The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~40bps on higher volume, bouncing off their 10-DMA
support. Next support for both indices is at their 21-DMA (5,652, 17,775). The S&P 500 is near all-time highs, while the Nasdaq is 3% off
highs. The distribution day count stands at zero and one, respectively.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets ended the week on a strong note, driven by continued momentum from China’s economy. China’s central bank interest rate cut bolstered efforts to achieve the nation’s 5% annual growth target. The Mainland China index, CSI 300, had its best weekly performance in 16 years, surging more than 15% over the week.
- Among key economic releases, inflation in France and Spain eased more than expectations, while Germany’s unemployment rate remained unchanged m/m.
- Among significant movers, shares of Italian apparel manufacturer Moncler (MONC.IT; MONC:IM) rose around 11% after the French luxury player LVMH (LVMH.FR; MC:FP) acquired a 10% stake in Double R, an investment vehicle led by Moncler’s CEO.
- The Stoxx 600 gained around 0.5%, hitting an all-time high. It gained more than 2% through the week and was trading above all its key support levels. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Chemicals (+264bps), Automobiles (+181bps), and Food and Beverage (+145bps) led the gains, while Telecommunications (-36bps) lagged the most.
- Among major indices, France’s CAC 40 rose 64bps, retaking its 200-DMA on lower volume. The index traded above all its key moving averages, with next resistance at its June 12 close (7,864.7; +0.9%). Germany’s DAX 30 extended its gains for a second consecutive session, closing 1.3% higher. The index was making new 52-week highs. The U.K.’s FTSE 100 closed 43bps higher and tested support at its converging 10- and 21-DMA.
- Denmark recorded its ninth distribution day.
- Italy was shifted to a Confirmed Uptrend from an Uptrend Under Pressure as the index reclaimed its previous rally high.
- All the 16 indices we track closed in the green, except Denmark, Ireland, and Sweden. Nine indices are in a Confirmed Uptrend, three in an Uptrend Under Pressure, and four in a Rally Attempt. The average distribution day count stood at 4.33.
- Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 26 ideas are trading above their 50-DMA.
- Adidas (ADSX.DE; ADS:GR) was the strongest gainer among the FL names, rising more than 8% in the past two sessions. The stock has broken out of a stage-one double-bottom base and is trading 1% off highs.
- Ypsomed Holdings (YPSN.CH; YPSN:SW) was the biggest decliner among the FL names, slipping around 5.4%. The stock breached its 10- and 21-DMA. Immediate support is at its 50-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Alfa Laval (ALF.SE; ALFA:SS), Eqt (EQT.SE; EQT:SS), Schneider Electric (QT@F.FR; SU:FP), Swissquote ‘R’ (SQN.CH; SQN:SW), Flutter Entertainment (FLTR.GB; FLTR:LN), Ferrari (RACE.IT; RACE:IM), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market is in a Confirmed Uptrend. Indices continue to consolidate recent gains as the S&P 500 is trading at all-time highs
while the Nasdaq is only 3% off its high. The first level of support for both indices is at the 10-DMA (5,696, 17,920), followed by the rising
21-DMA (5,614, 17,573). The distribution day count stands at zero and one, respectively.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was up 40bps and continues to trend higher at a new all-time high. The
Nasdaq was up 60bps and continues to trend higher as well. The S&P 500 and Nasdaq have immediate support at their 10-DMA (5,684;
17,888). The distribution day count remains at zero and one, 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 underweight as they may be vulnerable to further downside risk and underperformance. European stocks include Centrica (CNA.GB; CNA:LN), Eiffage (FGR.FR; FGR:FP), Sodexo (SDX.FR; SW:FP), Nestle (NESN.CH; NESN:SW), and Jyske Bank (JYS.DK; JYSK:DC).
Won Europe Today
Yesterday,
- European markets closed mixed, owing to a more than 1% drop in crude oil prices. Investors remain concerned about the effectiveness of China’s recent stimulus measures to boost its economy. China-exposed sectors like Automobiles slumped after having gained more than 3% in the previous session.
- Among key economic updates, Sweden’s central bank cut interest rates by 25bps, in line with estimates. Meanwhile, the European Central Bank is anticipated to follow with a similar rate reduction in its upcoming meeting, considering the ongoing weakness in Eurozone’s economic data.
- Among significant movers, shares of Valmet (VALM.FI; VALMT:FH) were up around 11.7% after the company secured an order worth more than £1M in Brazil.
- The Stoxx 600 closed 0.1% lower, after having gained for two consecutive sessions. Near-term support is at its 10-DMA, followed by its 21-DMA. 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 (+43bps) and Health Care (+33bps) gained the most, while Oil and Gas (-146bps) and Automobiles (-133bps) led the losses.
- Among major indices, France’s CAC 40 was down 0.5%. Next level of support is at its 21-DMA (-0.7%). Germany’s DAX 30 closed 39bps lower, mainly due to a 2.9% fall in shares of software developer SAP (SAP.DE; SAP:GR) as the company faced a U.S. investigation regarding allegations of over-pricing. The index has immediate support at its 10-DMA (-0.7%). The U.K.’s FTSE 100 declined 17bps and closed marginally below its 10- and 21-DMA. Support is at its 100-DMA.
- Germany recorded its sixth distribution day.
- Eight of the 16 indices we track closed in the green. Six indices are in a Confirmed Uptrend, four in an Uptrend Under Pressure, and six in a Rally Attempt. The average distribution day count stood at 4.22.
- Of the 31 European Focus List names, 29 ideas are trading above their 200-DMA, while 22 ideas are trading above their 50-DMA.
- Vimian Group (VIMG.SE; VIMIAN:SS) gained the most among FL names, with its shares rising around 3.6%. The stock is extended from its pivot range and is trading 3% off its 52-week high. It is testing strong support at its 21-DMA.
- 3i Group (III.GB; III:LN) was down around 2%. The stock is pulling back to its pivot range. It is trading 2% off highs on decent volume.
- Actionable names in the Focus List include Ypsomed Holdings (YPSN.CH; YPSN:SW), Schneider Electric (QT@F.FR; SU:FP), Swissquote ‘R’ (SQN.CH; SQN:SW), Vitrolife (VITR.SE; VITR:SS), Galderma (GALD.CH; GALD:SW), Ferrari (RACE.IT; RACE:IM), 3i Group (III.GB; III:LN), Nkt (NKT.DK; NKT:DC), and Premier Foods (PFD.GB; PFD:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back and was down 19bps on lower d/d volume. It continues to
trade at all-time highs with immediate support at its 10-DMA (5,670). The Nasdaq was up 4bps and continues to trade above its key
moving averages. It is trading 3% off highs, with immediate support near its 10-DMA (17,820). The distribution day count remains at zero
and one, respectively.
Won Europe Today
Yesterday,
- European markets extended their positive momentum from the previous session. Markets were weighed by a series of favorable policy measures announced by China, aimed to revive the country’s slowing economy. Asia-Pacific markets also witnessed a boost after China’s central bank lowered its seven-day repo rate to 1.5% from 1.7%. Sectors that are heavily reliant on China, such as luxury goods, mining, and automobiles, posted strong gains following these measures.
- Germany’s business assessment index declined for the fourth consecutive month in September, heightening concerns of a potential recession in Europe’s largest economy.
- Among significant movers, shares of Smiths Group (SMIN.GB; SMIN:LN) slumped 5.2% after the company’s annual profit missed estimates.
- The Stoxx 600 gapped up 65bps and was trading above all its key moving averages. It tested resistance at its mid-September high. Next resistance is at its September 3 high (525; +1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed higher, led by Mining (+453bps), Automobiles (+102bps), and Food and Beverage (+92bps). Financial Services (-27bps) was the sole outlier.
- Among major indices, France’s CAC 40 gapped up around 1.3%, primarily due to strong gains from the French luxury brands. The index bounced off its 50-DMA, with near-term resistance at its 100-DMA (+0.6%). Germany’s DAX 30 bounced 0.8% off its converging 10- and 21-DMA. It was trading near its 52-week high. The U.K.’s FTSE 100 reclaimed resistance at its 10- and 21-DMA and was trading above all its key moving averages.
- All the 16 indices we track closed in the green, except Austria. Six indices are in a Confirmed Uptrend, four in an Uptrend Under Pressure, and six in a Rally Attempt. The average distribution day count stood at 4.22.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- Inditex (IND.ES; ITX:SM) gained the most among FL names, with its shares rising around 1.8%. The stock is trading at its 52-week high on good volume and is extended from its pivot range.
- Saab B (SAAB.SE; SAABB:SS) declined more than 9% on heavy volume and broke below its 200-DMA. The stock was removed from our European Markets Focus List as the company kept its FY24 guidance unchanged, which impacted investor sentiment.
- Actionable names in the Focus List include Camurus (CAMX.SE; CAMX:SS), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), Novozymes B (NZY.DK; NSISB:DC), Ypsomed Holdings (YPSN.CH; YPSN:SW), Schneider Electric ( QT@F.FR; SU:FP), Swissquote ‘R’ (SQN.CH; SQN:SW), Vitrolife (VITR.SE; VITR:SS), Galderma (GALD.CH; GALD:SW), Ferrari (RACE.IT; RACE:IM), 3i Group (III.GB; III:LN), Nkt (NKT.DK; NKT:DC), Eqt (EQT.SE; EQT:SS), and Premier Foods (PFD.GB; PFD:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 gained ~25bps, while the Nasdaq gained ~56bps on higher d/d volume. The S&P 500 is trading at all-time highs with immediate support at its 10-DMA (5,659). The Nasdaq is trading 3% off highs and closed above August highs (~18,018), with immediate support near its 10-DMA (17,762). The distribution day count remains at zero and one, respectively.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report Key points from it include:
- Last week, European markets were consolidating, with additional support at its 50- and 200-DMA. Most major markets continued to trade near highs, amid mixed earnings and economic releases.
- Rotation Chart Transportation, Retail, Finance, Consumer Staple, and Health Care are currently in the leading quadrant based on momentum. However, Consumer Staple and Health Care have declined 1.8% and 3.5%, respectively, in the past four weeks.
