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:

  • European markets pulled back to their 50-DMA over the past week. The indices retreated 75bps after the rally in the prior week as investors digested Q1 earnings along with commentary from central banks.
  • Most sectors declined last week, while Financial Services, Utility, and Travel & Leisure gained. Autos was the worst-affected sector, slipping 3.5% as giants Volkswagen, Mercedes-Benz, and Stellantis posted lower sales on sluggish demand last week. On our rotation charts, Utility, Energy, Transportation, Financial, Capital Equipment, Retail, and Health Care showed strength in the near term.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq rose 1.0–1.2% yesterday and are trading above their 50-DMA
(5,131/16,064). The S&P 500 is trading 2% off its highs, while the Nasdaq is back within 1% of all-time highs. We will shift the indices to a
Confirmed Uptrend on either a follow-through day or on printing new all-time highs.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets pulled back to their 50-DMA. The Stoxx 600 is in a Rally Attempt and was still trading 2% off highs, with strong support from its near-term moving averages. Immediate support is at 503, which has been a reliable level for the index. Markets could consolidate between the March 28 highs and the 50-DMA as investors digest Q1 earnings along with commentary from central banks.
  • We recommend that investors remain selective during this earnings season. Look for leading names that are breaking out on strong results and industry outlook.
  • Except four, all the 16 indices we track closed in the red. Most indices are finding support at their near-term moving averages. Italy was shifted to a Downtrend as the index breached support at its 50-DMA. All three major indices, France’s CAC 40, Germany’s DAX 30, and the U.K.’s FTSE 100 closed in the green. The FTSE was breaking into new highs, bouncing off its rising 10-DMA, while the DAXwas taking support at its 21-DMA. The CACwas facing resistance at its declining and converging 10- and 21-DMA (80bps above).
  • Actionable names in the Focus List are Universal Music Group (UNMG.NL; UMG:NA), Swissquote (SQN.CH; SQN:SW), and Vat Group (VACN.CH; VACN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. Last Friday, the Nasdaq narrowly missed a day-10 follow-through day, rising 2.0% on
volume that was slightly below the prior day. The S&P 500 also rose 1.3% on Friday on lower volume. For the week, indices were up 0.5%
and 1.4%, respectively. The S&P 500 is testing its 50-DMA (5,130) after trading below for three weeks. The Nasdaq retook the 50-DMA
(16,058) and is back to within 2% of all-time highs after trading as much as 8% off highs.

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 (Schroders (SDR.GB; SDR:LN) and Infrastrutture Wireless, Italiane (INW.IT; INW:IM).

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Rally Attempt. The S&P 500 and Nasdaq gained 95–150bps. Indices have immediate resistance at their 21-DMA
(5,084/15,850), followed by the 50-DMA (5,129/16,055). We will shift the market status to a Confirmed Uptrend if a follow-through day
(+1.7% on higher d/d volume) occurs.

Won Europe Today

Posted on by Deepashree MC

On Tuesday,

  • European markets had a weak session with many leading indices, including the Stoxx 600, testing their respective 50-DMA. We recommend that investors remain cautious and book profits in extended names.
  • The Stoxx 600 lost 0.7% and was testing its 50-DMA. It remained in a Rally Attempt. Among other major indices, France’s CAC 40 faced resistance at its 21-DMA and has broken below its 50-DMA. Germany’s DAX alsofaced resistance at its 21-DMA andwas testing its 50-DMA. Both the indices remained in a Rally Attempt.
  • The U.K.’s FTSE 100 was trading above its key moving averages and is in a Confirmed Uptrend. It looks slightly extended and might be due for a short pullback.
  • Among sectors, Autos lost more than 4% and Basic Resources fell 0.4%. Banks, Utility, Telecom, and Real Estate ended flat.
  • Except Denmark, all the indices we track closed in the red. Denmark was shifted to a Rally Attempt after the index held its recent lows for three days. Spain was shifted to an Uptrend Under Pressure after the index recorded its tenth distribution day and breached its 21-DMA. Italy, Portugal, Norway, and Ireland recorded a distribution day each.
  • Actionable names in the Focus List include Tbc Bank Group (TBCG.GB; TBCG:LN) and Universal Music Group (UNMG.NL; UMG:NA).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq declined 33–34bps. Price action remains choppy, with indices
trading in the green after the Fed’s commentary but ultimately closing in the red. Indices continue to trade below their key resistance level
of 50-DMA (5,127/16,050). Despite yesterday’s move lower, the attempted rally is still intact as long as recent lows (S&P 500: 4,954;
Nasdaq: 15,223) are not undercut. Today marks Day 9 of a Rally Attempt, with a follow-through still needed to upgrade the status back to
a Confirmed Uptrend.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq declined 150–200bps and closed below 21-DMA support
(5,092/15,875). Primary near-term resistance is again the 50-DMA (5,126/16,050). Despite yesterday’s move lower, the attempted rally is
still intact as long as recent lows (S&P 500: 4,954; Nasdaq: 15,223) are not undercut. Today marks Day 8 of a Rally Attempt, with a followthrough still needed to upgrade the status back to a Confirmed Uptrend.