The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back in higher volume, still finding resistance near prior all-time highs and adding distribution. Near-term support remains the rising 21-DMA (S&P 500: 3,453; Nasdaq: 11,503). The distribution day count now stands at seven and six, respectively, with two days expiring on the S&P 500 on Monday and Tuesday.
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Won Europe Today
We also 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 Koninklijke Vopak (VPK.NL; VPK:NA), Colruyt (COL.BE; COLRB:EB), Avast (AVST.GB; AVST:LN), and Scout24 (G24X.DE; G24:GR).
Won Europe Today
Yesterday,
- European markets closed higher, except for Finland and Belgium. The Stoxx 600 closed 1.08% higher, with Utilities (+200 bps) and Health Care (+180bps) leading the gains.
- The U.K.’s FTSE 100 gained 1.35%, followed by France’s CAC 40 and Germany’s DAX that gained 0.48% and 0.40%, respectively. Volume was low across the market.
- Actionable names in our Focus List include ASML Holdings (ASML.NL;ASML:NA), Spirax‐Sarco (SPX.GB; SPX:LN), Halma
(HLMA.GB; HLMA: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 bounced 0.8% and 2.0%, respectively, albeit on below average volume. Despite Monday’s downside reversal, indices continue to hold above support at their 21-DMA (S&P 500: 3,434; Nasdaq: 11,481). The distribution day count remains unchanged at six and five days, respectively.
Jubilant foodworks
Jubilant posts beat Q2 FY21 margins and bottom-line
O’Neil Methodology
• The stock is trading just below the pivot of a stage-six flat base. As it
is a late stage base, we recommend that investors hold positions and
wait for the stage count to reset. On the downside, support is at the
50-DMA, 6% away.
• Strong fundamental ratings: SMR Rating of B, Composite Rating of
87, and EPS Rank of 64. The company has a healthy growth
trajectory. Sales and EPS clocked CAGR of 13.4% and 20%,
respectively, over the last five years.
• Technical profile remains strong. A/D Rating is B+, and Up/Down
Volume ratio is 1.5. RS Rating of 79 is mediocre as the stock lagged
the market during base formation, but we expect it to improve given
strong results. Institutional sponsorship has increased 48% y/y to 361
B&M European Value Retail
B&M beats H1 EPS, posts in line revenue
O’Neil Methodology
• The stock broke out of a flat base and is trading just below the
actionable range of GBX 498.8–523.74. Its 50-DMA (GBX 488.3,
~1.6% away) acts as the nearest important support.
• Technical profile has deteriorated a little following market volatility in
the recent few trading sessions but remains respectable. RS Rating of
87, Up/Down Volume ratio of 1.4, A/D Rating of B
• Fundamental ratings are good owing to healthy growth and return
profile in the past. It has an SMR Rating of B, Composite Rating of 99,
and EPS Rank of 78. Institutional sponsorship increased 16% y/y in
September
Won Europe Today
we published our European Weekly Summary, click here for the report. Key points from the report:
• Out of the 16 indices we cover, 12 are now in a Confirmed Uptrend.
• Technically, yesterday’s move is not without significance, as the Stoxx 600 broke above key long-term resistance of 377.
• We reiterate our view that value has still room to lead the market at the expense of extended growth sectors such as Technology and Health Care. The current environment and H2 2016 share obvious similarities.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 closed relatively flat yesterday after filling Monday’s gap higher. The Nasdaq continued to decline following Monday’s heavy volume downside reversal but did manage to tag and close above 21-DMA support (S&P 500: 3,433; Nasdaq: 11,454). The distribution day count stands at six and five days, respectively, with no expiration until early next week.
Won Europe Today
Yesterday,
- European markets reached new highs after a trial showed vaccine was more than 90% effective against COVID‐19. France, the U.K., Portugal, and Spain were upgraded to a Confirmed Uptrend after having a follow‐through day each. Barring Denmark, all the markets ended in positive territory. All the 17 markets except Denmark, Finland, Sweden, and the Netherlands are in a Confirmed Uptrend.
- The Stoxx 600 surged 3.98% on higher volume, with Bank stocks increasing 12%. Other sectors like Insurance, Media, and Travel & Leisure also saw strong gains.
- France’s CAC outperformed gaining more than 7.57% on higher volume aided by stocks like WFD Unibail Rodamco and Airbus Group. Germany’s DAX and the U.K.’s FTSE rose more than 400bps on higher volume.
- Actionable ideas include Lonza Group (LONN.CH; LONN:SW), Nibe Industrier (NIBE.SE; NIBE:SS), Spirax‐Sarco (SPX.GB; SPX:LN), Halma (HLMA.GB; HLMA:LN), and Ashtead Group (AHT.GB; AHT:LN).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped up into all-time highs before reversing and closing at the lows of the session. The Nasdaq picked up a distribution day in the process after a day expired on each index due to time. The next level of near-term support is at the rising 21-DMA (S&P500 3,431, Nasdaq: 11,501). The distribution day count stands at six and five on the S&P 500 and Nasdaq, respectively.
