Author: Neeraj Khanna
Daily Market Intelligence
US Focus Long
The U.S. market remains in a Confirmed Uptrend, continuing to grind higher in light
volume. Breadth has widened with Retail now beginning to gain momentum into year-end.
Meanwhile, Banks, Capital Equipment, Materials, and Transportation have held their leading
positions which has resulted in a breakout across all the major averages. Though a pullback
seems likely given 15 straight positive sessions on the Russell, new leadership ideas continue
to surface while distribution remains low. Consequently, we remain bullish on the U.S.
market.
European Focus Long
For the third consecutive week, European markets gained, advancing
1.1% on average as only two markets, Ireland (-0.2%) and Switzerland
(-0.3%), closed lower. Five markets gained at least 1.3%, including
Austria (+1.3%), Italy (+1.3%), the Netherlands (+1.6%), Norway
(+1.8%), and Belgium (+1.9%). Two, Finland (+2.4%) and Luxembourg
(+3.2%), gained more than 2%.
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index gained 2.6% this week,
resuming solid gains after pausing last week. The index had a followthrough
day on Wednesday, rising 1.3% to well above its 10-week
moving average. The Australian dollar is weakening significantly versus
the U.S. dollar, having fallen more than 4% in the past three weeks.
Global Focus Emerging Long
Mainland Chinese markets rallied higher this week. The Shenzhen was
up 0.9% while the Shanghai outperformed, up 2.2%. Markets remain
in a Confirmed Uptrend with five and three distribution days on the
Shenzhen and Shanghai, respectively.
