The U.S. market remains in an Uptrend Under Pressure. The S&P 500 bounced from its 50-DMA a day after clearly breaking below its
21-DMA and after three relatively sharp down days. It closed between the rising 50-DMA (4,056) and the now falling 21-DMA (4,145). The
Nasdaq rose 0.7% but only regained about one-third of Wednesday’s fall. It remains well below its 50- and 100-DMA. The distribution day
count stands at seven on the S&P 500 and five on the Nasdaq.
Author: admin
Won Europe Today
Yesterday,
- European markets recovered from the previous session’s losses led by the rise in oil prices and strong earnings.
We recommend that investors maintain a cautious approach and continue to trim or avoid ideas lagging and/or
breaking down below their major moving averages. - The Stoxx 600 advanced 0.30% on lower volume. It remains in a Confirmed Uptrend with 5 distribution days. Oil &
gas stocks rose 2%, while Tech shares were down 1.4%. - Major indices like Germany’s DAX, France’s CAC, and the U.K.’s FTSE 100 closed in the green, but on lower
volume. France’s CAC and the U.K.’s FTSE 100 are in a Confirmed Uptrend while Germany’s DAX is in an Uptrend
Under pressure. - Of the 17 indices we track, the majority closed in the green, with the U.K. and Sweden gaining the most. Ireland and
Norway closed in the red, with Ireland recording a distribution day. We changed Norway to an Uptrend Under
Pressure after it breached its 50-DMA. The average distribution day count is 4.87. - Actionable names in the Focus List include B&M European Value Retail (BME.GB; BME:LN), Novo
Nordisk (NON.DK; NOVOB:DC), Carl Zeiss Meditec (AFXX.DE; AFX:GR), Vitrolife (VITR.SE; VITR:SS), and
Hermès (RMS.FR; RMS:FP).
Won Global View
The U.S. market has been moved to an Uptrend Under Pressure. The S&P 500 has moved decisively lower over the prior three
sessions after trading in a tight range above its 21-DMA last month. The S&P 500 closed slightly above support at the rising 50-DMA
(4,050). The Nasdaq declined 2.6% and gave back all of Tuesday’s upside reversal and now remains below its 50- and 100-DMA. The
Nasdaq is testing thin price support along ~13K, however, the next level of firm support is at the rising 200-DMA (12,451). The distribution
day count rose to seven on the S&P 500 and remains at five on the Nasdaq.
Won Europe Today
Yesterday,
- European markets closed in negative territory led by a sell off in Asia-Pacific markets and as investors focused on
China inflation data which also came in below consensus. We recommend a selective approach as long as
markets hold their support levels, but if the levels are breached, it will be a bearish sign. - The Stoxx 600 was down 2% on higher volume and recorded a distribution day, taking the distribution day count to
5. It remains in a Confirmed Uptrend. The index has support at €43. If it closes below this level, it will be a bearish
sign. Travel & Leisure stocks were down 6% as all sectors closed in the red. - Major indices like Germany’s DAX, France’s CAC and the U.K.’s FTSE 100 closed in the red on higher volume and
recorded a distribution day each. Germany’s DAX and France’s CAC are trading below their 10-DMA. The U.K.’s
FTSE 100 found support at its 10-DMA. - All the 17 indices we track closed in the red, and all the indices, except Denmark and Spain, recorded a distribution
day each, taking the average distribution day count to 4.87. We did not change status for any indices. - Actionable names on the Focus List include B&M European Value Retail (BME.GB; BME:LN), Novo Nordisk
(NON.DK; NOVOB:DC), Carl Zeiss Meditec (AFXX.DE; AFX:GR), Vitrolife (VITR.SE; VITR:SS), and Hermès
(RMS.FR; RMS:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back off all-time highs to close just below its 21-DMA (4,157).
The Nasdaq, which was already trading below its 50- and 100-DMA, dropped 2% in the morning but staged an upside reversal to close
flat. It remains just below its 100-DMA (13,424). Indices still have six and five distribution days, respectively.
Won Europe Today
Key points from it include:
- Although the Stoxx 600 was moved back to a Confirmed Uptrend on Friday after reaching a new high, nine of the 16
indices we cover in the region are still in an Uptrend Under Pressure, with an average distribution day count above
four. We remain constructive on the markets, but continue to carefully monitor distribution and leadership changes. - After a good month for growth stocks in April, we believe that a new leg for value to lead the market cannot be ruled
out. We particularly pay attention to Basic Resources stocks that are re-emerging; historical precedents suggest
the sector may pursue its rerating in the mid-to-long term, but also warn investors of a possible short-term
pullback. - Thus, we recommend that investors initiate positions in stocks that are not too extended from their pivots and
short-term moving averages. The list includes Antofagasta (ANTO.GB; ANTO:LN), Aurubis (NDAX.DE; NDA:GR),
BHP (BHP.GB; BHP:LN), Eramet (ERA.FR; ERA:FP), and Rio Tinto (RIO.GB; RIO:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back off all-time highs but remains above support at its rising 21-
DMA (4,173). However, the Nasdaq gave back all of Friday’s gains, pierced below its 50-DMA, and closed slightly below support at its 100-
DMA (13,416). Each index picked up a distribution day in the process, increasing the count to six and five, respectively.
Won Europe Today
Friday,
- European markets ended in positive territory aided by upbeat earnings. All markets, barring Luxembourg, ended in
the green. Eight out of the 17 markets remain in a Confirmed Uptrend, but we would recommend that investors take
a selective approach. - The Stoxx 600 was upgraded to a Confirmed Uptrend on reclaiming its prior high. It is trading constructively along
its rising 10-DMA and is about to reach new highs. On the sectoral front, Travel & Leisure and Technology stocks
led gains, with each advancing more than 200bps. All other sectors also ended higher. - Among the other major indices, Germany’s DAX outperformed, gaining more than 100bps and is trading along its
rising 21-DMA. The index is in an Uptrend Under Pressure with four distribution days. France’s CAC and the U.K.’s
FTSE remain in a Confirmed Uptrend. - Actionable names in the Focus List include Pandora (PND.DK; PNDORA:DC), B&M European Value Retail
(BME.GB; BME:LN), Dassault Systèmes (DSY.FR; DSY:FP), Novo Nordisk (NON.DK; NOVOB:DC), Carl Zeiss
Meditec (AFXX.DE; AFX:GR), Schneider Electric (QT@F.FR; SU:FP), Eurofins Scientific (EUF.FR; ERF:FP), and
Hermès (RMS.FR; RMS:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 remains at all-time highs after bouncing off support at its rising 21-DMA
and testing its upper channel line. After a sharp pullback last week, the Nasdaq found support and bounced higher off its 50-DMA. The
distribution day count stands at five and four on the S&P 500 and Nasdaq, respectively, with one day expiring on Nasdaq later this week.
Dino Polska
O’Neil Methodology
• The stock is making the right side of a stage-one consolidation base and
is trading 18% below the pivot of PLN 301. It is trading 2.45% below its
50-DMA with the next support at its 200-DMA, 0.64% away.
• Good fundamental profile with EPS Rank of 97 and Composite Rating of
73. Strong fundamental ratings on the back of a 39% EPS CAGR and a
31% sales CAGR from 2016–2020.
• Poor technical profile with an RS Rating of 31, an A/D Rating of D, and
an Up/Down Volume ratio of 0.7. Number of funds holding the stock
increased 26% y/y to 600 as of March 2021.