Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a choppy session. The Stoxx 600 closed 23bps lower. It continued to test support at its 21-DMA (517.8; -0.3%). In the upcoming week, focus will be on the release of the U.S. GDP print on Thursday, followed by its personal consumption expenditures data on Friday. 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, Health Care (+78bps), Travel and Leisure (+46bps), and Oil and Gas (+33bps) gained the most, while Financial Services (-129bps), Banks (-82bps), and Retail (-76bps) led the losses.
  • Among major indices, France’s CAC 40 lost 58bps on higher volume. Near-term support is at its 10-DMA (7,651.5; -0.1%). Germany’s DAX 30 closed 85bps higher. The index tested resistance at its 50-DMA (18,355; +0.8%). The U.K.’s FTSE 100 fell 41bps on lower volume. Support is at its 21-DMA (8,223.6; -0.3%), followed by its 50-DMA (8,214.5; -0.4%).
  • Sweden recorded Day 2 of its Rally Attempt. Switzerland recorded its sixth distribution day.
  • All the 16 indices we track closed in the red, except Denmark, Ireland, and the Netherlands. Three markets are in a Confirmed Uptrend, three in an Uptrend Under Pressure, one (Sweden) in a Downtrend, and nine in a Rally Attempt. The average distribution day count stood at 5.4.
  • Actionable names in the Focus List include Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Inditex (IND.ES; ITX:SM), Asml Holding (ASML.NL; ASML:NA), and Technogym (TGYM.IT; TGYM:IM).

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 ~40bps and ~125bps on mixed volume. The S&P 500 rebounded from its 10-DMA support (5,439) on higher d/d volume, while the Nasdaq reclaimed its 10-DMA level (17,587) on lower d/d volume. The 21-DMA (5,387/17,339) is a key support level for both indices. The distribution day count remains at four on each index. Two distribution days on the S&P 500 are set to expire after the close on Thursday and Friday, while one is set to expire on the Nasdaq after the close on Friday.

Won Europe Today

Posted on by Deepashree MC

We released our European Weekly Summary yesterday. Click here to view the report. Key points from it include:

  • European markets recovered slightly from the previous week losses. However, most of the markets were trading below their 50-DMA.
  • Most sectors showed negative short-term momentum except Consumer Staple, Health Care, and defensive sectors. Cyclical joined Financial, Retail, and Utility in the worst quadrant, with negative short-term momentum.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq had a downside reversal and declined ~30bps and ~110bps, respectively, on lower volume. The S&P 500 is trading just above its 10-DMA support (5,432), while the Nasdaq breached its 10- DMA level (17,558). The 21-DMA (5,379/17,302) is a key support level for both indices. The distribution day count remains at four on each index, with two on the S&P 500 and one on the Nasdaq set to expire this week.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets closed in the red, as investors assessed a series of central bank decisions and economic releases. Traders anticipate increased volatility in big currency movements due to the upcoming elections in the U.K.
  • The Stoxx 600 slipped 73bps, breaching its 10- and 21-DMA (518) on strong volume. The index closed in line with its 50-DMA (514.2), expecting near-term support at that level. We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
  • Among gainers, shares of Zealand Pharma (ZEA.DK; ZEAL:DC), a Danish biotech company, gained more than 18% after an early study of its drug reported an average weight loss of 8.6% after 16 weekly doses. Among decliners, shares of Carlsberg group (CAB.DK; CARLB:DC), the Danish brewery firm, plummeted more than 8%, after Britvic, a British soft drinks company, rejected its $3.9B takeover proposal.
  • Sectors declined, led by Banks (-160bps), Mining (-117bps), and Technology (-108bps).
  • Among major indices, France’s CAC 40 declined 56bps on heavy volume, failing to continue its growth momentum. It expects to find short-term resistance at its 200-DMA (7,611.6; -0.2%). Germany’s DAX 30 closed 48bps lower on strong volume. The index continued to test resistance at its declining 10-DMA (18,244.9). Support is at its 100-DMA (17,997; -0.9%). The U.K.’s FTSE 100 lost 42bps after gaining for three days straight, closing in line with its 21-DMA (8,237.7).
  • The Stoxx 600 and Switzerland recorded their fifth distribution day each. Denmark and the Netherlands increased their distribution day count to six and nine, respectively.
  • Fourteen of the 16 indices we track closed in the red. Finland and Sweden were closed on account of market holiday. Two markets are in a Confirmed Uptrend, three in an Uptrend Under Pressure, and nine in a Rally Attempt. The average distribution day count stood at 5.6.
  • Actionable names in the Focus List include Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Inditex (IND.ES; ITX:SM), Asml Holding (ASML.NL; ASML:NA), Technogym (TGYM.IT; TGYM:IM), and Siegfried ‘R’ (SFZN.CH; SFZN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. Indices remain near all-time highs, with the first level of support at the rising 10-DMA (5,429/17,572), followed by the 21-DMA (5,373/17,283). The distribution day count stands at four on each index, with two and one days set to expire on the S&P 500 and Nasdaq, respectively, this 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 Cellnex Telecom (CLNX.ES; CLNX:SM), B&M European Val. Ret (BME.GB; BME:LN), and Wpp (WPP.GB; WPP:LN).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 25bps and 79bps, respectively, on higher d/d volume, recording a distribution day each. The first level of support is at the rising 10-DMA (5,421/17,546), followed by the 21-DMA (5,364/17,242). The distribution day count stands at four and five, respectively, with one set to expire on the Nasdaq today after close.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets closed slightly lower, losing its positive momentum, after the U.K.’s May inflation print came in line with the Bank of England’s target. In the policy rate decision scheduled today, economists expect the bank to keep the rate steady. The Stoxx 600 fell 17bps, closing in line with its 50-DMA (513.9). Near-term support is expected at this level, followed by its 100-DMA (506.5; -1.5%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
  • Among major indices, France’s CAC 40 declined 77bps after gaining for two consecutive days. It has closed below its 200-DMA (7,607) and was trading below all its key moving averages. Next support is at its January 25 highs (7,466; -1.3%). Germany’s DAX 30 fell 38bps, with near-term support at its 100-DMA (17,972.1; -0.5%). The U.K.’s FTSE 100 gained 17bps, recovering from its earlier losses and retaking its 10-DMA. Next resistance is at its 21-DMA (8,243; +0.5%).
  • Among sectors, Mining (+65bps), Travel and Leisure (+39bps), and Banks (+25bps) led the gains, while Technology (-104bps) and Chemicals (-68bps) declined the most.
  • Among gainers, shares of Games Workshop (GAW.GB; GAW:LN), a British board game manufacturer, rose 9% after the company raised its pretax profit guidance to £200M for the full year.
  • Portugal and Belgium recorded Day 2 of their Rally Attempt. France, Germany, the U.K., Ireland, Finland, Austria, and Italy were shifted to a Rally Attempt from a Downtrend. Sweden was shifted to a Downtrend from an Uptrend Under Pressure as the index breached its 50-DMA.
  • Of the 16 indices we track, two are in a Confirmed Uptrend, three in an Uptrend Under Pressure, three are in a Downtrend, and eight in a Rally Attempt. The average distribution day count stood at 4.8.
  • Actionable names in the Focus List include Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Inditex (IND.ES; ITX:SM), and Novo Nordisk ‘B’ (NON.DK; NOVOB:DC).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. On Tuesday, indices recorded modest gains, with the S&P 500 increasing 25bps and the Nasdaq closing 3bps higher. The first level of support is at the rising 10-DMA (5,410/17,507), followed by the 21-DMA (5,353/17,194). The distribution day count stands at three and four, respectively.