Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 gained ~30bps, while the Nasdaq gained ~15bps on lower volume. The
S&P 500 is trading at all-time highs with immediate support at its 10-DMA (5,643). The Nasdaq is trading 4% off highs, testing resistance
near August highs (~18,018), and has immediate support near its 10-DMA (17,693). The distribution day count remains at zero and one,
respectively.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets failed to extend their momentum from the previous session following the oversized rate reduction by the Federal Reserve. The Automobile sector was a major decliner, owing to a 6.8% drop in the shares of Mercedes Benz (MBGX.DE; MBG:GR) after the company revised its annual profit margin outlook downward for the second time in less than three months.
  • Among important economic releases, the U.K.’s retail sales grew better than expected in August, while Germany’s PPI data came in slightly higher than expected during the month.
  • The Stoxx 600 closed 1.4% lower, breaking below its 21- and 100-DMA intraday on lower volume. Immediate support is at its 10-DMA, followed by its 50-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 Automobiles (-359bps), Technology (-272bps), and Mining (-270bps). Utility (+48bps) and Telecommunications (+5bps) were the sole outliers.
  • Among major indices, France’s CAC 40 slid 1.5% on higher volume and closed below its 21-DMA. Next support is at its 50-DMA (-0.5%). Germany’s DAX 30 declined 1.4%, with near-term support at its 21-DMA. The U.K.’s FTSE 100 breached support at its 10-, 21-, 50-, and 100-DMA intraday. The index closed 1.2% lower, with support at its September 11 low.
  • Nine of the 16 indices we track recorded a distribution day. Denmark and the Netherlands logged in their eighth and sixth distribution day, respectively. The average distribution day count stands at four.
  • All the 16 indices we track closed in the red. Six indices are in a Confirmed Uptrend, four in an Uptrend Under Pressure, and six in a Rally Attempt.
  • Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.

Won Global View

Posted on by Deepashree MC

The U.S. market has been upgraded to a Confirmed Uptrend. The S&P 500 was up 1.4% last week, staging a Day 9 follow-through on
Thursday and moving into all-time highs. The Nasdaq rose 1.5% for the week but narrowly missed a follow-through day on Thursday, as
volume was slightly lower than the prior day. It is testing the midpoint of a 10-week range (18,018) and remains about 4% off all-time highs.
The Nasdaq did pick up a distribution day last Friday, while the S&P 500 avoided one. Rising 21-DMA support for each index is 2–2.5%
below (5,585/17,515).

Won Europe Today

Posted on by Deepashree MC

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 Clariant (CLN.CH; CLN:SW), Moncler (MONC.IT; MONC:IM), Evolution (EVOG.SE; EVO:SS), Beiersdorf (BEIX.DE; BEI:GR), Jyske Bank (JYS.DK; JYSK:DC), and Universal Music Group (UNMG.NL; UMG:NA).

Won Global View

Posted on by Deepashree MC

The U.S. market has been upgraded to a Confirmed Uptrend. The S&P 500 was up 1.7% on higher d/d volume, staging a Day 9 follow through and closing at new highs. The Nasdaq was up 2.5% on lower volume. It is testing resistance near its August highs (18,018) and trading 4% below July highs (18,671).