The U.S. market remains in an Uptrend Under Pressure. The S&P 500 traded relatively flat yesterday, remaining below 200-DMA (4,497) resistance. The Nasdaq declined 1.2% in higher volume after reversing from 50-DMA (13,707) resistance early in the session. The distribution day count now stands at five each.
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Won Europe Today
Yesterday,
- European markets ended higher amid corporate earnings reassuring investors with good numbers. Inflation and
economic growth remains a concern. We continue to recommend an aggressive stance in adding risk to the
portfolio, although the number of buyable ideas is still limited as most stocks continue to trade in their base.
Continue to focus on ideas showing strong relative strength while reducing exposure to lagging ideas. - The Stoxx 600 ended in the green, advancing 0.8% on below average volume. The index continues to find support
around its 50-DMA. It is trading 1% below its 200-DMA and 6% off highs. Sectors were mixed with Basic
Resources closing 2.6% lower and Technology advancing 2.4%. - Among major indices, France’s CAC and Germany’s DAX are at their 21- and 50-DMA and below their 200-DMA.
The U.K.’s FTSE continues to find support around its 21-DMA and is trading above its key moving averages. - Among the 17 indices we cover, most closed in the green with Ireland advancing the most, up 1.9%. All are in a
Confirmed Uptrend. The average distribution day count stands at 4.0. - Actionable names in the Focus List include Vantage Towers (VTWRX.DE; VTWR:GR), Aker Bp (AKEP.NO;
AKRBP:NO), Ipsos (IPS.FR; IPS:FP), Verbund (VERB.AT; VER:AV), Sonova N (SOON.CH; SOON:SW), Edp
Renovaveis (EDPR.PT; EDPR:PL), and Greek Organization Of Football Prognostics (OPAP.GR; OPAP:GA).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq rallied strongly yesterday, gaining 1.6% and 2.1%, respectively. Despite the move, the S&P 500 remains below its 200-DMA (4,496) and the Nasdaq is still trading below its 50-DMA (13,718). The distribution day count stands at five and four, respectively.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 remains in a Confirmed Uptrend with three distribution days. The index currently sits 1.9% above its
50-DMA and 1.2% below its 200-DMA, trading in a tight consolidation. Should it break these key moving averages
with volume, on the upside or the downside, it could likely lead to momentum continuing until the next level of
support (450 levels, 2.1% below) or resistance (475 levels, 3.2% above). - We continue to recommend a more aggressive stance in adding risk to the portfolio, although the number of
buyable ideas is still limited as most stocks are still trading in their base. With leadership still narrow, focus on
relative strength remains the core strategy in the current environment. - Sectors were mixed last week, with Energy and Transportation Rotation Chart).
- European Focus List update:
New addition: Greek Organisation of Football Prognostics (OPAP.GR; OPAP:GA)
Removal: B&M European Val.Ret. (Di) (BME.GB; BME:LN)
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq traded relatively flat in lower volume yesterday. Support on the S&P 500 remains ~4,278, while support for the Nasdaq is ~13,094 before year-to-date lows. The distribution day count stands at five and four, respectively.
Won Europe Today
On Thursday,
- European markets ended higher. ECB’s less hawkish stance to keep the rates unchanged added some support to
the market. Investors are focusing on corporate earnings and cues on the growth outlook. We maintain a cautious
view on the overall market. Continue to focus on ideas showing strong relative strength while reducing exposure to
lagging ideas. - The Stoxx 600 ended marginally in the green, advancing 0.7% on below average volume. The index continues to
find support around its 21-DMA and is trading 1.2% below its 200-DMA and 7% off highs. Most sectors were in the
green, with Travel and Leisure closing 2.9% higher and Banks advancing 1.1%. - Among major indices, France’s CAC and Germany’s DAX are trading below their key moving averages. The U.K.’s
FTSE continues to find support around its 21-DMA and is trading above its key moving averages. - Among the 17 indices we cover, all are in a Confirmed Uptrend. The average distribution day count stands at 3.9.
Actionable names in the Focus List include Vantage Towers (VTWRX.DE; VTWR:GR), Aker Bp (AKEP.NO;
AKRBP:NO), Ipsos (IPS.FR; IPS:FP), Verbund (VERB.AT; VER:AV), Sonova N (SOON.CH; SOON:SW), Edp
Renovaveis (EDPR.PT; EDPR:PL), Compass Group (CPG.GB; CPG:LN), and Greek Organisation Of Football
Prognostics (OPAP.GR; OPAP:GA).
Buy Varun Beverages as it breaks out of a cup-with-handle ahead of its seasonally best quarter
Varun Beverages (VB1.IN) – $6.1B market cap; $7M ADV
Varun Beverages manufactures a wide variety of carbonated and non-carbonated soft drinks as well as packaged drinking water. It is the world’s second largest
franchise/bottler of Pepsi outside of the U.S. The company has been associated with
Pepsi since 1991.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined for a second straight week, closing below all major moving averages while adding distribution. The next level of support on the S&P 500 is ~4,278, while support for the Nasdaq is ~13,094 before year-to-date lows. The distribution day count has increased to five and four, respectively.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq bounced, albeit on lower volume, and retraced some of Tuesday’s losses. The S&P 500 rose ~1% and is attempting to consolidate along its 50-DMA (4,422). While the Nasdaq jumped ~2% and is consolidating above price support along ~13,095 but overall remains below resistance at its 50-DMA (13,759). The distribution day count stands at four each.
Won Europe Today
We released our Weekly Global Laggards Report today. 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 underweighted as they may be
vulnerable to further downside risk and underperformance. Abb (ABBN.CH; ABBN:SW), BMW (BMWX.DE; BMW:GR),
Moncler (MONC.IT; MONC:IM), Whitbread (WTB.GB; WTB:LN), Sofina (SOF.BE; SOF:BB), Carl Zeiss (AFXX.DE;
AFX:GR), and Electrolux Professional (ELPB.SE; EPROB:SS).
