Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

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

  • European markets had a constructive bounce off their key support levels last week. The Stoxx 600 gained 1.7%, its first weekly advance in four weeks. Technology led the gains, followed by Basic Resources. Chemicals lagged.
  • The Stoxx 600 is in a Rally Attempt as it has been able to hold its April 19 lows. With immediate support at its 50- DMA, the market could be shifted back to a Confirmed Uptrend if we spot a follow-through day (up at least 1.7% with higher d/d volume) or a move above its March 28 high, which is ~1.5% away.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq were up 32bps and 35bps, respectively, on lower-than-average
volume, staging Day 5 of the Rally Attempt. Indices continue to face resistance at their respective 50-DMA (5,126/16,053). The S&P 500
and Nasdaq are trading 3% above their 100-DMA support (4,965/15,577).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. Indices have rallied off recent lows (S&P 500: 4,953; Nasdaq: 15,222) as the Nasdaq
narrowly missed a follow-through day after a strong move on Friday. Both indices face resistance at their respective 50-DMA (S&P 500:
5,124; Nasdaq: 16,052).

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets had a strong session, with 15 of the 16 indices that we track closing in the green. Some of the major indices found support at their respective 50-DMA andwere attempting to retake their 21-DMA. However, we recommend that investors remain cautious and book profits in extended names.
  • The Stoxx 600 closed above its 21-DMA after bouncing off its 50-DMA. It remains in a Rally Attempt as it holds €495. Among other major indices, France’s CAC 40 and Germany’s DAX 30 also managed to close above their respective 21-DMA. However, these indices continue to remain in a Rally Attempt and are awaiting a follow-through day.
  • The U.K.’s FTSE 100 continued its rally, gaining 0.8%. However, it looks a bit extended and might be due for a short-term pullback.
  • Among sectors, Construction & Material gained more than 2%. Health Care, Technology, and Industrial Goods gained more than 1% each. Shares of insurance companies were flat, while Chemical stocks were down 0.3%.
  • Of the 16 indices we track, only Austria closed in the red, recording its fourth distribution day. Sweden and Spain were shifted back to a Confirmed Uptrend after the indices reclaimed their previous rally highs.
  • Actionable names in the Focus List include Tbc Bank Group (TBCG.GB; TBCG:LN) and Universal Music Group (UNMG.NL; UMG:NA).

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 underweight as they may be vulnerable to further downside risk and underperformance. Stocks in Europe include Spirax-Sarco Engr. (SPX.GB; SPX:LN), Nestle (NESN.CH; NESN:SW), Julius Baer Gruppe (BAER.CH; BAER:SW), and Infrastrutture Wireless Italiane (INW.IT; INW:IM).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq bounced off the day’s lows but closed 45–65bps lower on higher
volume, staging Day 4 of the Rally Attempt. Indices are facing resistance at their declining 10-DMA (5,063/15,725), followed by the 21-
DMA (5,122/15,884). The S&P 500 is trading 2% above the 100-DMA (4,954), while the Nasdaq is just above its 100-DMA (15,543).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a strong performance, backed by the start of the earnings season. The Stoxx 600 had its
    best day since January and closed above its 21-DMA. Other than Basic Materials all the sectors closed in the
    green. Technology led the gains followed by banks.
  • If looking to add risk, consider stocks that are part of leading industry groups and are breaking out of proper bases
    with a strong and rising RS line.
  • The Stoxx 600 was up 1.09% and closed above its 21-DMA. The index was shifted to a Rally Attempt. Holding
    above the 21-DMA will be positive for the index. Support levels: 50-DMA (1.3% below), 495 (2.5% lower), 100-DMA
    (3.8% below), and 200-DMA (7.3% lower). Resistance levels: 21-DMA (current levels), followed by 515 (1.6%
    above).
  • Among major indices, the U.K.’s FTSE 100 is trading above all its key moving averages and is making new highs.
    France’s CAC and Germany’s DAX are at their 21-DMA and have retaken their 50-DMA.
  • Other than Norway, all indices we track closed in the green. Italy gained the most and was up 1.89%. Three indices
    are in a Confirmed Uptrend, five are in a Rally Attempt, six are in an Uptrend Under Pressure and two are in a
    Downtrend. The average distribution day count is currently at 3.0.
  • Actionable names in the Focus List include Inditex (IND.ES; ITX:SM), Universal Music Group (UNMG.NL; UMG:NA),
    Trainline (TRN.GB; TRN:LN), and Alfa Laval (ALF.SE; ALFA:SS).

Won Global View

Posted on by Deepashree MC

The U.S. market has been shifted to a Rally Attempt from a Downtrend. The S&P 500 and Nasdaq were up 2–10bps on lower volume
and held last Friday’s lows for the third consecutive session, thus opening the window for a follow-through day (gain of 1.7% or more on
higher d/d volume). Indices are testing resistance at their 10-DMA (5,066/15,751), with the next level of resistance at their 21-DMA
(5,120/15,912). Immediate support for both indices is at their 100-DMA (4,949/15,529).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a strong performance, backed by the start of the earnings season. The Stoxx 600 had its best day since January and closed above its 21-DMA. Other than Basic Materials all the sectors closed in the green. Technology led the gains followed by banks.
  • If looking to add risk, consider stocks that are part of leading industry groups and are breaking out of proper bases with a strong and rising RS line.
  • The Stoxx 600 was up 1.09% and closed above its 21-DMA. The index was shifted to a Rally Attempt. Holding above the 21-DMA will be positive for the index. Support levels: 50-DMA (1.3% below), 495 (2.5% lower), 100-DMA (3.8% below), and 200-DMA (7.3% lower). Resistance levels: 21-DMA (current levels), followed by 515 (1.6% above).
  • Among major indices, the U.K.’s FTSE 100 is trading above all its key moving averages and is making new highs. France’s CAC and Germany’s DAX are at their 21-DMA and have retaken their 50-DMA.
  • Other than Norway, all indices we track closed in the green. Italy gained the most and was up 1.89%. Three indices are in a Confirmed Uptrend, five are in a Rally Attempt, six are in an Uptrend Under Pressure and two are in a Downtrend. The average distribution day count is currently at 3.0.
  • Actionable names in the Focus List include Inditex (IND.ES; ITX:SM), Universal Music Group (UNMG.NL; UMG:NA), Trainline (TRN.GB; TRN:LN), and Alfa Laval (ALF.SE; ALFA:SS).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq were up ~120–160bps on below average volume, staging the
second day of a Rally Attempt. The S&P 500 closed just above its 10-DMA (5,065) and has immediate resistance at its 21-DMA (5,104).
The Nasdaq has reclaimed its 100-DMA (15,515) and is facing resistance at its 10- and 21-DMA (15,759/15,932). We will shift the market
status to a Rally Attempt if it stays above last Friday’s lows for the third consecutive session. A follow-through day (gain of 1.7% or more
on higher d/d volume) can occur tomorrow at the earliest