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

U.S. Equity Uptrend Resumes; Outlook Remains Bullish

Vermilion Macro Vision - U.S. Equity Strategy: Sector Commentaries with Recommendations

U.S. Equity Strategy: Tactical Shift in Favoring Value over Growth; Buy Energy; Retailers Bottoming

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical Analysis

Key themes:<ul><li>Downgrading Financials. Given the Sector’s relative deterioration, we are downgrading Financials to market weight. Pockets of strength still exist (e.g. exchanges), but breadth is problematic... see page 3</li><li>Gold miners are bullishly inflecting. A Group we recommended last week, gold miners continue to bullishly inflect. This is a buying opportunity... see pages 3, 8-14</li><li>Buy biotechs, overweight Health Care. In today’s report we highlight actionable charts throughout Health Care, our top-ranked Sector, emphasizing widespread opportunities within biotechs ... see pages 3, 15-19</li></ul>

Key themes:Downgrading Financials. Given the Sector’s relative deterioration, we are downgrading Financials to market weight. Pockets of strength still exist (e.g. exchanges), but breadth is problematic... see page 3Gold miners are bullishly inflecting. A Group we recommended last week, gold miners continue to bullishly inflect. This is a buying opportunity... see pages 3, 8-14Buy biotechs, overweight Health Care. In today’s report we highlight actionable charts throughout Health Care, our top-ranked Sector, emphasizing widespread opportunities within biotechs ... see pages 3, 15-19

U.S. Equity Strategy: Reiterating Biotechs, Gold Miners; Downgrading Financials to Market Weight

S&P 500 INDEX

U.S. Equity Strategy: Reiterating Biotechs, Gold Miners; Downgrading Financials to Market Weight