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

Defensives Still Leading; Deeper Pullback?; Downgrading Financials and Discretionary to Underweight

Shifting to Neutral Near-Term as Chop Continues; Market Dynamics Deteriorating: HY Spreads, DXY, Etc

Local Low in Place; Russell 2000 (IWM) Holds at $245; Semiconductors (SMH) Hold at $375

Chop Continues; Nasdaq 100 Breaking Above Major Resistance; Speculative Leaders Wobbling

Monitoring for a Pullback; Still Near-Term Bullish Above 6824 on SPX, $610 on QQQ, and $257 on IWM

Reason for Near-Term Caution? 10Y Treasury Yield Above 4.20%; Upgrading Energy and Staples

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical Analysis

<ul>
<li>We will stay near-term bullish as long as crucial support levels of 6780-6824 on SPX and $255-$257 on IWM continue to hold</li>
<li>We see deterioration in market dynamics, and while we still expect a period of consolidation/pullback, aforementioned support levels need to break to give us confidence that the pullback has begun.</li>
<li>We are upgrading Staples (XLP) to overweight, and we are downgrading Services to underweight</li>
</ul>


We will stay near-term bullish as long as crucial support levels of 6780-6824 on SPX and $255-$257 on IWM continue to hold
We see deterioration in market dynamics, and while we still expect a period of consolidation/pullback, aforementioned support levels need to break to give us confidence that the pullback has begun.
We are upgrading Staples (XLP) to overweight, and we are downgrading Services to underweight


Portland General Electric Company (POR US)

Public Service Enterprise Group Inc (PEG US)

Consumer Staples Select Sector SPDR Fund (XLP US)

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP (SBS US)

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP

Upgrading Staples to Overweight; Downgrading Services. Still Cautious; Market Dynamics Deteriorating

Costco Wholesale

Upgrading Staples to Overweight; Downgrading Services. Still Cautious; Market Dynamics Deteriorating