise in Wheaton's share price on general and administrative expenses.

Ahead of Wheaton's Q120 results, which are scheduled to be released on Wednesday 6 May, after the bell, we have refined our forecasts. They now take account of four factors: 1) the anticipated outlook for gold production from Salobo during the period 2020-25, as disclosed in Wheaton's release of a technical report on 30 March, 2) the timing of mine closures as a result of anti-coronavirus measures, in particular, in Peru and Mexico, 3) updated precious metals forecasts and 4) the possible effects of the recent rise in Wheaton's share price on general and administrative expenses.

Wheaton Precious Metals  - Refining numbers

Despite the bulls still being in control, we have several ongoing concerns and we cannot rule out the potential for a pullback. Below we highlight developments that are inconsistent with a major bottom in equities that suggests the broad equity market is not yet out of the woods.  In fact, during today's action, the 2760 support level on the S&amp;P 500 briefly held but ultimately gave way. With the SPX holding below 2760 today, we are looking for downside targets of 2650 first, and then potentially 2470 if that fails to hold.

Despite the bulls still being in control, we have several ongoing concerns and we cannot rule out the potential for a pullback. Below we highlight developments that are inconsistent with a major bottom in equities that suggests the broad equity market is not yet out of the woods.  In fact, during today's action, the 2760 support level on the S&amp;P 500 briefly held but ultimately gave way. With the SPX holding below 2760 today, we are looking for downside targets of 2650 first, and then potentially 2470 if that fails to hold.

U.S. Equity Strategy: Several Indicators Suggest a Pullback Likely

Continued encouraging COVID-19 news and accommodative moves by the Fed have allowed the bulls to remain in control while short-term support on the S&amp;P 500 held near 2,450. While the bulls remain in control in the short-term, we continue to believe the broad equity market is not yet out of the woods and remains vulnerable -- particularly as Wall Street sentiment has flipped bullish. In today’s report we highlight attractive stocks from a relative strength perspective across Sectors.

Continued encouraging COVID-19 news and accommodative moves by the Fed have allowed the bulls to remain in control while short-term support on the S&amp;P 500 held near 2,450. While the bulls remain in control in the short-term, we continue to believe the broad equity market is not yet out of the woods and remains vulnerable -- particularly as Wall Street sentiment has flipped bullish. In today’s report we highlight attractive stocks from a relative strength perspective across Sectors.

U.S. Equity Strategy: Bulls Still In Driver’s Seat, But For How Long?

United States

Wheaton Precious Metals Corp. operates as a precious metals streaming company. The Company purchases silver and gold production from mines that it does not owns and operates. Wheaton Precious Metals serves customers worldwide.

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Wheaton Precious Metals (WPM US)

U.S. Equity Strategy: Bullish Outlook Intact

With the S&P 500 breaking above the June highs and the Russell 2000 bullishly inflecting topside a ~1-month base, it signals a continuation of...

Vermilion Research

Wheaton Precious Metals - Forging ahead

After an exceptional Q419, WPM’s operational performance moderated in Q120, but was nevertheless robust within the broader macro-environment with...

Edison Investment Research

Wheaton Precious Metals - Refining numbers

Ahead of Wheaton's Q120 results, which are scheduled to be released on Wednesday 6 May, after the bell, we have refined our forecasts. They now...

Edison Investment Research

U.S. Equity Strategy: Several Indicators Suggest a Pullback Likely

Despite the bulls still being in control, we have several ongoing concerns and we cannot rule out the potential for a pullback. Below we highlight...

Vermilion Research

U.S. Equity Strategy: Bulls Still In Driver’s Seat, But For How Long?

Continued encouraging COVID-19 news and accommodative moves by the Fed have allowed the bulls to remain in control while short-term support on the...

Vermilion Research

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