Attached is our monthly IPO Rewind report. This report identifies a select group of IPOs or spin-offs that have priced in the last three years, giving them time to digest any initial volatility. Our selected ideas display positive fundamental trends with strong top- and bottom-line consensus estimates, and IPO Rewind provides an efficient way to review these ideas that we believe warrant attention.
Author: Raj Gupta
O’Neil Health Care Weekly
XLV gained 1.9% last week and is now building the right side of a long consolidation base with near-term resistance at ~$148,
followed by $150.32. With the index back above key moving averages, and the RS line lifting from lows, we recommend an equal
weight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market was Shifted Back to a Confirmed Uptrend from an Uptrend Under Pressure. The S&P 500 and the Nasdaq gained 1.9% and 2.3%, respectively, and closed at new all-time highs. Indices have rebounded well from support near their 50-DMA and quickly retook and held above their 21-DMA (6,685/22,721), which will act as primary support once again. The distribution day count stands at three and six, respectively, with two days set to expire on the Nasdaq next week.
O’Neil Health Care Weekly
Sector Thoughts
XLV traded relatively flat last week, holding near-term support along its rising 21-DMA ($141.28). The next level of resistance is ~$148, followed by $150.32. With the index now back above key moving averages, and the RS line now lifting from lows, we recommend an equal-weight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq are consolidating along their 21-DMA (6,650, 22,566 ) in a choppy fashion but remain above support at their respective 50-DMA (6,564, 22,110). The distribution day count stands at two and six, respectively, with one distribution day set to expire on the Nasdaq next week.
O’Neil Health Care Weekly
XLV declined 1.9% last week, pulling back after strong gains the week prior. Look for support at the rising 21-DMA ($140.50). The next
level of resistance is ~$148 followed by $150.32. With the index now back above key moving averages, and the RS line now lifting
from lows, we recommend an equal-weight sector positioning.
O’Neil Market View
U.S. Market
The U.S. market was shifted to and Uptrend Under Pressure from Confirmed Uptrend. The S&P 500 and the Nasdaq fell 2.4% and 2.5% for the week after dropping ~3% on Friday. Both indices breached their 21-DMA for the first time since the beginning of September. It was the largest down day for the indices in six months. Support is now the rising 50-DMA (6,530, 21,948), which is ~1% below. The distribution day count stands at one and five, respectively.
O’Neil Health Care Weekly
XLV jumped 6.9% last week, clearing back above all key moving averages including the 200-DMA ($138.51). As the index
consolidates this move, look for the now rising 21-DMA ($138.52) to act as near-term support. The next level of resistance is ~$148
followed by $150.32. With the index now back above all moving averages, and the RS line now lifting from lows, we shift our
recommendation to equal-weight. This move was largely driven by multi-year lagging Pharma and Tools, most of which now need
time to settle and consolidate gains.
O’Neil Market View
U.S. Market
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rose ~1% and remains near all-time highs. The first level of support is at the rising 10-DMA (6,675/22,624), followed by the 21-DMA (6,624/22,379). The distribution day count stands at one and four, respectively, with one day expiring on the Nasdaq on Monday after the close.
O’Neil Health Care Weekly
XLV declined 1.3% last week, breaking back below its 50-DMA ($135.34) Thursday. Near-term resistance is along the declining 21-
DMA ($136.57), with the next level of support at ~$130. The RS line is back to all-time lows, still warranting an underweight sector
positioning.
