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Author: Deepashree MC
Won Europe Today
Yesterday,
- European markets had a negative session. Most major indices, including the Stoxx 600, breached their rising shortterm moving averages. Denmark, the Netherlands, Spain, and Italy recorded a distribution day each. Overall, we recommend that investors remain cautious. Book profits in extended names as there are signs that markets are likely to pull back/consolidate here in the near term.
- The Stoxx 600 (-0.6%), France’s CAC 40 (-0.8%), and Germany’s DAX 30 (-1.3%) breached their respective 21- DMA and recorded a distribution day each. The U.K.’s FTSE 100 (-0.1%) breached its 10-DMA support. The Stoxx 600 recorded its fourth distribution day.
- Among sectors, Banks (-100bps), Technology (-86bps), and Travel & Leisure (-51bps) were the major decliners Basic Resources (+112bps) and Telecommunications (+38bps) led the bulls.
- Fourteen of the 16 indices that we track closed in the red. Volumes were mostly high. Seven indices recorded a distribution day. No status changes.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Trainline (TRN.GB; TRN:LN), Alfa Laval (ALF.SE; ALFA:SS), Straumann Holdings (STMN.CH; STMN:SW), and Partners Group (PGHN.CH; PGHN:SW).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq advanced 15–30bps and in the process retook their
10-DMA (5,204/16,265). If the indices remain above their 21-DMA for several days, we could shift the market back to a Confirmed
Uptrend. The distribution day count stands at five and six, respectively, as one distribution day on the Nasdaq expired yesterday. Another
one on the Nasdaq will expire after the close on Friday.
Won Europe Today
We released our weekly Europe summary yesterday. Click here to access the report. Key points from it include:
- European markets took a pause and closed in the red for the first week since late January. The Stoxx 600 and few other indices breached their 21-DMA with an elevated distribution day count on Friday and were shifted to an Uptrend Under Pressure.
- Except Energy and Basic Material, all sectors closed in the red. Energy led the gains, while Consumer Staple and Retail led the decline. On our rotation graph, Capital Equipment and Basic Material have been showing strong improvement in their short-term momentum.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 declined 4bps, while the Nasdaq was up 3bps. Both indices
continue to consolidate at their respective 10-DMA after retaking their 21-DMA (5,181/16,214) last week. If the indices remain above their
21-DMA for several days, we could shift the market back to a Confirmed Uptrend. However, if they break below their 21-DMA, the next
level of support would be the rising 50-DMA (5,089/15,994). The distribution day count stands at five and seven, respectively, as one
distribution day on the Nasdaq expired yesterday. Another one on the Nasdaq will expire after the close today.
Won Europe Today
On Friday,
- European markets had a negative session. Most major and minor indices have breached their rising short-term
moving averages. Among other minor indices, Austria, Belgium, and Norway were trading constructively above their
rising 10-DMA. Finland recently retook its 10-DMA and isin a Rally Attempt. We recommend that investors add risk
in stocks that are coming out of proper bases in leading industry groups. - The Stoxx 600 (-0.9%) and France’s CAC 40 (-1.1%) breached their respective 21-DMA and were shifted to an
UptrendUnder Pressure from a Confirmed Uptrend. Germany’s DAX 30 (-1.2%) and the U.K.’s FTSE 100 (-0.8%)
recorded their second and third distribution day, respectively. Both indices breached their 10-DMA. - Among sectors, Utility (-216bps), Retail (-201bps), Telecommunications (-164bps), Basic Resources (-123bps),
and Chemicals (-117bps) were the major decliners. Oil & Gas traded flat. - Fourteen of the 16 indices we track closed in the red. Volumes were high. Eight indices, including France,
Germany, and the U.K., recorded a distribution day each. - Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Trigano (TRI.FR; TRI:FP), Trainline
(TRN.GB; TRN:LN), IMCD Group (IMCD.NL; IMCD:NA), Alfa Laval (ALF.SE; ALFA:SS), Straumann Holdings
(STMN.CH; STMN:SW), Partners Group (PGHN.CH; PGHN:SW), and Sage Group (SGE.GB; SGE:LN).
Won Global View
The U.S. market was shifted to an Uptrend Under Pressure. The S&P 500 and Nasdaq declined ~1.0% and 0.8%, respectively, for the
week. Both breached and closed below the 21-DMA on Thursday. It was the first time both indices closed below their 21-DMA since early
January. Indices retook their 21-DMA on Friday, and if they settle back above for several days, we could shift the market back to a
Confirmed Uptrend. Otherwise, another break below leaves support at rising 50-DMA (5,083/15,980). The distribution day count stands at
five and eight, respectively, with two expiring on the Nasdaq next week.
Won Europe Today
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. European Stock: Infrastrutture Wireless Italiane Spa Npv (INW.IT; INW:IM).
Won Global View
The U.S. market was shifted to an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 1.2–1.4% on higher d/d volume,
breaching 21-DMA and adding a distribution day each. Support for both indices is at the rising 50-DMA (5,076/15,964). The distribution
day count stands at five and eight, respectively, with two expiring on the Nasdaq next week.
Won Europe Today
Yesterday,
- European markets closed in the green. Major indices have taken support at their short-term moving averages.
Banks and Technology led the gains, while Food & Beverage declined the most. - We recommend that investors book profits in extended names. Add risk in 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 0.29% and closed at its 10-DMA. A pullback or a pause to its 21- or 50-DMA is expected
post the rally. Support levels: 21-DMA (0.8% below), 50-DMA (2.9% below), 100-DMA (5.5% below), and 200-DMA
(8.3% lower). - Among major indices, France’s C, Germany’s DAX, and the U.K.’s FTSE 100 are near highs but have taken a
pause or have been pulling back in the last few sessions. These indices are trading above all their key moving
averages. - Of the 16 indices we track, most closed in the green. Ireland led the gains and was up 1.71%. Fourteen indices are
in a Confirmed Uptrend and two are in a Rally Attempt. The average distribution day count is at 2.6. - Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Trigano (TRI.FR; TRI:FP), Trainline
(TRN.GB; TRN:LN), IMCD Group (IMCD.NL; IMCD:NA), Alfa Laval (ALF.SE; ALFA:SS), Straumann Holdings
(STMN.CH; STMN:SW), Partners Group (PGHN.CH; PGHN:SW), and Sage Group (SGE.GB; SGE:LN).
