European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

  • The Stoxx 600 is trading at an all-time high with key short-term support at its 10-DMA. The index remains in a Confirmed Uptrend with no distribution.
  • Of the 17 indices we cover, 10 are in a Confirmed Uptrend, one in a Rally Attempt (Germany), and six in an Uptrend Under Pressure. The average distribution count is at a low of 2.6 days.
  • Over the past month, rotation has turned in favor of growth sectors, including Technology and Consumer Cyclical. Refer to page 12 and 18 for actionable ideas.
  • European Focus List:

 

Fox Factory Holding

Key points from this report:

 

  • Buy FOXF after the stock broke out above $172.25 to all-time highs following its Q3 print.
  • The stock displays top-notch O’Neil Ratings and Rankings, among the best within the U.S. Leisure Products group, which reflect FOXF management’s ability to consolidate market share without destroying margin and returns.

Varun Beverages

Key points from this report:

 

  • We recommend buying top-rated stock Varun Beverages (VB1.IN) after shares broke out of a stage-three consolidation base on strong volume followng a solid Q3 print.
  • By setting up a new greenfield project in the eastern state of Bihar, Varun Beverages is pursuing domestic expansion while increasing its penetration through the placement of fridges and coolers at its retailers.
  • International expansion offers another long-term growth driver.

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • The iShares Dj Stoxx 600 rose 1.97% and gained for the fifth consecutive week, its longest streak since mid-April, supported by strong earnings results. The index is in a Confirmed Uptrend with one distribution day.
  • Among the 17 indices we cover, 11 are in a Confirmed Uptrend, one in a Rally Attempt (Germany), and five in an Uptrend Under Pressure. Average distribution in the region has been at a low of 3.1 days over the past five weeks.
  • Our rotation chart shows the short-term momentum of cyclical starting to rise while momentum among leading Energy over 26 weeks has softened.
  • The number of breakouts in the region has hit a new high. Among sectors, Technology and Financials are showing many actionable ideas. Refer to page 17 and 20 for the full list.

European Weekly Summary

Key points:

  • The Stoxx 600 hit a new all‐time high yesterday, although on low volume. With only two distribution days, it was moved back to a Confirmed Uptrend after consolidating for 56 days.
  •  Sector rotation: Short‐term momentum (over four weeks) among leading (over 26 weeks) Energy and Financial sectors continues to improve. Transportation, Retail, Technology, and Capital Equipment are still losing momentum.
  • Q3 earnings update: On average, over 65% of companies that have reported so far beat estimates by ~16%, with
    Financials leading the beat.
  • European Focus List: We added Infineon Technologies (IFXX.DE) to our Focus List last week. Actionable names in the Focus List include Intesa (ISP.IT), Hermes (RMS.FR), Nibe Industrier (NIBE.SE), Vitrolife (VITR.SE), Novo Nordisk (NON.DK), Soitec (SOI.FR), Interroll (INRN.CH), and Interpump (IP.IT).

European Weekly Summary

Key points from this week’s report:

 

  • The iShares Stoxx 600 closed up 55bps last week, gaining for the third consecutive week. It remains in an Uptrend Under Pressure with three distribution days. The index is still forming the right side of a 50-day flat base, trading 1% of its all-time high at 47.37. Should the index breach this level, its status would be back in a Confirmed Uptrend
  • Of the 17 indices we cover, five are in a Confirmed Uptrend, one in a Rally Attempt, and 11 in an Uptrend Under Pressure. The Netherlands and Italy were moved back to a Confirmed Uptrend after reclaiming their prior rally highs. The average distribution day count is 3.93.
  • Majority of the sectors closed in green, with Utility and Health Care leading the gains. From our rotation chart, short-term momentum (over four weeks) continued to rise among the Financial and Energy sectors.
  • We did not make any changes to our Focus List last week. Actionable names in the Focus List include Intesa Sanpaolo ( ISP.IT ), Rentokil Initial ( RTO.GB ), Euronext ( ENX.FR ), Hermes ( RMS.FR ), and Keywords Studios ( KWS.GB ).
  • Refer to page 3 and 4 for our European watch list.

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

 

  • Last week, the iShares Dj Stoxx 600 (EXSA.DE) retook its 50-DMA and currently is consolidating in a nine-week flat base with support at ~€45. It remains in an Uptrend Under Pressure with five distribution days. Should the index break above its €47 resistance level, which corresponds to the pivot line of the current base, its status would return to a Confirmed Uptrend.
  • Of the 17 indices we cover, three are in a Confirmed Uptrend, one in a Rally Attempt, and 13 in an Uptrend Under Pressure.
  • All sectors closed in the green last week, barring Transportation. Our rotation chart continues to show improving short-term momentum among Energy and Financial stocks.
  • We added Coface (COFA.FR), Aker BP (AKEP.NO), and DNB Bank (DNB.NO) and removed Evolution (EVOG.SE) from our focus list. Actionable names in the focus list include Intesa Sanpaolo (ISP.IT), Rentokil Initial (RTO.GB), Keywords Studios (KWS.GB), and Coface (COFA.FR).
  • Refer to page 4 for our European watch list which includes several banks such as Barclays (BARC.GB) and Avanza Bank (AZA.SE).