The U.S. market is in a Confirmed Uptrend. The S&P 500 remains range-bound above its 50-DMA, while the Nasdaq is now approaching a new all-time high. Distribution remains elevated, however multiple days expire next week. Leadership remains healthy with many ideas hitting new highs across multiple sectors. We maintain our positive view on the general market as long as the S&P 500 remains above its 50-DMA.
Symbol: GRUB
Global Sector Commentary
Key points from this week’s commentary:
- Average number of weekly breakouts in the U.S. over 10 years and one year is just over 100.
- From January correction to first week in May, average was just 60.
- Last three weeks’ average is greater than 130.
- ‘Sweet spot’ coming from $1B-20B market cap in Cyclical, Health Care, Tech, and Transport sectors.
- Focus List picks from this sweet spot are GOOS, SUPN, VEEV, PSTG, SPLK, GRUB, MPWR, ZTO.
US Focus Long
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade in a tight range above their respective 50-DMA. The S&P 500 does have an elevated distribution day, however, one day expires at the close Tuesday and two more fall off the week after. Leadership remains healthy with many ideas still hitting new highs, while the majority are forming the right side of their respective bases. We maintain our positive stance on the general market.
US Focus Long
The U.S. market is in an Uptrend Under Pressure. After yesterday’s big upside reversal off support, indices remain under accumulation. Regaining and holding above resistance at the 50-DMA will increase our confidence in the market. For now, we continue to advise a selective approach to buying, with a focus on high relative strength stocks, as both the Nasdaq and S&P500 have an E A/D Rating.
US Focus Long
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq are both trading
above their respective 50-DMA, while the Russell 2000 is trading at all-time highs. Leadership
is broadening with ten of 11 sectors now trading above their respective 50-DMA and multiple
ideas reaching new highs this week. Going forward, we will be looking for the major averages
to hold support along the 50-DMA and avoid distribution. We are also looking for the U.S.
Focus List count to increase and for breakouts to progress further into new highs. With
market conditions improving, we recommend putting additional capital to work with a focus
on high relative strength ideas from leading and/or improving industry groups.
US Focus Long
The U.S. market is in an Uptrend Under Pressure. After yesterday’s big upside reversal off support, indices remain under accumulation. Regaining and holding above resistance at the 50-DMA will increase our confidence in the market. For now, we continue to advise a selective approach to buying, with a focus on high relative strength stocks, as both the Nasdaq and S&P500 have an E A/D Rating.
US Focus Long
The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq are now finding resistance at their respective 50-DMA. We will be looking for both to regain this level and for volume trends to improve in order to become more confident in the market. Leadership is also very thin outside of Energy. Ideas have been unable to break out and move into higher highs. Therefore, we continue to recommend a cautious and patient approach until market conditions improve.
Global Technology/Cyclical Sector
Some highlights from the report
U.S.
- Most old media groups still in lower percentile in IG Rank
- 2017 pay TV subs loss accelerating
- Continue to hold core NFLX but trim profits
- FB and GOOGL on verge of longer-term consolidation
- FB event timeline and price action
EMEA
- JustEat ( JE.GB ) – removed from Focus List on March 21
- Ad firms still weak – WPP ( WPP.GB )
- Stocks of Interest:
APAC
Market View
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.
US Focus Long
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 this 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, mostly 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 in heavy volume.
