Report
Dave Nicoski ...
  • Ross LaDuke
EUR 45.99 For Business Accounts Only

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

S&P 500 Testing Support Amid Uncertainties

Short-term support levels have been violated on the S&P 500, Nasdaq 100, and Russell 2000 due to uncertainties surrounding rising COVID-19 cases/potential stay-at-home orders, and ongoing uncertainty surrounding new stimulus and the election outcome. While we remain constructive over the intermediate-term, short-term breakdowns have shifted our near-term outlook to a more neutral stance.

· Key S&P 500 Levels. We believe caution is warranted following recent short-term breakdowns. Important support levels on the S&P 500 include 3200-3230 followed by 3130 which is also the 200-day MA. We are constructive as long as there is no decisive break below 3130. On the other hand, a break below 3130 would signal a bearish trend change... see chart below.

· Big Picture Trends. High yield spreads remain fairly benign. The 10-year Treasury yield shows signs of a potential bottom. The US dollar index (DXY) remains below 95 resistance. We view all of this as positive for equities. Additionally, the Russell 1000 value vs. growth ratio shows signs of bottoming... see page 2.

· Actionable Industry ETFs: XSD, KRE, IHI, and XHS... see page 9.

· EM and Int'l Markets: On one hand, EM (EEM) is hitting multi-month RS highs, a sign of strong risk appetites. On the other hand, developed int'l (EFA) is breaking below $61.50-$62 support -- a concerning development... see page 10.

· Actionable Int'l ETFs: EWT, MCHI, KWEB, EWY, EWJ, and ENZL..
Underlyings
International Hotel Investments PLC

ISHARES MSCI CHN

iShares MSCI Japan ETF

iShares MSCI New Zealand Cappe

iShares MSCI South Korea Capped Index Fund

iShares MSCI Taiwan ETF

KraneShares CSI China Internet Fund

SPDR KBW Regional Banking ETF

SPDR S&P Health Care Services Fund

SPDR S&P Semiconductor 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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