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

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

Global indexes at major resistance

Despite the S&P 500 having crept into all-time high territory, several signals continue to give us reason for pause as they are not indicative of what we would expect to see in a typical bull market. Below we highlight some of these signals which give us reason for pause, including major global indexes (ACWI and IOO) which find themselves at critical resistance... see charts below.

• Reasons for pause: RS is neutral and consolidating for defensive bond proxy Sectors. Price trends are neutral at best for banks (KBE, KRE), transports (IYT), small-caps (IWM), WTI crude oil, and “Dr. Copper” (CPER). Cyclical vs. Staple ratios are consolidating. And small-caps continue to underperform relative to large-caps. These developments are not what we would expect to see in a typical bull market... see page 2.

• The U.S. dollar (DXY), precious metals. The potential DXY top remains in play and any whiff of DXY weakness, or a move lower in yields, has led to strength in gold (GLD, GDX, GDXJ) -- remain overweight. Silver (SLV, SIL) is also joining in on the precious metals rally -- add exposure... see page 3.

• Sector overweights. Technology (XLK): Services and Software (IGV, XSW) remain long-term leadership. Comm. Services (XLC): Several stocks within the media industry remain attractive... see page 4.

• Actionable Industry ETFs: TAN, IPAY, IHF, and SIL... see page 10.

• EM and Int'l: Price trends are consolidating for both developed (EFA) and EM (EEM) equities. Remain underweight EFA and market weight EEM... see page 11.

• Actionable Int'l ETFs: EWL, EWA, ENZL, and RSXJ... see page 12.
Underlyings
Global X Silver Miners ETF

Invesco S&P 500 Equal Weight Energy ETF

Invesco S&P 500 Equal Weight Financials ETF

Invesco S&P 500 Equal Weight Health Care ETF

Invesco S&P 500 Equal Weight Materials ETF

Invesco S&P 500 Equal Weight Technology ETF

Invesco Solar ETF

iShares Core Canadian Long Ter

iShares Global 100 ETF

iShares MSCI ACWI ETF

iShares MSCI Emerging Markets ETF

iShares MSCI New Zealand Cappe

iShares MSCI Switzerland Cappe

iShares Russell 2000 Index Fund

iShares silver trust

iShares Transportation Average

iShares Trust MSCI EAFE Index Fund

iShares U.S. Healthcare Provid

Market Vectors Junior Gold Miners ETF

Market Vectors Russia Small-Cap ETF

PureFunds ISE Mobile Payments ETF

REAL ESTATE SPDR

Select Sector SPDR-Consumer Discretionary

Select Sector SPDR-Consumer Staples

Select Sector SPDR-Financial

Select Sector SPDR-Industrial

Select Sector SPDR-Technology

Select Sector SPDR-Utilities

SPDR Gold Trust

SPDR KBW Bank ETF

SPDR KBW Regional Banking ETF

The Communication Services Select Sector SPDR Fund

United States Copper Index Fund

VanEck Vectors Gold Miners ETF

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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