Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets had a positive session, with 15 of the 16 indices that we track closing in the green. Most of the
    leading indices are in a Confirmed Uptrend and are exhibiting constructive technical action. We recommend that
    investors add risk in stocks that are coming out of proper bases.
  • The Stoxx 600 gained 0.5% and was facing resistance at its all-time high, reached in December 2021. Among other
    major indices, France’s CAC 40 and Germany’s DAX 30 continued to trade constructively along their respective 10-
    DMA. The U.K.’s FTSE 100 faced resistance at its September 2023 highs.
  • Among sectors, Basic Resources gained more than 2%, Banks and Industrial Goods & Services rose more than
    1% each, and Health Care advanced 0.5%. Utility lost 0.5% and Construction traded flat.
  • Actionable names in the Focus List include Ferrari (RACE.IT; RACE:IM), Hermes (RMS.FR; RMS:FP), Recordati
    (REC.IT; REC:IM), Technogym (TGYM.IT; TGYM:IM), Universal Music Group (UNMG.NL; UMG:NA), Flutter
    Entertainment (FLTR.GB; FLTR:LN), and Vat Group (VACN.CH; VACN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 58bps and 30bps, respectively, and are trading above all key moving averages. The S&P 500 is back near an all-time high, while the Nasdaq is trading 1% off-highs. Indices have the first level of support at their 10-DMA (4,981/15,755), followed by the 21-DMA (4,929/15,562). The distribution day count stands at four and three, respectively.

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 STMicroelectronics (STM.IT; STMMI:IM).

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 96bps and 130bps, respectively, and retook their respective 10-DMA. Indices have the first level of support at their 10-DMA (4,970/15,721), followed by the 21-DMA (4,919/15,527). The distribution day count stands at four and three, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a choppy start and rallied 50bps to reclaim its 10-DMA as investors continued to digest
    earnings. Delivery Hero (DHERX.DE; DHER:GR) led the gains, surging 19.6% after its CEO announced that the company’s organic cash flows would sufficiently service its bond and debt maturities. Coca Cola HBC (EEE.GR; EEE:GA) followed, with the stock climbing 8% on sustained demand and easing costpressures boosting gross margins by 80bps. Thyssenkrupp and Heineken were the worst performing stocks, declining 10.5% and 7%, respectively, as their profit outlook disappointed investors. We continue to expect the index to consolidate near its highs, while its rising 21-DMA (71bps below) and its 50-DMA (1.5% below) catch up.
  • Performance across sectors was broadly strong. Retail led the rally, gaining 122bps, followed by Technology
    (+109bps) and Health Care (+76bps). Mining continued to struggle, losing 36bps.
    The broader market remains in a Confirmed Uptrend. Hence, we recommend that investors add names on decisive break out of proper bases 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. The U.K.’s FTSE, France’s CAC 40, and Germany’s DAX 30 gained 75bps, 68bps, and 38bps, respectively. The CAC and the DAX have bounced off their respective 10-DMA into new all-time highs. The FTSE has reclaimed all its key moving averages with yesterday’s move.
  • Twelve of the 16 indices we track closed in the green. Portugal was shifted to a Downtrend. With none of the
    indices recording a distribution day, the average distribution day count stood at 5.3.
  • Actionable names in the Focus List are Ferrari (RACE.IT; RACE:IM), Hermes (RMS.FR; RMS:FP), Nemetschek (NEMX.DE; NEM:GR), Recordati (REC.IT; REC:IM), Rolls- Royce (RR.GB; RR/:LN), Sanlorenzo (SANL.IT; SL:IM), Straumann (STMN.CH; STMN:SW), Technogym (TGYM.IT; TGYM:IM), 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 is in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped down and declined 137bps and 180bps, respectively, on higher d/d volume, thus registering a distribution day each. Indices have breached their respective 10-DMA with immediate support at their 21-DMA (4,911/15,494), followed by the 50-DMA (4,787/15,037). The distribution day count stands at four and three, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets declined 95bps, falling below their 10-DMA, on hotter-than-expected U.S. inflation data. The CPI rose 0.3% y/y in January, above the 0.2% y/y rise in December 2023. The latest data indicates that inflation is proving to be stickier than expected, as economists had forecasted a 0.2% y/y inflation rate for January, and also significantly reduces the possibility of rate cuts in March and May. We continue to expect the index to consolidate near its highs, while its rising 21-DMA (44bps below) and its 50-DMA (1.1% below) catch up.
  • Performance across sectors was weak. Yield-dependent Technology was the worst-affected, declining 261bps,
    followed by Travel and Leisure (-155bps) and Mining (-132bps). The Stoxx 600 Technology index, which had been making new highs, saw an intraday dip below its 10-DMA before recovering to close at its near-term support level. It continued to trade more than 3% above its rising 21-DMA. A break below this level could see the index form a base between its 21-DMA and its rising 50-DMA (7.1% below). Mining stocks continued to make lower-lows and lowerhighs, with stiff resistance at its declining 21- and 10-DMA.
  • The broader market remains in a Confirmed Uptrend. Yesterday’s session was considered as a distribution day,
    taking the total distribution day count to four. We recommend that investors add stocks on a decisive break out of proper bases 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 red. Germany’s DAX 30, France’s CAC 40, and the U.K.’s FTSE 100 fell
    95bps, 84bps, and 81bps, respectively. The CAC was testing support at its 10-DMA. The DAX declined to its rising 21-DMA intraday, before bouncing back and closing 29bps higher. The index was still trading 32bps below its 10- DMA. The FTSE has declined below all its key moving averages. Support is expected at 7,485 (36bps below), where the index had consolidated in mid- to late-November and for a short while in mid-January, followed by 7,410 (1.4% below) and 7,324 (2.5% below).
  • All the 16 indices we track closed in the red. With eight indices recording a distribution day each, the average
    distribution day count increased to 5.6.
  • Actionable names in the Focus List are Ferrari (RACE.IT; RACE:IM), Hermes (RMS.FR; RMS:FP), Recordati
    (REC.IT; REC:IM), Sanlorenzo (SANL.IT; SL:IM), Technogym (TGYM.IT; TGYM:IM), 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 is in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 9bps and 30bps, respectively, on lower d/d volume. Immediate support for the indices is along their respective 10-DMA (4,966/15,698), followed by the 21-DMA (4,907/15,478). The distribution day count stands at three and two, respectively.

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 had another flattish week. The markets took a pause for the second week, with marginal moves on a weekly basis. Corporate earnings were mixed last week.
  • On our rotation graph, Technology is leading the pack. Consumer Cyclical is also showing improvement in shortterm momentum. Retail, Basic Materials, Utility, and Energy are showing a decline in their short-term momentum.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. Indices gained 1–2% last week and continue to trade constructively above short-term moving averages. The Nasdaq is testing resistance along the 16,000 level, while support for both indices is at their respective 10-DMA (4,953/15,643), followed by the 21-DMA (4,895/15,431). The distribution day count stands at three and two, respectively.