Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets bounced off the 10-DMA to break into new highs again, following Germany’s trade surplus data.
    However, we expect markets to be tentative here ahead of the European central bank’s decision following the Fed
    Chairman Powell’s testimony to the Congress. He reiterated that inflation needs to cool down further before the Fed
    can start cutting interest rates but acknowledged the possibility of starting rate cuts later this year.
  • Sectoral gains were broad based. Rate-dependent Technology led the rally, gaining 1.3%, followed by Chemical
    (+1.2%) and Financial Services (+1.1%). Autos and Food and Beverage fell 43bps and 27bps, respectively.
  • With the market in a strong uptrend, we recommend that investors add positions in names that are breaking out of
    proper bases, especially on earnings. Book profit/cut losses in names which have broken below their key support
    levels on earnings.
  • All the three major indices closed in the green. Germany’s DAX 30, France’s CAC 40, and the U.K.’s FTSE100
    gained 16bps, 28bps, and 43bps, respectively. While the CAC and the DAX consolidated near highs, the FTSE
    reclaimed all its near-term moving averages with yesterday’s move.
  • Of the 16 indices we track, only Denmark and Norway closed in the red. With none of the indices recording a
    distribution day, the average distribution day count stood at 4.0.
  • Actionable names in the Focus List are Beiersdorf (BEIX.DE; BEI:GR), Evolution Gaming (EVOG.SE; EVO:SS),
    Flutter Entertainment (FLTR.GB; FLTR:LN), Nemetschek (Xet) (NEMX.DE; NEM:GR), Sage Group (SGE.GB;
    SGE:LN), Straumann Holding (STMN.CH; STMN:SW), Universal Music Group (UNMG.NL; UMG:NA), and Vat Group
    (VACN.CH; VACN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained ~50–60bps, albeit closing near the lows of the day.
The S&P 500 bounced off support at its 10-DMA (5,083), while the Nasdaq bounced off its 21-DMA (15,877) support. The distribution day
count on indices stands at five and seven, respectively.

O’Neil Consumer/Retail Weekly

Posted on by Deepashree MC

Consumer Staples (XLP): The index broke above $74.5 and is facing resistance at $74.75. Next resistance is at $75.05. A decisive
break above it should be bullish for the sector. The index is trading along its rising 21-DMA. However, it continues to lag the broader
market, with RS line remaining in a downtrend with weak technical ratings.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined ~1.0% and 1.7%, respectively, with the Nasdaq
adding its eighth distribution day. Indices are pulling back, with the S&P 500 testing support at its 10-DMA (5,079), while the Nasdaq
breached its 10-DMA and is likely to test support at its 21-DMA (15,861). The distribution day count on indices stands at six and eight,
respectively, with one set to expire today after market close.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets continued to settle near highs, with support at their 10-DMA. Next support for the Stoxx 600 is its
    21-DMA (90bps below), followed by its 50-DMA (2.5% below). The volatile Tomra Systems (TOM.NO; TOM:NO)
    stock jumped 12.2% and led the gains. It was followed by shares of Fresenius Medical Care (FMEX.DE; FME:GR),
    which rallied 11.5% on the news of sale of its Latin American clinic for $300M, and Thales (CSF.FR; HO:FP), which
    climbed 9.0% on a strong Q4 print.
  • Sectoral performance was mostly mixed. Technology (-1.6%), Mining (-0.9%), and Health Care (-0.6%) led the
    decline, while Utility (+1.9%) and Telecommunication (+0.5%) gained the most.
  • With the market in a strong uptrend, we recommend that investors accumulate positions in names that are
    breaking out of proper bases, especially on earnings. Book profit/cut losses in names which have broken below
    their key support levels on earnings.
  • Among the three major indices, France’s CAC 40 and Germany’s DAX 30 had a negative session, losing 30bps
    and 13bps, respectively. The U.K.’s FTSE 100 closed in the green, gaining 8bps. The DAX and the CAC
    consolidated near highs, while the FTSE bounced off its 21-DMA.
  • Eleven of the 16 indices we track closed in the red. With France and Sweden recording a distribution day each, the
    average distribution day count increased to four.
  • Actionable names in the Focus List are Beiersdorf (BEIX.DE; BEI:GR), Evolution Gaming (EVOG.SE; EVO:SS),
    Flutter Entertainment (FLTR.GB; FLTR:LN), Nemetschek (Xet) (NEMX.DE; NEM:GR), Sage Group (SGE.GB;
    SGE:LN), Straumann Holding (STMN.CH; STMN:SW), Trigano (TRI.FR; TRI:FP), and Vat Group (VACN.CH;
    VACN:SW).

Won Europe Today

Posted on by Deepashree MC

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

  • European markets ended at new highs for the second consecutive week. ETFs, such as EWG, EWI, and EZU,
    continue to hold upward momentum as seen last week.
  • Sectors were mixed. Capital Equipment, Technology, Energy, and Financial led the gains, while Transportation and
    Consumer Staple led the decline. On our rotation graph, Consumer Cyclical has been showing strong improvement in its short-term momentum. Technology has been leading the pack and is in the best quadrant but has taken a pause in its short-term momentum. Capital Equipment is also showing rising short-term momentum as opposed to Energy and Utility.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 12bps and 41bps, respectively, on higher d/d
volume, with the Nasdaq adding its seventh distribution day. Neither index has any remaining resistance as the indices hover near their alltime highs. Indices have the first level of support at their 10-DMA (5,079/16,028). Below that, the 21-DMAs are the more major level of
support (5,026/15,854). The distribution day count on indices stands at six and seven, respectively, with one set to expire tomorrow after
market close.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets broke into new all-time highs after bouncing off their rising 10-DMA. Markets rallied 60bps after
    Eurozone’s inflation print. The inflation rate cooled down to 2.6% y/y in February from 2.8% y/y in January. The
    Stoxx 600 is currently extended from its key moving averages. The index is trading 1.5% and 3% above its rising
    21- and 50-DMA, respectively. The latest data increased optimism that inflation is trending toward the European
    central bank’s target of 2%. Daimler Truck (DTGX.DE; DTG:GR) was among the leaders, gapping up more than
    18% and breaking into new highs after delivering record FY23 results. Fortnox (FORT.SE; FNOX:SS) surged 10.7%
    on a strong Q4 beat. Kuehne + Nagel (KNIN.CH; KNIN:SW) (-13.5%), Ocado Group (OCDO.GB; OCDO:LN), and
    Tomra Systems (TOM.NO; TOM:NO) (-6.3%) led the decline.
  • Sectoral gains were broad based. Interest rate-dependent Technology (+140bps) led the rally, followed by Oil and
    Gas (+139bps), Health Care (+124bps), and Banks (+96bps).
  • With the market in a strong uptrend, we recommend that investors add positions in names that are breaking out of
    proper bases, especially on earnings. Book profit/cut losses in names which have broken below their key support
    levels on earnings.
  • All the three major indices closed in the green. France’s CAC 40, Germany’s DAX 30, and the U.K.’s FTSE 100
    gained 9bps, 32bps, and 69bps, respectively. The DAX continued making new all-time highs, while the CAC was
    consolidating near highs. The FTSE has bounced off its rising 50-DMA, reclaiming its rising 10-DMA.
  •  (EVKX.DEAll the 16 indices we track closed in the green. With none of the indices recording a distribution day, the average
    distribution day count stood at 3.9.
  • Actionable names in the Focus List are Banco BPM (BP.IT; BAMI:IM), Beiersdorf (BEIX.DE; BEI:GR), Evolution
    Gaming (EVOG.SE; EVO:SS), Flutter Entertainment (FLTR.GB; FLTR:LN), Nemetschek (Xet) (NEMX.DE;
    NEM:GR), Sage Group (SGE.GB; SGE:LN), Straumann Holding (STMN.CH; STMN:SW), TBC Bank Group
    (TBCG.GB; TBCG:LN), Trigano (TRI.FR; TRI:FP), and Vat Group (VACN.CH; VACN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 finished strong and closed last week up 1%, while the Nasdaq gained
1.7%. Neither index has any remaining resistance as the S&P 500 continued further into all-time highs and the Nasdaq surpassed its 2021
peak of 16,212 for the first time. Indices have the first level of support at their 10-DMA (5,068/15,989). Below that, the 21-DMAs are the
more major level of support (5,016/15,819). The distribution day count on each index stands at six, with one set to expire in the coming
week.

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 David Campari Milano (CPR.IT;
CPR:IM) and Cellnex Telecom (CLNX.ES; CLNX:SM).