Vermilion Research - Invesco SP 500 Equal Weight Health Care ETF (RSPH) ... Vermilion ETF Pathfinder: Actionable ETF research Ideas

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Vermilion Research

Dave Nicoski ...

Ross LaDuke

EUR 47.40 For Business Accounts Only

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

More Upside Expected; Upgrading Health Care

Since early November 2023 we have laid out our bullish expectations for a year-end rally that we discussed would continue into the early part of 2024. Here we are in the early part of 2024, and we see every reason to continue riding this bull market higher.

Bullish Outlook Intact. The S&P 500, Nasdaq 100, and DJI are breaking out to new all-time highs, while the small-cap Russell 2000 (IWM), mid-cap S&P 400 (IJH), Vanguard Extended Market ETF (VXF), and countless other Sectors/industries are breaking out from 3-week bullish falling wedge/flag patterns. High yield spreads are near 2-year narrows, defensive Sectors including Staples (XLP) and Utilities (XLU) are hitting 20+ year RS lows, breadth remains healthy, the U.S. dollar (DXY) is below $106, and the 10-year Treasury yield is below 4.35%. These are all risk-on signals that continue to support our bullish outlook... see chart below.
Upgrading Health Care. We are upgrading equal-weighted Health Care (RSPH) to market weight... see page 6.

29/01/2024 1 EN

Underlyings

Invesco S&P 500 Equal Weight Health Care ETF

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Select Sector SPDR-Energy

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US81369Y5069 NYSE Arca United States

Select Sector SPDR-Financial

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US81369Y6059 NYSE Arca United States

Select Sector SPDR-Utilities

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US81369Y8865 NYSE Arca United States

Provider

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.

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Analysts

Dave Nicoski

Ross LaDuke

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Buy the Pullback Our outlook remains bullish following the S&P 500's multi-month base breakout above 5670, alongside constructive market dynamics; the path of least resistance is higher. We have discussed for the past two weeks (since our 10/22/24 Compass) how we would treat any pre-election pullback as a buying opportunity, and we are finally getting a pullback. We expect to see support on the SPX at 5600-5670, and we will remain bullish as long as 5600 support holds. Once past the election, starting as early as today or tomorrow, we believe there will be a strong end-of-year rally that will...

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Vermilion ETF Pathfinder: Actionable ETF research & Ideas

Int'l Macro Vision: Sector Synopsis

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

Vermilion ETF Pathfinder: Actionable ETF research & Ideas

Vermilion Compass: Weekly Equity Strategy

Int'l Macro Vision: Sector Synopsis

Vermilion Compass: Weekly Equity Strategy

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