U.S. Equity Strategy: Upgrading Utilities; Downgrading Manufacturing

U.S. Equity Strategy: Upgrading Utilities, Downgrading Manufacturing

S&P 500: A Dozen Reasons for Not Being Too Complacent Here

U. S. Equity Strategy: Internals Remain Weak

Managing Director, MTS Research

Peter Beuttell

Managing Director

MTS Research

MTS Research Limited is an independent investment research company specialising in technical analysis. 

MTS Research provides technical analysis services in the form of regular publications and consultancy advice, catering for a number of different investment approaches from absolute or relative returns to long-only and long/short.  The company has a global client base of blue-chip financial institutions ranging in size and stretching from Los Angeles to Tokyo, via New York, London, Frankfurt and Hong Kong.  

MTS was founded in 1989 at the request of Morgan Grenfell Investment Services Limited (MGIS), the ERISA arm of Morgan Grenfell Asset Management (subsequently Deutsche Asset Management), by Peter Beuttell, a Portfolio Manager at MGIS between 1987 and 1989. 

Peter is a qualified Chartered Accountant and self-taught market technician with over 30 years experience.  At MGIS, Peter managed money in European, Australasian and Far East markets for US clients, such as American Airlines and American Petrofina.  He achieved first quartile perfomance on their behalf by blending fundamental and technical analysis in his investment decision-making.  

After an initial focus on the EAFE markets (Europe, Australasia and Far East), the company has recently expanded its coverage to include the Americas, thanks to the recently-completed two-year Knowledge Transfer Partnership with the University of Plymouth.  The resulting software – the Technical Overlay Program (TOP) – allows fund managers to access an immediate Technical view on any market, sector, stock, bond yield, currency or commodity within their selected universe.

MTS Research consists of a team of five based in Penzance and London. 

Technical Analysis

We are pretty convinced that this year will see a major top in the US.  However, the February surge in NASDAQ 100 did not have the classic pattern of a final rally - it was more typical of a consolidation.  In the two charts below, we show how both bull and bear Elliott Triangles would finish off in the S&amp;P 500.  The Bear version assumes that the Triangle will separate two sharply declining bear market legs, the second of which could take as much as 470 points off SPX.The pattern does not have…

We are pretty convinced that this year will see a major top in the US.  However, the February surge in NASDAQ 100 did not have the classic pattern of a final rally - it was more typical of a consolidation.  In the two charts below, we show how both bull and bear Elliott Triangles would finish off in the S&amp;P 500.  The Bear version assumes that the Triangle will separate two sharply declining bear market legs, the second of which could take as much as 470 points off SPX.The pattern does not have…

S&P 500 INDEX

S&P 500: Topping or Pausing?