Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets recorded a weak session. The Stoxx 600 dropped below its 10- and 21-DMA (520) intraday on above average volume and closed 54bps lower. It is testing resistance at its 10-DMA (518). Support is at its 50-DMA (512.4; 0.8% below). 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, Health Care (+69bps), Utility (+61bps), and Food and Beverage (+41bps) gained the most, while Oil and Gas (-258bps), Banks (-225bps), and Mining (-220bps) lagged heavily.
  • Among major indices, France’s CAC 40 declined 75bps on average volume. The index closed near its 100-DMA (7,928.4), expecting to find support at that level. Germany’s DAX 30 slumped more than 1% on high volume. The index breached its 21-DMA and was shifted to an Uptrend Under Pressure from a Confirmed Uptrend. Near-term support is at its 50-DMA (18,330; -0.4%). The U.K.’s FTSE 100 slid 37bps and tested support at its May 30 lows (8,148.4; -1.02%).
  • All the 16 indices we track closed in the red, except Denmark. Germany, Norway, Austria, Portugal, Spain, Belgium, and the Netherlands recorded a distribution day each. Belgium and Spain recorded their eighth and sixth distribution day, respectively. The average distribution day count stood at 3.71.
  • Six markets were in a Confirmed Uptrend, eight in an Uptrend Under Pressure, and two (France and Ireland) in a Rally Attempt.
  • 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), 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 rose ~15bps each and are trading back above their 10- DMA (5,277/16,791). While both indices are close to all-time highs, distribution days have clustered a bit, with the count at three and four, respectively, over three weeks.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed marginally higher after taking support at its 21-DMA (5,246), while the Nasdaq rose ~0.6% and is trading back above its 10-DMA (16,777). While both indices are close to their all-time highs, 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

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

  • Over the past week, Transportation, Energy, and Utility were the bright spots in the market, while rest of the sectors gave up gains or closed flat.
  • On our rotation charts, Capital Equipment remained in the best quadrant. Transportation and Health Care gained momentum in the recent weeks. Due to the slump during the past week, Technology, along with Consumer Cyclical, is witnessing momentum faltering abruptly. Retail and Finance have started showing signs of weakness.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets continued to trade positively. The Stoxx 600 closed 32bps higher on heavy volume, testing resistance at its rising 21-DMA (518.8). Next resistance is at its 10-DMA (519.9; 0.2% above). We recommend that investors remain selective while adding positions in names that are coming out of proper bases in leading industry groups post earnings.
  • Among sectors, Health Care (+110bps), Utility (+100bps), and Telecommunications (+89bps) were the prominent gainers, while Technology and Retail lagged 142bps and 77bps, respectively.
  • Among major indices, France’s CAC 40 bounced off support at its 100-DMA (7,917.2) on huge volume, trading close to its May 3 highs (8,003.9). Next level of resistance is along its declining 10-DMA (8,072; 1% above). Germany’s DAX 30 closed flat on strong volume, with near-term resistance at its 21-DMA (18,606.9; +0.6%). Support is at its 50-DMA (18,313; -1%). The U.K.’s FTSE 100 was recovering after a weak session last week. The index closed 54bps higher and continued to remain in an Uptrend Under Pressure.
  • All the 16 indices we track closed in the green, except Ireland, Spain, and the Netherlands. The Netherlands was shifted to an Uptrend Under Pressure as the index breached its 21-DMA and recorded its fourth distribution day. Ireland recorded Day 2 of its Rally Attempt.
  • Six markets were in a Confirmed Uptrend, eight in an Uptrend Under Pressure, one (Ireland) in a Downtrend, and one (France) in a Rally Attempt. The average distribution day count stood at 3.4.
  • Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Inditex (IND.ES; ITX:SM), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Saab B (SAAB.SE; SAABB:SS), Safran (SGM.FR; SAF:FP), Swissquote ‘R’ (SQN.CH; SQN:SW), and Universal Music Group (UNMG.NL; UMG:NA).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. Indices closed lower last week, with the S&P 500 and Nasdaq declining 0.5% and 1.1%, respectively. However, indices staged an upside reversal on Friday to close back above their 21-DMA (5,243/16592) support after briefly trading below. Distribution days have clustered a bit with three and four, respectively, over three weeks.

U.S. Economic Summary

Posted on by Deepashree MC

Q1 GDP experienced a downturn, in line with estimates: As per the second estimate, the UPSP economy grew 1P3% on an annualized basis in Q1 202E, in line with estimatesP However, it was below both the advance estimate of 1P6% and the previous quarter’s 3PE%P This marks the slowest growth since Q3 2022P Consumer
spending slowed primarily due to reduced goods consumptionP Non-residential investment was revised higherP Government spending was revised up slightly, while both imports and exports rose moreP Private inventories declined, while residential investment grew in the double digitsPc

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. Stocks in Europe include Elbit Systems (ESLT.IL; ESLT:IT),
Diageo (DGE.GB; DGE:LN), Airport City (ARPT.IL; ARPT:IT), and ST Microelectronics (STM.IT; STMMI:IM).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. Yesterday, the S&P 500 closed 60bps lower on higher d/d volume and registered a
distribution day, while the Nasdaq declined ~110bps on lower d/d volume. The S&P 500 is testing support at its 21-DMA (5,239), while the
Nasdaq is testing support at its 10-DMA (16,772). The distribution day count stands at three on each index.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets continued to trade choppily, with all the 16 indices we track closing in the red. The Stoxx 600
    declined more than 1% on good volume, breaching its 21-DMA intraday.However, the index remains in a Confirmed
    Uptrend, with near-term support at its 50-DMA (511.3; -0.4%).We recommend that investors follow a selective
    approach. Add positions in names that are coming out of proper bases in leading industry groups post earnings.
  • All sectors lagged and closed in negative territory. Mining (-228bps), Travel and Leisure (-210bps), and Utility
    (-174bps) were the weakest performers.
  • Among major indices, France’s CAC 40 gapped down and closed 1.5% lower on above average volume, near its
    May 3 lows (7,921). Next level of support is at its 100-DMA (7,906.3; -0.3%). Germany’s DAX 30 declined 107bps,
    recording its third distribution day. It breached its 21-DMA on decent volume. Next support is at its 50-DMA (18,292;
    -1.02%). The U.K.’s FTSE 100 continued to decline, with support at its 50-DMA (8,089; -1.16%).
  • Spain and Belgium marked their seventh distribution day. Germany, Finland, Sweden, Switzerland, Austria, Italy,
    and the Netherlands also recorded a distribution day each.
  • Ireland was shifted to a Downtrend and Italy was shifted to an Uptrend Under Pressure as both indices breached
    their 50-DMA. Sweden, Austria, Portugal, and Spain were shifted to an Uptrend Under Pressure as the indices
    breached their respective 21-DMA.
  • Seven markets are in a Confirmed Uptrend, seven in an Uptrend Under Pressure, one (Ireland) in a Downtrend, and
    one (France) in a Rally Attempt. The average distribution day count stood at 3.57.
  • Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Nkt (NKT.DK; NKT:DC), Safran
    (SGM.FR; SAF:FP), and Rolls Royce (RR.GB; RR/:LN).