We released our Weekly Global Laggards Report today. 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 under weighted as they may be
vulnerable to further downside risk and underperformance. European names highlighted this week include Sandfire
Resources (SFR.AU; SFR:AU), WPP (WPP.GB; WPP:LN), Sgs ‘N’ (SGSN.CH; SGSN:SW), Saint Gobain (SGO.FR;
SGO:FP), Salvatore Ferragamo (SFER.IT; SFER:IM), LVMH (LVMH.FR; MC:FP), Husqvarna B (HUSB.SE; HUSQB:SS),
Whitbread (WTB.GB; WTB:LN), Richemont N (CFR.CH; CFR:SW), Carlsberg (CAB.DK; CARLB:DC), Heineken (HB.NL;
HEIA:NA), OMV (OMV.AT; OMV:AV, Industrivarden C (IUCF.SE; INDUC:SS), Europris (EPR.NO; EPR:NO), The Swatch
Group (UHRN.CH; UHRN:SW), Poste Italiane (PST.IT; PST:IM)
Author: admin
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq pulled back and continue to chop around below resistance at their declining 21-DMA (S&P 500: 4,406; Nasdaq: 13,803). Today will mark day seven of the attempted rally.
WON Europe Today
Yesterday,
- European markets closed in the green after two consecutive days of closing in the red. Markets continue to be
choppy due to concerns surrounding the conflict in Ukraine. Despite the International Energy Agency announcing
the release of 60M barrels of oil from the global reserves, oil prices surged to a seven-year high, reaching
$113/barrel, as major oil companies such as Exxon Mobil continue to abandon the Russian oil and gas business.
Economic pointers for the region continue to be mixed, with the energy prices pushing Eurozone inflation to 5.8%
and Germany unemployment numbers for the month coming in well below estimates. We recommend that
investors be cautious while adding stocks with a rising RS Rating and book profits in names undergoing technical
deterioration. - The Stoxx 600 gained 74bps and is forming the right side of a stage-one consolidation after finding support at its
base. It is trading below its key moving averages. Oil, Mining, and Banking stocks gained 4.1%, 2.3%, and 1.4%,
respectively, while Auto stocks continued to fall, declining 1.6%. - Among other major indices, France’s CAC and Germany’s DAX gained 1.6% and 0.7%, respectively, and remains
below their declining 21-DMA (their prior resistance). The U.K.’s FTSE 100 gained 1.4% and reclaimed its 100-DMA
on strong volume. It is testing resistance at its 50-DMA. - Among the 17 indices we track in Europe, 14 closed in the green while the remaining three closed in the red. There
was no change in the market condition of any indices. Five indices remain in a Downtrend, eight in a Rally Attempt,
three in an Uptrend Under Pressure, and one in a Confirmed Uptrend. With Denmark recording a distribution day
yesterday, the average distribution day count stands at 3.9. - Actionable names in the Focus List include Aker Bp (AKEP.NO; AKRBP:NO), Compass Group (CPG.GB;
CPG:LN), Oci (OCIO.NL; OCI:NA), and Sanlorenzo (SANL.IT; SL:IM).
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 missed a potential follow-through day after rallying +1.8% into resistance at its 21-DMA (S&P 500: 4,406); however, volume was below the prior session. The Nasdaq also rallied into resistance at its 21-DMA (13,831), but its price action and volume were below our criteria for a follow-through day. Today will mark day six of the attempted rally.
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq pulled back after rising for three consecutive sessions and into resistance at the downward sloping 21-DMA (S&P 500: 4,408; Nasdaq: 13,840). Price action continues to be choppy; however, the market status will remain unchanged until a follow-through day (+1.7% in volume above the prior day) occurs or indices undercut last week’s low (S&P 500: 4,114; Nasdaq: 12,587).
WON Europe Today
Yesterday,
- European markets traded in the red for the second consecutive day. Markets declined significantly in the later
sessions due to reports that Russia planned to increase the scope of invasion and a satellite image of a large
Russian convoy, in some cases 40 miles long, heading toward Ukraine’s capital Kyiv. Concerns regarding energy
prices impacting European economies also affected markets as oil prices jumped to $110/barrel. Share prices of
companies with significant Russian exposure continue to be significantly affected. We recommend that investors
be cautious while adding stocks with an increasing RS Rating and book profits in names undergoing technical
deterioration. - The Stoxx 600 fell 2.23% and is trading below its key moving averages and testing support at the base of a stageone consolidation. Auto, Banking, and Travel stocks declined 6.0%, 5.6%, and 7.5%, respectively, while Mining and
Health Care stocks gained 1.1% and 0.5%, respectively. - Among other major indices, France’s CAC and Germany’s DAX fell 3.9% and 0.73%, respectively, and
remain below their declining 21-DMA (their prior resistance). The U.K.’s FTSE 100 fell 1.72%, breaching all its key
support levels. - Among the 17 indices we track in Europe, 15 closed in the red and the remaining two closed in the green. Eight
indices were shifted to a Rally Attempt as they held above their correction low. Five indices are in a Downtrend,
eight in a Rally Attempt, three in an Uptrend Under Pressure, and one in a Confirmed Uptrend. As none of the
indices recorded a distribution day yesterday, the average distribution day count stands at 4.4.
Actionable names in the Focus List include Compass Group (CPG.GB; CPG:LN), Oci (OCIO.NL; OCI:NA), and
Sanlorenzo (SANL.IT; SL:IM).
Won Global View
The U.S. market has shifted to a Rally Attempt. The S&P 500 and Nasdaq have held above Thursday’s lows (S&P 500: 4,114; Nasdaq: 12,587) for three days. A follow-through day (+1.7% in volume above the prior day) above these lows will lead us to upgrade the market back to a Confirmed Uptrend. Near-term resistance is at the 21-DMA (S&P 500: 4,423, Nasdaq: 13,865). Conversely, an undercut of Thursday’s lows and the market status moves back to a Downtrend.
WON Europe Today
We released our European Weekly Summary today. Click here to access the report. Key points from it include:
The Stoxx 600 was moved back to a Downtrend last Monday after the index undercut January lows. The news
updates on Russia-Ukraine took the center stage, dictating the market direction. In the later part of the week, the
Russian invasion of Ukraine led the markets lower; however, there was a recovery on Friday in risk assets globally,
which helped markets close above the week’s low.
Health Care sector led the markets last week, while the Financial Rotation Chart Consumer Staple showed
improving short-term momentum (over four weeks). Tech, Capital Equipment, and Retail stocks continue to show
weak trends in short-term momentum (over four weeks).
European Focus List Update: We removed Paragon Banking Group PLC (GB).
WON Europe Today
On Friday,
- European markets closed in the green, rebounding strongly after two consecutive days of closing in the red. The
rally was driven by investors determining the long-term consequences of the U.S., the U.K., and EU-led sanctions
on Russia along with growth data from the region and strong earnings reports. Concerns regarding the effects of
war in Europe led to investment inflow to the U.S. dollar. While euro fell 1.1% to $1.115, sterling declined 0.5% to
$1.335. Oil prices have risen 5% to $102.85. We continue to recommend that investors be patient in this volatile
market and reduce their positions in names breaching their key long-term support levels. - The Stoxx 600 gained 3.32% but is still trading below its key support levels after large prior losses. The rally was led
by the Banking, Mining, and Technology sectors, which gained 4.3%, 4.6%, and 4.0%, respectively. - Among other major indices, France’s CAC gained 3.6%. The index is trading 2.7% below its declining 21-DMA
which previously offered resistance. Germany’s DAX gained 3.7% but is still 3.9% below its prior resistance of 21-
DMA. The U.K.’s FTSE 100 gained 3.9% and is close to testing resistance at its 21-DMA. - Among the 17 indices we track in Europe, all closed in the green. Thirteen indices are in a Downtrend, one in a
Rally Attempt, and three remains in an Uptrend Under Pressure. With no distribution day recorded yesterday, the
average distribution day count stands at 5.5. - Actionable names in the Focus List include Compass Group (CPG.GB; CPG:LN), Oci (OCIO.NL; OCI:NA),
Sanlorenzo (SANL.IT; SL:IM), and Vinci (DG@F.FR; DG:FP).
Won Global View
The U.S. market is in a Downtrend. The S&P 500 and Nasdaq undercut January lows before reversing sharply higher to close positive last week. Both are now two days off recent lows and still below near-term resistance at their respective 21-DMA (S&P 500: 4,423; Nasdaq: 13,882) before both the 50- and 200-DMA. The market status will shift to a Rally Attempt today should recent lows hold, at which point a second follow-through day will need to occur before moving back to a Confirmed Uptrend.
