Author: Deepashree MC

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 ended in the red and had their biggest weekly drop since October 2023. Market sentiment
    remains cautious on the back of uncertainty around central bank monetary policy and the pace of rate cuts.
  • The Stoxx 600 found support along its 50-DMA. Its overhead short-term moving averages, such as the 10- and 21- DMA, will likely act as resistance levels in the near term.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 20–30bps yesterday, with the S&P 500 continuing to make new all-time highs. Support for the indices is at their respective rising 10-DMA (4,788/15,050). The S&P 500 has no remaining overhead resistance, while the next resistance for the Nasdaq is ~4% higher at its December 2021 peak of ~15,900. The distribution day count stands at six and three, respectively.

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 ended in the red and had their biggest weekly drop since October 2023. Market sentiment remains cautious on the back of uncertainty around central bank monetary policy and the pace of rate cuts. The Stoxx 600 found support along its 50-DMA while its overhead short-term moving averages, such as the 10- and 21-DMA, will likely act as resistance in the near term. 
  • We recommend adding risk in leading industry groups that are breaking out of proper bases with strong and rising RS lines.
    • Sectors closed in the red apart from Technology, which gained while all other sectors ended lower. Utility and Energy declined the most.
    • On our rotation graph, Capital Equipment, Health Care, and Technology are showing improvement in short-term momentum. Consumer Cyclical, Energy, Retail, and Utility are showing a decline in their short-term momentum. 
  • European Focus List Update:
    • Actionable names include Universal Music Group (UNMG.NL; UMG NA), GTT (GTT.FR; GTT FP), Inditex (IND.ES; ITX SM), ASM International (ASIN.NL; ASM NA), Siegfried ‘R’ (SFZN.CH; SFZN SW), BAE Systems (BA.GB; BA/LN), Recordati Indua.Chimica (REC.IT; REC IM), Tbc Bank Group (TBCG.GB; TBCG LN), 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).
    • Addition: GTT (GTT.FR), Saab B (SAAB.SE), Swissquote ‘R’ (SQN.CH).
    • Removal: Solaria Energia Y Medio Ambiente (SEM.ES), Camurus (CAMX.SE), Sika (SIKA.CH).

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets ended in the red, recording their biggest weekly drop since October 2023. The Stoxx 600 found support along its 50-DMA. Its overhead short-term moving averages, including the 10- and 21-DMA, are likely to actas resistance levels in the near term. Among sectors, Insurance and Technology gained the most, while BasicResources, Industrial Goods, and Chemicals 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 0.26% lower on below average volume. The index has breached its 10- and 21-DMA. Its
    reaction to its overhead declining short-term moving averages will determine its near-term trend.
  • Support levels: 50-DMA (its current levels), 200-DMA (2.1% below), and 100-DMA (2.4% lower). Next levels of
    resistance: 21-DMA (1.3% above), 480 (2.3% above), 485 (3.4% above), 490 (4.4% above), and 495 (5.5% above).
  • Among major indices, Germany’s DAX was holding up relatively better and was above its 50-DMA. France’s CAC breached its 50-DMA. The U.K.’s FTSE was trading below all its key moving averages.
    Most of the 16 indices we track closed in the red. Finland declined the most, down 1.33%. Four indices are in a
    Confirmed Uptrend, nine in an Uptrend Under Pressure, and three in a Downtrend.
  • Actionable names in the Focus List include Universal Music Group (UNMG.NL; UMG:NA), GTT (GTT.FR; GTT:FP), Inditex (IND.ES; ITX:SM), Asm International (ASIN.NL; ASM:NA), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Bae Systems (BA.GB; BA/:LN), Recordati Indua. Chimica (REC.IT; REC:IM), Tbc Bank Group (TBCG.GB; TBCG:LN), 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).

Won Global View

Posted on by Deepashree MC

The U.S. market has been shifted back to a Confirmed Uptrend from an Uptrend Under Pressure. The S&P 500 gained 1.2% last week, breaking into fresh all-time highs after rising from support at its 21-DMA. The Nasdaq rose 2.3% and pushed above its December peak of 15,150 to make new two-year highs. First support for the indices is once again the rising 10-DMA (4,774/14,981). The S&P 500 has no remaining overhead, while the Nasdaq is about 4% below the next level of potential resistance from the December 2021 peak of ~15,900. The distribution day count stands at six and three, respectively, with none set to expire this 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 Renault (RENU.FR; RNO:FP), Bank
of Ireland (BIRG.IE; BIRG:ID), and Frasers Group (FRAS.GB; FRAS:LN).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq gained 88bps and 135bps, respectively, and are
trading above their key moving averages. Both indices are consolidating constructively below their all-time high, with support at their
respective 21-DMA (4,733/14,816). The distribution day count stands at six and three, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a weak day as all the 16 indices that we track closed in negative territory. Ten indices
    recorded distribution days and many of them have been downgraded to an Uptrend Under Pressure or a
    Downtrend. We recommend that investors remain cautious while adding risk as the indices are breaking
    below/testing their key moving averages.
  • The Stoxx 600 was down more than 1% on low volume and avoided a distribution day. The index is testing support
    at its 50-DMA with three distribution days. It has been downgraded to an Uptrend Under Pressure. Among other
    major indices, France’s CAC 40 broke below its 50-DMA and recorded its fourth distribution day. Germany’s DAX
    30 was testing support at its 50-DMA. The U.K.’s FTSE 100 tested support at its November 2023 lows. All the three
    have been shifted to an Uptrend Under Pressure.
  • Most sectors closed in the red. Personal & Household Goods declined more than 2%. Utility, Oil & Gas, and Retail
    were the other major losers. Media led the gains.
  • The Stoxx 600, Austria, Finland, France, Germany, Belgium, the Netherlands, Portugal, Spain, and Sweden were
    shifted to an Uptrend Under Pressure. Norway and the U.K. were shifted to a Downtrend. New Focus List addition
    Gtt (GTT.FR; GTT:FP) is actionable after breaking out of a stage-one 59-week cup-with-handle base. Other
    actionable names in the Focus List include Bridgepoint Group (BPT.GB; BPT:LN), Bae Systems (BA.GB; BA/:LN),
    Inditex (IND.ES; ITX:SM), Nemetschek (NEMX.DE; NEM:GR), Recordati (REC.IT; REC:IM), Siegfried (SFZN.CH;
    SFZN:SW), and Trigano (TRI.FR; TRI:FP).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined ~60bps each on lower d/d volume despite
bouncing off the day’s lows. Both the indices breached their 10-DMA support (4,754/14,875) and are testing support near their 21-DMA
(4,728/14,792). The distribution day count stands at six and three, respectively.

Won Europe Today

Posted on by Deepashree MC

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

  • European markets closed flat last week, but distribution increased among major indices. As weakness persists this
    week, on the back of increasing doubts regarding the timing of rate cuts, the index breached its 21-DMA today for
    the first time since it started its uptrend in November.
  • Last week, sectors were mixed. Capital Equipment and Technology logged the best gain, while Energy led the
    decline.
  • On our rotation graph, Capital Equipment, Health Care, and Transportation are showing improvement in short-term
    momentum.