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:

  • Last week, European markets had a positive close for the fifth consecutive week. Most majors we track are in a
    Confirmed Uptrend. A near-term cool-off period is required for the majors following their strong rally since early
    November.
  • On our rotation graph, Financial, Capital Equipment, and Retail are showing improvement in their short-term
    momentum. Energy and Technology are showing a decline in their short-term momentum.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 45–60bps on above average volume and posted
fresh 52-week highs. Immediate support for the indices is seen along their respective 10-DMA (4,663/14,599), followed by the 21-DMA
(4,597/14,367). Resistance for the indices is near ~4,750/15,320. The distribution day count for both indices stands at two each.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets closed marginally in the red. Markets faced some near-term resistance in the last three
    sessions, indicating near-term exhaustion of the rally. European majors are overextended and running into
    resistance. A near-term cool-off period is required for the indices. Energy led the rally, while Technology and
    Construction Materials declined the most.
  • We recommend adding 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 0.27% lower. It has taken a pause near its resistance in the last three sessions post its
    recent rally.
  • Support levels: 21-DMA (2% below), 200-DMA (4% below), and 50-DMA (4.7% lower). Next levels of resistance:
    480 (1.1% above), 485 (2% above), 490 (3.1% above), and 495 (4% above).
  • Among major indices, Germany’s DAX and France’s CAC are trading above all their key moving averages. The
    U.K.’s FTSE has retaken its key moving averages but is sitting at its 200-DMA.
  • Among the 16 indices we track, closes were mixed. Thirteen indices are in a Confirmed Uptrend, two in an Uptrend
    Under Pressure, and one in a Rally Attempt.
  • Actionable names in the Focus List include Bridgepoint Grp (BPT.GB; BPT:LN), Siegfried ‘R’ (SFZN.CH;
    SFZN:SW), Munters Group (MUGR.SE; MTRS:SS), Sanlorenzo (SANL.IT; SL:IM), Nemetschek (Xet) (NEMX.DE;
    NEM:GR), ASM International (ASIN.NL; ASM:NA), Inditex (IND.ES; ITX:SM), WISE A (WISE.GB; WISE:LN), Adidas
    (ADSX.DE; ADS:GR), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Ypsomed Holding (YPSN.CH; YPSN:SW), and Safran
    (SGM.FR; SAF:FP).

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.

 

  • Last week, European markets had a positive close for the fifth consecutive week. Most majors we track are in a Confirmed Uptrend. A near-term cool-off period is required for the majors following their strong rally since early November. Sentiments that interest rates have peaked are driving the market.  
  • We recommend adding risk in leading industry groups that are breaking out of proper bases with strong and rising RS line.
    • Most sectors either closed in the green or flat. Transportation led the gains, while Energy declined the most.
    • On our rotation graph, Financial, Capital Equipment, and Retail are showing improvement in their short-term momentum. Energy and Technology are showing a decline in their short-term momentum. 
  • European Focus List Update:
    • Actionable names include Bridgepoint Group (BPT.GB; BPT LN), Siegfried ‘R’ (SFZN.CH; SFZN SW), Munters Group (MUGR.SE; MTRS SS), Sanlorenzo (SANL.IT; SL IM), Nemetschek (Xet) (NEMX.DE; NEM:GR), Asm International (ASIN.NL; ASM NA), Inditex (IND.ES; ITX:SM), WISE A (WISE.GB; WISE: LN), Adidas (ADSX.DE; ADS:GR), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Ypsomed Holding (YPSN.CH; YPSN:SW), and Safran (SGM.FR; SAF:FP).
    • Addition: Bridgepoint Grp (BPT.GB; BPT LN), Siegfried ‘R’ (SFZN.CH; SFZN SW), Munters Group (MUGR.SE; MTRS SS).
    • Removal: None

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets closed flat after facing some near-term resistance in the last two sessions. A near-term cool-off
    period is required for the major indices post their strong rally since early November. Sentiments that interest rates
    have peaked are driving the market. Basic Resources and Technology led the rally, while Telecommunications
    declined the most.
  • 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 flat. The index is trading along its rising 8-DMA. It has closed in the green for five consecutive
    weeks.
  • Support levels: 21-DMA (2.3% below), 200-DMA (4.2% below), and 50-DMA (5% lower). Next levels of resistance:
    480 (0.8% above), 487 (2.1% above), 490 (2.9% above), and 495 (3.8% above).
  • Among major indices, Germany’s DAX and France’s CAC are trading above all their key moving averages. The
    U.K.’s FTSE has retaken its key moving averages but is sitting at its 200-DMA.
  • Among the 16 indices we track, closes were mixed. Portugal led the decline, down 1.21%. Thirteen indices are in a
    Confirmed Uptrend, two in an Uptrend Under Pressure, and one in a Rally Attempt.
  • Actionable names in the Focus List include Bridgepoint Grp (BPT.GB; BPT:LN), Siegfried ‘R’ (SFZN.CH;
    SFZN:SW), Munters Group (MUGR.SE; MTRS:SS), Sanlorenzo (SANL.IT; SL:IM), Nemetschek (Xet) (NEMX.DE;
    NEM:GR), Asm International (ASIN.NL; ASM:NA), Inditex (IND.ES; ITX:SM), WISE A (WISE.GB; WISE:LN), Adidas
    (ADSX.DE; ADS:GR), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Ypsomed Holding (YPSN.CH; YPSN:SW), Universal
    Music Group (UNMG.NL; UMG:NA), and Safran (SGM.FR; SAF:FP).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 rose 2.5% for a seventh week of gains, breaking through July 2023
resistance and clearly into 52-week highs. It is a bit extended short-term as it nears the next potential resistance level from its January
2022 peak (4,749). The Nasdaq also rose for a seventh week (+2.8%), clearing above both July 2023 and March 2022 peaks. Next
resistance is January 2022 peak (15,319). Immediate support for the S&P 500 and Nasdaq is their respective 10-DMA (4,628/14,457),
followed by the 21-DMA (4,582/14,312). The distribution day count is down to two each, from three at the start of the last 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. European stock included is Epiroc (EPIA.SE; EPIA: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 20–26bps but closed off highs. Immediate support
for the indices is seen along their respective 10-DMA (4,629/14,467), followed by the 21-DMA (4,569/14,262). Resistance for the indices is
at 4,749/14,900. The distribution day count for both indices stands at two each.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets were tentative as investors weighed the optimism ahead of the Fed’s decision amid the worsethan-expected 0.3% m/m contraction of the U.K.’s economy in October (estimates: flat m/m).
  • The Stoxx 600 fell 6bps and closed at 472.46. The index has been facing stiff resistance at 476 (74bps higher). The
    Fed’s decision to hold interest rates steady was well received by investors in the U.S., a sign that we are at the
    peak of the rate cycle. Picking the momentum from the U.S. markets, the Stoxx 600 is expected to clear its
    resistance at 476 and head toward 490 (371bps higher). As the index is extended from its key support levels, we
    recommend that investors add risk in stocks that are coming out of proper bases in leading industry groups and
    book profits in names that are extended.
  • Sectoral performance was majorly weak. Telecom, Autos, Retail, and Mining fell 107bps, 88bps, 72bps, and 63bps,
    respectively. However, there were some pockets of optimism with the rally in Chemicals (+123bps), Utility
    (+81bps), and Health Care (+70bps).
  • Among the three major indices, France’s CAC 40 and Germany’s DAX 30 closed in the red, declining 16bps and
    15bps, respectively. Both indices are significantly extended from their short-term moving averages. The CAC is
    122bps above its 10-DMA and 257bps above its 21-DMA. The DAX is 102bps and 306bps above its 10- and 21-
    DMA, respectively. The U.K.’s FTSE 100 closed in the green. The index pared most of its 56bps intraday gain to
    close 8bps higher. It faced resistance at its declining 200-DMA(+26bps).
  • Of the 16 indices we track, only five had a positive session. With Ireland and Sweden recording a distribution day
    each, the average distribution day count increased to 3.1.
  • Actionable names in the Focus List are Beiersdorf (BEIX.DE; BEI:GR), Inditex (IND.ES; ITX:SM), Nemetschek
    (NEMX.DE; NEM:GR), Sanlorenzo (SANL.IT; SL:IM), 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 ~140bps each on above average volume and
posted fresh 52-week highs. Immediate support for the indices is seen along their respective 10-DMA (4,610/14,402), followed by the 21-
DMA (4,554/14,213). Resistance for the indices is at 4,749/14,900. The distribution day count for both indices stands at three each, with
one distribution day set to expire on each index after the close today.