Author: Deepashree MC

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:

  • The Stoxx 600 closed the week 55bps higher, with resistance at its 100-DMA. We expect upcoming sessions to be volatile as investors digest earnings amid a potential dovish stance by the central banks of the U.S. and the U.K. and continuing weakness in the Chinese economy.
  • Defensive sectors like Utility, Health Care, and Retail led gains this week, while Technology and Consumer Discretionary struggled. We recommend that investors reduce positions in names that are breaking below their logical levels of support and increase exposure to defensive sectors within constructive markets.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets closed in the green, easing the losses from the past two consecutive sessions, driven by upbeat earnings across several sectors. Global markets remained stable after data indicated improving U.S. inflation sentiment.
  • The Stoxx 600 advanced 0.8%, retaking its 100-DMA on lower volume. Immediate resistanceis at its 10-DMA (513.9;+0.2%), followed by its 21-DMA (514.8;+0.4%). We recommend that investors trim positions in stocks that have breached their logical levels of support. Book profit in names that are breaching their 21- and 50-DMA on high volume.
  • All sectors closed higher, led by Travel and Leisure (+153bps), Retail (+118bps), and Financial Services (+97bps).
  • Among major indices, France’s CAC 40 recovered from its losing momentum, gaining more than 1.2%. The index was still trading below all its key moving averages and attempting to catch up with its declining 10-DMA (7,558.3; +0.5%). Germany’s DAX 30 retook its 21-DMA on lower volume. The index tested resistance at its converging near- to mid-term moving averages. The U.K.’s FTSE 100 bounced off its 10-DMA, gaining more than 1.2%, and retook its 50-DMA on average volume. The index traded above all its key moving averages.
  • The Stoxx 600, France, and the Netherlands recorded Day 1 of their Rally Attempt, while Finland recorded Day 2 of its Rally Attempt.
  • All the 16 indices we track closed in the green, except Denmark and Portugal. One market (Belgium) is in a Confirmed Uptrend, two in an Uptrend Under Pressure, nine in a Rally Attempt, and four in a Downtrend. The average distribution day count stood at 4.67.
  • Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Biotage (BIOT.SE; BIOT:SS), Relx (REL.GB; REL:LN), Lonza Group (LONN.CH; LONN:SW), and Premier Foods (PFD.GB; PFD:LN).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Downtrend. Last week, the S&P 500 fell 0.8%, while the Nasdaq dropped 2.1%. The S&P 500 fell below
its 50-DMA for the first time in nearly three months before slightly retaking it to end the week. Next support could be between 5,291 (100-
DMA) and 5,340 (prior base highs). The Nasdaq broke and closed below the 50-DMA, with the next level of support at the 100-DMA
(16,820). We would like the indices to hold above Thursday’s low for three sessions and then look for a follow-through day or for indices to
move back into new highs before upgrading back to a Confirmed Uptrend.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Downtrend. The S&P 500 and Nasdaq declined 51bps and 93bps, respectively. Indices are trading below their
50-DMA, with the next level of support near their rising 100-DMA (5,287/16,809). We would like the indices to hold above yesterday’s low
for three sessions and then look for a follow-through day or for indices to move back into new highs before upgrading back to a Confirmed
Uptrend.

Won Global View

Posted on by Deepashree MC

The U.S. market has been downgraded to a Downtrend. The S&P 500 and Nasdaq declined 2.31% and 3.64%, respectively, on above average volume, led by a sharp decline in Technology stocks. Next support for both indices is at their 100-DMA (5,285/16,800). We will be looking either for a new follow-through day or for indices to move back into new highs before upgrading back to a Confirmed Uptrend. A follow-through day (a gain of 1.7% or more on higher d/d volume) can occur as early as Tuesday.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a negative session, following two positive sessions, as luxury stocks slumped sharply due to weak results from LVMH (LVMH.FR; MC:FP), the world’s largest luxury goods firm. Shares of the company were down more than 4.5% after it missed Q2 sales estimates.
  • The Stoxx 600 closed 61bps lower, breaching support of its 21- and 100-DMA intraday. Immediate support is at its July 19 lows (509.6; -0.5%). We recommend that investors trim positions in stocks that have breached their logical levels of support. Book profit in names that are breaching their 21- and 50-DMA on high volume.
  • Among significant stock moves, shares of the Dutch chip-making equipment supplier ASM International (ASIN.NL; ASM:NA) plunged more than 9% despite the company reporting better-than-expected Q2 results and raising its Q3 guidance. Shares of Deutsche Bank (DBK.DE; DBK:GR) fell more than 8% after the German bank had its first loss in four years in Q2.
  • Among sectors, Utility (+64bps) and Mining (+27bps) were the prominent gainers, while Technology (-230bps), Automobiles (-86bps), and Travel and Leisure (-85bps) declined the most.
  • Among major indices, France’s CAC 40 gapped down more than 1.1%, breaching its 21-DMA on higher volume. The index was making new lows and trading below all its key moving averages. Immediate support is at its June 14 lows (7,464.6). Germany’s DAX 30 declined below its 10- and 50-DMA on higher volume, testing support at its 21-DMA (18,383; -0.02%). The U.K.’s FTSE 100 fell 17bps, with immediate support at its 100-DMA (-0.7%).
  • The Stoxx 600 and Finland had a failed rally attempt as the indices breached their Day 1 lows.
  • Switzerland and the Netherlands recorded their sixth and seventh distribution days, respectively. The average distribution day count stood at five.
  • All the 16 indices we track closed in the red, except Portugal and Belgium. Two markets are in a Confirmed Uptrend, two in an Uptrend Under Pressure, 10 in a Rally Attempt, and two in a Downtrend.
  • Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Biotage (BIOT.SE; BIOT:SS), Relx (REL.GB; REL:LN), Rolls Royce Holdings (RR.GB; RR/:LN), Swissquote ‘R’ (SQN.CH; SQN:SW), and Premium Foods (PFD.GB; PFD:LN).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 16bps and 6bps, respectively. Indices continue to consolidate near their respective 21-DMA (5,537/18,001), with the next level of support at the rising 50-DMA (5,424/17,489). The distribution day count stands at five and four, respectively, with one day expiring on each index at the end of this week.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets marked a mixed session. Technology stocks outperformed, following the robust earnings from SAP (SAPX.DE; SAP:GR), the region’s largest software maker. Shares of the company rose more than 7% to an all-time high after it reported better-than-expected operating profit.
  • The Stoxx 600 preserved its gains, closing 13bps higher. The index reclaimed its 21-DMA on higher volume and tested near-term resistance from its 10-DMA (516.4;+0.2%). We recommend that investors trim positions in stocks that have breached their logical levels of support. Book profit in names that are breaching their 21- and 50-DMA on high volume.
  • Among sectors, Technology (+128bps), Travel and Leisure (+67bps), and Banks (+45bps) led the gains, while Mining (-156bps), Oil and Gas (-103bps), and Automobile (-92bps) lagged the most.
  • Among major indices, France’s CAC 40 was down 31bps and declined below its 10-DMA on marginally higher volume. The index closed in line with its 21-DMA (7,598.6), expecting near-term support at this level. Germany’s DAX 30 gained 0.8% on higher volume, reclaiming its 10- and 50-DMA. Resistanceis at its July 15 highs (18,743.6; +1%). The U.K.’s FTSE 100 closed below its 21-DMA (8,189.8; +0.3%). Support is at its 100-DMA (8,090.2; -1%).
  • The Stoxx 600 and Finland recorded Day 2 of their Rally Attempt. Denmark was shifted to a Rally Attempt from a Downtrend.
  • Norway recorded its second distribution day, taking the average distribution day count to 4.5.
  • Eight of the 16 indices we track closed in the green. Two markets are in a Confirmed Uptrend, two in an Uptrend Under Pressure, 10 in a Rally Attempt, and two in a Downtrend.
  • Actionable names in the Focus List include Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), H Lundbeck B (HLB.DK; HLUNB:DC), Rolls Royce Holdings (RR.GB; RR/:LN), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), and Premium Foods (PFD.GB; PFD:LN).

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:

  • The Stoxx 600 was shifted to a Downtrend as the index slid more than 260bps, breaching its 100-DMA, primarily due to weakness in semiconductor stocks. Overall market remains cautious as indices face stiff resistance.
  • Among a broad negative sectoral performance, Technology lagged the most, while Retail, Basic Material, Capital Equipment, and Consumer Cyclical declined 2–Rotation Charty, Retail, Consumer Cyclical, Financial, and Capital Equipment exhibited positive short-term momentum.