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:

  • European majors closed the second week of August in the green after the pause in the first week. Indices rose to the highest level in two months as investors weighed the lower-than-expected inflation data and its impact on rate hikes.
  • The pause in the first week of August has been taken out by most majors, indicating a constructive setup for the next leg of the move. We will want the majors to hold the previous resistance levels and move to their long-term moving averages to see a structural change. Still, there are many levels of supply zones that need to be taken out and held going forward.
  • We recommend becoming selective in adding risk with a focus on high relative strength ideas that are part of leading and/or improving industry groups.
  • Sectoral momentum Rotation Charttility continued to lag their short-term momentum (over four weeks).

Won Global View

Posted on by Vidhya M

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained over 3% each for the week, rallying for the fourth straight week and nearing 200-DMA resistance (S&P 500: 4,329; Nasdaq: 13,510). Indices have become short-term extended versus 10- and 21-DMA support (S&P 500: 4,085; Nasdaq: 12,322). The distribution day count now stands at four and five, respectively, with two days expiring on the S&P 500 and one on the Nasdaq this week.

Won Europe Today

Posted on by Vidhya M

On Friday,

  • European markets edged higher on Friday as the U.K.’s GDP data came in better than expected. Investors continue to remain cautious as they evaluate this data, the Bank of England’s warning that the U.K. will enter recession this year, and the Fed’s hint at maintaining a hawkish stance despite cooler-than-expected inflation data. Hence, we recommend a cautious, incremental approach to adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry groups.
  • The Stoxx 600 inched 16bps higher while continuing to form the right side of a stage-one 31-week consolidation. It is testing resistance at its 200-DMA and is 10% below the pivot. Among other major indices, France’s CAC, Germany’s DAX, and the U.K.’s FTSE closed in the green, gaining 14bps, 74bps, and 47bps, respectively. The DAX has reclaimed its 100-DMA, while the CAC is testing resistance at its 200-DMA. The FTSE is trading above all its key support levels, supported by its rising 100-DMA.
  • Among the 17 indices we track in Europe, seven closed in the red, while the remaining 10 closed in the green. With no change in market condition, 12 indices remain in a Confirmed Uptrend, two in an Uptrend Under Pressure, and three in a Rally Attempt. With Norway and Portugal recording a distribution day each, the average distribution day count currently stands at 3.2.
  • 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 (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 staged downside reversals in higher volume, following big gains Wednesday. Given the negative technical action, look for initial support at the rising 10-DMA (S&P 500: 4,136; Nasdaq: 12,545) should weakness persist. Logical resistance remains the falling 200-DMA (S&P 500: 4,330; Nasdaq: 13,521). The distribution day count increased to five each, with multiple days expiring on each index next week.

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 underweighted as they may be vulnerable to further downside risk and underperformance. European names highlighted this week: Accor (AC.FR; AC:FP) and Bankinter “R” (BKT.ES; BKT:SM).

Won Europe Today

Posted on by Vidhya M

Yesterday,

  • European markets closed in the green following a cooler-than-expected inflation report from the U.S. U.S. CPI recorded 8.5% y/y inflation in July, 20bps below street estimates, indicating that the inflation had peaked in June. Investors believe this would lead to the Fed adopting a more dovish, market-friendly approach going forward. Hence, we continue to recommend a cautious, incremental approach to adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry groups.
  • The Stoxx 600 climbed 89bps and is forming the right side of a stage-one 31-week consolidation. It is testing resistance at its 200-DMA and is 11% below the pivot. Among other major indices, France’s CAC, Germany’s DAX, and the U.K.’s FTSE closed in the green, climbing 52bps, 123bps, and 25bps, respectively. The DAX is finding resistance at its declining 100-DMA, while the CAC is finding resistance at its 200-DMA. The FTSE is trading above all its key support levels, supported by its rising 100-DMA.
  • Among the 17 indices we track in Europe, Norway and Portugal closed in the red, while the remaining 15 closed in the green. Belgium was shifted to a Rally Attempt. Currently, 12 indices are in a Confirmed Uptrend, two indices in an Uptrend Under Pressure, and three in a Rally Attempt. With Norway and Portugal recording a distribution day each, the average distribution day count currently stands at 3.1.
  • 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), 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. Indices bounced off 10-DMA support (S&P 500: 4,119; Nasdaq: 12,493) after pulling back to this moving average over the prior two sessions. The S&P 500 and Nasdaq continue to trend higher along the rapidly rising 10-DMA. The distribution day count stands at five and four, respectively.

Won Europe Today

Posted on by Vidhya M

Yesterday,

  • European markets closed in the red ahead of the release of the U.S. inflation data on Wednesday. The strong U.S. job data reduced the likelihood of a recession and would allow the Fed to hike rates. Hence, we continue to recommend a cautious, incremental approach to adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry.
  • The Stoxx 600 declined 67bps. The index continues to form the right side of a stage-one 31-week consolidation. It is testing resistance at its 200-DMA and is 11% below the pivot. The sectoral performance was mixed. Technology, Mining, and Travel lost the most, declining 59bps, 88bps, and 40bps, respectively. Banks, Oil, and Insurance led the rally, gaining 17bps, 14bps, and 27bps, respectively. Among other major indices, France’s CAC fell 53bps and Germany’s DAX declined 112bps, both closing in the red. The U.K.’s FTSE was flat with a positive bias, climbing 8bps. The DAX is finding resistance at its declining 100-DMA, while the CAC is finding resistance at its 200-DMA. The FTSE is trading above all its key support levels, supported by its rising 100-DMA.
  • Among the 17 indices we track in Europe, 11 closed in the red, while the remaining six closed in the green. With no change in market conditions, 12 indices remain in a Confirmed Uptrend, two in an Uptrend Under Pressure, two in a Rally Attempt, and one in a Downtrend. With eight indices registering a distribution day, the average distribution day count currently stands at 3.0.
  • 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), Solaria Energia (SEM.ES; SLR:SM), and Wolters Kluwer (WSG.NL; WKL:NA).

O’Neil Capital Equipment Sector Weekly

Posted on by Vidhya M

Relx (REL.GB; REL LN) – $56B market cap; $86M ADV: We added Relx to our Developed Markets Focus List as the stock is actionable after breaking out of a stage-two 14-week double-bottom base. Relx provides analytics and
decision tools on a subscription (58% of revenue) and transactional (42%) basis. The company is among the top two players in its target segments. It is expected to benefit from the growing usage of analytics products offered by its risk
segment and recovery in its exhibitions segment. Growth is expected to be supported by the stable high-margin legal and science, technology, and medical segments. Consensus expects revenue and EPS CAGR of 10–12% over the next
two years. Fundamental & Technical note