The U.S. market is in a Confirmed Uptrend. The S&P 500 declined 18bps on lower d/d volume, escaping a distribution day, while the
Nasdaq closed 27bps up on higher d/d volume. Support for both indices is at their respective 21-DMA (5,770; 18,182). The distribution day
count stands at two and four, respectively.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets closed the week with modest gains, driven by the European Central Bank’s rate cut and strong corporate earnings. While technology stocks slightly pared earlier losses after disappointing results from ASML Holding (ASML.NL; ASML:NA), luxury stocks rose about 1%, led by a 3.5% rally in shares of Gucci owner, Kering (KER.FR; KER:FP). Meanwhile, markets in China and Hong Kong were upbeat, boosted by China’s better-than-expected Q3 GDP report.
- Among significant movers in the Stoxx 600, shares of Finnish telecom player Elisa (ELIS.FI; ELISA:FH) and Swedish medical equipment maker Getinge (GIND.SE; GETIB:SS) dropped 4.7% and 5%, respectively, after both the companies missed their Q3 revenue estimates.
- The Stoxx 600 extended the gains from its previous session, closing 0.2% higher. The index was trading above all its key moving averages, with immediate resistance at its September 27 highs. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Technology (+197bps), Mining (+131bps), and Automobiles (+98bps) led the gains, while Retail (-122bps) and Oil and Gas (-58bps) lagged the most.
- Among major indices, France’s CAC 40 bounced 0.4% off its 100-DMA, owing to a strong performance from the country’s luxury sector. Near-term resistance is at its 200-DMA. Germany’s DAX 30 traded flat near its all-time high, with support at its 10-DMA. The U.K.’s FTSE 100 was down 32bps. The index continued to trade above its key moving averages.
- Ten of the 16 indices we track closed in the green. Four indices are in a Confirmed Uptrend, six in an Uptrend Under Pressure, and six in a Rally Attempt. The average distribution day count stood at 3.9.
- Of the 34 European Focus List names, 33 ideas are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include DSV (DSV.DK; DSV:DC), Prysmian (PRY.IT; PRY:IM), Flutter Entertainment (FLTR.GB; FLTR:LN), Relx (REL.GB; REL:LN), Swissquote ‘R’ (SQN.CH; SQN:SW), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market is in a Confirmed Uptrend. Indices are in an uptrend as the S&P 500 remains at all-time highs, with the Nasdaq
approaching resistance near the July peak of 18,671. Support for both indices is at the rising 10- and 21-DMA (5,762; 18,146). The
distribution day count stands at two and four, respectively.
Won Europe Today
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 underweighted as they may be
vulnerable to further downside risk and underperformance. European stocks include UPM-Kymmene (UPM.FI; UPM:FH),
Jyske Bank (JYS.DK; JYSK:DC), and Galp Energia (GES.PT; GALP:PL).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 closed marginally lower, while the Nasdaq ended slightly higher. Support for
indices is at their 10-DMA (5,801/18,276), followed by their 21-DMA (5,751/18,112). The distribution day count stands at two and four,
respectively.
Won Europe Today
Yesterday,
- European markets extended their losses for a second straight session. Technology and luxury stocks took a hit due to disappointing results from the industry giants ASML Holding (ASML.NL; ASML:NA) and LVMH (LVMH.FR; MC:FP). Investors remain cautious ahead of the European Central Bank’s policy decision later this week. Meanwhile, economic data showed a sharp drop in the U.K.’s inflation in September.
- Travel and Leisure led the sectoral gains, boosted by a 6% rally in shares of the British hotel group Whitbread (WTB.GB; WTB:LN) after the company announced a share buyback worth £100M.
- The Stoxx 600 was down 0.2% and breached its 10- and 21-DMA. Next support is at its 50-DMA (-0.6%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Travel and Leisure (+154bps), Retail (+105bps), and Utility (+98bps) led the gains, while Technology (-184bps) lagged the most.
- Among major indices, France’s CAC 40 slipped for a second consecutive session, owing to prevailing weakness in the luxury sector. The index closed 0.4% lower, breaching its 50-DMA. Immediate support is at its mid-September low. Germany’s DAX 30 closed 24bps lower. Immediate support is at its 10-DMA. The U.K.’s FTSE 100 was up around 1%, owing to easing inflation in the country. The index bounced off its 100-DMA on strong volume and retook its near- to mid-term moving averages.
- Finland and Germany recorded their fourth and fifth distribution day, respectively. Finland was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 50-DMA.
- Nine of the 16 indices we track closed in the red. Three indices are in a Confirmed Uptrend, seven in an Uptrend Under Pressure, and six in a Rally Attempt. The average distribution day count stood at 3.8.
- Of the 33 European Focus List names, 31 ideas are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include DSV (DSV.DK; DSV:DC), Relx (REL.GB; REL:LN), Swissquote ‘R’ (SQN.CH; SQN:SW), Swedish OrphanBiovitrum (SOBI.SE; SOBI:SS), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), 3i Group (III.GB; III:LN), H Lundbeck B (HLB.DK; HLUNB:DC), Schneider Electric (QT@F.FR; SU:FP), Vitrolife (VITR.SE; VITR:SS), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was up 47bps, while the Nasdaq was down 28bps yesterday on lower
d/d volume. Support for indices is at their 10-DMA (5,792/18,254), followed by their 21-DMA (5,742/18,086). The distribution day count
stands at two and four, respectively.
Won Europe Today
Yesterday,
- European markets lost momentum from the previous session, driven by sharp declines in the Oil and Technology sectors. Crude oil futures dropped more than 5% on Tuesday as fears of an Israeli strike on Iran’s oil industry subsided and optimism for China’s economic recovery weakened. U.S. stocks also fell in reaction to the latest earnings reports, while Eurozone’s industrial production grew between July and August.
- Among significant movers, shares of ASML Holdings (ASML.NL; ASML:NA) fell 15.6%, marking its biggest single-day drop since 1998, after the company reported weak results and lowered its FY25 revenue guidance. On the other hand, shares of Ericsson (ERAF.SE; ERICA:SS) were up more than 10% after the company reported better-than-expected Q3 results.
- The Stoxx 600 closed 0.8% lower but was still trading above its key moving averages. Near-term support is at its 10- and 21-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed lower, led by Technology (-632bps), Oil and Gas (-458bps), and Mining (-339bps). Telecommunications (+86bps) and Food and Beverage (+4bps) were the only gainers.
- Among major indices, France’s CAC 40 declined more than 1% on higher volume. The index broke below its 10-, 21-, and 100-DMA intraday. Immediate support is at its 50-DMA (-0.2%). Germany’s DAX 30 pulled back 11bps after rallying for two straight sessions. Immediate support is at its 10-DMA. The U.K.’s FTSE 100 declined 52bps and breached its 21- and 50-DMA. Support is at its 100-DMA.
- France, Finland, Sweden, Italy, and the Netherlands recorded a distribution day each. Italy increased its distribution day count to five.
- Thirteen of the 16 indices we track closed in the red. Four indices are in a Confirmed Uptrend, six in an Uptrend Under Pressure, and six in a Rally Attempt. The average distribution day count stood at 3.6.
- Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Swissquote ‘R’ (SQN.CH; SQN:SW), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), Nemetschek (NEMX.DE; NEM:GR), 3i Group (III.GB; III:LN), H Lundbeck B (HLB.DK; HLUNB:DC), Schneider Electric (QT@F.FR; SU:FP), Vitrolife (VITR.SE; VITR:SS), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined ~75–100bps on higher d/d volume and registered
a distribution day each. Support for indices is at their 10-DMA (5,773/18,230), followed by their 21-DMA (5,724/18,057). The distribution
day count increased to two and four, respectively.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European indices ended higher, slightly below its all-time highs, despite a volatile previous week, with investors cautious ahead of Q3 earnings and awaiting further details on China’s stimulus package. The Stoxx 600 has strong near-term support is at its converging 10- and 21-DMA.
- Sector performance was mixed last week. Health Care led, with a 1.7% rally. Retail also performed well, but Basic Materials and Energy declined, pausing their recent gains.
