Report
Dave Nicoski ...
  • Ross LaDuke
EUR 47.40 For Business Accounts Only

Vermilion Int'l Compass: Global Equity Strategy

Global Equities Flirting With A Breakout

Major support levels we pointed to in last Thursday's Int'l Compass held strong, leading to a strong bounce so far this week. The MSCI ACWI, ACWI ex-US, EAFE, and EM indexes have had such a strong bounce that the concern of lower highs has been removed. If fact, several indexes and countries are showing signs of breaking out (MSCI ACWI, MSCI EM, and Japan to name a few). No matter how you look at it this is a positive sign, however we need to see these levels hold in order to have confidence in a breakout; otherwise, it would put us right back into a horizontal consolidation. We are also seeing significant improvement in the Consumer Discretionary and Materials Sectors. Considering we are beginning to see new price highs in major indexes along with a rotation into cyclical Sectors, the case for a confirmed breakout is building.

· Broad Global Indexes Flirting With A Breakout. The MSCI ACWI and EM indexes are both above key resistance levels we have highlighted in recent weeks. We view this as a positive, however we would not yet consider them “decisive” breakouts. We would like to see these levels hold for a few days and for the MSCI ACWI ex-US and EAFE indexes to also make new multi-month closing highs -- something that has not yet happened... see charts below and page 2.

· Country Overviews. Many indexes are beginning to break above resistance, an encouraging sign for the broad market. The question is whether other indexes will follow in breaking out, or if those that are hitting new highs end up being false breakouts. Countries breaking above resistance include Japan (TOPIX, Nikkei 225, TOPIX Small Caps), China (MSCI China), Australia (ASX All Ordinaries), Korea (KOSPI), Russia (RTS), and Thailand (SET). Notable indexes that are still below resistance include Europe's EURO STOXX 50 and STOXX 600 along with Hong Kong's Hang Seng...
Underlyings
ANTA Sports Products Ltd.

ANTA Sports Products is principally engaged in the manufacturing, trading and distribution of sporting goods, including footwear, apparel and accessories, in the People's Republic of China. As of Dec 31 2014, there were 7,662 ANTA Stores, 1,228 Kids sportswear series stores and 519 FILA stores in China, Hong Kong and Macao.

China Minmetals Rare Earth (A)

China Minmetals Rare Earth is engaged in the manufacture and sale of aluminum ingots, aluminum products, oxidized alumina powder, non-ferrous metal, fluoride salt and carbon products; and manufacture, installation and maintenance of mechanical and electrical equipment. Through its subsidiaries, Co. is also engaged in welding steel pipe rolling, cold-bending steel pipe products manufacturing, and aluminum products processing; manufacture, processing and sales of aluminum foil for electrolytic capacitor, special electronic foil and general-purpose aluminum sheets; and sales of metal materials, mineral products, and mechanical and electrical equipment.

CyberAgent Inc.

CyberAgent is an information technology company. Media segment is engaged in the operation of internet TV station "AbemaTV," free live streaming programs without subscription "FRESH!," blog service "Ameba," matching services "Tapple" and music streaming service "AWA." Game segment offers a variety of games for smartphones such as "GRANBLUE FANTASY." Internet Advertisement segment is engaged in the provision of internet advertising agency services. Investment Development is engaged in the corporate venture capital business, as well as the establishment and operation of investment fund. Others segment is engaged in the operation of smartphone media.

DCM Holdings Co. Ltd.

DCM Holdings is a holding company engaged in the operation of home improvement stores. Co. operates home improvement stores under the names of "DCM Kahma," "DCM DAIKI," "DCM Homac," "DCM Sanwa" and "DCM Kuroganeya." Co.'s stores sell home improvement products including hardware, tools, flooring materials, paint and building supplies; gardening and landscaping supplies and materials, outdoor power equipment, plants and flowers; home leisure products including car care products, exercise equipment, bicycles and outdoor activity equipment; pet products; household products; home furnishing products; and home electrical appliances. As of Feb 28 2017, Co. operates 656 stores throughout Japan.

Delivery Hero SE

Delivery Hero SE is a Germany-based company, which is primarily engaged in the food industry. The Company operates as a provider of online food delivery services from restaurants and cafes. The Company offers pizza, burger, organic food, vegan cuisine, and Asian dishes, among others. Its portfolio of brands comprises Foodpanda, Lieferheld, Foodora, PedidosYa, Clickdelivery, Talabat, Yemeksepeti, Donesi, Pauza, Hungerstation, Hellofood, Otlob and others. The Company operates globally, on the territory of more than 40 countries, comprising Europe, the Middle East, North Africa, Asia, and the Americas. The Company's services are available through Web version and mobile application.

Eaton Vance New York Municipal Bond Fund

EMS-CHEMIE HOLDING AG

EMS-Chemie Holding is a holding company. Through its subsidiaries, Co. engages in the engineering, production and marketing of polymers, fine chemicals and chemical intermediates. Co. also builds industrial plants for chemical processing, develops products for military and civil applications, and operates electric power stations.

First Mexican Gold

First Mexican Gold is engaged in the identification and evaluation of assets or a business and once identified or evaluated, to negotiate an acquisition of or participation in a business subject to receipt of shareholder approval, if required, and acceptance by regulatory authorities.

Fortescue Metals Group Ltd

Fortescue Metals Group is an iron ore producer. As of June 30 2016, Co.'s operations had four mine sites in the Pilbara. The Chichester Hub, which includes the Cloudbreak and Christmas Creek mines, is located in the Chichester Ranges and the Solomon Hub, in the Hamersley Ranges, includes the Firetail and Kings Valley mines. Co. owns and operates an integrated supply chain including its Herb Elliott Port in Port Hedland and a heavy haul railway with over 620km of track. As of June 30 2016, Co.'s total hematite ore proved and probable reserves were 2.17 billion tonnes. Also, as of June 30 2016, Co.'s total magnetite ore proved and probable reserves were 705.0 million tonnes.

Fresnillo PLC

Fresnillo is a holding company, engaged in the mining and beneficiation of non-ferrous minerals, and the sale of related production. At Dec 31 2016, Co. had six reportable operating segments: the Fresnillo mine, an underground silver mine; the Saucito mine, an underground silver mine; the CiA(c)nega mine, an underground gold mine; including the San RamA3n satellite mine; the Herradura mine, a surface gold mine; the Soledad-Dipolos mine, a surface gold mine; and the Noche Buena mine, a surface gold mine. In addition, Co. has two development projects, which comprised of: Pyrites Plant, a Leaching plant; and San Julian (phase II), an underground mine, flotation plant and a dynamic leaching plant.

Fuso Chemical Co. Ltd.

Fuso Chemical is engaged in the manufacture and sale of organic acids, functional chemicals and electronic materials. Life Science segment is engaged in the manufacture and sale of fruit acids including malic acid, citric acid and gluconic acid for juice, other drinks and food products, maleic anhydride, L-tartaric acid, lactic acid, acid derivatives, ascorbic acid and amino acid. Electronic Materials & Functional Chemicals segment is engaged in the manufacture of electronic materials including ultra high purity colloidal silica and high purity organo silica sol, as well as functional chemicals including alkylation products, esterification products, nitrobenzoic acid and oxidation products.

Galaxy Entertainment Group Limited

Galaxy Entertainment is an investment holding company, engaged in operation in casino games of chance or games of other forms, as well as the provision of hospitality and related services in Macau. In addition, Co. manufactures, sells and distributes construction materials through its Construction Materials Division across Mainland China, Hong Kong and Macau. Co.'s segments include gaming and entertainment, and construction materials.

Galaxy Entertainment Group Ltd.

Giant Manufacturing Co. Ltd.

Giant Manufacturing is engaged in the manufacture, process and sale of bicycles, indoor fitness equipment, and equipment used for sport purposes; manufacture and sale of bicycle parts such as handgrips, wheel rims, frames, front forks, chains, braces, saddles, dynamos, steel balls, bells, and fly-wheels; manufacture and sale of diesel and steam engines, and alternating current generators; process, plate and paint metal products; process, manufacture and sale of spare-parts for automobiles, steamships, and airplanes; and sale of sports and leisure appliances and bicycle fittings.

Givaudan SA

Givaudan is engaged in the fragrance and flavour industry. Co. provides its products to global, regional and local food, beverage, consumer goods and fragrance companies. Co. has two principal divisions: Fragrance, which manufactures and sales fragrances into three global business units: Fine Fragrances, Consumer Products, and Fragrance & Cosmetic Ingredients; and Flavour, which manufactures and sales fragrances into four business units: Beverages, Dairy, Savoury and Sweet Goods. In addition, Co. has distribution network in more than 40 countries.

Gr. Sarantis S.A.

Co. is a consumer goods manufacturer and distributor engaged in operations in Greece. Co. produces consumer goods such as cosmetics, pharmaceuticals, households, pet products, car's accessories and apparel. Co. produces its own brand name of cosmetic products such as Prosar, Str8, BU99, Clochard, Carroten, Tokalon and others. Co.'s product portfolio also includes a range of international brands such as Estee Lauder, Clinique, Aramis, Donna Karen, Orlane, Montana Versace and others.

HOME PRODUCT CENTER PUBLIC COMPANY LIMITED

Home Product Center Public Company Limited is a Thailand-based company engaged in retail home improvement business under the name of HomePro. Its business activities include selling goods and providing services, relating to construction, addition, refurbishment, renovation, improvement of buildings, houses, and residential places through its shopping centers. The Company's products and services include bathroom and sanitary ware products, kitchen and home appliances, electrical equipment and lighting, bedding and household decorative goods, as well as installation and maintenance services. The Company also offers rental spaces for retail tenant stores in some of its branches. The Company's subsidiaries include Market Village Company Limited, Home Product Center (Malaysia) Sendirian Berhad, Mega Home Center Company Limited and DC Service Center Company Limited.

HomeServe plc

HomeServe provides home repair and improvement services under its brand, HomeServe. Co. has partnerships with global brands that are relevant to Co.'s home assistance and improvement products. Co.'s partnerships include utilities, heating manufacturers and specialist service providers. Co.'s home assistance products are underwritten by third party underwriters, independent of HomeServe. Co. provides water, heating and electrical-related home assistance and repair products. Co.'s segments are: the U.K.; North America, France, Spain; and New Markets. The New Markets segment comprises Co.'s business in Italy, investment in digital initiatives, together with international development.

IR Japan Holdings

IR Japan Holdings Ltd is engaged in the operation and management of subsidiaries and the provision of other related business. The Company's subsidiaries mainly provide consulting service, specialized in investor relations (IR) and shareholder relations (SR) services.

Japan Elevator Service Holdings

JAPAN ELEVATOR SERVICE HOLDINGS CO.,LTD. is a Japan-based company mainly engaged in the provision of the maintenance and inspection service for elevators and escalators, as well as the renewal service for elevators. The Company operates three kind of businesses. The maintenance and inspection business is involved in the provision of maintenance, inspection, replace and repair services for the engine performance and the operation safety of elevators and escalators. The renewal business is involved in the provision of a full range of main components' replacing service, the removal service of products already in the field, as well as the new setting service for elevators which are installed 20 years ago. The others business is involved in the sale of parts for elevator's maintenance.

KKR Income Opportunities Fund

KOMERI CO. LTD.

Komeri is mainly engaged in the operation of Do It Yourself ("DIY") stores. Co. operates specialty stores under the names of "Power" and "Home Center" carrying household goods, office and leisure goods; and "Hard & Green" carrying hardware, general materials, building materials, and gardening and agricultural goods. As of Mar 31 2017, Co. maintains total 1,182 stores. In addition, Co., through its subsidiaries, is engaged in the provision of delivery, information processing and credit card services; the sale of gasoline, liquefied petroleum ("LP") gas, kerosene, and related equipment; the operation of video rental and book stores; as well as the real estate leasing business in China.

Lockon

YRGLM Inc., formerly LOCKON CO.,LTD., is a Japan-based company mainly engaged in the digital marketing technology business. The Company operates in two business segments. The Marketing Platform segment is mainly engaged in the provision of marketing platform AD EBiS for advertising effectiveness measurement. The Commercial Distribution Platform segment is mainly engaged in the provision of open platform EC-CUBE for establishing electronic commerce (EC) sites.

Market Vectors Investment Grade Floating Rate ETF

Metsa Board Oyj Class B

Metsa Board is a European producer of folding boxboard and white fresh forest fibre linerboard and a market pulp supplier. Co. and its subsidiaries comprise a forest industry group, which operations are organized into two business segments: Cartonboard and Lineboard and Paper. The Cartonboard business area is a manufacturer of folding boxboards. The business area also provides packaging services in Asia. The Linerboard and Paper business area is a manufacturer of coated white fresh forest fibre linerboards and producer of uncoated fresh forest fibre linerboards. The Linerboard and Paper business area also manufactures uncoated fine papers mainly for office end-use as well as coated papers.

MMC Norilsk Nickel PJSC

MMC Norilsk Nickel PJSC is a global producer of nickel, palladium, platinum and copper. Co. also produces by-products, such as cobalt, chromium, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulfur. Co. is involved in prospecting, exploration, extraction, refining and metallurgical processing of minerals, as well as in production, marketing and sale of base and precious metals. Co.'s production facilities are located in five countries: Russia, Australia, Botswana, Finland, and South Africa. Co.'s production units are integrated and include: the Polar Division (the Taimyr Peninsula); and the Kola Mining and Metallurgical Company (Kola MMC or the Kola Peninsula).

Newcrest Mining Limited

Newcrest Mining is engaged in the exploration, mine development, mine operations and the sale of gold and gold/copper concentrate. As of June 30 2016, Co.'s reportable operating segments were: Cadia, Australia; Telfer, Australia; Lihir, Papua New Guinea (PNG); Gosowong, Indonesia; Hidden Valley Joint Venture (JV) (50% interest), PNG; Bonikro, COte d'Ivoire; and Exploration and Other, which mainly comprises projects in the exploration, evaluation and feasibility phase and includes Wafi-Golpu JV (50% interest) in PNG, Namosi JV (70.67% interest) in Fiji, O'Callaghans in Australia and Co.'s global greenfields exploration portfolio.

NIPPON PAINT HOLDINGS CO.LTD.

Nippon Paint Holdings is a holding company mainly engaged in the manufacture and sale of coating materials and fine chemical products. Along with its subsidiaries and associated companies, Co. is involved in the manufacture and sale of paint for automobile-, general- and industrial-uses, automobile refinish paint, anti-corrosion paint, concrete anti-corrosion paint, pre-coat paint for metal, and paint for vessel- and family-uses. Co. is also engaged in the manufacture and sale of surface treatment agent, display related materials, electronic materials and particulate materials. Co. has operations in Japan, Asia, Americas and Europe.

Pan American Silver Corp.

Pan American Silver is engaged in the production and sale of silver, gold and other base metals including copper, lead and zinc as well as other related activities, including exploration, extraction, processing, refining and reclamation. Co.'s primary product (silver) is produced in Peru, Mexico, Argentina and Bolivia. Additionally, Co. has project development activities in Peru, Mexico and Argentina, and exploration activities throughout South America and Mexico.

POSCO Chemical Co. Ltd.

POSCO CHEMICAL CO., LTD. is a company mainly engaged in the production and sale of quicklime and anode materials. Along with subsidiaries, the Company operates its business through two segments. The Lime Chemical segment is involved in the production and sale of quicklime, anode materials, chemical products. It is also involved in the commissioned operation of chemical plants. The Refractory Manufacturing and Maintenance segment is involved in the manufacturing and sale of refractories, as well as provision of maintenance services for industrial furnaces.

ProShares Short Basic Materials

Real Nutriceutical Group (P Chip)

Real Nutriceutical Group is an investment holding company. Through its subsidiaries, Co is engaged in the manufacture and sales of health and nutritional supplements and pharmaceutical products. Co.'s segments include health and nutritional supplements, health drinks, and pharmaceutical products. Co.'s health and nutritional supplements segment is engaged in the manufacture and sales of health and nutritional supplements. Co.'s health drinks segment is engaged in the manufacture and sales of health drinks. Co.'s pharmaceutical products segment is engaged in the manufacture and sales of pharmaceutical products.

Shimano Inc.

SHIMANO is engaged in the manufacture and sale of bicycle components, fishing tackle and rowing equipment. Co.'s operations are organized in three business segments. Bicycle Components segment offers driving parts, braking parts and other related products including shift transmissions, brakes, running gears, road racing wheels, shift levers, cranks, chains, pedals, road bikes, bicycles and shoes for mountain bikes. Fishing segment handles reels, rods, quills, fishing gears and other related accessories. Others segment is involved in the manufacture and sale of cold-forging parts for automobile-related companies and rowing-related products.

TBK
TBK

TBK is mainly engaged in the manufacture and sale of brakes and engine components for automobiles. Along with its subsidiaries, Co. operates automobile parts manufacturing business in Japan, Asia and North America. Co.'s principal automobile parts are brakes for small cars, trucks, buses, trailers, and industrial equipment, including drum brakes and disc brakes; engine components, including water pumps for engine cooling, oil pumps for engine lubrication, pumps for construction machine engines and other engine components; as well as retarders and other devices.

The Carlyle Group, Inc.

Topsports International Holdings Limited

Topsports International Holdings Ltd. TOPSPORTS INTERNATIONAL HOLDINGS LIMITED is an investment holding company principally engaged in sports retail and services. The Company mainly sells sports shoes and apparel products and leases commercial premises for joint sales to other retailers through its subsidiaries. The Company mainly conducts its business in the Chinese domestic market.

Uematsu Shokai Co. Ltd.

Uematsu Shokai is mainly engaged in the purchase and sale of machines, tools, industrial equipment and fixtures. Machines include metalwork machines, forge rolling machines, automatic programming and others. Tools include cutting tools, measuring tools and equipment, tooling construction equipment and others. Industrial equipment includes motors, hydraulic and pneumatic equipment, compressors, power saving and rationalization equipment, environmental improvement equipment and others. Power transmission equipment includes axle bearings, transmission equipment and others. Other products include steel products, office automation equipment, food-related equipment and others.

Workman Co. Ltd.

Workman is mainly engaged in the operation of specialty chain stores called "Workman" and the sale of clothing, work uniforms and work-related products. Co. mainly operates its business through franchised stores. Co. maintains total of 797 stores throughout Japan as of Mar 31 2017. Co.'s principal lines of products are inner ware, socks, hats, towel, apron, polo shirt, T-shirt, high neck shirt, work jumper, work pants, boiler suit, protective shoes, boot, safety shoes, thick cotton gloves, leather gloves, rain gear, and helmet, white coat for medical field and food industry, office uniform, and nursing clothes.

Zalando SE

Zalando is an e-commerce group based in Germany. Co. is engaged in the online retailing of clothing, shoes and accessories for women, men and children. Co.'s product offering include more than 1,500 brands, including global and local brands, as well as private labels, including shoes, clothing and accessores as well as sportswear and homeware designed especially for the Co. The Co.'s product offering is complimented by the Zalando Lounge and Zalon apps, which provides registered members special offers at discounted prices. Co. also provides a combination of services that include free delivery and returns.

Zhongsheng Group Holdings Ltd.

Zhongsheng Group Holdings is an investment holding company. Co. has dealership agreements to operate its 4S dealerships for a portfolio of automobile brands, consisting of luxury automobile brands, and mid-to-high end automobile brands. Through its one-stop automobile shop business structure, Co. provides a range of new automobiles and after-sales products and services in each of its 4S dealerships. Co.'s after-sales businesses provide spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services. As of Dec 31 2014, Co. had 191 automobile dealerships across the People's Republic of China.

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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