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WHAT WE OFFER

A synopsis page with the important points. Time sometimes really IS of the essence.

A second, more detailed page showing the chart with indicators, important trendlines and a more in-depth analysis. The proprietary Tension Indicator is also included, showing the underlying trend, and current trading strategy with a trailing stop.

Reports are updated weekly – trendlines are refreshed and, when necessary, stops are adjusted.

Additionally, if markets have moved sharply, an inter-week update is posted, highlighting new levels and pointing out any significant changes.

Whether you are looking for pure research, trade ideas, or a mixture of both, our weekly reports provide what you need to either complement your own ideas, or offer a new perspective.

HOW WE DO IT

We use tried and tested indicators to help identify trends and turning points.

Classical analysis techniques highlight ‘decision levels,’ and the proprietary Tension Indicator provides entry/exit levels, alongside a trailing stop.

Used together, they provide direction, levels of interest and a trading strategy.

WHO WE ARE

XATS is an independent research company providing Trend Following analysis and trading ideas.

We adopt a ‘long/short’ approach to the markets. Whilst some institutions are ‘long only’, meaning they only make ‘buy’ recommendations – even in falling markets – XATS makes both ‘buy’ and ‘sell’ recommendations. This means we can catch trending markets, regardless of their direction.

With each recommendation, we provide a stop loss. This is a level where we advise to close the position in the event the market moves against us. However, when the market is moving in favour of the trade, we change the stop accordingly. This dynamic approach helps to lock-in profits, and also reduces risk as the trend matures.

Cross Asset and Relative Monthly US Sectors (Apr ’17) – Financials Under Pressure

We have updated our monthly publication – US Sectors Relative to S&P500.

It is an overview of the major US sectors, and covers, amongst others, Consumer Discretionary, Consumer Staples, Energy, Healthcare, Technology and Financials.

Within several ratings changes, we have Downgraded Financials to Underweight.
On an absolute basis, the US Financials Sector is showing signs of exhaustion. Prices are correcting back from the March highs, just shy of 550, with focus now on the 486/487 break level from November/December. Falling momentum studies suggest risk of a break beneath here, with subsequent focus then turning to congestion around 450.

Relative to the US S&P500 Index, price action is also looking vulnerable.
In the coming months, we see further Underperformance as institutional investors reduce exposure.

Individual names which are currently under pressure include Bank of America Corp (BAC), Citigroup Inc (C), Goldman Sachs Group (GS), JP Morgan & Chase Co (JPM), Morgan Stanley (MS) and Wells Fargo (WFC).
However, several names are managing to hold on to their relative strength. Investors who are maintaining a Financials portfolio are currently seeing safety in for example, American Express Co (AXP), BlackRock (BLK), Berkshire Hathaway (BRK), Moody’s Corp (MCO) and Prudential Financial (PRU).

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