We released our Weekly Global Laggards Report today. 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 Royal Unibrew
(RBR.DK; RBREW:DC), InvestorA (INVE.SE; INVEA:SS), Recordati Indua.Chimica (REC.IT; REC:IM), The Swatch
Group (UHRN.CH; UHRN:SW), and Abb (ABBN.CH; ABBN:SW).
Author: Vidhya M
Won Global View
The U.S. market has shifted to a Rally Attempt. The S&P 500 and Nasdaq have held above Monday’s lows (S&P 500: 4,062; Nasdaq: 12,202) for three days. A follow-through day (+1.7% in volume above the prior day) above these lows will lead us to upgrade the market back to a Confirmed Uptrend. Indices face resistance at multiple moving averages, including the 10-DMA (S&P 500: 4,230; Nasdaq: 12,781) and the 21-DMA (S&P 500: 4,305; Nasdaq: 13,055). Conversely, an undercut of Monday’s lows and the market status moves back to a Downtrend.
Won Europe Today
Yesterday,
- European markets had a weak day with all indices, except Norway, closing in the red. All major indices continue to
lag after having found strong resistance at their key resistance levels on April 29. We continue to recommend that
investors be very cautious while adding any new risk. - The Stoxx 600 continues to fall after having found resistance at 450 price level. Next support is at 437 price levels. If
this level is breached, the index might retest its March lows. Most sectors closed in negative territory, with Retail
stocks declining nearly 2.3%. - Among other major indices, France’s CAC and Germany’s DAX continue to trend downward after finding supply at
their respective 50-DMA. The U.K.’s FTSE 100 continues to find supply at its 21-DMA. - Among the 17 indices that we track in Europe, Austria, Denmark, Sweden, and Italy recorded a distribution day
each. Belgium was shifted to a Downtrend after the index breached all its key moving averages. - Actionable names in the Focus List include Novo Nordisk (NON.DK; NOVOB:DC), Elisa (ELIS.FI;
ELISA:FH), Glaxosmithkline (GSK.GB; GSK:LN), Sonova N (SOON.CH; SOON:SW), Vantage Towers
(VTWRX.DE; VTWR:GR), and Aker Bp (AKEP.NO; AKRBP:NO).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq rose slightly yesterday and are now two days off recent lows (S&P 500: 4,062; Nasdaq: 12,202). The market status will shift to a Rally Attempt should these lows hold today (Day 3), and we will again look for a follow-through day as early as tomorrow (Day 4). Both indices still face resistance at all key moving averages, including the 10-DMA (S&P 500: 4,243; Nasdaq: 12,781) and the 21-DMA (S&P 500: 4,317; Nasdaq: 13,107).
Won Europe Today
Yesterday,
- European markets had a positive day as inflation and earnings continued to drive markets. However, most major
indices are still trading below their key moving averages with an elevated distribution day count. Hence, we
recommend that investors be very cautious while adding any new risk. - The Stoxx 600 continues to find resistance at its declining 50-DMA. Most sectors closed in positive territory, with Oil
& Gas stocks gaining more than 4%. Among other major indices, France’s CAC and Germany’s DAX continue to
find supply along their respective declining 50-DMA. The U.K.’s FTSE 100 is facing resistance at its 21-DMA. - Among the 17 indices that we track in Europe, Denmark, Ireland, and Luxembourg closed in negative territory.
- Actionable names in the Focus List include Novo Nordisk (NON.DK; NOVOB:DC), Elisa (ELIS.FI; ELISA:FH),
Glaxosmithkline (GSK.GB; GSK:LN), Sonova N (SOON.CH; SOON:SW), Vantage Towers (VTWRX.DE;
VTWR:GR), and Aker Bp (AKEP.NO; AKRBP:NO).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq staged a low volume upside reversal but continue to consolidate near year-to-date lows. The S&P 500 is testing price support along 4,114, followed by 4,000, while the Nasdaq is consolidating above weak price support near ~12,000.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 is in an Uptrend Under Pressure with six distribution days. Last week, the index broke below its
range of 451–464, where it had been consolidating since mid-March as concerns about the global economy and
Fed monetary policy weighed heavily on risk sentiment despite corporate earnings support. - The number of buyable ideas is still limited as most stocks are still trading in their base. With leadership still
narrow, focus on relative strength remains the core strategy in the current environment. - On our rotation chart, Health Care, Transportation, Consumer Staple, and Utility showed improving short-term
momentum (over four weeks). Financial, Retail, and Consumer Cyclical stocks continue to show weak trends in
short-term momentum (over four weeks).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq closed at year-to-date lows this week, resulting in the second failed follow-through day of the year. The next level of support on the S&P 500 is ~4,114 before ~4,000, while support on the Nasdaq is ~12,000.
Won Europe Today
On Friday,
- European markets had a strong day with most indices closing in positive territory. However, we continue to maintain
cautious stance on markets as they are trading below their key support levels with elevated distribution day count.
We recommend investors to be cautious while adding any new risk. - The Stoxx 600 got sold off late in the session, after finding supply at its declining 50-DMA to close near its low. The
index is in an Uptrend Under Pressure with six distribution days. Among sectors, Basic Resources surged more
than 2.5%. - Among other major indices, France’s CAC and Germany’s DAX are finding resistance at their respective declining
50-DMA while the U.K.’s FTSE 100 is facing resistance at 7,500 price level. - Among the 17 indices that we track in Europe, only Portugal closed in negative territory. The average distribution
day count stands at 5.35. - Actionable names in the Focus List include Elisa (ELIS.FI; ELISA:FH), Glaxosmithkline (GSK.GB; GSK:LN), Sonova
N (SOON.CH; SOON:SW), Vantage Towers (VTWRX.DE; VTWR:GR), and Aker Bp ( AKEP.NO; AKRBP:NO).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq rallied off year-to-date lows yesterday but remain below multiple levels of resistance, including the 10-DMA (S&P 500: 4,313; Nasdaq: 13,016) and 21-DMA (S&P 500: 4,370; Nasdaq: 13,311).
