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

The S&amp;P 500 is consolidating under 2,954 - logical resistance - as market participants are in wait-and-see mode for incremental trade news ahead of the Trump/Xi G20 meeting later this week. While a breakout is certainly possible, we believe additional consolidation is the more likely scenario. In today's report we highlight a mix of positive and negative developments which lead us to this conclusion along with updates on other big picture trends. Also highlighted are attractive Groups and stocks within Materials, Health Care, and Utilities: Gold, Western Hemisphere, Cardiovascular Products, and Gas, Midwest.

The S&amp;P 500 is consolidating under 2,954 - logical resistance - as market participants are in wait-and-see mode for incremental trade news ahead of the Trump/Xi G20 meeting later this week. While a breakout is certainly possible, we believe additional consolidation is the more likely scenario. In today's report we highlight a mix of positive and negative developments which lead us to this conclusion along with updates on other big picture trends. Also highlighted are attractive Groups and stocks within Materials, Health Care, and Utilities: Gold, Western Hemisphere, Cardiovascular Products, and Gas, Midwest.

U.S. Dollar Breaking Down; Gold Breaking Out

Key support levels we have been monitoring (the 200-day MAs on the S&amp;P 500 and equal-weighted S&amp;P 500) have failed to hold, something we noted as increasingly likely in last week’s Compass. Despite the break below support, the move lower has been orderly but technical indications remain mixed. The weight of the evidence leads us to remain cautious. In today’s report we highlight attractive Groups and stocks within Materials and Financials: Large-Cap and Small-Cap Gold, and Large-Cap and Small-Cap Property &amp; Casualty Insurance.

Key support levels we have been monitoring (the 200-day MAs on the S&amp;P 500 and equal-weighted S&amp;P 500) have failed to hold, something we noted as increasingly likely in last week’s Compass. Despite the break below support, the move lower has been orderly but technical indications remain mixed. The weight of the evidence leads us to remain cautious. In today’s report we highlight attractive Groups and stocks within Materials and Financials: Large-Cap and Small-Cap Gold, and Large-Cap and Small-Cap Property &amp; Casualty Insurance.

U.S. Equity Strategy: Technical Indications Mixed; Outlook Remains Cautious

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Australia's ASIC releases the aggregated short position data four business days after the reporting day. Data in this insight is up to 25th May, published on the 29th May.</li>
<li>The largest industry net increase in the past week was A$486mn into "Diversified Banks"; the largest industry net decrease was A$239mn out of "Interactive Media". Net shorts increased A$0.8bn week-on-week.</li>
<li>Companies mentioned in this regular weekly report include: <a href="https://www.smartkarma.com/entities/pls-group-limited" target="_blank" data-smartkarma-citation="entities:7460:1" rel="noopener">PLS (PLS AU)</a>, <a href="https://www.smartkarma.com/entities/newmont-corp" target="_blank" data-smartkarma-citation="entities:40416:1" rel="noopener">Newmont (NEM AU)</a>, <a href="https://www.smartkarma.com/entities/suncorp-group-ltd" target="_blank" data-smartkarma-citation="entities:4218:1" rel="noopener">Suncorp (SUN AU)</a>, <a href="https://www.smartkarma.com/entities/transurban-group" target="_blank" data-smartkarma-citation="entities:593:1" rel="noopener">Transurban (TCL AU)</a>, <a href="https://www.smartkarma.com/entities/capstone-copper-corp-6eb66be6-7a3f-4b9c-9c73-dbc2c4df321f" target="_blank" data-smartkarma-citation="entities:44139:1" rel="noopener">Capstone Copper (CSC AU)</a>, <a href="https://www.smartkarma.com/entities/lendlease-group" target="_blank" data-smartkarma-citation="entities:11248:1" rel="noopener">Lendlease (LLC AU)</a>, <a href="https://www.smartkarma.com/entities/block-inc" target="_blank" data-smartkarma-citation="entities:35684:1" rel="noopener">Block (SQ2 AU)</a>.</li>
</ul>


Australia's ASIC releases the aggregated short position data four business days after the reporting day. Data in this insight is up to 25th May, published on the 29th May.
The largest industry net increase in the past week was A$486mn into "Diversified Banks"; the largest industry net decrease was A$239mn out of "Interactive Media". Net shorts increased A$0.8bn week-on-week.
Companies mentioned in this regular weekly report include: PLS (PLS AU), Newmont (NEM AU), Suncorp (SUN AU), Transurban (TCL AU), Capstone Copper (CSC AU), Lendlease (LLC AU), Block (SQ2 AU).


Aussie Shorts [25 May]: PLS, Newmont, Suncorp, Transurban, Capstone Copper, Lendlease, Block

Positive news surrounding trade and dovish Fed rhetoric has continued to flow, resulting in a reversal from December's oversold extremes to our current, overbought extremes according to the S&amp;P 500’s percentage of stocks above their 50-day moving average (see chart below). We continue to believe the market is going through a bottoming process, and we prefer to be on the cautious side at current levels considering how far and how quickly the market has risen. In today’s report we highlight attractive stocks within Materials and Technology: large- and small-cap gold, silver, platinum, and optical equipment companies.

Positive news surrounding trade and dovish Fed rhetoric has continued to flow, resulting in a reversal from December's oversold extremes to our current, overbought extremes according to the S&amp;P 500’s percentage of stocks above their 50-day moving average (see chart below). We continue to believe the market is going through a bottoming process, and we prefer to be on the cautious side at current levels considering how far and how quickly the market has risen. In today’s report we highlight attractive stocks within Materials and Technology: large- and small-cap gold, silver, platinum, and optical equipment companies.

U.S. Equity Strategy: Nearing Short-Term Overbought Extremes

MSCI Emerging Markets Index / Technical Analysis

Big-picture technicals offer a compelling outlook for equities -- in the long-run. Despite arguably stretched trends, especially in the U.S. and EM, one indicator in particular keeps us optimistic: monthly charts.  What is clear right now is: (1) Europe is on the doorstep of breaking above secular resistance; (2) Japan is breaking out above secular resistance; (3) and EM already has. Speaking of EM, we view this as the place to be, or overweight, in 2018. The EM/EAFE’s 20-year chart (below) reveals an in-progress trend reversal (which developed at a secular trendline) in favor of EM.In today’s report we review every global sector, highlighting actionable stocks within each.

Big-picture technicals offer a compelling outlook for equities -- in the long-run. Despite arguably stretched trends, especially in the U.S. and EM, one indicator in particular keeps us optimistic: monthly charts.  What is clear right now is: (1) Europe is on the doorstep of breaking above secular resistance; (2) Japan is breaking out above secular resistance; (3) and EM already has. Speaking of EM, we view this as the place to be, or overweight, in 2018. The EM/EAFE’s 20-year chart (below) reveals an in-progress trend reversal (which developed at a secular trendline) in favor of EM.In today’s report we review every global sector, highlighting actionable stocks within each.

United States

Newmont Mining Corporation acquires, explores, and develops mineral properties. The Company produces gold from operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Newmont also mines and processes copper in Indonesia.

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Newmont Mining (NEM US)

U.S. Dollar Breaking Down; Gold Breaking Out

The S&P 500 is consolidating under 2,954 - logical resistance - as market participants are in wait-and-see mode for incremental trade news...

Vermilion Research

U.S. Equity Strategy: Technical Indications Mixed; Outlook Remains Cautious

Key support levels we have been monitoring (the 200-day MAs on the S&P 500 and equal-weighted S&P 500) have failed to hold, something we...

Vermilion Research

Aussie Shorts [25 May]: PLS, Newmont, Suncorp, Transurban, Capstone Copper, Lendlease, Block

Companies mentioned in this regular weekly report include: PLS (PLS AU), Newmont (NEM AU), Suncorp (SUN AU), Transurban (TCL AU), Capstone Copper...

David Blennerhassett

U.S. Equity Strategy: Nearing Short-Term Overbought Extremes

Positive news surrounding trade and dovish Fed rhetoric has continued to flow, resulting in a reversal from December's oversold extremes to our...

Vermilion Research

Global Equity Strategy: Overweight EM

Big-picture technicals offer a compelling outlook for equities -- in the long-run. Despite arguably stretched trends, especially in the U.S. and...

Vermilion Research

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