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Won Europe Today

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Yesterday,

  • European markets gave up early gains to close in the red although on lower volume. Rise in distribution day count
    to 5.12 remains a concern. We would recommend investors to reduce exposure to extended names.
  • The Stoxx 600 declined on lower volume, avoiding a distribution day. It found support at its 50-DMA and, thus,
    remains in a Confirmed Uptrend. We would downgrade the market to an Uptrend Under Pressure if the index
    breaches this key support level (50-DMA) and records further distribution days. All the sectors ended in negative,
    barring Basic Resources and Auto.
  • Among other major indices, France’s CAC underperformed and recorded a distribution day while the U.K.’s FTSE
    ended in positive on lower volume. Germany’s DAX avoided a distribution day but remains in an Uptrend Under
    Pressure.
  • Seven markets are now in an Uptrend Under Pressure compared with four the previous week. The Netherlands and
    the U.K. were the only markets to end in positive territory.
  • Actionable name in the Focus List include B&M European Value Retail (BME.GB; BME:LN) and Ashtead
    (AHT.GB; AHT LN).

Won Global View

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The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back for three straight sessions, each staging a
downside reversal to close last week. The S&P 500 is now sitting just above its 50-DMA (4,424), a level that has acted as consistent but
now obvious support over the entirety of the year. The Nasdaq is now trading just above its 21-DMA (15,081), with the next level of support
at 14,896, which may coincide with a rising 50-DMA (14,826). The distribution day count stands at two and three, respectively, with no
expiration this week.

Won Europe Today

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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
FLSmidth and Co. (FLB.DK; FLS:DC), Vonovia (VNAX.DE; VNA:GR), ITV (ITV.GB; ITV:LN), Accor (AC.FR; AC:FP), Jet2
(JET2.GB; JET2:LN), and WH Smith (SMWH.GB; SMWH:LN).

Won Global View

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The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continued their gradual pullback off highs. Indices are
testing support at their respective 21-DMA (S&P 500:4,484) and 10-DMA (Nasdaq: 15,229). The distribution day count remains low at two
and three, respectively, with one day expiring on the Nasdaq after the close.

ACADEMY SPORTS

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O’Neil Methodology
• The stock was up 1.5% yesterday on 4x volume after posting strong Q2
FY22 results. It is currently trading in the buy range of $42.75-44.89 with
next support at the 21-DMA, 9% away.
• Very strong fundamental profile: EPS Rank 92, Composite Rating 95,
SMR Rating A. It has delivered healthy rates of same-store-sales growth
over the past five years (~5%). There remain significant opportunities to
expand; the company remains underpenetrated across the U.S. despite
strong store sales densities. Profit margins and ROE have also improved
considerably over the past three years, reflecting the merits of the
business model.

Won Europe Today

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Yesterday,

  • European markets had a bad day with most major indices breaking below their key support levels. Distribution days
    are clustering as the Stoxx 600 recorded three distribution days in the last four trading sessions. We believe these
    are red signals and advise investors to book profits in extended names and avoid adding any new risk.
  • The Stoxx 600 recorded its sixth distribution day, breaking below its 21-DMA on heavy volume. The next major
    support level is at its 50-DMA (0.57% below current price level). Almost all the sectors closed in negative territory
    with Autos losing more than 2% and Banks losing more than 1.3%.
  • Among other major indices, France’s CAC failed to reclaim its 21-DMA and is testing support at its 50-DMA. It
    recorded its fifth distribution day. Germany’s DAX recorded its seventh distribution day and, in the process, broke
    below its 50-DMA. It has been downgraded to an Uptrend Under Pressure. The U.K.’s FTSE 100 recorded its fifth
    distribution day and is testing its 50-DMA.
  • All the 17 indices that we track in Europe closed in negative territory. Apart from Luxembourg, the Netherlands, and
    Norway, every other index recorded a distribution day. Belgium and Germany have been downgraded to an Uptrend
    Under Pressure.
  • Last week, we added JD Sports Fashion (JD.GB; JD/:LN) to our Focus List and removed Global Fashion Group Sa
    (GFGX.DE; GFG:GR). Other actionable names in the Focus List include Euronext (ENX.FR; ENX:FP) and Ashtead
    Group (AHT.GB; AHT:LN).

Won Global View

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The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back to its 21-DMA and the Nasdaq to its 10-DMA before
closing off session lows and remaining within 1% of all-time highs. The move lower came in mixed volume, with the Nasdaq adding a third
distribution day while the S&P count remained at two. The overall count remains low as one day is expiring on the Nasdaq at the close
tomorrow.

COPART

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O’Neil Methodology
• The stock is forming the right side of a stage-one consolidation base. It
is currently trading 3% below the pivot of $149.07 and 1.8% above its
50-DMA.
• Strong fundamental profile, with a consistent history of sales growth,
margin expansion, and ROE improvement. EPS had ~27% CAGR over the
past five years. This growth is reflected in stellar fundamental ratings:
EPS Rank 94, Composite Rating 87, and SMR Rating A.
• Good technical profile: RS Rating of 82 and A/D Rating of C. Institutional
sponsorship increased 6% y/y to 1,737 funds as of April.

Won Europe Today

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We released our Weekly European Summary yesterday (please click here to access the report). Key points include:

  • The Stoxx 600 lost 26bps last week and is finding resistance at its all-time high. The index is currently consolidating in its pivot zone and remains in a Confirmed Uptrend with four distribution days. The index has gained for seven consecutive months now.
  • Overall, we remain positive. Of the 17 indices we cover, 13 are in a Confirmed Uptrend and four in an Uptrend
    Under Pressure. Distribution in the region remains low.
  • Underperforming over 26 weeks, Utility continues to show signs of improving short-term momentum, while
    Consumer Cyclical, Transportation, and Basic Material deteriorate.
  • Last week, we added JD Sports Fashion (JD.GB; JD/:LN) to our Focus List and removed Global Fashion Group Sa (GFGX.DE; GFG:GR). Other actionable names in the Focus List include Halma (HLMA.GB; HLMA:LN), Euronext (ENX.FR; ENX:FP), Ashtead Group (AHT.GB; AHT:LN), and Airbus (AIRS.FR; AIR:FP).

Won Global View

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The U.S. market remains in a Confirmed Uptrend. The Nasdaq closed slightly higher while the S&P 500 pulled back and picked up a distribution day in the process. Indices continue to hold trend above support at their 10- and 21-DMA. The distribution day count remains low, with two days on each index.