EUR 45.53 For Business Accounts Only

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

Downgrading Consumer Staples To Underweight

Market dynamics remain largely bullish and we continue to see signs of improving risk appetites. As a result, we are on the verge of shifting to an outright bullish stance.

S&P 500. The S&P 500 remains bullish as it breaks to all-time highs. As long as 4164-4168 support holds, our target of 4320 remains in play. Should 4164 fail to hold, our next key support level would be in the 4056-4100 range; we are constructive as long as 4056 holds.
Small- & Micro-Caps. We are monitoring for breakouts from the Russell 2000 (IWM) and Russell Micro-Caps (IWC), above $234.50 and $159, in order to shift to an outright bullish stance. Ultimately, we expect breakouts to happen, but until it does, we expect more chop and mixed markets ahead. On the other hand, a break below $211.50 on the IWM would be problematic for the broad market. Additionally, RS on the IWM and IWC are building bullish bases, another sign of improving risk appetites... see page 2.
High Yield Spreads, Defensive Areas. High yield spreads are not widening or making bullish inflections, and defensive areas including Staples, Utilities, and Gold are breaking to new 2021 RS lows. These are very bullish signals for the broad market... see chart below and pages 2 and 7-8.
Actionable Industry ETFs: ARKW, SOCL, TAN, and XBI... see page 9.
EM and International Markets. Developed int'l (EFA) has pulled back to uptrend support and emerging markets (EEM) are building a bullish base... see page 10.
Actionable International ETFs: EWC, EWN, NORW, EIRL, RSX, EWW, EPOL, and VNM... see pages 11-12.