Report
Dave Nicoski ...
  • Ross LaDuke
EUR 220.73 For Business Accounts Only

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

Add Exposure to Small-Caps; Upgrading Health Care

Bullish price and RS inflections for small-caps (IWM) is the latest positive development underpinning our belief that we are in the early stages of a broad-based market advance.

• Small-Caps. The Russell 2000 (IWM) is decisively breaking topside $160 resistance and is making the long-awaited bullish RS reversal -- add exposure. Bullish price and RS inflections for small-caps helped ignite the broad market rally that began in early 2016, and we believe today's market is poised for a similar outcome... see chart below.

• Health Care. We are upgrading Health Care to overweight due to price breakouts and decisive RS bottoms for cap-weighted (XLV), equal-weighted (RYH) and small-cap Health Care (PSCH). Add exposure... see page 3.

• Late-Stage Cyclicals. Late-stage cyclicals are mixed, with Materials (XLB, SLX, XME) showing signs of bottoming while Energy (RYE, IEO) lags. Energy historically is among the last of the cyclical Sectors to participate in the rally, so we want to remain patient as we expect the Sector to eventually play catch-up... see page 2.

• Actionable Industry ETFs: TAN, IPAY, IGV, and XPH... see page 9.

• EM and Int'l: EM equities (EEM) have deteriorated from a RS perspective, a concerning development that has put a damper on sentiment... see page 10.

• Actionable Int'l ETFs: EWL, EIRL, DXGE, EWUS, ERUS, and KWEB... see pages 11-12.
Underlyings
BlackRock Institutional Trust Company N.A.

Invesco S&P 500 Equal Weight Consumer Discretionary ETF

Invesco S&P 500 Equal Weight Consumer Staples ETF

Invesco S&P 500 Equal Weight Energy ETF

Invesco S&P 500 Equal Weight Health Care ETF

Invesco S&P 500 Equal Weight Industrials ETF

Invesco S&P 500 Equal Weight Materials ETF

Invesco S&P SmallCap Health Care ETF

Invesco Solar ETF

iShares MSCI Emerging Markets ETF

iShares MSCI Ireland Capped ET

iShares MSCI Switzerland Cappe

iShares MSCI United Kingdom Small Cap Index Fund

iShares North American Tech-Software ETF

iShares Russell 2000 Index Fund

iShares U.S. Oil & Gas Explora

KraneShares CSI China Internet Fund

Market Vectors Steel Index Fund

Materials Select Sector SPDR Fund

PureFunds ISE Mobile Payments ETF

REAL ESTATE SPDR

Select Sector SPDR-Consumer Discretionary

Select Sector SPDR-Consumer Staples

Select Sector SPDR-Energy

Select Sector SPDR-Financial

Select Sector SPDR-Health Care

Select Sector SPDR-Industrial

Select Sector SPDR-Technology

Select Sector SPDR-Utilities

SPDR S&P Metals & Mining ETF

SPDR S&P Pharmaceuticals ETF

The Communication Services Select Sector SPDR Fund

WisdomTree Germany Hedged Equity Fund

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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