The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq gapped up and closed above their respective 21-
DMA in lower volume, building on Monday’s gains. The 21-DMA along with the still rising 50-DMA will again act as near-term support. The
distribution day count remains at three each with no expiration this week.
Author: admin
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 is in an Uptrend Under Pressure with four distribution days. The index now trades 5.7% off highs and is just 1.7% above its immediate support at 200-DMA. We are cautious about the overall market and recommend a patient approach as breadth has significantly narrowed, although some buy opportunities may arise from this pullback. Focus should be on ideas with high relative strength that are trading at their short-term support levels.
- Energy led the market last week, while Health Care and Consumer Staple lagged. Our rotation chart shows shortterm momentum (over four weeks) continuing to improve among Tech and Cyclical and turning positive among Basic Materials. Transportation remains the weak spot of the market.
- European Focus List Update: No additions or removals occurred last week. The list still consists of 45 stocks,
overweighted toward Capital Equipment and Financials. Refer to page 2 for stocks trading near their short-term support levels and stocks trading with their RS line at an all-time high. - Watch List (refer to page 3) stocks include: Epiroc (EPIA.SE; EPIA:SS) and Experian (EXPN.GB; EXPN:LN).
- Stocks with an RS line at an all-time high include (refer to page 4 for the full list): Diageo (DGE.GB; DGE:LN),
Wolters Kluwer (WSG.NL; WKL:NA), and Novozymes (NZY.DK; NZYMB:DC).
Won Global View
The U.S. market is in an Uptrend Under Pressure. Indices jumped ~1%, with the S&P 500 regaining its 50-DMA (4,547) while the Nasdaq closed slightly below resistance at its 50-DMA (15,280). The distribution day count stands at three on each index.
Won Global View
The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq broke below their respective 50-DMA, staging multiple
downside reversals to eventually close near the lows of the week. The S&P 500 is narrowly holding above 100-DMA (4,491) support
before price support at ~4,430. The Nasdaq is now 7% off highs and sitting on its 100-DMA (15,082). The next level of price support is
~14,755 before the rising 200-DMA (14,411). The distribution day count stands at three each with no expiration this week.
Won Europe Today
On Friday,
- European markets had another weak session, following a volatile weak. All major indices have been downgraded to
either Uptrend Under Pressure or Downtrend. However, price action of leading stocks is still constructive with many
of them holding their key support levels. Despite that, we recommend that investors book profits in extended names
and avoid adding any new risk. - The Stoxx 600 recorded its fourth distribution day. The index failed to reclaim its 50-DMA and is in an Uptrend Under
Pressure. It is finding support at 460 price levels. The majority of sectors closed in negative territory with Mining
stocks falling more than 2.5%. - Among other major indices, France’s CAC failed to close above its 50-DMA. Germany’s DAX continued to find
supply at its 200-DMA and is still awaiting a follow-through day. The U.K.’s FTSE formed a downside reversal after
finding supply at its 50-DMA. - Among 17 indices that we track in Europe, only Austria closed in negative territory. Sweden was shifted to a
Downtrend after it breached its prior low while Belgium was upgraded to a Rally Attempt after it managed to hold
above its prior low. - Actionable names in the Focus List include Sartorius (SRT3X.DE; SRT3:GR), Dassault Systemes (DSY.FR;
DSY:FP), Halma (HLMA.GB; HLMA:LN), Sika (SIKA.CH; SIKA:SW), Partners Group Holding (PGHN.CH;
PGHN:SW), Rentokil Initial (RTO.GB; RTO:LN), Coface (COFA.FR; COFA:FP), Beneteau (CHBE.FR; BEN:FP),
and Puma (PUMX.DE; PUM:GR).
O’Neil Consumer/Retail Weekly
Consumer Cyclical (XLY). The index has broken below its 21-DMA on high volume and is trading 5% off highs. RS line is
flat with RS Rating of 88 and A/D Rating C. We recommend a patient approach to adding risk and reducing exposure in
ideas breaking below logical levels of support.
Won Europe Today
We released our Weekly Global Laggards Report yesterday (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
Mondi (MNDI.GB; MNDI:LN), Royal Unibrew (RBR.DK; RBREW:DC), Anheuser – Busch Inbev (ABI.BE; ABI:BB),
Gerresheimer (GXIX.DE; GXI:GR), Ericsson B (SL@G.SE; ERICB:SS), and Deutsche Telekom (DTEX.DE; DTE:GR)
Won Global View
The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq regained their respective 50-DMA in lower volume, and
both now face resistance at the rolling 21-DMA. The distribution day count went unchanged at three and two, respectively.
Won Europe Today
Yesterday,
- European markets closed higher amid a volatile week, impacted by the panic around the new COVID-19 variant. We recommend a patient approach to adding risk and reducing exposure in ideas breaking below logical levels of support given the price action is likely to remain volatile.
- The Stoxx 600 advanced 1.7% on above average volume. The index closed near its 50-DMA and is 4% off highs.
Most sectors closed in the green led by Technology and Travel and Leisure, up 3.5% and 3.1%, respectively. - Among major indices, France’s CAC closed above its 50-DMA, Germany’s DAX closed above its 200-DMA, and the U.K.’s FTSE took support at its 200-DMA. All three indices have closed near their respective day highs.
- Among the 17 indices we cover, all have closed in the green. Germany gained the most, up 2.47%. Finland, Ireland, Sweden, and Luxembourg were upgraded to a Rally Attempt. The average distribution day count stands at 5.00.
- Actionable names in the Focus List include Sartorius (SRT3X.DE; SRT3:GR), Dassault Systemes (DSY.FR;
DSY:FP), Halma (HLMA.GB; HLMA:LN), Sika (SIKA.CH; SIKA:SW), Partners Group Holding (PGHN.CH;
PGHN:SW), Rentokil Initial (RTO.GB; RTO:LN), Coface (COFA.FR; COFA:FP), Beneteau (CHBE.FR;
BEN:FP), Vitrolife (VITR.SE; VITR:SS), and Puma (PUMX.DE; PUM:GR).
Won Global View
The U.S. market has been shifted to an Uptrend Under Pressure. The S&P 500 and Nasdaq reversed off intra-day highs and breached their 50-DMA as losses accelerated into the close. The next level of support is the rising 100-DMA (S&P 500: 4,487; Nasdaq: 15,071). The distribution day count stands at three and two, respectively
