The U.S. market remains in a Confirmed Uptrend. The Nasdaq jumped to another new high due to strength across large-cap
technology (QQQ). The S&P 500 tacked on small gaps and remains at all-time highs. The first level of support is at the rising 10-DMA
(S&P: 4,603; Nasdaq: 15,522). The distribution day counts stand at three and one on the S&P 500 and Nasdaq, respectively, with one
day expiring on the S&P 500 after the close.
Author: admin
Won Europe Today
Yesterday,
- European markets had another positive day as all the major indices are breaking out or testing their key resistance
lines and trading constructively along their respective 10-DMA. We remain constructive on the markets and
recommend that investors add risk coming out of proper bases. - The Stoxx 600 continues to rise along its 10-DMA after breaking out of its recent consolidation on decent volume
and crossing 475 price levels. Among sectors, Oil & Gas stocks lost more than 3%, while Mining stocks gained. - Among other major indices, France’s CAC continues to rise after breaking out of its recent consolidation.
Germany’s DAX is testing resistance at 16,000 price levels. The U.K.’s FTSE 100 is facing resistance at 7,300
price levels. - Among the 17 indices that we track, Europe, Portugal, Spain, Luxembourg, and the U.K. closed in negative territory
with Spain recording its fifth distribution day. Belgium was upgraded to a Confirmed Uptrend after it reclaimed its
prior rally high. - Actionable names in the Focus List include Watches of Switzerland Group (WOSG.GB; WOSG:LN), Nibe
Industrier (NIBE.SE; NIBEB:SS), Soitec (SOI.FR; SOI:FP), Infineon Technologies (IFXX.DE; IFX:GR), Rentokil Initial
(RTO.GB; RTO:LN), Hermès (RMS.FR; RMS:FP), Coface (COFA.FR; COFA:FP), EQT (EQT.SE; EQT:SS),
Dassault Systèmes (DSY.FR; DSY:FP), and Vitrolife (VITR.SE; VITR:SS).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq touched another new all-time high and continue to trend
above support at their rising 10- and 21-DMA. The distribution day count has declined to three and one, respectively, with another day
expiring on the S&P 500 after the close tomorrow.
O’Neil Capital Equipment Sector Weekly
Generac (GNRC): Reported weaker-than-expected Q3 FY21 results yesterday before market open. Revenue (+35% y/y) and EPS (+13% y/y) missed
consensus by 2% each. The company cut its FY21 adjusted EBITDA guidance by 125bps to 23.5%. The stock closed 4.4% lower after results. We
recommend that investors hold positions and look for support at $466.92 (-4%), followed by support at its 10-WMA (-7%).
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 hit a new all-time high yesterday, although on low volume. With only two distribution days, it was moved back to a Confirmed Uptrend after consolidating for 56 days.
- Sector rotation: Short-term momentum (over four weeks) among leading (over 26 weeks) Energy and Financial
sectors continues to improve. Transportation, Retail, Technology, and Capital Equipment are still losing momentum. We added Infineon Technologies (IFXX.DE; IFX:GR) to our Focus List last week. - Q3 earnings update: On average, over 65% of companies that have reported so far beat estimates by ~16%, with
Financials leading the beat.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trending into all-time highs with near-term support at the rising 10- and 21-DMA. The distribution day count continues to decline, now totaling four and two, respectively, with further expiration on each index today.
Won Europe Today
Yesterday,
- European markets had a very strong day with most sectors closing in positive territory. The Stoxx 600 broke above its current consolidation and has been upgraded to a Confirmed Uptrend. Given the strong price action in recent sessions, we continue to remain constructive on the markets and are open to adding risk coming out of proper bases.
- Among other major indices, France’s CAC gapped up and is finding resistance at its August highs. Germany’s DAX climbed upward after finding good support at its 50-DMA. The U.K.’s FTSE 100 broke above 7,220 price levels and is finding resistance at 7,300 price levels.
- All the 17 indices that we track in Europe closed in positive territory. The average distribution day count stands at 4.2.
- Coface (COFA.FR; COFA:FP), Eqt (EQT.SE; EQT:SS), Hermes International (RMS.FR; RMS:FP), and Vitrolife
(VITR.SE; VITR:SS) have turned actionable. Other actionable names in the Focus List include Nibe Industrier
(NIBE.SE; NIBEB:SS), Soitec (SOI.FR; SOI:FP), Infineon Technologies (IFXX.DE; IFX:GR), and Rentokil Initial (RTO.GB; RTO:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq tacked on small gains and continue to grind higher. Support is at prior highs (S&P 500: 4,545; Nasdaq: 15,403), followed by the rising 10- and 21-DMA. The distribution day count stands at four and three on the S&P 500 and Nasdaq, respectively, with one day expiring after the close on the Nasdaq and another on each index after the close on Wednesday.
Won Europe Today
On Friday,
- European markets pared their initial losses to close near the opening levels. As most indices trade above their
respective 50-DMA and have lower distribution day count, we are open to adding risk coming out of proper bases. - The Stoxx 600 is testing its all-time high at 475 price levels. The index gained about 5% in October. Among sectors, Banks were up 0.7% while Autos and Chemical stocks gained half a percent each.
- Among other major indices, France’s CAC is forming the right side of a stage-two cup base after finding strong
support at its 50-DMA. Germany’s DAX has made a lower high and is testing support at its 50-DMA. The U.K.’s
FTSE 100 continues to find resistance at 7,220 price levels. - Among the 17 indices that we track in Europe, the Stoxx 600, Denmark, France, Ireland, and Spain closed in
positive territory. Switzerland, Norway, Portugal, and Austria recorded distribution days. - Actionable names in the Focus List include Nibe Industrier (NIBE.SE; NIBEB:SS), Soitec (SOI.FR; SOI:FP),
Infineon Technologies (IFXX.DE; IFX:GR), Rentokil Initial (RTO.GB; RTO:LN), and Hermes (RMS.FR; RMS:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq have broken out to new all-time highs. There are multiple levels of support below current prices, including the prior highs (S&P 500: 4,545; Nasdaq: 15,403) followed by the sharply rising 10- and 21-DMA. Distribution has mostly been avoided for two weeks, with the count at five and four, respectively, with three expiring on each this week.
