Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets declined for a third consecutive session. Investors braced the risk of a hung parliament leading to a prolonged potential political uncertainty in France after Sunday’s surprise election result, in which left-wing New Popular Front won the largest number of seats in the final round of voting. Although the alliance failed to secure an absolute majority, future legislation would be harder to pass with an expected coalition government.
  • Sectoral performance had been broadly negative in the past week. Oil & Gas (-238bps) led the decline, followed by Mining (-175bps) and Chemicals (-135bps). Travel and Leisure (+108bps), Health Care (+113bps), and Telecommunication (+71bps) were the bright spots during the week.
  • Most sectors are trading above their 100-DMA. Chemical, Autos, Travel and Leisure, and Oil & Gas are testing support at their 200-DMA, trading 1.1%, 47bps, 68bps, and 1.5% above the long-term moving average, respectively. Food and Beverage stocks are lagging, trading below all their key moving averages and facing stiff resistance from their declining 10-DMA.
  • The Stoxx 600 declined 90bps on higher volume. The index breached its 10- and 21-DMA (514.8) intraday. Immediate support is at its 100-DMA (510.5; -0.2%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
  • Among notable stock moves, shares of BP (BP.GB; BP/:LN), the British oil and gas giant, fell more than 4% after the company announced an expected impairment of $2B in Q2 due to lower refining margins. Shares of Novo Nordisk (NON.DK; NOVOB:DC) declined ~2% after an analysis indicated that its rival Eli Lilly’s treatment led to greater weight loss.
  • Among major indices, France’s CAC 40 slipped more than 1.5% on higher volume, breaching key support levels of its 21-DMA (7,626.8) and its 10-DMA (7,585.3). Next support is at its June 28 closing price (7,479.4; -0.4%). Germany’s DAX 30 was down more than 1.3%, closing below its converging 10- and 21-DMA (18,262.7) on higher volume. Next support is at its 100-DMA (18,159.3; -0.4%). The U.K.’s FTSE 100 closed 66bps lower. The index breached its short-term moving averages on higher volume.
  • The Stoxx 600 and the Netherlands recorded their sixth distribution day each, while Belgium logged in its second. Denmark was shifted to a Downtrend from an Uptrend Under Pressure, while the Netherlands was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as both indices breached all their key support levels.
  • Finland and Sweden were shifted back to a Downtrend as both indices breached Day 1 low of their Rally Attempt.
  • All the 16 indices we track closed in the red. Five markets are in an Uptrend Under Pressure, eight in a Rally Attempt, and three in a Downtrend. The average distribution day count stood at 4.6.
  • Actionable names in the Focus List include ASML Holding (ASML.NL; ASML:NA), Be Semiconductor Industries (BESI.NL; BESI:NA), Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Saab B (SAAB.SE; SAABB:SS), and Hermes International (RMS.FR; RMS:FP).EXSA.DE)

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 rose 7bps, while the Nasdaq gained 14bps, and both indices continued their rally into all-time highs. Immediate support is at the rising 10-DMA (5,522/18,098), with the next level of support at the rising 21-DMA (5,468/17,798). The distribution day count stands at two on both indices.

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:

  • European markets were volatile last week amid election results in France and the U.K. The Stoxx 600 is in an Uptrend Under Pressure with six distribution days. Most indices bounced off their recent lows and traded constructively above their respective 50-DMA.
  • Except Health Care, all sectors posted gains in the past week. On rotation graphs, all sectors showed deterioration in short-term momentum, except Technology, Retail, and Utility.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 rose 10bps, while the Nasdaq gained 28bps, and both indices continued their rally into all-time highs. Immediate support is at the rising 10-DMA (5,510/18,025), with the next level of support at the rising 21-DMA (5,458/17,735). The distribution day count stands at two on both indices.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets closed negatively as investors digested the U.K. election results, in which the opposition Labour Party won a landslide parliamentary majority. Keir Starmer, the leader of the center-left Labour Party, was elected as the country’s new prime minister. France’s election results point toward a hung parliament, with the largest party led by Marine Le Pen unable to gain majority due to the left-wing New Popular Front. Uncertainty in terms of leadership and policy matters remains high as political parties are expected to form a broad coalition government.
  • The Stoxx 600 was down 18bps on higher volume, closing in line with its 50-DMA (516.6). It was testing support at its converging 10- and 21-DMA (515.9). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
  • Among sectors, Utility (+84bps), Technology (+72bps), and Retail (+35bps) led the gains, while Oil and Gas (-106bps), Banks (-82bps), and Mining (-72bps) lagged the most.
  • Among major indices, France’s CAC 40 lost 26bps on higher volume, testing near-term support at its 21-DMA (7,662.9; -0.1%). Next support is at its 200-DMA (7,628.2; -0.6%). Germany’s DAX 30 continued to post gains, closing 11bps higher. The index was trading above all its key moving averages. Next resistance is at its June 6 close (18,652; +0.9%). The U.K.’s FTSE 100 tested resistance at its 50-DMA (8,253.7; +0.6%).
  • Ireland was shifted into a Rally Attempt from a Downtrend.
  • Eleven of the 16 indices we track closed in the red. One market (the Netherlands) is in a Confirmed Uptrend, five in an Uptrend Under Pressure, and 10 in a Rally Attempt. The average distribution day count stood at 4.8.
  • Actionable names in the Focus List include ASML Holding (ASML.NL; ASML:NA), Be Semiconductor Industries (BESI.NL; BESI:NA), Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), Nemetschek (NEMX.DE; NEM:GR), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Saab B (SAAB.SE; SAABB:SS), and H Lundbeck B (HLB.DK; HLUNB:DC).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. Last week, the S&P 500 rose 1.9%, while the Nasdaq gained 3.5% and both indices pushed back into all-time highs. Immediate support is at rising 10-DMA (5,496/17,941), with the next level of support at rising 21-DMA (5,446/17,668). The distribution day count stands at two on both indices after one expired at the end of the week.

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 Moncler (MONC.IT; MONC:IM) and Autoliv SDR (ALI.SE; ALIV:SS).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~50bps and ~90bps, respectively, with immediate
support at their 10-DMA (5,480/17,848). The next level of support is at the rising 21-DMA (5,433/17,599). Indexes have a distribution day
count of three, with one expiring on each after the close today

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets recorded a positive session, heightened by a record-high Wall Street close, post a declining inflation print. More than 200 candidates withdrew from France’s second election round to unite against the far-right party, which led to a strong upward move of the French index.
  • The Stoxx 600 bounced off its 100-DMA on higher volume. The index advanced 73bps, attempting to catch up with its converging 10- and 21-DMA (516; +0.27%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
  • Among sectors, Mining (+224bps), Technology (+173bps), and Travel and Leisure (+168bps) outperformed, while Health Care (-120bps) lagged.
  • Among major indices, France’s CAC 40 gapped up more than 1.2% on higher volume. The index reclaimed its 10- and 100-DMA intraday. Next resistance lies at its declining 21-DMA (7,695; +0.8%). Germany’s DAX 30 retook its 10- and 21-DMA on higher volume. The index closed in line with its flattish 50-DMA (18,402.1; +0.13%). The U.K.’s FTSE 100 closed 0.6% higher, with near-term resistance at its 21-DMA (8,204.1; +0.4%).
  • Denmark recorded its sixth distribution day. Ireland registered Day 1 of its Rally Attempt. Portugal was shifted to a Rally Attempt from a Downtrend.
  • All the 16 indices we track closed in the green, except Denmark and Norway. One market (the Netherlands) is in a Confirmed Uptrend, five in an Uptrend Under Pressure, one (Ireland) in a Downtrend, and nine in a Rally Attempt. The average distribution day count stood at 4.83.
  • Actionable names in the Focus List include Asml Holding (ASML.NL; ASML:NA), Be Semiconductor Industries (BESI.NL; BESI:NA), Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), Nemetschek (NEMX.DE; NEM:GR), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Saab B (SAAB.SE; SAABB:SS), and H Lundbeck B (HLB.DK; HLUNB:DC).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets traded choppily amid Eurozone’s stickier-than-expected core inflation data and an increase in U.S. job openings. The Stoxx 600 fell 41bps on higher volume, failing to reclaim its short-term moving averages. Immediate support is at its 100-DMA (509.1; -0.3%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
  • Among sectors, Oil and Gas (+60bps), Technology (+30bps), and Food and Beverage (+28bps) were the notable gainers. Health Care (-102bps), Retail (-102bps), and Mining (-89bps) led the losses.
  • Among major indices, France’s CAC 40 gapped down 30bps on higher volume, breaching its 10-DMA (7,595). It was trading below all its key moving averages, with support at its recent lows (7,464; -0.9%). Germany’s DAX 30 lost 70bps after gaining for four straight days. The index breached its 10-DMA (18,204.4). Next support is at its 100-DMA (18,087.6; -0.4%). The U.K.’s FTSE 100 failed to reclaim its 10-DMA (8,210) and 21-DMA (8,207) after testing resistance at these levels. It expects near-term support at its June 14 lows (8,120).
  • The Stoxx 600 and Switzerland recorded their sixth distribution day each. Denmark was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index breached its 21-DMA. Portugal recorded Day 2 of its Rally Attempt.
  • All the 16 indices we track closed in the red, except Austria, Belgium, and the Netherlands. One market (the Netherlands) is in a Confirmed Uptrend, five in an Uptrend Under Pressure, two (Ireland and Portugal) in a Downtrend, and eight in a Rally Attempt. The average distribution day count stood at 5.16.
  • Actionable names in the Focus List include Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), Nemetschek (NEMX.DE; NEM:GR), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Saab B (SAAB.SE; SAABB:SS), and H Lundbeck B (HLB.DK; HLUNB:DC).