Vermilion ETF Pathfinder: Actionable ETF research & Ideas
Upgrading Industrials; Overweight Small-CapsThe S&P 500 has continued to trickle higher along with positive expectations surrounding trade and Fed policy. 2,817 is the current resistance level we are watching on the S&P 500. Considering the market's melt-up, we believe potential exists for a “sell the news†event once a deal on trade is announced. At the same time, we continue to believe the market is going through a bottoming process and that a “buy the dip†mentality remains warranted.
• Upgrading Industrials (XLI): RS is bottoming for the XLI due in large part to strength in Aerospace & Defense (ITA, XAR). As a result, we are upgrading Industrials (XLI) to market weight... see page 5. However a consistent theme that applies to all sectors, due to the overbought nature of the market, is to be selective in new purchases so as to avoid stocks that are extended.
• Big picture trends: We are upgrading small-caps (IWM, IJR) to overweight -- add exposure on pullbacks... see chart below. Remain overweight growth (VUG) over value (VTV). We also update our views on the USD (UUP) and take a long-term look at gold (GLD, IAU)... see page 2.
• Actionable Industry ETFs: XME, SIL, XHB, and KBE... see page 9.
• EM and Int'l: The EM (EEM, VWO) bottoming process continues, but RS has deteriorated recently. Remain underweight developed int'l (EFA, VEA)... see page 10.
• Actionable int'l ETFs: MCHI, ECH, EPU, TUR, EWY, EWL, HEDJ, and EPP... see pages 11-12.
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.