We released our Weekly Global Laggards yesterday. Click here to access the report. Key points from it include: The
stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be under
weighted as they may be vulnerable to further downside risk and underperformance. European names highlighted this
week include JSR (JASR.JP; 4185:JP), Sgs (SGSN.CH; SGSN:SW), Bureau Veritas (BVI.FR; BVI:FP), Valeo (FR.FR;
FR:FP), Moncler (MONC.IT; MONC:IM), Electrolux B (SE@G.SE; ELUXB:SS), Davide Campari Milano (CPR.IT; CPR:IM),
EDP Renovaveis (EDPR.PT; EDPR:PL), HLundbeck (LUN.DK; LUN:DC), Electro components (ECM.GB; ECM:LN), and
Kuehne Und Nagel (KNIN.CH; KNIN:SW).
Author: admin
Leejam Sports Company
Leejam Sports Company (Leejam) is a Saudi Arabia-based operator of fitness
centers. The company owns Fitness Time, the largest sports and fitness club in the
Middle East. It currently has 139 fitness centers and is the market leader in Saudi
with 28% market share in terms of revenue in FY20. The company’s centers include traditional gyms, swimming pools,
tennis courts, football grounds, basketball courts, volleyball courts, golf courses, and business centers.
WON Europe Today
Yesterday,
- European markets closed higher, rebounding from Monday’s selloff. Investors braced themselves for the Federal Reserve’s monetary policy announcement in which an interest rate hike was expected for the first time since 2018. We maintain a cautious view on the overall market and recommend a patient approach to adding risk. Continue to focus on ideas showing strong relative strength while reducing exposure to lagging ideas.
- The Stoxx 600 gained 1.7% on above average volume and closed above its 200-DMA. It is currently trading 2.4% below its 50-DMA and 6% off highs. Most sectors closed in the green with Banks up 2.6% and Travel and Leisure closing 3.4% higher.
- Among major indices, Germany’s DAX is trading below its 200-DMA after breaching this level on Monday. France’s CAC is finding resistance along its 50-DMA, while the U.K.’s FTSE is taking support along its 50-DMA.
- Among the 17 indices we cover, all closed in the green with Norway gaining the most, up 2.8%. Six indices are in an Uptrend Under Pressure and the remaining eleven are in a Downtrend. The average distribution day count stands at 5.0.
- Actionable names in the Focus List include Compass Group (CPG.GB; CPG:LN), Jeronimo Martins (JMT.PT; JMT:PL), Beneteau (CHBE.FR; BEN:FP), Paragon Banking Group PLC (PAG.GB; PAG:LN), and Aker BP (AKEP.NO; AKRBP:NO).
Won Global View
The U.S. market has shifted to a Rally Attempt. The S&P 500 and Nasdaq have held above Monday’s lows (S&P 500: 4,222;
Nasdaq: 13,094) for three days. A follow-through day (+1.7% in volume above the prior day) above these lows will lead us to upgrade
the market back to a Confirmed Uptrend. Near-term resistance is at the 200-DMA (4,433) on the S&P 500 and the downward sloping
10-DMA (14,205) on the Nasdaq. Conversely, an undercut of Monday’s lows and the market status moves back to a Downtrend.
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq held Monday’s lows (S&P 500: 4,222; Nasdaq: 13,094), marking
two days off the recent bottom. We will shift the market status to a Rally Attempt should the lows hold again today and begin looking for a
follow-through day (+1.7% or more gain in higher day/day volume) tomorrow. If the lows are undercut, we will remain in a Downtrend.
WON Europe Today
Yesterday,
- European markets closed higher yesterday, recovering some gains from Monday’s selloff. Sectors that benefit from
rising rates led the rebound. Investors are wary of the upcoming Fed’s meeting, with expectations toward a rate
hike in March. We maintain a cautious view on the overall market and recommend remaining defensive and taking
a patient approach to adding risk. Continue to focus on ideas showing strong relative strength while reducing
exposure to lagging ideas. - The Stoxx 600 gained 0.7% on above average volume after breaching its 200-DMA on Monday. It is currently trading
1.6% below its 200-DMA and 7% off highs. Sectors were mixed with Banks up 2.8% and Technology closing 1.1%
lower. - Among major indices, Germany’s DAX is trading below its 200-DMA after breaching it on Monday, France’s CAC is
taking support along its 200-DMA and the U.K.’s FTSE is taking support along its 50-DMA. - Among the 17 indices we cover, most closed in the green with Finland gaining the most, up 1.1%. Norway and
Spain were downgraded to a Downtrend after the indices breached all its key moving averages. Six indices are in
an Uptrend Under Pressure and the remaining eleven in a Downtrend. The average distribution day count stands at
5.0. - Actionable names in the Focus List include Compass Group (CPG.GB; CPG:LN), Jeronimo Martins
(JMT.PT; JMP.PL), Beneteau (CHBE.FR; BEN:FP), and Paragon Banking Group PLC (PAG.GB; PAG:LN).
O’Neil Capital Equipment Sector Weekly
We removed Ashtead from the Developed Markets Focus List as the stock broke below its 200-DMA on above average volume. The company engages in the provision of
equipment rental services for construction and industrial sectors. The stock has been under pressure after the company reported Q2 FY22 results in December 2021. While the company raised its FY22 revenue growth guidance to 17–
20%, inflationary pressures have impacted margins which is a cause of concern. We would like to revisit the stock on technical improvement.
WON Europe Today
On Friday,
- European markets declined, wiping out gains made during the week. Markets had a volatile session amid
sentiments toward a tighter monetary policy. Investors monitored the impact of tighter monetary policy on ratesensitive sectors and also earnings results. We recommend a patient approach to adding risk. Continue to focus
on high quality ideas with an improving RS line, while reducing exposure to ideas breaking below their long-term
support levels. - The Stoxx 600 declined 1.8% on above average volume. It closed below its 50-DMA. It has immediate support at its
200-DMA (-1.6%) and is 4% off highs. Most sectors closed in the red, with Technology declining 2.1% and Health
Care closing 1.5% lower. - Among major indices, the U.K.’s FTSE closed below its 21-DMA, while France’s CAC is taking support at its 50-
DMA. Germany’s DAX breached its key moving averages. - Among the 17 indices we cover, five are in a Confirmed Uptrend, one in a Rally Attempt, two in a Downtrend, and
the remaining nine in an Uptrend Under Pressure. Italy, Finland, and Ireland were downgraded to an Uptrend Under
Pressure after the indices breached their respective 50-DMA. Germany was downgraded to a Downtrend after the
index breached all its key moving averages. The average distribution day count stands at 4.4. - Actionable names in the Focus List include Compass Group (CPG.GB; CPG:LN), Aker Bp (AKEP.NO;
AKRBP:NO), Airbus (AIRS.FR; AIR:FP), Beneteau (CHBE.FR; BEN:FP), Paragon Banking Group PLC (PAG.GB;
PAG:LN), and Richemont (CFR.CH; CFR:SW).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 closed below its 200-DMA with the next level of support at 4,278. The Nasdaq is
now trading ~15% off highs and ~6% below its 200-DMA with the next level of support at 13,000. With the market in a Downtrend, we are
now looking for indices to establish and hold a new low for a minimum of three sessions, at which point we will shift the market status to a
Rally Attempt. From that point forward (day four and beyond), we will be looking for a follow-through day before advising a gradual
increase in risk.
WON Europe Today
We released our Weekly Global Laggards Report today (please click here to access the report). The stocks highlighted in
this report are laggards relative to their own domestic markets. We recommend that they be under weighted as they may
be vulnerable to further downside risk and underperformance. European names highlighted this week include Croda
International (CRDA.GB; CRDA:LN), Kion Group (KGXX.DE; KGX:GR), Pjsc Lukoil Spon(Lon) Adr (LKOD.GB; LKOD:LI),
and Biomerieux (BIM.FR; BIM:FP).
