Author: Vidhya M

Won Europe Today

Posted on by Vidhya M

We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:

  • The Stoxx600 is in a Confirmed Uptrend with five distribution days. The index closed the third week of August in thered, posting the highest decline in seven weeks. Concerns about the impact of future interest rate hikes aimed at curbing inflation weighed on the markets.
  • Last week, most majors were extended from their short-term moving averages at the start of the week following the rally, and retracements to short-term support levels were expected. We want the majors to hold the previous resistance levels and move to their long-term moving averages to see a structural change. Still, many levels of supply zones need to be taken out and held going forward.

Won Global View

Posted on by Vidhya M

The U.S. market has shifted to an Uptrend Under Pressure. Indices gapped down ~2% and through their 21-DMA (S&P 500: 4,154; Nasdaq: 12,560). The next level of support is at the 100-DMA (S&P 500: 4,090; Nasdaq: 12,210). The distribution day count stands at three and five, respectively.

Won Europe Today

Posted on by Vidhya M

Yesterday,

  • European markets had another weak session with many indices recording distribution days and breaking below key support levels. We recommend that investors remain cautious while adding any new risk.
  • The Stoxx 600 broke below its 21-DMA though volume was low. Among sectors, Auto stocks lost more than 3.5% while Technology and Industrial Goods fell more than 2%. Oil & Gas and Health Care stocks gained half a percent.
  • Among other major indices, France’s CAC recorded its seventh distribution day and breached its 21-DMA. Germany’s DAX recorded its sixth distribution day and is testing its 50-DMA. The U.K.’s FTSE 100 continues to rise along its 21-DMA.
  • Among the 17 major indices that we track in Europe, only Denmark and Portugal closed in positive territory. France, Germany, Sweden, and Italy recorded distribution days. Austria was downgraded to an Uptrend Under Pressure after it breached its 50-DMA while Belgium was shifted to a Downtrend after it breached its Day 1 low.
  • Actionable names in the Focus List include Compass Group (CPG.GB; CPG:LN), Edenred (EDEN.FR; EDEN:FP), EDP Renovaveis (EDPR.PT; EDPR:PL), Ipsos (IPS.FR; IPS:FP), Lvmh (LVMH.FR; MC:FP), Neoen (NEOP.FR; NEOEN:FP), Relx (REL.GB; REL:LN), Rwe (Xet) (RWEX.DE; RWE:GR), Solaria Energia (SEM.ES; SLR:SM), and Wolters Kluwer (WSG.NL; WKL:NA).

Won Global View

Posted on by Vidhya M

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back from the 200-DMA (S&P 500: 4,321; Nasdaq:13,447) resistance Friday, following four straight weeks of strong gains. The next level of support below the 10-DMA is the rising 21-DMA (S&P 500: 4,157; Nasdaq: 12,560). The distribution day count stands at three and five, respectively, with one day expiring on the Nasdaq this week.

Won Europe Today

Posted on by Vidhya M

On Friday,

  • European markets declined as uncertainty persisted about its largest economy, Germany. Germany’s PPI recorded its highest increase, rising 5.3% m/m, well above the estimated increase of 0.6% m/m. On a yearly basis, it increased to 37.2% y/y, above estimates of 32% y/y. Inflation was driven by energy costs, which skyrocketed 105% as compared to the prior July. We recommend a selective approach to adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry groups.
  • The Stoxx 600 inched 77bps lower while continuing to form the right side of a stage-one 33-week consolidation base. It is testing resistance at its 200-DMA and is 11% below the pivot. Among other major indices, France’s CAC and Germany’s DAX closed in the red, shedding 94bps and 112bps, respectively, while the U.K.’s FTSE closed in the green, gaining 11bps. While the DAX is testing resistance at its 100-DMA, the CAC is testing resistance at its 200-DMA and the FTSE is trading above all its key support levels, supported by its rising 100-DMA.
  • Among the 17 indices we track in Europe, Denmark, Norway, and the U.K. closed in the green, while the remaining 14 closed in the red. With no change in market condition, we currently have 12 indices in a Confirmed Uptrend, two indices in an Uptrend Under Pressure, and three in a Rally Attempt. With nine indices recording a distribution day, the average count currently stands at 3.8.
  • Actionable names in the Focus List are Compass Group (CPG.GB; CPG:LN), Edenred (EDEN.FR; EDEN:FP), EDP Renovaveis (EDPR.PT; EDPR:PL), Ipsos (IPS.FR; IPS:FP), Lvmh (LVMH.FR; MC:FP), Neoen (NEOP.FR; NEOEN:FP), Relx (REL.GB; REL:LN), Rwe (Xet) (RWEX.DE; RWE:GR), Solaria Energia (SEM.ES; SLR:SM), and Wolters Kluwer (WSG.NL; WKL:NA).

Won Europe Today

Posted on by Vidhya M

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 under weighted as they may be vulnerable to further downside risk and underperformance. European names highlighted this week include Brenntag (BNRX.DE; BNR:GR), Holcim (HOLN.CH; HOLN:SW), Allianz (ALVX.DE; ALV:GR), and Telefonica (TEF.ES; TEF:SM).

Won Global View

Posted on by Vidhya M

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq traded relatively flat yesterday, consolidating gains below 200-DMA (S&P 500: 4,323; Nasdaq: 13,461) resistance. The 10-DMA remains the level of near-term support (S&P 500: 4,232; Nasdaq: 12,847). The distribution day count stands at two and six, respectively, with one day expiring on the Nasdaq today and another next week.

Won Global View

Posted on by Vidhya M

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed relatively flat yesterday. The 10- and 21-DMA (S&P 500: 4,123; Nasdaq: 12,460) remain near-term support while the 200-DMA (S&P 500: 4,326; Nasdaq: 13,487) remains resistance. The distribution day count stands at three and five, respectively, with one day expiring on the S&P 500 today and one on the Nasdaq Friday

Won Europe Today

Posted on by Vidhya M

Yesterday,

  • European majors closed in the green for the fifth consecutive session. The majors are setting up constructively and moving to their long-term moving averages. We recommend a selective approach to adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry groups.
  • The Stoxx 600 ended 0.2% higher on average volume and currently sits 10% off highs. It is trading at its highest levels in more than two months. The index continues to take support at its 100-DMA and is trading above all its short-term moving averages. Next resistance is at 447 levels, from where the index fell in June (0.8% above), followed by its 200-DMA (1.4% above). The support for the index remains at its 21-DMA (2.2% below), followed by its 100-DMA (2.5% below), 50-DMA (5.1% below), and at ~400 (9.6% below). We want the index to retake the 447 levels and then its 200-DMA for a structural change.
  • Miners, Utility, and Telecom stocks outperformed, while Real Estate and Health Care stocks underperformed.
  • Among major indices, France’s CAC and the U.K.’s FTSE are trading above their key moving averages. Germany’s DAX is trading below its 200-DMA but above its 50- and 100-DMA.
  • Among the 17 indices we cover, most closed in the green. Norway led the advance, up 1.5%. Two indices are in an Uptrend Under Pressure, three in a Rally Attempt, and 12 in a Confirmed Uptrend.
  • Actionable names in the Focus List include Edenred (EDEN.FR; EDEN:FP), Lvmh (LVMH.FR; MC:FP), Relx (REL.GB; REL:LN), Wolters Kluwer (WSG.NL; WKL:NA), Compass Group (CPG.GB; CPG:LN), Neoen (NEOP.FR; NEOEN:FP), Ipsos (IPS.FR; IPS:FP), and Rwe (Xet) (RWEX.DE; RWE:GR).

Won Global View

Posted on by Vidhya M

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend higher and remain extended above their 10- and 21 DMA support (S&P 500: 4,184; Nasdaq: 12,395). Indices are 1% and 3% below their 200-DMA resistance, respectively (S&P 500: 4,327; Nasdaq: 13,499). The distribution day count has fallen to three on the S&P 500, with another day set to expire after the close tomorrow. The Nasdaq has five and will lose one after the close on Friday.