The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq regained their respective 50-DMA last week and are now testing resistance at October highs (S&P 500: 3,550; Nasdaq: 11,965). The 10- and 21-DMA have begun to turn back up and will now act as nearterm support should a pullback occur. The distribution day count stands at seven and five, respectively, with one day expiring on each today.
Author: admin
Won Europe Today
On Friday,
- European markets pared some gains after a bright week for equities across the world. The cautious mood was partly due to the lack of majority for the Democratic party in the U.S. Senate against expectations of a blue wave.
- The Stoxx 600 closed 0.20% lower. Germany’s DAX closed 0.68% lower, France’s CAC 40 was down 0.46%. The U.K.’s FTSE 100 was the only exception, up 0.08%.
- Apart from the U.K., Ireland, Norway, Switzerland, and the Netherlands closed in positive territory.
- Out of the 17 indices we cover, nine are in a Confirmed Uptrend, four are in an Uptrend Under Pressure, and four are in a Rally Attempt.
- Actionable ideas include Cellnex Telecom (CLNX.ES; CLNX: SM), Eurofins Scientific (EUF.FR; ERF:FP), Lonza Group (LONN.CH; LONN:SW); Nibe Industries (NIBE.SE; NIBE:SS), Spirax‐Sarco (SPX.GB; SPX:LN), Halma (HLMA.GB; HLMA:LN), Ashtead Group (AHT.GB; AHT:LN), and Straumann Holding (STMN.CH; STMN:CW).
Bim Birlesik Magazalar
BIM beats Q3 EPS, posts in line revenue
O’Neil Methodology
• The stock is forming a 16-week consolidation base and is currently
~7% from pivot (TRY 75.9). The stock has been hovering around key
support at its 50-DMA (TRY 69.1, ~2% away).
• Technical ratings are mixed with an A/D Rating of B- and Up/Down
Volume ratio of 1.6. RS Rating is still weak at 19.
• Fundamental ratings are good owing to healthy growth and return
profile in the past. It has an SMR Rating of A and EPS Rank of 94.
Institutional sponsorship increased 11% y/y in June.
Dino Polska
Dino Polska reports Q3 results beat across all
metrics
O’Neil Methodology
• The stock is trading at an all-time high after gaining more than 11.5%
on Friday on the back of strong Q3 results. We recommend that
investors hold positions here as the stock is extended.
• Fundamental ratings are very strong on the back of a 35% EPS
CAGR and a 31% sales CAGR from 2016–2019. Top EPS Rank of
98, Composite Rating of 99, and SMR Rating of A.
• Technical ratings will likely improve given the strong move. It currently
has an RS Rating of 80, an A/D Rating of B-, and Up/Down Volume
ratio of 1.2. Number of funds holding the stock increased 18% y/y to
576 as of September.
DINO POLSKA
Dino Polska sells food products through its network of Dino supermarket stores.
It operates 1,371 stores located mostly in western Poland, with a total selling
area of 533K square meters.
Q3 revenue by product category: Dry food, beverages, alcohol and tobacco,
49%; fresh food, 38%; non-food, 13%.
STAMPS.COM
With nearly 800K monthly subscribers, Stamps.com is the leading provider of
low-cost Internet-based mailing and shipping solutions in the U.S. and Europe.
Its software allows customers to print mailing and shipping labels for multiple
carriers around the world through downloadable software, web-based user
interfaces (UI), and application programming interfaces (API). It also provides
discounted carrier rates for multiple carriers, including the United States Postal
Service (USPS) and United Parcel Service (UPS).
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 { Sandvik (SAND.SE; SAND:SS) Orpea (ORP.FR; ORPB:EB), Atos (ATO.FR; ATO:FP), Stadler Rail (SRAIL.CH; SRAIL:SW).
Won Global View
The U.S. market has shifted back to a Confirmed Uptrend. The S&P 500 and Nasdaq gapped up for a third straight session and are now trading just 2% off highs and near October high resistance (S&P 500: 3,550; Nasdaq: 11,965). The 10- and 21-DMA have begun to turn back up on both indices and will act as initial support should a pullback occur. The distribution day count now stands at seven and five, respectively, with one day expiring on each Monday. Though the count remains elevated, it should be noted that the distribution days that occurred on October 28 and October 30 are already 5% below current prices and therefore less relevant.
ALIBABA
O’Neil Methodology
• The stock declined 2.7% yesterday on 3.5x average volume as the core
commerce business moderated sequentially. The stock broke below its
50-DMA with the next support at the 100-DMA, 7% away.
• Very strong fundamental profile on the back of EPS and sales CAGR of
26% and 46%, respectively, from FY15 to FY19. EPS Rank of 98,
Composite Rating of 99, and SMR Rating of A.
• Technical ratings will suffer in the short term due to the recent fall. RS
Rating of 86, Up/Down Volume ratio of 0.9, and A/D Rating of C+.
Number of funds holding the stock increased 11% y/y to 4,090 as of
September
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq gapped up through resistance at their respective 50-DMA (S&P 500: 3,399; Nasdaq: 11,298), which will now serve as short-term support. The next level of price resistance is ~3,550 and ~11,965, respectively. The distribution day count remains elevated at eight and five, respectively, with one day expiring on the S&P 500 after the close.
