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

MSCI Emerging Markets Index / Technical Analysis

BRIC markets are outperforming broad EM. The BRIC/EM ratio is rounding to two year highs. All four member countries are attractive for separate reasons.  This week's “EM Leaders” highlights several attractive themes including: tech stocks, especially semis, construction/farm machinery names and  a selection of consumer stocks across the BRICs markets.

BRIC markets are outperforming broad EM. The BRIC/EM ratio is rounding to two year highs. All four member countries are attractive for separate reasons.  This week's “EM Leaders” highlights several attractive themes including: tech stocks, especially semis, construction/farm machinery names and  a selection of consumer stocks across the BRICs markets.

Our Emerging Market Screen &amp; Chart Book helps pinpoint leading stocks, weeding out lagging and stagnating trends.  This is performed through a relative strength price screen.  Only stocks trading within 5% of a 26-week relative strength high make the cut. From this list, we scan through each chart and highlight the most favorable set-ups.

Our Emerging Market Screen &amp; Chart Book helps pinpoint leading stocks, weeding out lagging and stagnating trends.  This is performed through a relative strength price screen.  Only stocks trading within 5% of a 26-week relative strength high make the cut. From this list, we scan through each chart and highlight the most favorable set-ups.

In developed markets, Europe offers textbook pullback opportunities, with indices like the STOXX 600 and DAX (below) testing 200-day moving averages. Japan, too, exhibits a pullback opportunity, though much shallower in depth (a sign of strength).Now pan to emerging markets and you’ll find where leadership is concentrated, where the MSCI EM Index is breaking out to all-time highs, and where its relative strength trend is bottoming versus the U.S. and international markets.In short, the technical environment remains bullish, and so does our outlook.

In developed markets, Europe offers textbook pullback opportunities, with indices like the STOXX 600 and DAX (below) testing 200-day moving averages. Japan, too, exhibits a pullback opportunity, though much shallower in depth (a sign of strength).Now pan to emerging markets and you’ll find where leadership is concentrated, where the MSCI EM Index is breaking out to all-time highs, and where its relative strength trend is bottoming versus the U.S. and international markets.In short, the technical environment remains bullish, and so does our outlook.

EM Continues to Escort Int'l Markets Higher

• Pullback opportunities are prevalent in Europe and Japan. Both markets are testing key support levels, presenting attractive entry points. We see little reason to abandon our bullish outlooks for both markets... see page 2• Overweight Materials Sector. We highlight actionable names within the materials sector as global miners continue to emerge from base patterns, most of which still yield attractive entry points, including Vale (VALE) and Rio Tinto (RIO-GB)... see pages 3-5• Opportunities in China. This week we highlight attractive set-ups in China.  Highlighted charts range from Baidu (BIDU) and Bank of China (3988-HK) to Fosun (656-HK) and China Southern Airlines (1055-HK)... see pages 6-8

• Pullback opportunities are prevalent in Europe and Japan. Both markets are testing key support levels, presenting attractive entry points. We see little reason to abandon our bullish outlooks for both markets... see page 2• Overweight Materials Sector. We highlight actionable names within the materials sector as global miners continue to emerge from base patterns, most of which still yield attractive entry points, including Vale (VALE) and Rio Tinto (RIO-GB)... see pages 3-5• Opportunities in China. This week we highlight attractive set-ups in China.  Highlighted charts range from Baidu (BIDU) and Bank of China (3988-HK) to Fosun (656-HK) and China Southern Airlines (1055-HK)... see pages 6-8

EM Is Cementing Its Leadership Status; Buy Miners

In the attached strategy document we expand upon themes and opportunities in materials, technology and financials as well as an overview of opportunities in EM, Europe, and Japan.Emerging Markets: Breaking out to all-time highs, EM is unfolding as global leadership. Take advantage of pullbacks.Europe: Two words: pullback opportunity. For the past three months, Europe peeled back from the global advance, as prices diverged from bullish headlines. We view this as a welcomed event. Long-term technicals do confirm the improving headlines, but timing matters. And the STOXX 600’s test of the 200-day MA represents a timely entry point.  Just note, Europe is not a relative leader. That status belongs to EM (above).Japan: Japan represents an overlooked opportunity. With EM leading, and Europe crowding headlines, Japan is steadily emerging from a two-year base pattern, setting the stage for another leg higher

In the attached strategy document we expand upon themes and opportunities in materials, technology and financials as well as an overview of opportunities in EM, Europe, and Japan.Emerging Markets: Breaking out to all-time highs, EM is unfolding as global leadership. Take advantage of pullbacks.Europe: Two words: pullback opportunity. For the past three months, Europe peeled back from the global advance, as prices diverged from bullish headlines. We view this as a welcomed event. Long-term technicals do confirm the improving headlines, but timing matters. And the STOXX 600’s test of the 200-day MA represents a timely entry point.  Just note, Europe is not a relative leader. That status belongs to EM (above).Japan: Japan represents an overlooked opportunity. With EM leading, and Europe crowding headlines, Japan is steadily emerging from a two-year base pattern, setting the stage for another leg higher

Global Equity Strategy: Overweight EM, Pullback Opportunities in Europe, Japan Poised to Breakout

China

The MSCI Em (Emerging Markets) Index is a free-float weighted equity index that captures large and mid cap representation across Emerging Markets (EM) countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country.

MSCI Emerging Markets Index (MXEF INDEX)

BRIC Markets Lead EM Higher

BRIC markets are outperforming broad EM. The BRIC/EM ratio is rounding to two year highs. All four member countries are attractive for separate...

Vermilion Research

EM Relative Strength Screen & Chart Book

Our Emerging Market Screen & Chart Book helps pinpoint leading stocks, weeding out lagging and stagnating trends. This is performed through a...

Vermilion Research

EM Continues to Escort Int'l Markets Higher

In developed markets, Europe offers textbook pullback opportunities, with indices like the STOXX 600 and DAX (below) testing 200-day moving...

Vermilion Research

EM Is Cementing Its Leadership Status; Buy Miners

• Pullback opportunities are prevalent in Europe and Japan. Both markets are testing key support levels,presenting attractive entry points. We see...

Vermilion Research

Global Equity Strategy: Overweight EM, Pullback Opportunities in Europe, Japan Poised to Breakout

In the attached strategy document we expand upon themes and opportunities in materials, technology and financials as well as an overview of...

Vermilion Research