FRM.IL – WILLIAM O'NEIL+CO

Market View

Posted on April 20, 2018April 20, 2018 by Raj Gupta

Market Overview

The The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade in choppy fashion, closing back below their respective 50-DMA on Friday. We will be looking for each to regain that level early next week as a further break lower will likely result in a move back to the 200-DMA. This is a bifurcated market. Multiple ideas are still hitting new highs or consolidating constructively, while multiple other ideas, most-ly from lagging industry groups, are also gapping down to new lows post earnings. We continue to recommend a selective and patient approach, buying only leading ideas from leading and/or improving industry groups as they break out of sound price bases on heavy volume.

Stocks on our U.S. Focus List: Current Sentiment

Our USFL of 74 ideas (one net addition) gained 1.7% on average this week, outperforming the S&P 500 (+0.5%) and the Nasdaq (+0.6%).

By Sector

Energy remains the clear leading sector. CLR and WRD are now extended from a proper pivot, however FANG remains actionable after regaining its 50-DMA this week. Retail ideas continue to act well with AMZN regaining the 50-DMA, and WING, HOME, LULU, FND, OLLI, and FIVE all still trading at or near new highs. Financial closed the week strong, despite mostly sideways action. SCHW, TCBI, SIVB, FLT, SQ, and PYPL are all now back above the 50-DMA. Conversely, Technology closed back below its 50-DMA this week, following a big selloff in semiconductors. Multiple ideas including MRVL, MKSI, AMAT, and CY are all now back below their 50-DMA.

Global Focus Developed Long

Posted on April 13, 2018April 13, 2018 by Midhun Parameswaran

Australia’s ASX All Ordinaries Index increased 0.64% this week. The index is trading 0.6% below its 40-WMA and is currently in a Rally Attempt.

Market View

Posted on April 6, 2018April 6, 2018 by Raj Gupta

Market Overview

The U.S. market is in a Rally Attempt within a Downtrend. We are now looking for a follow-through day before shifting the market into a Confirmed Uptrend or, conversely, an undercut of Monday’s lows (S&P 500: 2,553; Nasdaq: 6,805) before shifting the market back into a Downtrend. The majority of U.S. Focus List ideas are still forming new bases. We continue to recommend a patient approach, waiting for the follow-through day and waiting for ideas to firm and present better, more risk-optimal entry points. We maintain our cautious stance on the general market.

Stocks on our U.S. Focus List: Current Sentiment

By Sector

Retail ideas on the U.S. Focus List continue to show strong relative strength, with multiple ideas moving into new highs this week. LULU and FND both broke into new highs are now extended from ideal pivots. FIVE remains actionable as it builds the right side of a new base, while OLLI and WING continue to hold above their respec-tive 50-DMA. The Consumer Cyclical sector bounced off the 200-DMA this week, leading to positive action among a handful of ideas on the USFL. SKX and NFLX both regained the 50-DMA before pulling back Friday, while PLNT bounced off that same moving average. Conversely, semiconductor ideas within Technology remain weak. AMAT, CY, MRVL, MPWR, NVDA, and ON are all living below their 50-DMA as they form new bases.

New Ideas or Deletions

We added Continental Resources ( CLR ) and removed Centennial Res Dvlp ( CDEV ) and Logmein ( LOGM ) from the U.S. Focus List this week.

Global Focus Developed Long

Posted on April 6, 2018April 6, 2018 by Ramesh R

Australia’s ASX All Ordinaries Index increased 0.31% this week. The index is trading 1.17% below its 40-WMA and is currently in a Downtrend.

Global Focus Developed Long

Posted on March 30, 2018March 30, 2018 by Damotharamanikandan R

Australia’s ASX All Ordinaries Index fell 1.01% from Monday
through Thursday. On March 26, the index breached its 200-
DMA, and we changed the market condition to a Confirmed
Downtrend. The index is trading 1.40% below its 40-WMA

Market View

Posted on March 23, 2018March 23, 2018 by Raj Gupta

Market Overview

The U.S. market has been downgraded to Downtrend. The February 14 follow-through day has failed. The S&P 500 and Nasdaq closed below their respective 100-DMAs this week with an elevated number of distribution days. The next level of support is the 200-DMA on both indexes. A majority of leading ideas have pulled back off extended highs and many have now broken below their respective 50-DMAs. We recommend lightening up in both extended ideas and ideas that have broken below short-term levels of support. Going forward, we will be looking for the market to stabilize and establish a new low. At that point, we will be looking for a new follow-though day before we recommend buying.

Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 71 ideas (three removals) lost 5% on average this week, outperforming the S&P 500 (-5.9%) and the Nasdaq (-6.5%).

By Sector

Technology rolled over this week, breaking its 50-DMA and then its 100-DMA in back-to-back sessions. Multiple USFL ideas are now under pressure. Ideas breaking their 50-DMA include ATVI, GOOGL, MRVL, MPWR, NVDA, PSTG, CRM, and WB. Technology ideas holding up the best include SSNC, TYL, RNG, and RHT. Financial has also come under heavy selling pressure this week. All five Banks (MS, WAL, SIVB, TCBI, ZION) on our list broke their respective 50-DMAs. Conversely, Retail and Energy held up the best this week. Within Retail, FND, FIVE, LULU, OLLI, and WING have RS lines at or near new highs. Within Energy, FANG and NEP have rising RS lines.