Q3 GDP expanded 2%:
The U.S. economy grew 2% q/q in Q3, according to the advance estimate, 70bps below market expectations. This
was far below the 6.7% growth in Q2 as effects of government stimulus continued to fade and a surge in COVID-19
cases and global supply constraints weighted on consumption and production.
• Personal spending increased faster than expected:
Personal spending increased 0.6% m/m in September, 10bps above consensus. The increase was mainly due to higher
spending on goods as well as services. Within goods, spending increased on foods and beverages, pharmaceutical
products, and gasoline and other energy goods. Within services, health care and food services and accommodations
led the growth. Spending on motor vehicles declined as ship shortages and supply constraints continued to weigh.
• The 10-year bond continued to rise:
The 10-year yield climbed ~7bps in October to close the month at 1.56%. Although, in the first few days in November,
the yield breached the October low as traders brushed aside data showing a surge in U.S. wholesale inflation in
October.
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 Vifor Pharma (VIFN.CH; VIFN:SW) and Deutsche Telekom (DTEX.DE; DTE:GR).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to trend into new highs, while the Nasdaq just broke out into a new all-time high yesterday. The 10- and 21-DMA are now near-term levels of support above the 50-DMA. The distribution day count stands at six and five, respectively, with one day expiring on each today and three on each next week.
O’Neil Capital Equipment Sector Weekly
Polycab India (POI.IN): Reported Q2 FY22 (ended September 2021) results. The company beat revenue (+48% y/y) estimates by 14%, while
EPS (-10% y/y) missed estimates by 4%. We recommend that investors add to positions as the stock retakes support along its 50-DMA on
above average volume.
Won Europe Today
Yesterday,
- European markets closed in the green led by strong corporate earnings. We recommend that investors add strong
names coming out of proper bases on strong volume. - The Stoxx 600 gained 0.75% on higher volume. The index is trading at its all-time high and is forming the right side
of a 10-week flat base. On the sectoral front, Travel and Leisure led the gains. - Major indices like France’s CAC, Germany’s DAX, and the U.K.’s FTSE 100 closed in the green on higher volume.
All the three indices are trading above their key moving averages. - All the 17 indices that we cover closed in the green, barring Norway and Portugal. Austria was closed on account of
a holiday. Luxembourg and the U.K. were shifted to a Confirmed Uptrend after the indices retook their prior rally
highs. - Actionable names in the Focus List include Infineon Technologies (IFXX.DE; IFX:GR), Intesa Sanpaolo (ISP.IT;
ISP:IM), Rentokil Initial (RTO.GB; RTO:LN), Hermes (RMS.FR; RMS:FP), and Keywords Studios (KWS.GB;
KWS:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to trend into new highs, while the Nasdaq is now testing alltime high resistance of 15,403. Both the 10- and 21-DMA have now crossed above the 50-DMA, providing near-term support should
indices pull back. The distribution day count remains at five each, with one expiring on each Friday before three additional days expire next
week.
Won Europe Today
We released our European Weekly Summary yesterday, click here to access the report. Key points from it include:
- The iShares Stoxx 600 closed up 55bps last week, gaining for the third consecutive week. It remains in an Uptrend
Under Pressure with three distribution days. The index is still forming the right side of a 50-day flat base, trading 1%
off its all-time high at 47.37. Should the index breach this level, its status would be back to a Confirmed Uptrend - Of the 17 indices we cover, five are in a Confirmed Uptrend, one in a Rally Attempt, and 11 in an Uptrend Under
Pressure. The Netherlands and Italy were moved back to a Confirmed Uptrend after the indices reclaimed their
prior rally highs. The average distribution day count stands at 3.93. - The majority of sectors closed in the green, with Utility and Health Care leading the gains. From our rotation chart,
short-term momentum (over four weeks) continued to rise among Financial and Energy sectors. - We did not make any changes to our Focus List last week. Actionable names in the Focus List include Intesa
Sanpaolo (ISP.IT; ISP:IM), Rentokil Initial (RTO.GB; RTO:LN), Euronext (ENX.FR; ENX:FP), Hermes (RMS.FR;
RMS:FP), and Keywords Studios (KWS.GB; KWS:LN). - Refer to page 3 and 4 for our European watch list.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 touched another new all-time high while the Nasdaq continues to climb
and is within 1% of a new high. Use the rising 10-DMA (S&P 500: 4,498; Nasdaq: 15,003) as the first level of support, followed by the 50-
DMA (S&P 500: 4,447; Nasdaq: 14,907). The distribution day count stands at five days on each index.
Won Europe Today
On Friday,
- European markets closed in the green as investors monitored economic data and corporate earnings from the
region. We recommend that investors add names that are coming out of proper bases and reduce exposure to
stocks breaking below their key moving averages on higher volume. - The Stoxx 600 gained 0.46% on lower volume. The index is trading above its key moving averages and is forming
the right side of a 10-week flat base. It is in an Uptrend Under Pressure with three distribution days. On the sectoral
front, Technology gained 1.3% while Oil & Gas slipped 0.4%. - Major indices like France’s CAC, Germany’s DAX, and the U.K.’s FTSE 100 closed in the green. France’s CAC is
trading above its 50-DMA whereas Germany’s DAX closed below its 50-DMA. - All the 17 indices we cover closed in the green, barring Spain. The average distribution day count stands at 3.93.
- Actionable names in the Focus List include Intesa Sanpaolo (ISP.IT; ISP:IM), Rentokil Initial (RTO.GB;
RTO:LN), Euronext (ENX.FR; ENX:FP), and Keywords Studios (KWS.GB; KWS:LN)
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 made a new all-time high last week, showing instant progress after
regaining its 50-DMA. The Nasdaq also continued its push higher before pulling back Friday to close ~2% off all-time high resistance of
15,403. We continue to view the 50-DMA (S&P 500: 4,445; Nasdaq: 14,899) as a key level of short-term support, though both the 10- and
21-DMA are now crossing above that level. The distribution day count stands at five each, with one day expiring on both this Friday and
three expiring on each next week.
