GRUB – Page 10 – WILLIAM O'NEIL+CO

Market View

Posted on October 20, 2017October 17, 2019 by Raj Gupta

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to show resilient action, staging upside reversals on Thursday and continuing into all-time highs to close the week. The Nasdaq did pick up one distribution day, but the count still remains very low at just one day on the S&P 500 and two on the Nasdaq. Leadership has been very strong, with multiple U.S. Focus List ideas gapping up into all-time highs after earnings. We remain positive on the general market.

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

By Sector
Strength across the USFL came primarily from Technology and Financial. Software led with major gap ups in ADBE and TEAM this week. ADSK, RHT, CRM, NOW, PAYC, and SSNC all hit new highs. Financial was led by ESNT, which has rallied for nine straight sessions. Payment Processors and Banks were also under accumulation. MS remains at a pivot, but becomes extended above $51. PYPL gapped into an all-time high after earnings.
New Ideas or Deletions
We added Zayo Group and removed Celgene from the U.S. Focus List this week.

US Focus Long

Posted on October 20, 2017October 21, 2017 by Midhun Parameswaran

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to show resilient action, staging upside reversals on Thursday and continuing into all-time highs to close the week. The Nasdaq did pick up one distribution day, but the count still remains very low at just one day on the S&P 500 and two on the Nasdaq. Leadership has been very strong, with multiple U.S. Focus List ideas gapping up into all-time highs post earnings. We remain positive on the general market.

US Focus Long

Posted on October 13, 2017October 14, 2017 by Midhun Parameswaran

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade at all-time highs with only one distribution day each. Leadership continues to broaden with five of 11 O’Neil sectors hitting a new high this week. We remain positive on the general market.

Global Consumer/Internet/ Media Sector

Posted on October 11, 2017February 1, 2019 by Tristan d'Aboville

A source of long-term outperformance over 26 weeks, the Leisure-Gaming Equipment industry group (G7901) has seen momentum weakening in the past four weeks.
• The Group Rank fell from 7 to 22, which reflects underperformance of the group versus the market.

The weakening momentum can be attributed to the horrible shooting that occurred in Las Vegas last week as well as flat gaming revenue in Macau over October’s Golden Week (source: Macao Gaming Association).
That said, we continue to see Macau’s gaming revenue growth as the most exciting story in the global land-based casino industry. The region has seen an explosive return to growth since 2016:
• After a 34.3% y/y decline in 2015, gross gaming revenue (GGR) for Macau started to recover in the last five months of 2016 as VIP players started to gain confidence and return to the region’s casinos.
• More recently, September’s GGR grew 16.1% y/y, the 14th consecutive month of positive growth following 26 months of y/y decline. For Q3 2017, GGR grew 21.8% y/y, following 21.9% y/y growth in Q2 and 13% y/y growth in Q1. Macau’s casino industry is poised for further growth:
• The market penetration rate for gaming in China remains low compared to Las Vegas. In 2014, the CEO of Melco Crown Entertainment (

) stated that the current market penetration rate was only 2.8%, compared to 16.9% for Las Vegas. These figures are based on the number of people who are economically capable of visiting Macau and live within a certain distance.
• There are several ongoing infrastructure projects. Once completed, these should boost the attractiveness of Macau as a tourist destination by improving accessibility. Some of these projects include:
˚˚The Hong Kong-Zuhai-Macau Bridge is expected to open by the end of 2017. This will improve connectivity to Hong Kong and nearby cities and
towns in mainland China close to the Pearl River Delta (PRD).
˚˚Phase 1 of the Macau-Taipa Line of the Macau Light Rapid Transit is scheduled to be completed by 2020. This will alleviate road congestion in Macau and provide a quick and economic way of transport for tourists.

US Focus Long

Posted on October 6, 2017October 7, 2017 by Midhun Parameswaran

The U.S. market is in a Confirmed Uptrend. One of only two distribution days on the S&P 500 and Nasdaq will expire at the close Monday. Leading ideas across all sectors continue to act well with multiple names hitting new highs, breaking out of new bases, or bouncing off support levels. We remain positive on the general market.

US Focus Long

Posted on September 29, 2017September 30, 2017 by Vinaya Kumar

The U.S. market remains in a Confirmed Uptrend. The Nasdaq and S&P 500 bounced back under heavy accumulation, after a minor sell-off to start the week, while the Russell 2000 jumped out of a nine-month consolidation. All indices broke out into all-time highs. Market strength is due to accumulation in Technology (Semis) and Transports and a re-emergence into Financials (Banks/Brokers). With the distribution day count falling to two days on the Nasdaq and S&P 500, we maintain a positive outlook as we head into Q4.

US Focus Long

Posted on September 22, 2017September 23, 2017 by Vinaya Kumar

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq avoided distribution this week despite pulling back just slightly off their all-time highs. The distribution day count is now very low at just two days on the S&P 500 and one on the Nasdaq. We will be looking for the 21-DMA to act as support should the market pullback again next week. The majority of leadership ideas continue to act well, still holding above short-term support levels.

US Focus Long

Posted on September 15, 2017September 15, 2017 by Vinaya Kumar

The U.S. market remains in a Confirmed Uptrend. Distribution fell to three days on the S&P 500 and just two days on the Nasdaq, with an additional day set to expire on both indexes next week. Leadership across multiple sectors continues to act well, with many ideas breaking out and hitting new highs. We remain positive on the general market.

US Focus Long

Posted on September 8, 2017September 9, 2017 by Vinaya Kumar

The U.S. market remains in an Uptrend Under Pressure. Next week, three distribution days will expire on the Nasdaq and two on the S&P 500. We are still looking for a heavy volume break into new highs before upgrading the market status. Conversely, if the market trades lower, we view the 100-DMA as a key level of support.

US Focus Long

Posted on September 1, 2017September 1, 2017 by Pramod Gopal

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq are now testing all-time highs after regaining their respective 50-DMAs earlier in the week. We will be looking for each to break into new highs in strong volume next week before shifting the market back into a Confirmed Uptrend.