Report
Dave Nicoski ...
  • Ross LaDuke
EUR 46.40 For Business Accounts Only

Int'l Insights: Bullish Stocks

US Dollar Weakness Remains A Tailwind For EM



The MSCI EM index (local currency) remains constructive as it consolidates below the all-time highs set in January 2018 near 65,700; as long as the index is above 60,000 we are constructive from a price perspective. Additionally, the MSCI EM vs. EAFE ratio is breaking out to multi-year highs -- remain overweight EM relative to EAFE. We continue to attribute much of this outperformance to the downtrend in the US dollar (DXY). As long as the DXY downtrend is intact we believe EM's outperformance is likely to continue... see chart below.



Below we highlight attractive and actionable themes within EM:



· EM Countries. China (MSCI China) continues to offer many attractive setups and accounts for the vast majority of today's recommendations. Taiwan (TAIEX) continues to be worthy of an overweight within the EM universe, while Brazil (Bovespa) and India (SENSEX) display improving price and RS trends -- add exposure. ... see page 2.

· EM Sectors. Our Sector overweights remain unchanged; MSCI EM Technology, Consumer Discretionary, and Materials all show bullish price and RS trends. Additionally, the Consumer Staples Sector in China (CSI 300 Consumer Staples) continues to be a bright spot -- remain overweight/add exposu
Underlying
Compeq Manufacturing Co. Ltd.

Compeq Manufacturing is engaged in the manufacture and sale of multi-layer printed circuit boards for computer use and product related services. Co.'s application of main products include: (i) computers: desk-top PC, laptop, work station, server and other computer peripherals; (ii) networking: hub, switch, router and other network equipments; (iii) telecommunication: mobile phone, base station and other telecom equipments; (iv) consumers related: LCD monitor, DSC, PDA, GPS and other consumer products; and (v) IC substrate: CPU, ASIC, MCU, system chipset, GPU and other IC packaging substrates.

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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