The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq continue to whipsaw above the October 29
low, but below resistance along the 200-DMA. Distribution stands at two days on the S&P 500 and one on the Nasdaq. No
clear trend has yet to develop with the majority of growth ideas still consolidating. Breadth remains poor with defensive sec-
tors continuing to lead and nearly 300 S&P 500 stocks still trading below their respective 200-DMA. Given this backdrop, a
cautious approach is warranted. Focus only on high relative strength ideas consistently trading above their respective 50-
DMA, while reducing risk in ideas with RS lines at or near new lows. To gain conviction, we will need to see the major aver-
ages tighten up, regain moving average support, and leadership to broaden outside of defensive sectors.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 44 ideas lost 2.3% on average this week, underperforming the S&P 500 (-1.6%) and the Nasdaq (-2.2%).
Actionable Focus List ideas: Aon ( AON ), Canada Goose ( GOOS ), Chefs’ Warehouse ( CHEF ), Ciena ( CIEN ), Edwards
Lifesciences ( EW ), Fabrinet ( FN ), Fidelity Natl Info Svcs ( FIS ), Horizon Pharma ( HZNP ), Planet Fitness ( PLNT ), Procter &
Gamble ( PG ), RBC Bearings ( ROLL ), Twilio ( TWLO ), Ulta Beauty ( ULTA ), Unitedhealth ( UNH ), Wright Medical ( WMGI ), Zoe-
tis ( ZTS )
USFL ideas weekly earnings line-up:
Monday: Close: INTU
By Sector
Consumer Staple ideas on the U.S. Focus List led this week. CHEF continues to trend higher off its 50-DMAand PG is now
testing a new all-time high. MKC and LW, despite being extended from their prior pivots, remain at all-time highs. No other
trends developed this week outside of Consumer Staple. Technology, Health Care, and Retail ideas traded in mixed fash-
ion. Within Retail, ULTA is hitting new highs, while XLNX, FN, and CIEN continue to trade at or near new highs with Tech-
nology. Within Health Care, EW, ZTS, HZNP, WMGI, and UNH held their respective 50-DMA, while VRTX and PRAH both
broke below that same level of support.
New Ideas or Deletions
We removed Idexx Labs ( IDXX ), Centennial Res ( CDEV ), Worldpay ( WP ), Global Payments ( GPN ), and S S & C Tech ( SSNC )
from the U.S. Focus List this week.