Report
Dave Nicoski ...
  • Ross LaDuke
EUR 46.20 For Business Accounts Only

Vermilion Compass: Weekly Equity Strategy

Downgrading Materials to Market Weight

We remain bearish as long as the YTD downtrends remain intact on the S&P 500 and Nasdaq 100 (QQQ), and as long as the 7.5-month downtrend remains intact on the Russell 2000 (IWM). There is potential for a bounce given the S&P 500, QQQ, and IWM are all at downtrend channel supports, but until we see reversals of the aforementioned downtrends, we view any rally as nothing more than another bear market bounce.

U.S. Dollar, 10-Yr Treasury Yield, and WTI Crude Oil. The continued rise of the U.S. dollar (DXY), 10-yr Treasury yield, and WTI crude oil is what we believe is fueling the bear market in equities. In order for the broad equity market to bottom, the dollar, yields, and crude oil will need to form tops and start moving lower. Until then, the major stock indexes will have trouble finding a reliable bottom. Specifically, we will need to see sustained breakdowns below $101.30 on the DXY, 2.70% on the 10-yr Treasury yield, and $92 on WTI crude oil
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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