We released our Weekly Global Laggards Report today. Click here to access the reports 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 Hennes & Mauritz B (HMBF.SE; HMB:SS) and Carlsberg B (CAB.DK; CARLB:DC).
Author: Deepashree MC
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed flat with immediate support at the 10-DMA (5,577), followed by
the 21-DMA (5,531). The Nasdaq declined ~20bps on higher d/d volume, adding its third distribution day. It is testing support at the 21-
DMA (17,504). The distribution day count is at one and three, respectively.
Won Europe Today
Yesterday,
- European markets had a positive session, buoyed by gains in the chemical sector. Investors closely watched
Nvidia’s Q3 results, which are seen as a key indicator of the global sentiment toward artificial intelligence and
technology stocks. On the data front, France’s consumer confidence data came in line with expectations, ahead of
the Eurozone’s inflation print scheduled to release on Friday. Market participants are considering the possibility of a
25bps rate cut at the European central bank’s September meeting. - The Stoxx 600 closed 33bps in the green, registering its highest rise since July. The index surpassed long-term
resistance of its July 31 high. Next resistance is at its July 15 high (524; +0.7%). We recommend a selective
approach to adding names on a high-volume breakout or decisive retake of their key moving averages. - Among sectors, Chemicals (+129bps), Health Care (+75bps), and Utility (+66bps) gained the most, while Mining
(-125bps) and Retail (-112bps) led the losses. - Among major indices, France’s CAC 40 gained 16bps. Major resistance remains at its 200-DMA (7,577.8; +1.8%).
Germany’s DAX 30 rose 0.5% on higher volume, owing to strong gains of German chemical players like Symrise
(SY1.DE; SY1:GR) and Covestro (1COV.DE; 1COV:GR). The index extended its gains for a second straight
session and was making new 52-week highs. The U.K.’s FTSE 100 closed flat and continued to find support at its
10-DMA. - Eleven of the 16 indices we track closed in the green. Three markets are in a Confirmed Uptrend, while all the
others are in a Rally Attempt. The average distribution day count stands at one. - Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Inditex (IND.ES; ITX:SM), Lonza Group
(LONN.CH; LONN:SW), Premier Foods (PFD.GB; PFD:LN), Rolls-Royce Holdings (RR.GB; RR/:LN), Inditex
(IND.ES; ITX:SM), Nkt (NKT.DK; NKT:DC), Relx (REL.GB; REL:LN), Swedish Orphan Biovitrum (SOBI.SE;
SOBI:SS), 3i Group (III.GB; III:LN), Galderma (GALD.CH; GALD:SW), Siegfried ‘R’ (SFZN.CH; SFZN:SW), and
Swissquote ‘R’ (SQN.CH; SQN:SW). - All 32 European Focus List names are trading above their 200-DMA, while 24 are trading above their 50-DMA.
Ypsomed Holdings (YPSN.CH; YPSN:SW) was the biggest mover.
Shares of Ypsomed Holdings (YPSN.CH; YPSN:SW) were up more than 5.5% yesterday after a broker
initiated coverage for the company with an outperform rating. The company is expected to benefit from home
care industry trends. The stock is forming the right side of a stage-one, seven-week flat base. It has
reclaimed its 50-DMA on above average volume.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined ~60bps and ~110bps, respectively, on higher d/d
volume and registered a distribution day each. Immediate support for the S&P 500 is at the 10-DMA (5,574), followed by the 21-DMA
(5,525). The Nasdaq breached the 50-DMA and is testing support at the 21-DMA (17,503). The distribution day count is at one and two,
respectively.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 gained ~15bps and is just 1% off all-time highs (5,670), with support at
the 10-DMA (5,570), followed by the 21-DMA (5,518). The Nasdaq also gained ~15bps and is 5% off all-time highs, trading just above
support at the 50-DMA (17,641). The distribution day count is at zero and one, respectively.
Won Europe Today
Yesterday,
- European markets traded slightly higher, led by gains in the travel and banking sectors. The Travel sector closed more than 1% higher, particularly due to shares of Ryanair (RYA.IE; RYA:ID), which were up more than 4.5% after the company’s CEO mentioned an improved fare outlook in the upcoming quarter.
- On the data front, Germany’s Q2 GDP came in line with estimates, however, contracting on a quarterly basis. Investors remain alert as they await key economic data releases this week, including inflation print from the European Union and the U.S.
- Bunzl (BNZL.GB; BNZL:LN), the British food distributor, was the biggest mover on the Stoxx 600 after its shares rose nearly 8% following the upward revision of its annual operating profit estimates.
- The Stoxx 600 closed 16bps higher. The index continued to test resistance at its July 31 high. 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 (+107bps), Banks (+61bps), and Telecommunications (+48bps) led the gains, while Retail (-34bps) and Oil and Gas (-11bps) lagged the most.
- Among major indices, France’s CAC 40 closed 32bps lower. Near-term support is at its 50-DMA (-0.8%). Germany’s DAX 30 was trading at its monthly highs, well above its key moving averages. Immediate resistance is at its July 12 high (18,779; +0.5%). The U.K.’s FTSE 100 bounced 0.2% off brief support at its 10-DMA and has reclaimed its resistance at its July 31 high.
- Ten of the 16 indices we track closed in the green. Three markets are in a Confirmed Uptrend, while all the others are in a Rally Attempt. The average distribution day count stands at one.
- Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Inditex (IND.ES; ITX:SM), Lonza Group (LONN.CH; LONN:SW), Premier Foods (PFD.GB; PFD:LN), Rolls-Royce Holdings (RR.GB; RR/:LN), Ferrari (RACE.IT; RACE:IM), Inditex (IND.ES; ITX:SM), Nkt (NKT.DK; NKT:DC), Relx (REL.GB; REL:LN), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), 3i Group (III.GB; III:LN), Galderma (GALD.CH; GALD:SW), Siegfried ‘R’ (SFZN.CH; SFZN:SW), and Swissquote ‘R’ (SQN.CH; SQN:SW).
- All 32 European Focus List names are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA. H Lundbeck B (HLB.DK; HLUNB:DC) and Hemnet Group (HEMN.SE; HEM:SS) were the biggest movers.
- Shares of H Lundbeck B (HLB.DK; HLUNB:DC) were up around 4% yesterday. The company has recently reported better-than-expected Q2 FY24 results and raised its full-year guidance. In Q2 FY24, revenue and EPSbeat estimates by 3% and 6%, respectively. The stock is extended after breaking out of a stage-one 35-week cup-with-handle base on above average volume. Immediate support is at its 10-DMA (-7%).
- Shares of Hemnet Group were down 4% yesterday after the company’s CEO Cecilia Beck-Friis informed her decision to step down from the position. However, she will continue until a new successor is appointed. The stock is forming the right side of a flat base, with support at its rising 50-DMA (-3%).
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index is making new 52-week highs post breaking out of a stage-one consolidation. Some of its major
constituents like Coca Cola, Walmart and Costco are also making new 52-week highs. RS line is trending upward with RS Rating of
68 and A/D Rating of C. In the recent weeks, breadth has improved. Overall, the index has under-perfromed the broader market in
2024.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The European and U.S. markets are trading back near highs, with strong possibilities of rate cuts in both markets. Most of the 16 indices we cover in the region remain in a Rally Attempt. Without a follow-through day to confirm a new uptrend, we recommend a selective approach to adding names.
- For the second consecutive week, the number of stocks breaking out has improved, jumping to 481 from 140 in the prior week. However, this number is still far behind mid-July levels of 741 and early May levels of 1,212 when the Stoxx 600 was breaking into new highs.
Won Global View
The U.S. market remains in a Confirmed Uptrend. After a V-shaped recovery last week, the S&P 500 and Nasdaq are exhibiting a
stalling action, declining ~30bps and ~85bps, respectively. The S&P 500 is just 2% off all-time highs (5,670), with support at the 10-DMA
(5,557), followed by the 21-DMA (5,508). The Nasdaq is 5% off all-time highs, trading just above support at the 50-DMA (17,640). The
distribution day count is at zero and one, respectively.
Won Europe Today
On Friday,
- European markets rallied after the Fed Chair Jerome Powell, at the Jackson Hole symposium, confirmed plans to reduce interest rates. Powell highlighted that inflation is nearing the 2% target and emphasized the need to support the labor market. Following his remarks, investor confidence in a September rate cut soared, with the probability of a 25bps reduction rising to 65%. In addition, the Bank of England’s governor Andrew Bailey hinted at easing inflation pressure on the U.K.’s economy in recent years during his speech at the meeting.
- Eurozone’s government bond yields dropped in response to a decline in the U.S. government bond yields. Germany’s 10-year bond yield was last recorded at 2.22%.
- The Stoxx 600 posted gains for a third consecutive session. It surpassed its July 31 high, which has been a strong resistance level in the past few sessions. The index traded above all its key moving averages, with next resistance at its July 15 high (524; +1.1%). 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. Retail (+188bps), Banks (+114bps), and Utility (+110bps) were the most prominent gainers. Technology (-63bps) and Health Care (-11bps) lagged.
- Among major indices, France’s CAC 40 rose 70bps after finding brief support at its 50-DMA. Next resistance is at its 200-DMA (+1.7%). Germany’s DAX 30 closed 80bps higher, gaining for a third straight session. Near-term resistance is expected at its July 23 high (+0.07%). The U.K.’s FTSE 100 closed 48bps higher, finding support at its 10-DMA.
- All the 16 indices we track closed in the green, except Denmark. Three markets are in a Confirmed Uptrend, while all the others are in a Rally Attempt. The average distribution day count stands at one.
- Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Inditex (IND.ES; ITX:SM), Lonza Group (LONN.CH; LONN:SW), Premier Foods (PFD.GB; PFD:LN), Rolls-Royce Holdings (RR.GB; RR/:LN), Ferrari (RACE.IT; RACE:IM), Nkt (NKT.DK; NKT:DC), Relx (REL.GB; REL:LN), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), 3i Group (III.GB; III:LN), and Swissquote ‘R’ (SQN.CH; SQN:SW).
