Vermilion ETF Pathfinder: Actionable ETF research & Ideas
Commodity & Defensive Sectors Remain LeadershipMuch of the recent strength in the S&P 500 and Nasdaq 100 (QQQ) has been driven by a select few mega-cap growth names, while the Russell 2000 (IWM) and Russel Micro Caps (IWC) have not been able to reclaim important $209 and $134 resistance levels, respectively. This bifurcation between mega- and small/micro-caps can continue, but it is not the type of breadth that supports a sustainable new bull market. However, there continues to be several attractive pockets and we recommend sticking with the commodity and defensive Sectors.
Key Resistance Levels. We believe there is a high likelihood that the lows for this correction have already been established, but we are watching several indexes that remain below important resistance levels. This includes: 4600 on the S&P 500, $110 on the equal-weighted Nasdaq 100 (QQEW), $507 on the SOX index (SOXX), $209 on the Russell 2000 (IWM), the downtrend/$111 on the S&P Small-Cap 600 (IJR), and the downtrend/$73 on regional banks (KRE). As long as below these resistances, we are neutral at best... see charts below and page 2.
Actionable Industry ETFs: XES, GDX, SLX, and COPX... see page 9.
EM and International Markets. The MSCI EM index (EEM) remains bearish as it is stuck below $46.50 resistance. Developed int'l (EFA) also remains below major $75 resistance. Any bottoming process is likely to take weeks/months... see page 10.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.