Author: Veera Manju

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • All European indices closed in the red, with 15 of the 17 indices we cover adding a distribution day, amid disappointing earnings and increased concerns over the U.S.-China trade dispute.

  • The Stoxx 600 closed 1.47% lower, with Banks and Autos taking a particular beating and losing more than 2% each.

  • Among major bourses, Germany’s DAX lost 2.18%, adding a distribution day after disappointing guidance from Bayer (BAYN.DE; BAYN:GR) and Lufthansa (LHAX.DE; LHA:GR). France’s CAC 40 was down 1.61%. The U.K.’s FTSE 100 lost 0.52% and was supported by better-than-expected results from energy giant BP (BP.GB; BP/LN) and a drop in the British pound.

  • We downgraded Germany, Ireland, and Portugal to an Uptrend Under Pressure after they breached support at their respective 50- and 100-DMA.

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back yesterday but avoided distribution. The count
remains at six days on the S&P 500 and four on the Nasdaq, with one day expiring on each at the close today. Initial support remains the
rising 10-DMA, which the Nasdaq tagged yesterday, followed by the 21-DMA, which continues to rise toward current prices.

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets were trading flat as investors braced for a resumption of the U.S.-China trade talks and the U.S. Federal Reserve’s key monetary policy meeting this week.
  • The Stoxx 600 was up 0.03%. Telecom and Financial Services led the bulls while Automobiles and Defense dragged down the index.
  • Among other major bourses, France’s CAC and Germany’s DAX were down 0.16% and 0.02% respectively. The U.K.’s FTSE gained 1.8% on low volume amid news that Blackstone will announce the merger of its majority-owned Refinitiv with the London Stock exchange.
  • Only the Stoxx 600, the U.K., Denmark, Sweden, and Switzerland closed in positive territory, while Ireland and Norway added distribution days.

Won Europe Today

Posted on by Veera Manju

Ishares DJ Stoxx600 (EXSA.DE)

 

We released our European Weekly summary yesterday (please click here to access the report). 

Key points:

The iShares DJ Stoxx 600 (EXSA.DE) is still in an Uptrend Under Pressure with six distribution days, but two are set to expire in the next four trading sessions. The index is still trading constructively above its 21-DMA, but the distribution day cluster across markets in the past three weeks was concerning. To turn more bullish and move the index back to a Confirmed Uptrend, we will look for it to breach resistance at 39.15 with no further addition of distribution days.

The Staple and Cyclical sectors continue to lead over 26 weeks. Capital Equipment’s short-term momentum (over four weeks) continues to deteriorate. Actionable ideas from the list includeGrieg Seafood (GSF.NO; GSF:NO), Mowi (MHG.NO; MOWI:NO), Richemont (CFR.CH; CFR:SW), Safran (SGM.FR; SAF:FP), Dsv (DSV.DK; DSV:DC), andInwit (INW.IT; INW:IM).

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trending into higher highs with support off their respective 10- and 21-DMA. Distribution stands at six days on the S&P 500 and four on the Nasdaq, with one day set to expire on both indices tomorrow. To remain positive, we would like to see near-term support levels continue to hold and distribution begin to subside.

 

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq retraced Wednesday’s gains yesterday, closing near the lows of the session and picking up a sixth and fifth distribution day, respectively. Both indices, along with the Russell 2000, are now sitting on 10-DMA support. Should this level break, look for the 21-DMA (S&P 500: 2,979; Nasdaq: 8,151) to again act as support. Distribution has become elevated, though one day will expire on the Nasdaq today and one more will expire on both the S&P 500 and Nasdaq next Tuesday.

Won Europe Today

Posted on by Veera Manju

We also released our weekly Global Laggards report yesterday (please click here to access the report). The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance. European names highlighted this week include ISS A/S (ISS.DK; ISS:DC) and Demant (WDH.DK; DEMANT:DC).

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq moved backed into all-time highs yesterday, positively closing at the highs of the session. Near-term support is again the rising 10- and 21-DMA. Distribution remains unchanged at five days on the S&P 500 and four on the Nasdaq. One distribution day expires on the Nasdaq at the close tomorrow and one day expires on each index at the close next Tuesday.

 

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets closed flat amid weak economic data from Germany and France and the highly anticipated interest rate decision by the European Central Bank (

    ) on Thursday.

  • Among major bourses, France’s CAC was down 0.22%, Germany’s DAX rose 0.26%, and the U.K.’s FTSE fell 0.73%, all on higher volume.
  • The Stoxx 600 closed 0.05% higher. Autos and Travel & Leisure sectors led the gains while poor performance by Basic Resources dragged down the index
  • France, the U.K., Norway, Sweden, Switzerland, and Portugal closed in negative territory, while the market status of Austria was changed to a Confirmed Uptrend as it claimed new highs.

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are now trading just slightly off all-time highs after rallying for a second straight session. Support remains the rising 21-DMA. Distribution remains unchanged with five days on the S&P 500 and four on the Nasdaq. One distribution day expires on the Nasdaq at the close Friday.