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 and Quantitative Research

Today's Fed Day to Determine Next Big Market Move? SPX Key Levels: 4100 and 3910

Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX

Time to Get Defensive After 1.5-Month Uptrend Breaks; High Yield Spreads Widening Much Like Mid-Aug.

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

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

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical Analysis

<ul>
<li>Charts have not changed much from the prior week, with there actually being some deterioration within banks (KRE, KBE). </li>
<li>The $SPX has been unable to sustain a breakout above its 200-day MA/YTD downtrend, the $IWM remains below $190 resistance, and the DJIA could not sustain a breakout above 34,280</li>
<li>As long as these indexes are below these levels, we continue to see this as a good time to shift to more defensive areas and/or take profits.</li>
</ul>


Charts have not changed much from the prior week, with there actually being some deterioration within banks (KRE, KBE). 
The $SPX has been unable to sustain a breakout above its 200-day MA/YTD downtrend, the $IWM remains below $190 resistance, and the DJIA could not sustain a breakout above 34,280
As long as these indexes are below these levels, we continue to see this as a good time to shift to more defensive areas and/or take profits.


Dow Jones Industrial Average (INDU INDEX)

Failed Breakouts, Banks Crumbling -- Get Defensive; Buy Ideas Within Consumer Staples

S&P 500 INDEX

Failed Breakouts, Banks Crumbling -- Get Defensive; Buy Ideas Within Consumer Staples