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

<ul>
<li>We see the S&amp;P 500 as trading within a downtrend channel; as long as it remains within this channel, our intermediate to long-term outlook is bearish at the index level.</li>
<li>With that said, the S&amp;P 500 is currently testing support within the downtrend channel, and we are on watch for a potential bear market rally.</li>
<li>We will need to see a bullish reversal of the 1-month downtrend (currently at 4030-4050) to have confidence that a tradeable bounce is underway, with the potential for more.</li>
</ul>


We see the S&amp;P 500 as trading within a downtrend channel; as long as it remains within this channel, our intermediate to long-term outlook is bearish at the index level.
With that said, the S&amp;P 500 is currently testing support within the downtrend channel, and we are on watch for a potential bear market rally.
We will need to see a bullish reversal of the 1-month downtrend (currently at 4030-4050) to have confidence that a tradeable bounce is underway, with the potential for more.


S&P 500 Downtrend Channel Intact & Testing Support; Buy Ideas Within Energy & Biotech

US Treasury (10 Yr Generic) / Technical Analysis

<ul>
<li>We have discussed our expectations for rising rates for quite some time, but the 10-year yield is now testing 40-year downtrend resistance which comes in at 2.80-2.82%.</li>
<li>If there was ever a time for interest rates to move lower, this is where it needs to happen -- and it would be fitting, considering extremely bearish bond sentiment.</li>
<li>On the other hand, if the 10-year Treasury is above 2.82% we see a secular reversal where rising rates would be the new normal</li>
</ul>


We have discussed our expectations for rising rates for quite some time, but the 10-year yield is now testing 40-year downtrend resistance which comes in at 2.80-2.82%.
If there was ever a time for interest rates to move lower, this is where it needs to happen -- and it would be fitting, considering extremely bearish bond sentiment.
On the other hand, if the 10-year Treasury is above 2.82% we see a secular reversal where rising rates would be the new normal


10-Year Treasury Yield Testing 40-Year Resistance; Upgrading Health Care to Overweight

<ul>
<li>The short-term bullish reversal discussed last week is officially underway now that the S&amp;P 500 has reclaimed its 200-day MA, but we are not yet out of the woods.</li>
<li>We discuss what we are watching to determine whether this is just an oversold bounce that resolves lower, or if the S&amp;P 500 is headed back to all-time highs.</li>
<li>The prior two trading days appears to be the start of a short-term mean reversion, where beaten down growth areas (ARKK, software, biotech, etc.) are outperforming.</li>
</ul>


The short-term bullish reversal discussed last week is officially underway now that the S&amp;P 500 has reclaimed its 200-day MA, but we are not yet out of the woods.
We discuss what we are watching to determine whether this is just an oversold bounce that resolves lower, or if the S&amp;P 500 is headed back to all-time highs.
The prior two trading days appears to be the start of a short-term mean reversion, where beaten down growth areas (ARKK, software, biotech, etc.) are outperforming.


Not Out Of The Woods; SPX Back Above The 200-Day MA; Growth Catching A Bid; Buying Energy, Biotech

<ul>
<li>The market continues to send a mix of risk-on and risk-off signals, though most of the risk-on signals are centered around value Sectors.</li>
<li>Value Sectors such as Energy, Financials, Manufacturing/Industrials, and Materials are currently our favorite areas for investment, and also Consumer Staples.</li>
<li>Some of our big picture supports are being violated, including the Russell MicroCaps (IWC) which is breaking below $134 as the Russell 2000 (IWM) tests support at $207.50-$208.</li>
</ul>


The market continues to send a mix of risk-on and risk-off signals, though most of the risk-on signals are centered around value Sectors.
Value Sectors such as Energy, Financials, Manufacturing/Industrials, and Materials are currently our favorite areas for investment, and also Consumer Staples.
Some of our big picture supports are being violated, including the Russell MicroCaps (IWC) which is breaking below $134 as the Russell 2000 (IWM) tests support at $207.50-$208.


U.S. Equity Strategy: Market Sending Mixed Signals; Stick With Value; Energy Stocks Highlighted

iShares Russell 2000 ETF / Technical Analysis

Risk-on signals remain the dominant theme. As a result, we continue to believe we are close to exiting the "mixed market environment" in favor of a new, broad-based advance.  One of those risk-on signals is that the S&amp;P 400 Mid-Caps (IJH) are breaking out to new highs, and we expect small-caps (IWM) to follow.Charts highlighted: IJH, IWM, XOP, XLF, RCD, XLI, XLP, XLU, PPH, IYZ, COP, EOG, PXD, OXY, DVN, CLR, BK, SBNY, STL, UBSI, FNB, WTFC, UMBF, ASB, MOS, CF, ICL, UAN, and IPI

Risk-on signals remain the dominant theme. As a result, we continue to believe we are close to exiting the "mixed market environment" in favor of a new, broad-based advance.  One of those risk-on signals is that the S&amp;P 400 Mid-Caps (IJH) are breaking out to new highs, and we expect small-caps (IWM) to follow.Charts highlighted: IJH, IWM, XOP, XLF, RCD, XLI, XLP, XLU, PPH, IYZ, COP, EOG, PXD, OXY, DVN, CLR, BK, SBNY, STL, UBSI, FNB, WTFC, UMBF, ASB, MOS, CF, ICL, UAN, and IPI

US Equity Strategy: Mid-Caps Breaking Out, Are Small-Caps Next? Buying Energy, Financials, Materials

United States

Devon Energy Corporation is an independent energy company that is involved primarily in oil and gas exploration, development and production, the transportation of oil, gas, and NGLs and the processing of natural gas. The Company also has marketing and midstream operations primarily in North America that include gas, crude oil and NGLs.

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Devon Energy (DVN US)

S&P 500 Downtrend Channel Intact & Testing Support; Buy Ideas Within Energy & Biotech

The $SPX is trading within a downtrend channel; as long as it remains within this channel, our intermediate to long-term outlook is bearish at the...

Vermilion Research

10-Year Treasury Yield Testing 40-Year Resistance; Upgrading Health Care to Overweight

10-year Treas yield $TNX is now testing 40-year downtrend resistance at 2.8-2.82%. If interest rates are to move lower, now would be the time,...

Vermilion Research

Not Out Of The Woods; SPX Back Above The 200-Day MA; Growth Catching A Bid; Buying Energy, Biotech

The short-term bullish reversal that we referenced last week is officially underway now that the S&P 500 has reclaimed its 200-day MA, but we are...

Vermilion Research

U.S. Equity Strategy: Market Sending Mixed Signals; Stick With Value; Energy Stocks Highlighted

The market continues to send mixed signals, though most of the risk-on signals are centered around value Sectors such as Energy, Financials,...

Vermilion Research

US Equity Strategy: Mid-Caps Breaking Out, Are Small-Caps Next? Buying Energy, Financials, Materials

Risk-on signals remain the dominant theme. One of those risk-on signals is that the S&P 400 Mid-Caps (IJH) are breaking out to new highs, and we...

Vermilion Research

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