Recent Articles in Thematic Research

Short Idea MPC - Target Price of 55.30.

For the purpose of generating long ideas in the financial sector outside of the U.S., we screened and ranked the 192 stocks in the iShares Global Financial ETF (IXG). In this list we find 67% of the stocks making a 1-month relative high vs. the IXG with 55% in a confirmed absolute uptrend and another 25% on the verge of confirming an uptrend. We are measuring an uptrend using a long-term smoothing, the 40-week moving average. When we look at these stocks relative to the IXG, we find 37% in a relative uptrend. For investors needing to have exposure in this sector, we offer a number of stocks with very favorable absolute and relative trends in place.

After ranking and screening the components of both the Financial Select Sector ETF (XLF) and the Regional Bank ETF (KRE), we present 24 long ideas that we like right here. Each chart has a long-term view and is measured relative to the S&P 500. A number of these stocks have recently broken above multi-month downtrends off the 2018 highs and a turn up in relative performance.

This report highlights long ideas where we screen for stocks where shorts have been active and adding to their positions.

The driver for the pair trade is the negative technical view of CBS. The stock is rolling over under an area of resistance. The chart of the pair and CBS is below.

The driver for the idea is the weak technical structure of COST which looks like a short.

We are finding a number of bullish stock ideas in various areas of the market, and in particular, the Biotech group.  Here we share three long ideas with different patterns that screen well on our work.