The U.S. market remains in a Confirmed Uptrend. The market status has not changed because the S&P 500 is trading 2% off all-time
highs. The S&P 500 and Nasdaq staged upside reversals yesterday, holding support near their respective 50- and 100-DMA. The Nasdaq
now has multiple layers of moving average resistance to regain should it hold above 100-DMA support. Major near-term resistance is
between ~13,400 to ~13,600. The distribution day count remains elevated at seven each, with one day expiring on the S&P 500 today.
Both indices also lose two distribution days next week.
Author: admin
Won Europe Today
Yesterday,
- European markets were mixed with major markets recording a distribution day. Extended lockdowns in Germany and the
Netherlands weighed on investor sentiment. We recommend that investors take a patient approach to increase risk and buy
quality growth ideas. - The Stoxx 600 was flat but recorded a distribution day, taking the count to seven. The index is trading below its 10‐DMA but
finding support at its 21‐DMA. On the sectoral front, Auto (‐1.45%) erased gains for a second consecutive session, while Oil
& Gas and Technology stocks led gains. Also, chip makers gained after upbeat news from Intel. - Among other major indices, Germany’s DAX (1% off highs) is trading above all its key moving averages with immediate
support at its 10‐DMA (0.03%) followed by its 21‐DMA (1.88%). France’s CAC (2% off highs) is trading below its 10‐DMA
and is finding support at its 21‐DMA (0.49%). The U.K.’s FTSE ended higher but recorded a distribution day. - Five out of the 17 markets ended in negative territory with the market status remaining unchanged for all markets.
- Actionable names in the Focus List include Flutter Entertainment (FLTR.GB; FLTR:LN), Sartorius (SRT3X.DE; SRT3:GR),
Interpump Group (IP.IT; IP:IM), Imcd Group (IMCD.NL; IMCD:NA), Sika (SIKA.CH; SIKA:SW), Schneider Electric (QT@F.FR;
SU:FP), Teleperformance (ROFR.FR; TEP:FP), Dsv Panalpina (DSV.DK; DSV:DC), and Softwareone Holding (SWON.CH;
SWON:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back and closed at the lows for the second
consecutive session. The S&P 500 is just below its 21-DMA (3,891) followed by support at its 50-DMA (3,868), while the Nasdaq remains
below its 50-DMA after declining 2% but slightly above support at its 100-DMA (12,845). The distribution day count is at seven on each
index, with one day expiring on the S&P500 tomorrow.
Won Europe Today
Yesterday,
- European markets ended lower on concerns of rising COVID‐19 cases and lockdowns in Germany. We would recommend
investors to maintain a cautious approach due to an increase in distribution days. - The Stoxx 600 breached its 10‐DMA and is finding support at its 21‐DMA (+1.12%), recording a distribution day and taking
the count to seven. Auto (‐2.66%) fell after gaining for five straight sessions, while Travel & Leisure (‐1.23%) lagged again
due to delayed recovery. Utility (+1.52%) was among few sectors to end in the green. The index remains in a Confirmed
Uptrend but the high distribution day count remains a concern. - Among other major indices, Germany’s DAX was marginally up despite fresh lockdowns being imposed and is trading above
its short‐term moving averages with immediate support at its 10‐DMA (+0.35%). France’s CAC is trading below its 10‐DMA
and is finding support at its 21‐DMA (0.59%). The U.K.’s FTSE was down on higher volume and recorded a distribution day. - Norway and Austria were downgraded to an Uptrend Under Pressure after they breached their 21‐DMA. The average
distribution day count increased to 6.18 from 5.5 last week. Seven out of the 17 markets are now in an Uptrend Under
Pressure. - We added Novatek (NTV.RU; NVTK:RM) to our actionable list as the stock is breaking out of a flat base on good volume and
strong technical ratings. - Actionable names in the Focus List include Flutter Entertainment (FLTR.GB; FLTR:LN), Sartorius (SRT3X.DE; SRT3:GR),
Interpump Group (IP.IT; IP:IM), Imcd Group (IMCD.NL; IMCD:NA), Sika (SIKA.CH; SIKA:SW), Schneider Electric (QT@F.FR;
SU:FP), Teleperformance (ROFR.FR; TEP:FP), Dsv Panalpina (DSV.DK; DSV:DC), and Softwareone Holding (SWON.CH;
SWON:SW).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq retraced Monday’s gains, declining 0.76% and 1.1%,
respectively. The S&P 500 is again sitting on its 21-DMA (3,904), which is now just slightly above its 50-DMA (3,867). The Nasdaq
reversed off 50-DMA resistance (13,430), continuing to chop in trendless fashion above near-term support at ~13,000. The distribution day
count stands at seven and six, respectively, with one day expiring on the S&P 500 Friday. Two distribution days also expire on each
index next week.
Won Europe Today
Yesterday, we published our Weekly European Summary, click here to access the report. Key points from the report:
- The Stoxx 600 remains in a Confirmed Uptrend with six distribution days. It continues to trade constructively along its short‐
term moving averages and is 1% off highs. Last week, we shifted Luxembourg and Belgium to a Confirmed Uptrend after
they reached new highs. Of the 17 indices that we cover, 12 are now in a Confirmed Uptrend. - We added two stocks last week to our European Focus List: Interpump (IP.IT; IP:IM) and Flutter Entertainment (FLTR.GB;
FLTR:LN). Actionable names on the Focus List include Sartorius (SRT3X.DE; SRT3:GR), Imcd Group (IMCD.NL; IMCD:NA),
Trigano (TRI.FR; TRI:FP), Sika (SIKA.CH; SIKA:SW), Schneider Electric (QT@F.FR; SU:FP), Teleperformance (ROFR.FR; TEP:FP),
DeLonghi (DLG.IT; DLG:IM), and Dsv Panalpina (DSV.DK; DSV:DC). - This week, we focus on the Travel and Leisure sector, which has been leading over six months. While its outperformance
coincides with the vaccine rollout in most countries (‘re‐opening trade’) and rising consensus estimates, we are now
concerned by the extended nature of the sector at a time when many countries are extending lockdowns and introducing
new measures. Trim positions in stocks that have recently failed bases. See the list on page 4. - Watch list: Refer to page 5 for our watch list, which includes stocks setting up well technically (breaking out or trading near
pivot) and displaying above average fundamental quantitative metrics.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P500 bounced higher off its 21-DMA, after pulling back into this moving average last
week. The Nasdaq rose 1.2% but into resistance along its 50-DMA (13,430). A distribution day expired due to time on the Nasdaq,
dropping the count to five while the count on the S&P500 remains at six days.
Won Europe Today
On Friday,
- European markets slipped as fresh lockdowns were imposed on France and as the speed of vaccination reduced in some
countries. Major markets recorded a distribution day, taking the average count to 5.5. We recommend that investors
remain selective when adding names as the high distribution day count remains a concern. - The Stoxx 600 slipped 0.76% on higher volume and finding support at its 21‐DMA. On the sectoral front, Utilities (+1.54%)
outperformed, while other sectors ended in the red barring Health Care. - Among other major indices, France’s CAC breached its 10‐DMA and is finding support at its 21‐DMA. The market is in a
Confirmed Uptrend with six distribution days. Germany’s DAX found support at its 10‐DMA, while the U.K.’s FTSE lost more
than 100bps. - Denmark, Portugal, and Luxembourg were the only markets to end in positive territory. Five out of the 17 markets are in an
Uptrend Under Pressure, while others are in a Confirmed Uptrend. - Actionable names in the Focus List include Flutter Entertainment (FLTR.GB; FLTR:LN), Sartorius (SRT3X.DE; SRT3:GR),
Interpump Group (IP.IT; IP:IM), Imcd Group (IMCD.NL; IMCD:NA), Trigano (TRI.FR; TRI:FP), Sika (SIKA.CH; SIKA:SW),
Schneider Electric (QT@F.FR; SU:FP), Teleperformance (ROFR.FR; TEP:FP), DeLonghi (DLG.IT; DLG:IM), and Dsv Panalpina
(DSV.DK; DSV:DC).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 pulled back to 21-DMA support (3,900) Friday after reaching an all-time high
early last week. The Nasdaq closed back below its 50-DMA after finding strong resistance at ~13,600. Support is now at ~13,000, before
the rising 100-DMA (12,788). The distribution day count stands at six a piece, with one expiring on each 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 Berkeley Group (BKG.GB; BKG:LN), Ubisoft Entertainment (UBI.FR; UBI:FP), Just Eat (TKWY.NL; TKWY:NA),
Kerry Group (KRZ.IE; KYG:ID), Ams (AMS.CH; AMS:SW), and Scout24 (G24X.DE; G24:GR).
