Author: Neeraj Khanna

US Focus Long

Posted on by Neeraj Khanna

The U.S. market remains in a Confirmed Uptrend, despite significant divergence between the
S&P 500 and Nasdaq. Accumulation across value has supported the S&P 500, which remains
less than 1% off highs. Conversely, continued weakness across growth, specifically Technology,
has led to an intraweek 50-day moving average break by the Nasdaq. Ideas that have led since
the election continue to do well. We recommend focusing on high relative strength ideas
within Banks, Capital Equipment, Transportation, Energy, and pockets of Retail as they
continue to lead.

European Focus Long

Posted on by Neeraj Khanna

European markets retreated 0.8% on average after three consecutive
weeks of gains. The pending vote on the Italian reform referendum this
weekend caused reluctance in the markets to advance further as they
declined towards the end of the week. Italy significantly outperformed,
gaining 3.5%, and Denmark rose 0.4%, the only countries not to
close flat or lower. Germany and the U.K. declined 1.7% and 1.6% to
underperform.