Air France–KLM (UTA.FR; $3B market cap; $21M ADV) launched a tender offer to acquire 160 medium-haul aircraft for its KLM and
Transavia brands. As per Bloomberg, the company is in talks with both Airbus (AIRS.FR; $105B market cap; $202M ADV) and Boeing
(BA; $139B market cap; $2.9B ADV) for their A320neo and 737-Max models, respectively. The order would be the largest in the
company’s history and comes after it secured a €4.0B bailout from the French government in April. AIRS.FR is extended after breaking out
from a stage-one flat base and is trading close to its 52-week high with good technical ratings. BA is consolidating in a stage-two base and
is testing resistance along its 50-DMA. It has an RS Rating of 58 and an A/D Rating of B-.
Author: admin
Won Europe Today
Yesterday,
- European markets closed in the red as data showed U.S. inflation rose the most in last 13 years. In addition,
concerns around rising cases of Delta variant of COVID-19 limited market gains. - The Stoxx 600 closed marginally in the green on higher volume. It is in a Confirmed Uptrend with six distribution
days. On the sectoral front, Telecom was the major gainer, up 0.9%. - Major indices like France’s CAC, Germany’s DAX, and the U.K.’s FTSE 100 closed marginally in the red on higher
volume. All the three indices remain in an Uptrend Under Pressure. - Of the 17 indices we cover, the majority closed in the red with Spain, Ireland, and Italy recording a distribution day.
We didn’t change the market status for any of the indices. The average distribution day count is at 5.88. - Actionable names in the Focus List include Alphawave IP Group (AWE.GB; AWE:LN), Sartorius (SRT3X.DE;
SRT3:GR), Indutrade (INDT.SE; INDT:SS), Soitec (SOI.FR; SOI:FP), Zooplus (ZO1X.DE; ZO1:GR), Mips (MIPS.SE;
MIPS:SS), Paragon Banking Group (PAG.GB; PAG:LN), Yougov (YOU.GB; YOU:LN), AirBus (AIRS.FR; AIR:FP),
Halma (HLMA.GB; HLMA:LN), Interroll (INRN.CH; INRN:SW), Asml (ASML.NL; ASML:NA), GN Store Nord (GSN.DK;
GN:DC), Schneider Electric (QT@F.FR; SU:FP), and Teleperformance (ROFR.FR; TEP:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged downside reversals, closing near the lows of the
session in mixed volume. Both, however, remain less than 1% off highs and above their respective 10- and 21-DMA. The distribution day
count stands at four each, with two expiring on the S&P 500 and three on the Nasdaq next week.
Won Europe Today
We released our Weekly European Summary yesterday, click here to access the report. Key points include:
- We maintain a positive view on the overall market as several markets continue to hold trend, but increasing
distribution is to be monitored. - Of the 17 indices we cover, eight are in a Confirmed Uptrend and nine in an Uptrend Under Pressure. We upgraded
Sweden to a Confirmed Uptrend and downgraded Italy, Germany, and France to an Uptrend Under Pressure last
week. The average distribution day count has risen to 5.88 from 4.35 last week. - Our rotation chart continues to show strong momentum from Health Care, Technology, and Consumer Staple
sectors, while Utility, Finance, Basic Material, and Energy are lagging. - We did not make any changes to our Focus List this week. Actionable names in the Focus List include Sartorius
(SRT3X.DE; SRT3:GR), Indutrade (INDT.SE; INDT:SS), Soitec (SOI.FR; SOI:FP), Zooplus (ZO1X.DE; ZO1:GR),
Mips (MIPS.SE; MIPS:SS), Paragon Banking Group (PAG.GB; PAG:LN), YouGov (YOU.GB; YOU:LN), Airbus
(AIRS.FR; AIR:FP), Interroll (INRN.CH; INRN:SW), Asml (ASML.NL; ASML:NA), Halma (HLMA.GB; HLMA:LN),
Beneteau (CHBE.FR; BEN:FP), and Teleperformance (ROFR.FR; TEP:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq remain at new highs, continuing to hold trend with near-term support along their respective 21-DMA. The distribution day count stands at four and three, respectively, with no expiration this week.
Won Europe Today
On Friday,
- European markets bounced off strongly after a sharp decline in the previous trading session. We would
recommend that investors be cautious as the average number of distribution days remains elevated. - The Stoxx 600 gained 1.35% on lower volume and managed to close above its 21-DMA. On the sectoral front,
Mining stocks gained 4% and Travel & Leisure stocks advanced 1.3%. - Major indices like France’s CAC, Germany’s DAX, and the U.K.’s FTSE 100 closed in the green on lower volume.
All the three indices retook their 50-DMA and are in an Uptrend Under Pressure. - All the 17 indices we cover closed in the green barring Denmark. We upgraded Sweden to a Confirmed uptrend
after the index reclaimed its prior rally high. The average distribution day count stands at 5.88. - Actionable names in the Focus List include Sartorius (SRT3X.DE; SRT3:GR), Indutrade (INDT.SE; INDT:SS),
Soitec (SOI.FR; SOI:FP), Zooplus (ZO1X.DE; ZO1:GR), Mips (MIPS.SE; MIPS:SS), Paragon Banking Group
(PAG.GB; PAG:LN), Yougov (YOU.GB; YOU:LN), AirBus (AIRS.FR; AIR:FP), Halma (HLMA.GB; HLMA:LN), Interroll
(INRN.CH; INRN:SW), Asml (ASML.NL; ASML:NA), Beneteau (CHBE.FR; BEN:FP), and Teleperformance
(ROFR.FR; TEP:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq remain at all-time highs, continuing to hold trend above all
major moving averages despite relatively flat trade last week. Near-term support remains the 10- and 21-DMA (S&P 500: 4,287; Nasdaq:
14,364). The upper channel line on the S&P 500 is now rising toward 4,500. The distribution day count stands at four and three,
respectively, with no expiration 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 underweighted
as they may be vulnerable to further downside risk and underperformance. European names highlighted this week include
{Rubis (RUI.FR; RUI:FP); Faurecia (BERT.FR; EO:FP); Acs Activ. Constr. Y Serv. (ACS.ES; ACS:SM)}.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back in mixed volume yesterday, eventually closing
well off session lows and above 21-DMA support. The distribution day count now stands at four and three, respectively, with no expiration
next week.
Won Europe Today
Yesterday,
- European markets had a strong day with most of the major markets bouncing off from their near-term support
levels on higher volume. However, we continue to remain cautious and advise investors to book profits in extended
names or add risk in names coming out of proper constructive bases. - The Stoxx 600 bounced off on good volume from its rising 21-DMA. A decisive breakout above 460.5 price levels on
strong volume will reinforce bullishness. Among sectors, Basic Resources gained more than 2%, Autos remained
flat while Travel & Leisure stocks lost more than 1%. - Among other major indices, France’s CAC had stalling action and failed to reclaim its 21-DMA. Germany’s DAX
gapped up and rose above its rising 21-DMA on strong volume. The U.K.’s FTSE 100 bounced back from its 21-
DMA, albeit on weak volume. - Among the 17 major indices that we track, Spain and Norway closed in negative territory with Norway recording its
sixth distribution day. - Actionable names in the Focus List include Sartorius (SRT3X.DE; SRT3:GR), Indutrade (INDT.SE; INDT:SS),
Soitec (SOI.FR; SOI:FP), Zooplus (ZO1X.DE; ZO1:GR ), Mips (MIPS.SE; MIPS:SS), Paragon Banking Group
(PAG.GB; PAG:LN), Yougov (YOU.GB; YOU:LN), AirBus (AIRS.FR; AIR:FP), Interroll (INRN.CH; INRN:SW), Asml
(ASML.NL; ASML:NA), Beneteau (CHBE.FR; BEN:FP), Teleperformance (ROFR.FR; TEP:FP), Dassault Systèmes
(DSY.FR; DSY:FP), and B&M European Value Retail (BME.GB; BME:LN).
