The U.S. market is an Uptrend Under Pressure. The S&P 500 and Nasdaq rallied off Wednesday’s lows, closing up 1.2% and 1.6%, respectively. Both remain below 50-DMA resistance (S&P 500: 3,405; Nasdaq: 11,314). The distribution day count stands at seven and four days, respectively, with one day expiring on the S&P 500 next week.
Author: admin
Etsy Inc
O’Neil Methodology
• The stock declined more than 4% yesterday on higher than average
volume and breached its 21-DMA. Next support is at the 50-DMA, 9%
away.
• Strong fundamental ratings: SMR Rating A, Composite Rating 99.
Etsy has grown sales at a 33% CAGR over the past five years. We
model a similar growth rate going forward, given potential expansion
opportunities in Etsy’s core and other international markets such as
India.
• The stock’s technical profile is strong. RS line is at near historic high,
while A/D Rating of B and Up/Down Volume ratio of
1.1 indicate positive institutional demand for the stock. The number of
funds invested in the stock has risen 7x over the past five years.
Bygghemma Group
Bygghemma Group beats Q3 consensus estimates
BHG Group, headquartered in Malmö, Sweden, is Europe’s leading
ecommerce home improvement retailer. It offers consumers ~500K
products at competitive prices across two key categories: DIY (60% of
sales) and home furnishing (~40% of sales). BHG has >30 online
destinations and ~80 showrooms. Revenue by geography: Sweden,
63%; Finland, 26%; other, 11%.
Won Europe Today
Yesterday,
- European markets had a terrible day, with France & Germany set to impose fresh lockdown measures.
- The Stoxx 600 broke below the 350 price level on high volume and is finding support at May 2020 highs. It lost about 3% and was downgraded to a Downtrend. Among sectors, autos and banks were the worst‐performing, while travel & leisure stocks lost about 2.9%.
- Among other major indices, France’s CAC and the U.K.’s FTSE were downgraded to a Downtrend after they breached their prior lows. Germany’s DAX gapped down and lost more than 4% on high volume.
- All the 17 indices that we track in Europe closed in negative territory. Austria, Italy, Spain, and Belgium were downgraded to a Downtrend after they breached key support levels. Overall, 11 of the 17 indices are in a Downtrend.
- Actionable names in the Focus List include Ashtead Group (AHT.GB;AHT:LN), B&M (BME.GB; BME:LN), Spirax‐Sarco (SPX.GB; SPX:LN), Halma (HLMA.GB; HLMA:LN), Lonza Group (HLMA.GB; LONN:SW), and Sartorius (SRT3X.DE;SRT3:GR).
Won Global View
The U.S. market has been moved to an Uptrend Under Pressure. The S&P 500 and Nasdaq gapped down more than 3% through their respective 100- and 50-DMA. The next level of price support is ~3,200 on the S&P 500, while the Nasdaq is sitting on ~11K, followed by support at its 100-DMA (10,870). The distribution day count increased to seven and four days on the S&P 500 and Nasdaq, respectively.
Won Europe Today
Yesterday,
- European markets continued to weaken amid rising COVID‐19 cases and diminishing hopes of a U.S. stimulus bill. We remain extremely cautious while adding new risks.
- The Stoxx 600 was down 0.95% on high volume, with the next major support at the 350 price level. If it breaches this, the next major support is at 342–343 price levels. Among sectors, technology stocks continued to decline, while oil & gas stocks lost about 2%.
- Among other major indices, France’s CAC and the U.K.’s FTSE continue to trade below their key moving averages. Germany’s DAX was downgraded to a Confirmed Downtrend after it recorded the tenth distribution day, breaching all the key support levels.
- All the 17 indices that we track in Europe closed in negative territory. Apart from Germany, Ireland and Austria were downgraded to an Uptrend Under Pressure after they breached key support levels.
- Switzerland was downgraded to a Confirmed Downtrend after it breached its low of October 22, while Portugal was also downgraded to a Confirmed Downtrend after it breached its prior low.
- Trigano (TRI.FR; TRI:FP) was removed from the Actionable ideas and is testing the 50‐DMA. Other actionable names in the Focus List include Ashtead Group (AHT.GB; AHT:LN), Experian (EXPN.GB; EXPN:LN), B&M (BME.GB; BME:LN), Spirax‐Sarco (SPX.GB; SPX:LN), Halma (HLMA.GB; HLMA:LN), Lonza Group (LONN.CH; LONN:SW), and Sartorius (SRT3X.DE;SRT3:GR).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 30bps yesterday in lower volume, remaining slightly below its 50-DMA (3,409). The Nasdaq gained 64bps also in lower volume, holding above its 50-DMA (11,318). The distribution day count fell back to six and three days, respectively, with no further expiration until the end of next week.
Won Europe Today
Yesterday,
- Markets were under heavy selling pressure as fresh lockdowns were imposed in Italy and Spain with the increase in number of COVID‐19 cases. The hopes of U.S. stimulus bill being signed ahead of the Presidential Elections are also diminishing. All the 16 indices closed in negative territory, Austria market was closed for a holiday.
- The Stoxx 600 declined 1.80% on lower volume with the Technology sector plunging more than 7%. The index is in a Rally Attempt and awaiting a follow‐through day. Among other major bourses, Germany’s DAX underperformed slipping 3.68% as SAP fell more than 22%. It recorded a distribution day, taking its total to 9. France’s CAC and the U.K.’s FTSE fell more than 100bps each.
- Finland, Spain, the Netherlands, and Sweden were downgraded to an Uptrend Under Pressure after each of them breached their 50‐DMA. Norway remains in a Downtrend while Italy, Switzerland, France, and the U.K. are in a Rally Attempt. Ireland is the only market to be in a Confirmed Uptrend and others being in an Uptrend Under Pressure.
- Actionable names in the Focus List include Ashtead Group (AHT.GB;AHT:LN), Experian (EXPN.GB;EXPN:LN), B&M (BME.GB; BME:LN), Spirax‐Sarco (SPX.GB; SPX:LN), Halma (HLMA.GB; HLMA:LN), Lonza Group (LONN.CH; LONN:SW), Trigano (TRI.FR; TRI:FP), and Sartorius (SRT3X.DE;SRT3:GR).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to pull back and are testing support along the 50-DMA. The Nasdaq is sitting right on its 50-DMA, while the S&P 500 is slightly below this key moving average. Each index added a distribution day, increasing the count to seven and four on the S&P 500 and Nasdaq, respectively, with one day expiring on each index after the close.
Won Europe Today
We released our European weekly (click here to view the report) summary on Friday. Key points from it include
- We reiterate our view that the market—in the short term—may be led by value sectors (Financial) at the expense of extended growth sectors such as Technology and Health Care. Refer to page 3 for a list of European banks displaying the strongest momentum.
- The Swedish OMX 30 remains one of the most constructive indices in the region. From our Focus List, Indutrade (INDT.SE;INDT:SS) is actionable. The best‐rated names are mainly gaming stocks that have benefited from “stay‐at‐home” measures (EVOG.SE;EVOS:SS, SFRG.SE;SF:SS, THQ.SE;EMBRACB:SS)
