The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq tacked on small gains while trading near all-time highs
and above support at their respective 10-DMA (S&P 500: 4,310; Nasdaq 14,502). The distribution day count stands at three and four,
respectively, with one day expiring on the Nasdaq after the close.
Author: admin
Amazon
Key points from this report:
- Amazon broke out of a long 34-week base on above average volume yesterday. It is trading in the actionable range; accumulate here.
- The breakout was driven by Andy Jassy formally taking over as CEO and the U.S. Department of Defense cancelling Microsoft’s JEDI contract.
- We remain bullish on the Amazon story long-term. It is an exceptional business, screening perfectly on fundamentals through an O’Neil lens with a plethora of growth drivers.
Won Europe Today
We released our Weekly European Summary yesterday, click here to access the report. Key points include:
- The Stoxx 600 added one distribution day last week, bringing the total count to four on a five-week rolling basis. It
remains in a Confirmed Uptrend, trading in its upward channel since November 2020. - If the market continues to find support at its rising 50-DMA (2% away), its key support level, the action would remain
constructive. - Our rotation chart continues to show improving short-term momentum from Health Care, Technology, and
Consumer Staple sectors with the number of breakouts among European retailers rising.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back but remains above support at the 10-DMA (4,299). The
Nasdaq continues to grind higher and was aided by accumulation into big-tech. The distribution day count increased to three on the S&P
500 but remains at four on the Nasdaq. One day will expire on the Nasdaq after the close tomorrow.
Won Europe Today
Yesterday,
- European markets had a strong day with most major indices bouncing off from their near-term support levels. The
distribution day count remains manageable. We advise clients to book profits in extended names. However, we are
open to adding risk coming out of proper bases. - The Stoxx 600 bounced off from its rising 21-DMA. It remains in a Confirmed Uptrend. Among sectors, Banks
gained more than 1.7%, while Travel & Leisure stocks surged more than 1%. Healthcare stocks lagged. - Among other major indices, Germany’s DAX managed to close above its 21-DMA while the U.K.’s FTSE 100
bounced off from it. France’s CAC continues to find supply and failed to reclaim its 21-DMA. - All the 17 indices that we track in Europe closed in positive territory. The distribution day count stands at 4.35.
- 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), EQT (EQT.SE; EQT:SS), Puma (PUMX.DE; PUM:GR), and B&M European Value Retail
(BME.GB; BME:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped further into all-time highs on Friday and are both
now trending following breakouts a week ago. The S&P 500 is trading ~1.5% below its upper channel line, which is now rising above
4,400. We continue to view near-term support along the rising 10- and 21-DMA for both indices. The distribution day count remains low at
two and four, respectively, with one day expiring on the Nasdaq this week.
Won Europe Today
Yesterday,
- European markets continued to consolidate with most major indices either testing or trading below their respective
21-DMA. The distribution day count is steadily rising. We recommend that investors book profits in extended
names. However, we are open to adding new risk coming out of proper bases. - The Stoxx 600 is testing support at its 21-DMA. It remains in a Confirmed Uptrend with four distribution days.
Among other major indices, France’s CAC failed to reclaim its 21-DMA while Germany’s DAX and the U.K.’s FTSE
are testing their respective 21-DMA. - The U.K.’s FTSE 100 remains in an Uptrend Under Pressure with seven distribution days.
- Among 17 indices that we track in Europe, France, Spain, Denmark, Switzerland, the U.K., and Italy closed in
negative territory. The average distribution day count stands at 4.35. - Actionable names in the Focus List include 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), EQT (EQT.SE; EQT:SS), Puma
(PUMX.DE; PUM:GR), and B&M European Value Retail (BME.GB; BME:LN).
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
Wilmar International (EZYH.SG; WIL:SP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 gapped up into another new all-time high, while the Nasdaq held
steady closing relatively flat for a third straight session. Support remains the rising 10- and 21-DMA for both indices. The distribution day
count stands at two and four, respectively, with one day expiring on the Nasdaq next week.
Won Europe Today
Yesterday,
- European markets ended the month on a negative note, but gained for the fifth consecutive month. All markets
were lower and recorded a distribution day, taking the average distribution day count to 4.6. The pullback was
mainly due to concerns over the Delta variant of COVID-19. - The Stoxx 600 is trading below its 10- and 21-DMA, losing 0.77% on higher volume. All the sectors were in the red,
but Auto (-1.89%) stocks shed the most, followed by Technology. - Among the other major indices, France’s CAC is trading more than 1% below its 10- and 21-DMA. Germany’s DAX
also breached its short-term moving averages on strong volume while the U.K.’s FTSE 100 also recorded a
distribution day. - Austria and Ireland were downgraded to an Uptrend Under Pressure as both the indices breached their respective
50-DMA on strong volume. Seven out of the 17 markets we track are now in an Uptrend Under Pressure with the
remaining in a Confirmed Uptrend. - Actionable names in the Focus List include Soitec (SOI.FR; SOI:FP), Paragon Banking Group (PAG.GB; PAG:LN),
Yougov (YOU.GB; YOU:LN), Trigano (TRI.FR; TRI:FP), 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), EQT (EQT.SE; EQT:SS), Puma (PUMX.DE; PUM:GR), and B&M European
(BME.GB; BME:LN).
