Report
Dave Nicoski ...
  • Ross LaDuke
EUR 46.42 For Business Accounts Only

Vermilion Compass: Weekly Equity Strategy

&P 500 Still Bullish, Holding Above Support
We continue to see a mixed market environment, but we remain constructive overall considering market dynamics remain largely positive. We explain our outlook below.
S&P 500. Despite some FOMC-induced volatility, the S&P 500 held firm above the 4168 short-term support level we noted last week (coinciding with the 50-day MA). 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... see chart below.
Small- & Micro-Caps. We were looking 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. Clearly this did not happen, meaning we expect more chop and mixed markets ahead. Still, the IWM continues to fill out a bullish ascending triangle pattern and RS is building a bullish base; the longer the base fills out, the more sustainable and powerful the eventual breakout. Only a break below $211.50 on the IWM would violate the bullish pattern... see page 3.
High Yield Spreads. High yield spreads are not widening or making bullish inflections. The importance of this cannot be understated as it tells us a major correction for stocks is not on the horizon. If it was, we would see spreads making bullish inflections prior to the correction in stock prices.
Relative Strength For Defensives At 2021 Lows. RS for Consumer Staples (XLP), Utilities (XLU), and Gold (GLD) is at their respective lows of 2021. This is a major risk-on signal and vote of confidence from the market.
Commodities, 10-Year Treasury Yield, US Dollar. The Bloomberg Commodity index (DJP), crude oil, and copper remain in uptrends; as long as there are no major support violations this is a risk-on signal for global equities (and Energy, Materials Sectors). The 10-year yield remains above key support at 1.45%, a level we would like to see hold. The US dollar (DXY) remains below 93-93.50... see page 4.
Underlyings
Alphatec Holdings Inc.

Alphatec Holdings is a holding company. Through its wholly owned subsidiaries, Alphatec Spine, Inc. and SafeOp Surgical, Inc., the company is a medical technology company that designs, develops, and markets technology for for the treatment of spinal disorders associated with disease and degeneration, congenital deformities, and trauma. The company's principal procedural offerings include a variety of Spine Approach Technologies?. The company's Spine Approach Technologies are comprised of intra-operative information and neuromonitoring technologies, access systems, interbody implants, fixation systems, and various biologics offerings.

AMN Healthcare Services Inc.

AMN Healthcare Services provides talent solutions for the healthcare sector. The company's talent solutions provides management, staffing, recruitment, technology, analytics, and related services to manage healthcare workforce needs. The company provides its healthcare personnel, from nurses, doctors, and allied health personnel to healthcare leaders and executives. The company's workforce solutions and staffing services include: travel nurse staffing; rapid response nurse staffing and labor disruption services; local, or per diem, staffing; locum tenens staffing; allied staffing; physician permanent placement services; interim leadership staffing and executive search services; and recruitment process outsourcing.

Apyx Medical

Apyx Medical is an energy technology company with products in the cosmetic and surgical markets. The company's segments are: Advanced Energy, which cosists of Renuvion? that provides plastic surgeons, facial plastic surgeons and cosmetic physicians an ability to provide controlled heat to the tissue, and the J-Plasma? system that allows surgeons to operate with precision, virtually eliminating unintended tissue trauma, which this technology is indicated for the cutting, coagulation and ablation of soft tissue; and Original Equipment Manufacturing, which designs, develops and manufactures electrosurgical equipment by producing generators and related accessories for medical device manufacturers.

AtriCure Inc.

AtriCure is a provider of treatments for atrial fibrillation and left atrial appendage management. The company provides product lines for left atrial appendage management and open and minimally invasive cardiac tissue ablation. The company's Radio Frequency Ablation devices include; CryoICE Cryoablation System, which is used in open ablation procedures and consists of the cryoICE Box generator along with a single-use disposable probe; EPi-Sense Guided Coagulation System with VisiTrax Technology, which utilizes monopolar energy for the coagulation of tissue; and LARIAT System, which is a suture-based solution for soft-tissue closure and is compatible with a range of anatomical shapes.

CAI International Inc.

CAI International is a transportation finance and logistics company. The company has three reportable segments: container leasing, rail leasing and logistics. The container leasing segment is engaged in ownership and leasing of containers under three main types of leases: long-term leases, short-term leases, and finance leases. The rail leasing segment is engaged in the ownership and leasing of railcars under three types of leases: full service leases, net operating leases and per diem leases. The logistics segment is engaged in the provision of logistics services including intermodal, truck brokerage, port drayage, warehousing, international ocean freight and freight forwarding, among others.

Cross Country Healthcare Inc.

Cross Country Healthcare provides healthcare staffing, recruiting and workforce solutions. The company's business consists of three business segments: Nurse and Allied Staffing, which provides staffing, recruiting, and workforce solutions including temporary and permanent placement of travel and local branch-based nurse and allied personnel; Physician Staffing, which provides physicians, certified registered nurse anesthetists, nurse practitioners and physician assistants under its Medical Doctor Associates brand; and Other Human Capital Management Services, which is comprised of retained and contingent search services for physicians, healthcare executives, and other healthcare personnel.

Fortress Transportation and Infrastructure Investors LLC

Intuitive Surgical Inc.

Intuitive Surgical develops, manufactures, and markets the da Vinci? Surgical System and the Ion? endoluminal system. The systems consist of a surgeon console or consoles, a patient-side cart, a vision system, and proprietary instruments and accessories. The company's technology is designed to provide surgeons with a range of motion analogous to the motions of a human wrist, while filtering out the tremors inherent in a surgeon's hands. The company's primary platform for robotic-assisted surgery is its family of da Vinci Surgical Systems. The da Vinci Surgical System allows surgeons to operate while seated at an ergonomic console viewing a three-dimensional image of the surgical field.

LeMaitre Vascular Inc.

LeMaitre Vascular is a provider of medical devices and human tissue cryopreservation services for the treatment of peripheral vascular disease. The company develops, manufactures, and markets vascular devices to address the needs of vascular surgeons. The company's portfolio of peripheral vascular devices consists of brand name products that are used in arteries and veins outside of the heart and includes the LeMaitre valvulotome, the XenoSure biologic patch, the Pruitt F3 carotid shunt, VascuTape radiopaque tape, and Syntel embolectomy catheters. The company's principal product offerings are sold throughout the world, primarily in the United States, Europe and Asia/Pacific Rim.

Misonix Inc.

Misonix designs, manufactures and markets minimally invasive therapeutic ultrasonic medical devices. These products include the BoneScalpel? surgical system, which is used for surgical procedures involving the cutting of bone while sparing soft tissue; the SonaStar? Surgical Aspirator, which is used to emulsify and remove soft and hard tumors, primarily in the neuro and general surgery field; and the SonicOne? Wound Cleansing and Debridement System, which provides tissue debridement and cleansing of wounds and burns for removal of devitalized tissue and fibrin deposits while sparing viable cells.

PAVMED INC

PAVmed is a medical device company engaged in developing a pipeline of medical technologies. The company's products pipeline include: CarpX?, which a minimally invasive device to treat carpal tunnel syndrome; EsoCheck? Technology, which is for detecting Barrett's Esophagus; PortIO?, which is an implantable intraosseous vascular access device; DisappEAR?, which are antimicrobial resorbable ear tubes; NextCath?, which is a self-anchoring short-term catheters; NextFlo?, which is an infusion systems with variable flow resistors; and Caldus?, which is a disposable tissue ablation devices, including for renal denervation, based on direct thermal ablation of the tissue using heated fluid.

STRYKER CORPORATION

Stryker is a medical technology company. The company provides products and services in orthopaedics, medical and surgical, and neurotechnology and spine. The company's Orthopaedics products consist of implants used in hip and knee joint replacements and trauma and extremities surgeries. The company's MedSurg products include surgical equipment and navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices and other medical device products used in a range of medical specialties. The company's Neurotechnology and Spine products include neurosurgical, neurovascular, and spinal implant devices.

Textainer Group Holdings Limited

Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Dave Nicoski

Ross LaDuke

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