The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back to their respective 21-DMA following Monday’s
downside reversal, before closing off lows. The next level of support below the 21-DMA is September highs or the prior pivot at ~4,545 and
15,403, respectively, which may also coincide with arising 50-DMA. The distribution day count stands at three and two, respectively, with
one day expiring on the Nasdaq at the end of this week.
Author: admin
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 underweighted
as they may be vulnerable to further downside risk and underperformance. European names highlighted this week include
Mondi (MNDI.GB; MNDI:LN), Accor (AC.FR; AC:FP), Royal Unibrew (RBR.DK; RBREW:DC), Dcc (DCC.GB; DCC:LN),
Gerresheimer (GXIX.DE; GXI:GR), and Kuehne Und Nagel International (KNIN.CH; KNIN:SW).
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 a Confirmed Uptrend but pandemic jitters return to haunt trade recovery. European markets
closed 14bps down last week, despite starting the week on a very strong foot, as the spike in COVID-19 infections
and a potential wave of new restrictions dented investor sentiment. - Of the 17 indices we cover, nine are in a Confirmed Uptrend, one in a Rally Attempt, and seven in an Uptrend Under
Pressure. We downgraded Austria and Portugal to an Uptrend Under Pressure after the indices breached their 50-
DMA. The average distribution day count remains low at 3.63. - Sector rotation: Momentum in Energy and Financials continues to deteriorate. Sectors with improving momentum
include Technology and Cyclical. - Q3 earnings season update: On average, FY21 EPS for the Stoxx 600 rose over 2% in the last four weeks, led by
Energy and Banks. - European Focus List Update: Richemont (CFR.CH; CFR:SW) was added to the list. Actionable names include:
Schneider Electric (QT@F.FR; SU:FP), Ashtead (AHT.GB; AHT:LN), JD Sports (JD.GB; JD:LN), Interpump
(IP.IT; IP:IM), Vitrolife (VITR.SE; VITR:SS), Rentokil (RTO.GB; RTO:LN), Sartorius (SRT3X.DE; SRT3:GR), Halma
(HLMA.GB; HLMA:LN), ASML (ASML.NL; ASML:NA), and Partners Group (PGHN.CH; PGHN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed at session lows after staging a downside reversal.
Both indices are testing their 10-DMA followed by support at their rising 21-DMA (S&P 500: 4,652; Nasdaq: 15,729). The distribution day
count stands at three on the S&P 500 and increased to two on the Nasdaq.
O’Neil Capital Equipment Sector Weekly
Halma (HLMA.GB) – $16B market cap; $21M ADV: Reported better-than-expected H1 FY21 results. Sales grew 19% y/y,
beating estimates by 3.1%, while EPS grew 25% y/y, beating estimates by 6.5%. We recommend that investors add to positions
on a break above its pivot of 3,184p (+2%).
Won Europe Today
On Friday,
- European markets closed in the red as COVID-19 cases start rising globally. Of the 17 indices we cover, nine are
in a Confirmed Uptrend, one in a Rally Attempt, and seven in an Uptrend Under Pressure. As major markets are
trading above their key moving averages, we advise investors to add strong names coming out of proper bases. - The Stoxx 600 closed in the red, down 0.32% on higher volume. The index is trading in its pivot zone and is 1% off
highs. On the sectoral front, Banking stocks lost 2%. - Major indices like France’s CAC, Germany’s DAX, and the U.K.’s FTSE 100 closed in the red. All the three indices
are trading above their 50-DMA. - All the 17 indices we cover closed in the red, barring Norway and Sweden. We downgraded Austria and Portugal to
an Uptrend Under Pressure after the indices breached their 50-DMA. Average distribution day count is at 3.63 days. - Actionable names in the Focus List include 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 remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trading at or near all-time highs and above 10- and
21-DMA support. The distribution day count remains low at three and one, respectively, with one day expiring on the Nasdaq this week.
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
Melrose Industries (MRO.GB; MRO:LN) and Dcc (DCC.GB; DCC:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to consolidate near all-time highs and above
10- and 21-DMA support. The distribution day count remains low at three and one, respectively.
Won Europe Today
Yesterday,
- European markets had another flat session. Stalling price action of markets for a few weeks coupled with rising
distribution day count signals that indices are likely to see a correction. However, we remain constructive on the
markets and are open to adding risk coming out of proper bases. - The Stoxx 600 pared initial gains to close near its low, forming a downside reversal. Among sectors, Mining stocks
led the bulls while Travel & Leisure stocks lost more than 1.5%. - Among other major indices, France’s CAC and Germany’s DAX are also exhibiting stalling price actions. The U.K.’s
FTSE broke below its 10-DMA and is testing its 21-DMA. It recorded its fourth distribution day. - Among the 17 indices that we track in Europe, seven closed in negative territory with Belgium and the U.K.
recording distribution days. - Actionable names in the Focus List include ASML Holdings ( ASML.NL; ASML:NA), Yougov (YOU.GB; YOU: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).
