1. EU Oil Rich into Ukraine Summit
2. Room for US Mid-Cap Outperformance?
3. USDBRL - be patient
1. Small Cap rotation is hostageto inflation
2. Rate Volatility - the BlindSpot in Equity Risk
3. Rising Rate Vol - the AchillesHeel of IBB
1. EU Oil Rich into Ukraine Summit
Hopes have lifted for a Ukraine ceasefire given the impending meeting between Trump and Putin.Crude oil (both WTI & Brent) has fallen almost 10% into August on this prospect.
However, the European Oil & Gas heavyweights still screen rich relative to oil exposed companies on Qi’s valuation model, currently at +1.22 sigma – the upper end of its longterm FVG range. When the FVG elastic is stretched it warrants attention given its high correlation to spot prices.
Relative to otherEuropean sectors, SXEP (Energy) vs. SX8P (Technology) is the stand-out RVsector pair in term of extended Qi Fair Value Gap – at a multi-year highs of+2.7 sigma.
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