Key points from this week’s report:
Please refer to the attached PDF for the full report.
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European Equities took a pause last week and moved sideways after two consecutive weeks of gains. Ten indices are in a Confirmed Uptrend while the STOXX 600 is in a Rally Attempt, pending a follow-through day. The indices have acted constructively near their moving averages in the last few weeks and the distribution count in Europe is at 2.8.
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We recommend an incremental but a selective approach to adding risk. Focus on high relative strength ideas that are part of leading and or improving industry groups.
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Over the past 5 days, Transportation has led the market and the sector is now one of the best-performing sectors over four-weeks. Healthcare momentum has continued to deteriorate further. On our rotation chart, Cyclicals, Financials, Basic Materials and Transportation are showing positive short-term improvements. Staples, Healthcare, and Tech, continue to show deteriorating short-term momentum (over four weeks).
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European Focus List Update:
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Actionable names include Nibe Industrier (NIBE.SE), Burckhardt Cmpsn.Hldg. (BCHN.CH), Ringkjobing Landbobank (RIL.DK), Epiroc A (EPIA.SE), Ashtead Group (AHT.GB), Asml Holding (ASML.NL), Bic (BIC.FR), Deutsche Telekom (Xet) (DTEX.DE), Terna Energy (TEN.GR), Evolution (EVOG.SE), Finecobank Spa (FCBK.IT) and Moncler (MONC.IT).
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Addition: Burckhardt Cmpsn.Hldg. (BCHN.CH), NIbe (NIBE.SE).
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Removal: None.
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