Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a flat-to-negative day, with many indices recording a distribution day. Indices are testing support at their near-term support levels. We recommend that investors add risk in names that are coming out of proper bases in leading industry groups.
  • The Stoxx 600 ended flat. It continued to face resistance at its 2021 highs. Among other major indices, France’s
    CAC 40 and Germany’s DAX 30 tested support at their December 2023 highs. The U.K.’s FTSE 100 was testing
    support at its May 2022 highs.
  • Among sectors, Auto, Utility, and Real Estate gained more than 1% each, while Technology lost 0.6%. Health Care gained 0.5%.
  • Among the 16 indices that we track, France, Germany, Ireland, the Netherlands, and Switzerland recorded a
    distribution day each. Sweden was shifted to a Downtrend.
  • Actionable names in the Focus List include Brunello Cucinelli (BC.IT; BC:IM), Recordati Indua. Chimica (REC.IT; REC:IM), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Swissquote (SQN.CH; SQN:SW), Bae Systems (BA.GB; BA/:LN), Vat Group (VACN.CH; VACN:SW), Bridgepoint Grp (BPT.GB; BPT:LN), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Trigano (TRI.FR; TRI:FP), Nemetschek (Xet) (NEMX.DE; NEM:GR), and Saab B (SAAB.SE; SAABB:SS).

U.S. Economic Summary

Posted on by Deepashree MC

Q4 zDP advance estimate 130bps above consensus: In Q4 2023, the U}S} economy expanded 3}3% and surpassed expectations} Consumer spending slowed, driven by lower goods consumption, while services consumption increased} Private inventories and government spending contributed less to growth} Exports accelerated, and non-residential investment rose, led by equipment and intellectual property} Despite a slower pace, residential investment continued to grow} For 2023, the U}S} economy grew 2}5%, slightly below the Fed’s estimate of 2}6%}y.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed marginally lower, while the Nasdaq declined 76bps both on lower d/d volume. Immediate support for the indices is along their respective 10-DMA (4,868/15,375), followed by the 21-DMA (4,816/15,168). The S&P 500 continues to trade near all-time highs, while the Nasdaq is ~4% below its all-time high of ~16,200. The distribution day count for both indices stands at five and two, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a mixed session. Volumes were also mixed. Most major indices are making a new all-time high or facing resistance at their all-time high. We recommend that investors add risk in names that are coming out of proper bases in leading industry groups.
  • The Stoxx 600 was facing resistance at its 2021 highs after it broke above its January 2024 highs. Among other
    major indices, France’s CAC 40 broke above its December 2023 highs, while Germany’s DAX 30 faced resistance at its December 2023 highs. The U.K.’s FTSE 100 was facing resistance at 7,700.
  • Among sectors, Banks and Autos gained more than 1% each. Basic Resources and Telecom lost more than 1%
    each and Food & Beverage fell 0.4%.
  • Among the 16 indices that we track, only Norway, Finland, and Belgium closed in negative territory. Finland
    recorded its fifth distribution day.
  • Actionable names in the Focus List include Brunello Cucinelli (BC.IT; BC:IM), Recordati Indua. Chimica (REC.IT; REC:IM), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Bae Systems (BA.GB; BA/:LN), Vat Group (VACN.CH; VACN:SW), Bridgepoint Grp (BPT.GB; BPT:LN), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Sanlorenzo (SANL.IT; SL:IM), Trigano (TRI.FR; TRI:FP), Nemetschek (Xet) (NEMX.DE; NEM:GR), and Saab B (SAAB.SE; SAABB:SS).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 80–110bps and posted fresh 52-week highs. Immediate support for the indices is seen along their respective 10-DMA (4,855/15,345), followed by the 21-DMA (4,805/15,134). The S&P500 continues to trade near all-time highs, while the Nasdaq is ~4% off its all-time high of ~16,200. The distribution day count for both indices stands at five and two, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets ended marginally in the green. The Stoxx 600 continued making new 52-week highs. Real
    Estate gained the most, while Telecommunications led the decline.
  • We recommend that investors 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 closed 0.21% higher. The index had marginal moves but made new two-year highs. Support levels: 21-DMA (1.8% below), 50-DMA (2.8% below), and 200-DMA (5.2% lower). Next levels of resistance: 490 (1% above) and 495 (2.1% above).
  • Among major indices, Germany’s DAX, France’s CAC, and the U.K.’s FTSE have retaken all their key moving
    averages.
  • Among the 16 indices we track, closes were mixed. Seven indices are in a Confirmed Uptrend, six in an Uptrend
    Under Pressure, two in a Rally Attempt, and one in a Downtrend. The average distribution day count is currently at 4.6.
  • Actionable names in the Focus List include Brunello Cucinelli (BC.IT; BC:IM), Recordati Indua. Chimica (REC.IT; REC:IM), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Bae Systems (BA.GB; BA/:LN), Vat Group (VACN.CH; VACN:SW), Bridgepoint Grp (BPT.GB; BPT:LN), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Sanlorenzo (SANL.IT; SL:IM), Trigano (TRI.FR; TRI:FP), Nemetschek (Xet) (NEMX.DE; NEM:GR), and Saab B (SAAB.SE; SAABB:SS).

European Weekly Summary

Posted on by Deepashree MC

Key points from this week’s report:

Please refer to the attached PDF for the full report.

  • European markets had a strong week and gained the most on a weekly basis since the start of the year, aided by upbeat earnings. The Stoxx 600 bounced off its 21-DMA to make a new 52-week high and was shifted to a Confirmed Uptrend.  
  • Positive momentum was seen in Cyclicals and Technology, aided by LVMH and ASML earnings. Other than Utility, all sectors closed in the green. On our rotation graph, Technology, Capital Equipment, and Health Care are showing improvement in their short-term momentum. Retail, Basic Material, Consumer Cyclical, and Energy are showing a decline in their short-term momentum.
  • Sector Score Cards – Top-rated names breaking out of consolidations:
    • Basic Material: Kemira (KEMR.FI)
    • Capital Equipment: Andritz (AND.AT)
    • Consumer Cyclical: Jet2 (JET2.GB), San Lorenzo (SANL.IT, FL Constituent)
    • Consumer Staple: Cranswick (CWK.GB)
    • Technology: Asml (ASML.NL, FL Constituent), Nemetschek (NEMX.DE, FL Constituent), Sopra (DOP.FR), and Atoss Software (AOFX.DE)
  • European Focus List Update:
    • Actionable names include Swissquote ‘R'(SQN.CH; SQN SW), Inditex (IND.ES; ITX SM), Recordati Indua.Chimica (REC.IT; REC IM), GTT (GTT.FR; GTT FP), Beiersdorf (Xet) (BEIX.DE; BEI GR), BAE Systems (BA.GB; BA/ LN), Vat Group (VACN.CH; VACN SW), Sanlorenzo (SANL.IT; SL IM), Trigano (TRI.FR; TRI FP), Nemetschek (Xet) (NEMX.DE; NEM GR), Saab B (SAAB.SE; SAABB SS).
    • Addition: ASML Holding (ASML.NL)
    • Removal: None

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. Indices gained ~1% last week as the S&P 500 continues to trade near
all-time highs while the Nasdaq is only ~5% off its all-time high of ~16,200. Support for both indices is at their
respective rising 10-DMA (4,840/15,282). The distribution day count stands at five and two, respectively, with none
expiring this week.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets ended in the green and had the best weekly gains in 2024. The Stoxx 600 bounced off its 21-
    DMA, made a new 52-week high, and was shifted to a Confirmed Uptrend. Earnings from LVMH helped the luxury sector gain momentum. Except Technology and Utility, all sectors closed in the green.
  • We recommend that investors 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 closed 1.1% higher. The index retook its 21-DMA on above average volume. It is at its 52-week high and 2.4% off its all-time high. Support levels:21-DMA (1.7% below), 50-DMA (2.8% below), and 200-DMA (5% lower). Next levels of resistance: 490 (1.25% above) and 495 (2.3% above).
  • Among major indices, Germany’s DAX, France’s CAC, and the U.K.’s FTSE have retaken all their key moving
    averages.
  • Most of the 16 indices we track closed in the green. Seven indices are in a Confirmed Uptrend, six in an Uptrend Under Pressure, two in a Rally Attempt, and one in a Downtrend. The average distribution day count is currently at 4.5.
  • Actionable names in the Focus List include Swissquote ‘R’ (SQN.CH; SQN:SW), Inditex (IND.ES; ITX:SM),
    Recordati Indua. Chimica (REC.IT; REC:IM), GTT (GTT.FR; GTT:FP), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Bae Systems (BA.GB; BA/:LN), Vat Group (VACN.CH; VACN:SW), Sanlorenzo (SANL.IT; SL:IM), Trigano (TRI.FR; TRI:FP), Nemetschek (Xet) (NEMX.DE; NEM:GR), and Saab B (SAAB.SE; SAABB:SS).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a mixed day with some of the leading indices reclaiming/finding support at their key moving averages. We recommend investors book profits in extended names and be cautious while adding any new risk.
  • The Stoxx 600 has reclaimed its 21-DMA and is testing resistance at January 2024 highs. Among other major
    indices, France’s CAC continues to find support at its 50-DMA while Germany’s DAX is testing resistance at
    December 2023 highs. The U.K.’s FTSE 100 ended flat and is gradually climbing towards its 50-DMA.
  • Among sectors, Technology stocks gained 1.7%, Chemical stocks gained 1.4%, while Basic Material, Insurance,
    and Utilities ended flat. Automobile stocks lost 0.8%.
  • Among the 16 indices that we track in Europe, Norway, Portugal, Spain, and Italy closed in the red. Spain recorded its fifth distribution day.
  • Actionable names in the Focus List include Universal Music Group (UNMG.NL; UMG:NA), GTT (GTT.FR; GTT:FP), Inditex (IND.ES; ITX:SM), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Bae Systems (BA.GB; BA/:LN), Recordati Indua. Chimica (REC.IT; REC:IM), Nemetschek (Xet) (NEMX.DE; NEM:GR), Ypsomed Holding R (YPSN.CH; YPSN:SW), Trigano (TRI.FR; TRI:FP), Saab B (SAAB.SE; SAABB:SS), and Beiersdorf (Xet) (BEIX.DE; BEI:GR).