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 Strategy: Shifting to Large-Cap Overweight, Energy Improving

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical Analysis

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We are downgrading Consumer Discretionary to market weight as retail breakdowns and continued weakness in homebuilders and major autos has led to price and RS uptrend violations for the Sector. Reduce exposure.</li>
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Many major indexes testing support. We cover the S&amp;P 500, Dow, small-caps, PHLX Semiconductor, international developed and emerging markets, which are all at logical support areas. While we expect to see these indexes firm up at current levels based on YTD trends, the potential for breakdowns is not far off.</li>
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Big picture trends. The cyclicals  vs. staples ratio remains elevated and has not broken down. Something similar can be said of the growth vs. value ratio, where the uptrend remains intact.</li>
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In today’s report we highlight attractive Groups and stocks within Energy, Consumer Staples, Materials, and Utilities.</li>
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We are downgrading Consumer Discretionary to market weight as retail breakdowns and continued weakness in homebuilders and major autos has led to price and RS uptrend violations for the Sector. Reduce exposure.

Many major indexes testing support. We cover the S&amp;P 500, Dow, small-caps, PHLX Semiconductor, international developed and emerging markets, which are all at logical support areas. While we expect to see these indexes firm up at current levels based on YTD trends, the potential for breakdowns is not far off.

Big picture trends. The cyclicals  vs. staples ratio remains elevated and has not broken down. Something similar can be said of the growth vs. value ratio, where the uptrend remains intact.

In today’s report we highlight attractive Groups and stocks within Energy, Consumer Staples, Materials, and Utilities.


Dow Jones Industrial Average (INDU INDEX)

Yield Surge Tests Equities; Downgrading Discretionary

S&P 500 INDEX

Yield Surge Tests Equities; Downgrading Discretionary