Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a negative session, with all the 16 indices we track closing in the red. Financial institutions and investors across the continent fussed over political uncertainties in France following the French president’s sudden snap election decision. The Stoxx 600 fell 93bps on average volume, recording its biggest intraday drop in two weeks. The index inched closer to its 50-DMA (513; -0.8%), expecting support at the moving average. Resistance is at its converging 10- and 21-DMA (520;+0.5%). We recommend that investors follow a selective approach while adding positions in names that are coming out of proper bases in leading industry groups post earnings.
  • All major sectors closed lower, led by Banks (-227bps), Mining (-184bps), and Utility (-121bps).
  • Among major indices, France’s CAC 40 extended its losses. The index declined 1.3% on strong volume, making new lows (7,759). Next support is at its 200-DMA (7,597.3; -2.4%). Germany’s DAX 30 declined for the third consecutive day, with lows breaching its 50-DMA (18,346.4). It tested resistance at its marginally declining 10-DMA (18,513.2). The U.K.’s FTSE 100 breached its 50-DMA (8,161.8) on strong volume. Next support is at its April 22 highs (8,042.8).
  • The U.K., Finland, Portugal, and Austria were shifted to a Downtrend from an Uptrend Under Pressure as all these indices breached their respective 50-DMA. Spain was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA. Belgium had a failed rally attempt and remains in a Downtrend.
  • The Stoxx 600, Denmark, and Norway recorded their third distribution day, while Germany and the Netherlands logged in their sixth. Italy and Spain increased their distribution day count to four and seven, respectively.
  • Five markets are in a Confirmed Uptrend, four in an Uptrend Under Pressure, and seven in a Downtrend. The average distribution day count stood at 4.
  • Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Relx (REL.GB; REL:LN), Nemetschek (NEMX.DE; NEM:GR), ASML Holding (ASML.NL; ASML:NA), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), and Saab B (SAAB.SE; SAABB:SS).

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 making fresh 52-week highs last week. Among sectors, Technology, Health Care, and Consumer Staple led the gains, while Energy and Basic Material lagged the most.
  • On our rotation graphs, sectors had fading short-term momentum. Consumer Staple and Technology showed some early signs of improvement after exhibiting several weeks of weakness.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade near all-time highs and were up 26bps and 35bps, respectively. The first level of support is at the rising 10-DMA (5,319/17,001), followed by the 21-DMA (5,283/16,805). The distribution day count stands at three and four, respectively.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • Most European markets recorded a choppy session. The Stoxx 600 was trading at its 52-week high. However, the index pulled back 22bps, with lows breaching its 21-DMA (520.9). Near-term support is at its 10-DMA (519.5; -0.7%). We recommend that investors follow a selective approach while adding positions in names that are coming out of proper bases in leading industry groups post earnings.

  • Among sectors, Technology (+48bps) and Health Care (+40bps) were the only gainers. Mining (-109bps), Utility (-102bps), and Automobile (-90bps) lagged the most.

  • Among major indices, France’s CAC 40 fell 48bps on higher volume. The index continued to trade below its 21- and 50-DMA (8,075.5) and closed slightly below its 10-DMA (8,008.1). Next level of support is at its 100-DMA (7,946; -0.7%). Germany’s DAX 30 tested strong resistance at its 21-DMA (18,658.3). It slumped 54bps, closing in line with its 10-DMA (18,577). Next support is at its 50-DMA (18,348; -1.2%). The U.K.’s FTSE 100 closed 48bps lower after gaining for two consecutive days. It is trading along its declining 10-DMA, with support at its 50-DMA (8,151.6; -1.13%).

  • Eleven of the 16 indices we track closed in the red. Austria and Germany recorded their fifth distribution day each. Finland and Spain recorded their third and sixth distribution day, respectively.

  • Belgium was shifted to a Downtrend from an Uptrend Under Pressure as the index breached its 50-DMA. Ireland had a failed Rally Attempt and was shifted to a Downtrend.

  • Seven indices are in a Confirmed Uptrend, six in an Uptrend Under Pressure, two (Ireland and Belgium) in a Downtrend, and one (France) in a Rally Attempt. The average distribution day count stood at 3.61.

  • Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Rolls Royce (RR.GB; RR/:LN), Relx (REL.GB; REL:LN), Adidas (Xet) (ADSX.DE; ADS:GR), Nemetschek (NEMX.DE; NEM:GR), ASML Holding (ASML.NL; ASML:NA), 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. The S&P 500 and Nasdaq are chopping around near all-time highs after rallying ~1.3% and ~2.3%, respectively. The first level of support is at the rising

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. Diageo (DGE.GB; DGE:LN) was the only Europe-listed stock.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed almost unchanged after hitting a fresh all-time high
yesterday. Immediate support is at the rising 10-DMA (5,303/16,920), followed by the 21-DMA (5,268/16,730). Distribution days have
clustered a bit, with the count at three and four, respectively, over three weeks.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets marked a positive session. The Stoxx 600 gained 81bps and retook its 10- and 21-DMA. Resistance is at its recent highs of May 15 (525; 0.7% above). The European central bank is expected to initiate rate cuts with the meeting later today, starting with a 25bps cut on the current rate of 4%. Additional two reductions are expected by the end of the year, with rates forecasted to be 3.25–3.5%. We recommend that investors follow a selective approach while adding positions in names that are coming out of proper bases in leading industry groups post earnings.
  • Among sectors, Technology (+366bps), Health Care (+156bps), and Financial Services (+91bps) were the strongest performers, while Mining (-46bps), Travel and Leisure (-17bps), and Oil and Gas (-5bps) lagged.
  • Among major indices, France’s CAC 40 gained 87bps on average volume, bouncing off its 100-DMA (7,933.8). The index closed marginally below its 10-DMA (8,023.6). Next resistance is at its 50-DMA (8,081; 0.9% above). Germany’s DAX 30 continued to test stiff resistance at its converging 10- and 21-DMA (18,657.1) and closed 1% higher. The index remains under pressure. The U.K.’s FTSE 100 rose 18bps and was testing support at its declining 10-DMA (8,271.4).
  • Eleven of the 16 indices we track closed in the green. Belgium recorded its ninth distribution day. Denmark was closed on account of a market holiday.
  • Six markets were in a Confirmed Uptrend, eight in an Uptrend Under Pressure, and two (France and Ireland) in a Rally Attempt. The average distribution day count stood at 3.76.
  • Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Safran (SGM.FR; SAF:FP), Rolls Royce (RR.GB; RR/:LN), Relx (REL.GB; REL:LN), Adidas (Xet) (ADSX.DE; ADS:GR), Universal Music Group (UNMG.NL; UMG:NA), and Saab B (SAAB.SE; SAABB:SS).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq hit a fresh all-time high, rising ~1.2% and ~2.0%, respectively. Immediate support is at the rising 10-DMA (5,291/16,864), followed by the 21-DMA (5,260/16,686). Distribution days have clustered a bit, with the count at three and four, respectively, over three weeks.

O’Neil Consumer/Retail Weekly

Posted on by Deepashree MC

Consumer Staples (XLP):.The index is testing support at its 21-DMA. It bounced off its 50-DMA and currently sits at $77-78 price level. RS line is trending downward with weak technical ratings. However, there are signs of improvement in A/D Rating in the last few weeks.