Home Depot

HD reports strong Q3 FY21 results

O’Neil Methodology
• Although the company reported beat Q3 FY21 results, the stock
declined 2.5% yesterday as management announced a $1B
recurring annual investment in permanent compensation for
frontline, hourly workers, which will affect the bottom-line. Next
support is at the low of the base at $262, 3.7% away.

• Strong fundamental ratings: EPS Rank 96, Composite Rating 70,
five-year EPS Stability Factor of 5. Home Depot’s strategic pivot
toward an omnichannel model, its strong economies of scale, and

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed at session lows after fading from record highs during the final hour of the session. Support remains at the rising 10- and 21-DMA. The high volume pullback increased the distribution day count to six and seven days, respectively.

Won Europe Today

Yesterday,

European markets traded sideways as investors continued to weigh positive vaccine news with rising coronavirus cases across Europe and the U.S.
The Stoxx 600 failed to go decisively above March 5 highs. Among sectors, banks, autos, and travel & leisure stocks led the bulls, gaining more than 1% each.
Among other major indices, France’s CAC is facing resistance at March 5 highs, Germany’s DAX continues to trade between 13,200–13,300 price levels, while the U.K.’s FTSE failed to break above November 16 highs.
Among the 17 indices that we track, Norway, Switzerland, and the Netherlands closed in negative territory.
Actionable names in the Focus List include ASML Holdings (ASML.NL;ASML:NA), Spirax-Sarco (SPX.GB; SPX:LN), Ashtead Group (AHT.GB; AHT:LN), Kering (KER.FR;KER:FP), Lonza Group (LONN.CH;LONN:SW), Eurofins Scientific (EUF.FR;ERF:FP), and Trigano(TRI.FR;TRI:FP). BM European Value Retail (BME.GB; BME:LN) has turned actionable after it retraced to its pivot albeit on high volume.

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to show resilient action, trading relatively flat in lower volume. Both are slowly grinding into the November 9 intraday high (S&P 500: 3,646; Nasdaq: 12,108), which is the next level of resistance. Near-term support remains the rising 10- and 21-DMA. The distribution day count declined for a second straight session, taking the count to five and six days, respectively, with one day expiring on the Nasdaq Friday.

Won Europe Today

Yesterday,

  • European markets failed to break out above their immediate resistance levels. We, however, remain open to adding risk in quality names coming out of proper bases.
  • The Stoxx 600 failed to break above its March 5 price levels. The index lost about 0.2%, with travel & leisure stocks losing more than 1%, while banks remained flat. Autos gained more than 0.7%. The index is in a Confirmed Uptrend with no distribution days.
  • Among other major indices, France’s CAC is finding resistance at March 5 price levels, while Germany’s DAX failed to break above the 13,300 price level. The U.K.’s FTSE is finding resistance at the 6,500 price level.
  • Of the 17 indices that we track in Europe, France, Finland, Sweden, Austria, Italy, and Belgium closed in positive territory.
  • Actionable names in the Focus List include ASML Holdings (ASML.NL;ASML:NA), Spirax‐Sarco (SPX.GB; SPX:LN), Ashtead Group (AHT.GB; AHT:LN), Kering (KER.FR;KER:FP), Lonza Group (LONN.CH;LONN:SW), and Eurofins Scientific (EUF.FR;ERF:FP). Trigano (TRI.FR;TRI:FP) turned actionable post earnings and has broken out of a stage‐one consolidation.

IndiaMart Intermesh

IndiaMart beats Q2 FY21 EPS estimates

O’Neil Methodology

• The stock has been consolidating in a stage-two consolidation base
since the last seven weeks after hitting all-time-high levels. It is 11%
away from pivot and is trading along its 21- and 50-DMA, which act as
important support levels.

• Strong technical ratings: RS Rating of 94, A/D Rating of A+, Up/Down
Volume ratio of 1.5.

• Top-notch fundamental ratings owing to healthy growth and returns
profile in the past. SMR Rating of A, Composite Rating of 99, and
EPS Rank of 99.

• Institutional sponsorship continues to improve and has doubled in
September q/q.

Won Europe Today

Yesterday,

  • European markets continued to surge higher on positive vaccine news. We remain open to adding risk in quality names coming out of proper bases.
  • The Stoxx 600 continued its climb and is facing resistance at around the 390 price level. Of the 19 sectors, 17 ended in the green, with Banks gaining more than 3%. Autos and Basic Resources also gained more than 2%, while Healthcare and Utilities lagged.
  • Among other major indices, France’s CAC is facing resistance at March 6 highs, while Germany’s DAX is facing resistance at the 13,300 price level. The U.K.’s FTSE closed above November 11 highs, reinforcing bullish momentum.
  • Among the 17 indices that we track in Europe, only Denmark closed in negative territory. All the 17 indices, except for Denmark, are in a Confirmed Uptrend.
  • Actionable names in the Focus List List include ASML Holdings (ASML.NL;ASML:NA), Spirax‐Sarco (SPX.GB; SPX:LN), Ashtead Group (AHT.GB; AHT:LN), Kering (KER.FR;KER:FP), Lonza Group (LONN.CH;LONN:SW), and Eurofins Scientific (EUF.FR;ERF:FP).

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed at an all-time high while the Nasdaq is within 2% of this level. The first level of support is at the rising 10-DMA (S&P 500: 3,530; Nasdaq: 11,693), followed by the 21-DMA (S&P 500: 3,448; Nasdaq: 11,494). A distribution day expired on the S&P 500, dropping the count to six days on each index with another day expiring on the S&P 500 after the close today.

Won Europe Today

Yesterday,

  • European markets continued to find resistance around March 5 highs post breaking above the key resistance level of 380 on heavy volume. We remain open to adding risk in quality names coming out of proper bases.
  • The Stoxx 600 remained flat and is finding resistance around March 5 highs. It is in a Confirmed Uptrend. Its 21‐DMA has converged to its 50‐DMA and might reinforce bullish momentum if it manages to cross above it.
  • Among sectors, Banks led the gains, climbing more than 1% while staples, health care, and real estate stocks lagged.
  • Among other major indices, France’s CAC is finding resistance at March 5 highs. Germany’s DAX bounced off its 50‐DMA on strong volume and is facing resistance at the 13,300 price level. The U.K.’s FTSE 100 has also reclaimed its 50‐DMA and is testing support at its 6,300 price level.
  • The U.K., Denmark, Finland, Switzerland, Portugal, and the Netherlands closed in negative territory. Among the 17 indices that we track in Europe, all are in a Confirmed Uptrend, except for Denmark.
  • Actionable names in our Focus List include ASML Holdings (ASML.NL;ASML:NA), Spirax‐Sarco (SPX.GB; SPX:LN), Ashtead Group (AHT.GB; AHT:LN), Kering (KER.FR;KER:FP), Lonza Group (LONN.CH;LONN:SW), and Eurofins Scientific (EUF.FR;ERF:FP).

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trading near all-time highs, holding above 21-DMA support (S&P 500: 3,466; Nasdaq: 11,532) after reversing off intraday highs last Monday. The distribution day count stands at seven and six, respectively, with one expiring on the S&P 500 today and another tomorrow.