Australia’s ASX All Ordinaries Index increased 1.86% this week. It is trading 2.89% above its 40-WMA and is currently in a Confirmed Uptrend.
Author: Raghavendra K
Global Focus Emerging Long
Mainland China’s markets closed higher over last week, led by the Shenzhen, which gained 0.73%. We moved Mainland China to an Uptrend Under Pressure on April 26, as the CSI 300 (OCHSS300) fell about 2% to year-to-date lows. We want to see the CSI 300 rise and hold above its 200-DMA (~ 3,950) to become bullish. We recommend a defensive approach for any fresh additions.
Global Focus Frontier Long
Grupo Financiero Galicia (
) is a leading private sector Argentine bank, in terms of its deposits and loan portfolio. Leveraging its leadership and branch expansion, it continues to benefit from a growing loan book.
European Focus Long
This week through Thursday, the Stoxx 600 lost 0.17% after a 3% increase last week. Most markets, including the Stoxx 600, the U.K., France, Switzerland, and Germany, continue to remain in a Rally Attempt, and we did not witness a huge positive move on strong volume (follow-through day) that depicts the beginning of an Uptrend.
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index rose 1.67% this week. The index is trading 3.0% above its 40-WMA. It is currently in an Uptrend Under Pressure.
Global Focus Emerging Long
Mainland China’s markets continued to advance this week, led by the Shanghai, which gained 2.81% compared with 2.07% for the Shenzhen. On February 22, we upgraded Mainland China markets to a Confirmed Uptrend as the Shanghai and Shenzhen gained 2% and 1.9%, respectively, on greater volume. The CSI 300 has also displayed similar action. Considering the follow-through day, we recommend a gradual approach to buying. The Shanghai is trading 0.12% below its 200-DMA (~3,293), while the Shenzhen closed 6.91% below its 200-DMA (~1,907). The 100-DMA (~1,930) continues to act as a strong resistance level for the Shenzhen.
Global Focus Frontier Long
US Focus Long
The U.S. market was upgraded to a Confirmed Uptrend on Wednesday. The market staged a Day 4 follow-through and continued higher to close the week. We now view the 50- DMA as short-term support on both the S&P 500 and Nasdaq. Multiple risk-on ideas are again making new highs, while new ideas are emerging from consolidation. We continue to recommend gradually buying high-quality growth ideas with sound technical patterns now that the market is back in a Confirmed Uptrend. Signs of a failing follow-through day include a clustering of distribution shortly following the move, coupled with failed breakouts in individual ideas.
European Focus Long
After three consecutive weeks of decline, the Stoxx 600 was up 2.14% this week as of Thursday’s close. We moved the index to a Rally Attempt after Wednesday’s close, but we continue to advise investors to wait for a strong upward move on high volume (a follow-through day) that would signal the start of a new uptrend. The U.K. was also moved to a Rally Attempt this week, while France, Germany, and Switzerland remain in a Confirmed Downtrend as of Thursday’s close. However, the latter three indices are likely to be moved to a Rally Attempt if they maintain their momentum on Friday.
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index rose 1.13% this week. The index is trading 1.48% above its 40-WMA. It is currently in an Uptrend Under Pressure
