The Wedbush Monthly Check-Up: August 2021

Wedbush Morning Call - Jul 01 2021 6:52AM

The Wedbush Monthly Check-Up: July 2021

Vermilion Int'l Compass: Global Equity Strategy

Pullback Underway A pullback in global equities is underway following steep uptrend violations on the MSCI ACWI (ACWI-US) and EURO STOXX 50. These two indexes are already 4-5% off their highs, so further downside may be limited. Several 5%-10% pullbacks are to be expected in any given year -- particularly after the historic 5-month rallies -- so we view this as healthy and normal within the ongoing bull market. ACWI-US is currently testing important support at $105; if this area were to break, next major supports are $102 and $99. A pullback to $102 would be 7-8% off the highs, while a test o...

Vermilion Compass: Weekly Equity Strategy

The Pullback Finally Begins; Testing 2-Month Supports We have discussed for months that we will need to see the S&P 500 and Nasdaq 100 (QQQ) close below their 20-day MAs/21-day EMAs for more than 2-3 consecutive days in order to get more cautious. While this has not happened yet (only two consecutive days so far, yesterday and Friday), it does appear to be going in that direction as the U.S. dollar (DXY) climbs to test major $106 resistance, and amid 10- and 30-year Treasury yields breaking above long-term resistances. Caution is warranted. Still, in order for there to be a meaningful pullbac...

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

Market Dynamics Shifting? We have discussed for months that we will need to see the S&P 500 and Nasdaq 100 (QQQ) close below their 20-day MAs/21-day EMAs for more than 2-3 consecutive days in order to get more cautious. While this has not happened yet, it does appear to be going in that direction as the U.S. dollar (DXY) climbs to test major $106 resistance, and amid 10- and 30-year Treasury yields breaking above long-term resistances. Still, in order for there to be a meaningful pullback, important 2-month supports would need to break, including at 4983-5050 on the S&P 500 and $425-$433 on Q...