About Vermilion

Vermilion Technical Research, L.L.C. was founded in 2006 by Joseph Jasper and David Nicoski, and is based in Edina, Minnesota. Vermilion’s research team has a combined 70 year of experience in the analysis and management of investment securities.  

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators. Our research strategists seek to highlight securities which we believe are at major inflection points, based on various technical indicators, and offer asymmetric risk/return profiles. We believe our proprietary research methodology, which is not limited by industry sector or market capitalization, will enable the firm to deliver superior investment recommendations.

Our process begins by organizing more than 5,500 stocks into sectors, then into industry groups. We then apply technical analysis tools to identify developing price trends. Once attractive trends are identified within a selected group or groups, we screen for individual stocks which we believe offer the best risk/reward profile. We also acknowledge the fundamental factors which impact various sectors, groups or individual stocks. Finally, we provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis Explained

Technical analysis is the study of price and volume relationships as a means to gain insight into stock market and individual stock trends. The underlying premise of technical analysis is that investors’ perceptions toward a sector, group, or stock drive the supply and demand. A pattern of movement establishes a trend. Therefore, inflections or trend violations may occur and forecast changes in the direction of stock prices.

CFA Institute published report

In a study of more than 10,000 actively managed equity and balanced funds, including about one-third of which employ technical analysis, authors Smith, Faugère, and Wang compared the investment performance of funds that use technical analysis versus those that do not using five metrics. They found that funds using technical analysis provided a meaningful advantage to their investors. Click the following link to read the full report.


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