Author: admin

Won Europe Today

Posted on by admin

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

  • The Stoxx 600 was moved to an Uptrend Under Pressure on Friday. With increasing pressure in the region reflected by rising distribution among major indices, several markets have been moved to an Uptrend Under Pressure. France, Norway, and Austria are the only countries remaining in a Confirmed Uptrend.
  • We recommend a near‐term cautious approach given this week’s severe price break, spike in volatility, rise in distribution, failed breakouts, and narrowing leadership.
  • Recent weakness in the market coincides with a strong rotation toward value/re‐opening trades. We have reason to believe that this “re‐opening trade” may have another leg to run. Re‐opening trade ideas in our Watch list include:
  • Consumer Cyclical: Carnival (CCL.GB;CCL:LN), Pandox (PNDX.SE;PNDXB:SS), and Kinepolis Group (KIN.BE;KIN:BB)
  • Financial: Eurocommercial Dutch (SIPF.NL;ECMPA:NA)
  • Transportation: Easyjet (EZJ.GB;EZJ:LN)

Won Global View

Posted on by admin

The U.S. is in an Uptrend Under Pressure. The S&P 500 and Nasdaq bounced 2.3% and 3%, respectively, after last week’s heavy selloff. Each index has regained its 50-DMA (S&P 500:3,812 Nasdaq:13,319), which is now a key level of support. The distribution day count
stands at five each, with one day expiring on the S&P 500 and Nasdaq after the close tomorrow.

Won Europe Today

Posted on by admin

On Friday,

  • European markets had another weak session on good volume with most major indices recording distribution days. Leading
    stocks remained mixed. We recommend that investors book profits in extended names.
  • The Stoxx 600 was down more than 1.6% on heavy volume, recording its seventh distribution day. The index broke below its
    21‐DMA and closed below its 50‐DMA. It was downgraded to an Uptrend Under Pressure. Most sectors closed in the red
    with Basic Resources falling more than 4%.
  • Among other major indices, France’s CAC found support at its 21‐DMA, while Germany’s DAX and the U.K.’s FTSE 100
    closed below their respective 50‐DMA.
  • Leaders in Healthcare like (EUF.FR; ERF:FP), (AFXX.DE; AFX:GR) and (NON.DK; NOVOB:DC) broke below their key support
    levels on high volume. However, action in semiconductor still remains constructive with ASML.NL and BESI.NL trading above
    their 50‐DMA. Re‐opening plays like Trigano (TRI.FR; TRIL:FP) is another pocket of strength.
  • All the 17 indices that we track in Europe closed in negative territory with 11 of the 17 indices recording distribution days.
    The average distribution day count has risen to 6.3. Apart from the Stoxx 600, Finland, Sweden, Italy, Belgium, the
    Netherlands, and Luxembourg breached their respective 21‐DMA and were downgraded to an Uptrend Under Pressure.

Won Global View

Posted on by admin

The U.S. is in an Uptrend Under Pressure. The S&P 500 and Nasdaq pulled back to their respective 50-DMA in volatile action last week.
Support below this major moving average is ~3,700 on the S&P 500, which is near the January 29 low and the rising 100-DMA. Support
below the 50-DMA for the Nasdaq is between 12,900 and 13,000, an area that held twice in January. The distribution day count stands at
five each, with two expiring on the S&P 500 and one on the Nasdaq this week.

Etsy’s Electric

Posted on by admin

Key points:

 

  • Etsy reported a blowout quarter after hours yesterday, beating handsomely on the top and bottom line. Q1 guidance was also ahead of expectations.
  • We remain bullish on Etsy long term. It’s a secular, early-stage growth story, playing into the structural ecommerce theme, which COVID-19 has accelerated.
  • The stock looks poised to retake its 50-DMA; this could be an aggressive entry point. We would prefer to accumulate the stock on a breakout following a base formation, however.

Won Europe Today

Posted on by admin

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 Holdings (BKG.GB; BKG:LN).

Won Global View

Posted on by admin

The U.S. market has been moved to an Uptrend Under Pressure. The Nasdaq closed below its 50-DMA and near the lows of the session in higher volume. The index added its second distribution day in three sessions, taking its total count to five over five weeks. The next level of support is between 12,900 to 13,000. The S&P 500 retraced Wednesday’s gains, moving back to Tuesday’s lows, which
coincide with near-term support at its 50-DMA (3,805). Volume was also higher, taking its distribution day count up to five with one day expiring at the close today.

Won Europe Today

Posted on by admin

Yesterday,

European markets closed in the green on strong German economic data and comments by the U.S. Federal Reserve Chair Jerome Powell who reiterated that interest rates will remain low despite indications of rising inflation.
The Stoxx 600 gained 0.46% on higher volume after declining for the first two days of the week. Most sectors ended in the green, with Travel & Leisure stocks leading the gains.
Among other major indices, France’s CAC, Germany’s DAX, and the U.K.’s FTSE 100 closed in the green with Germany’s DAX gaining the most. France’s CAC remains in a Confirmed Uptrend and is trading at an all-time high, while Germany’s DAX and the U.K.’s FTSE 100 are in an Uptrend Under Pressure with six distribution days each.
Of the 17 indices that we track, all closed in positive territory except Denmark. The average distribution day count remains elevated at 6.2.
Actionable names in the Focus List include Comet (COTN.CH; COTN:SW), Straumann Holding (STMN.CH; STMN :SW), Schneider Electric (QT@F.FR; SU:FP), B&M European Value Retail (BME.GB; BME:LN).

Won Global View

Posted on by admin

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq posted a strong rebound for a second straight session. The S&P 500 has regained its 21-DMA (3,868), which now serves as support, while the Nasdaq remains below 21-DMA resistance (13,713) but above 50-DMA support (13,268). The distribution day count stands at four each, with one day expiring on the S&P 500 tomorrow after the close

Won Global View

Posted on by admin

The U.S. market remains in a Confirmed Uptrend. The S&P 500 staged an upside reversal off 50-DMA support (3,797) before closing positive on the session and snapping a five-day losing streak. The Nasdaq also staged an upside reversal after opening below its 50-DMA (13,246), however, the index still closed slightly lower on the session and below 21-DMA resistance (13,674). The distribution day count now stands at four each, with one day expiring on the S&P 500 Friday.