Vermilion Int'l Compass: Global Equity Strategy
Major Breakouts For WTI and Brent Crude Oil -- BuyBelow we highlight several positive developments that have occurred since last week's Int'l Compass report, all of which continue to support our overall constructive outlook.
New Positive Developments Support Our Constructive Outlook. Last week we noted Europe's STOXX 500 was on the cusp of a breakout above 4040; we got the breakout. WTI and Brent crude oil also broke above key multi-year resistance at $67 and $70, respectively. The MSCI ACWI, ACWI ex-US, and EAFE indexes each hit new all-time highs and remain in uptrends. The MSCI Emerging Markets index (EEM-US) bullishly inflected above short-term resistance at $55.35 and RS is reversing the downtrend. These are all bullish signals for global equities, and our constructive outlook remains appropriate.
Actionable Theme: Energy. While we have been overweight Energy since January 2021, WTI and Brent crude oil are just now breaking above major multi-year resistance. Energy remains one of our top overweight recommendations and we believe these long-term bullish inflections in crude oil set the stage for continued outperformance from the Energy Sector -- add exposure/remain overweight... see page 2 and 4-8.
Actionable Theme: Manufacturing & Motor Vehicles/Auto Parts. The global Manufacturing Sector and motor vehicles/auto parts continue to benefit from the reopening theme. Europe continues to warrant an overweight to these areas, and we also see many attractive setups within Japan, China, and India... see page 3 and 9-14.
Canadian Natural Resources is an independent crude oil and natural gas exploration, development and production company. Co.'s exploration and production operations are focused in North America, largely in Western Canada; the U.K. portion of the North Sea; and CA'te d'Ivoire, Gabon, and South Africa in Offshore Africa. Co. had total proved reserves of 5.71 billion barrels of oil equivalent. Co.'s gross proved crude oil, bitumen (thermal oil), synthetic crude oil and natural gas liquids reserves totaled 4.70 billion barrels and its gross proved natural gas reserves totaled 6,106.00 billion cubic feet.
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.
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