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

Global Equity Strategy: Bearish with the Exception of EM.

Global Equity Strategy: Cautious Outlook Intact; Defensive Sectors Remain Leadership

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical Analysis

<p>Broad global indexes are bumping up against logical downtrend resistance. As a result, our outlook remains cautious and our baseline expectation for continued downward pressure on global equities remains intact. At the same time, we are seeing signs that the worst of the declines <em>may be behind us </em>as global cyclical Sectors show RS improvements while defensive Sectors display early signs of RS deterioration.  In this report we review important technical levels for developed and EM indexes, and highlight a number of attractive opportunities across markets and sectors.</p>

Broad global indexes are bumping up against logical downtrend resistance. As a result, our outlook remains cautious and our baseline expectation for continued downward pressure on global equities remains intact. At the same time, we are seeing signs that the worst of the declines may be behind us as global cyclical Sectors show RS improvements while defensive Sectors display early signs of RS deterioration.  In this report we review important technical levels for developed and EM indexes, and highlight a number of attractive opportunities across markets and sectors.

Beijing Bewinner Communications Co., (002148 CH)

Datang Telecom Technology Co., Ltd. A (600198 CH)

Stoxx Europe Small 200 Price Eur (SCXP INDEX)

Global Indexes Approaching Major Resistance

MSCI ACWI Index

Global Indexes Approaching Major Resistance