The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trading at or near all – time highs with leadership expanding across multiple sectors and market caps. Support is at the rising 10-and- 21-DMAs ( S&P 500: 4,469, Nasdaq: 14, 809). The distribution day count stands at three and two, respectively, with two expiring on the S&P 500 next week
Symbol: LECO
China A Shares
The CSI 300 ended 3.57% lower on higher and above average volume this week. The market was shifted to an Uptrend Under Pressure following a greater than 2% loss on higher volume Tuesday. The distribution day count increased to three from one last week. The index tested but failed to break above short-term resistance at its 5- (~4,861, +1.9%) and 21-DMA (~4,913, +3.0%). Support lies at July 28’s low (~4,664, -2.2%) followed by July 2020’s low (~4,500, -5.6%). July’s industrial production (+6.4% y/y versus expectations of 7.9%), retail sales (+8.5% y/y versus expectations of 11.6%), and fixed-asset investment (+11.4% y/y versus expectations of 12.6%) all slowed and missed consensus. Lingering policy concerns pressured sentiment as regulatory worries broadened to the liquor and medical sectors. Buying into brokers and developers continued. Defense companies remained strong, but liquor makers and healthcare companies led losses on worries of policy uncertainties. Risk appetite was dampened by a slowing domestic economy and upcoming tapering by the U.S. Federal Reserve. Upward momentum lost steam and volatility is increasing with more earnings to come. We are becoming more cautious and recommend investors adopt a patient and selective approach. Focus on stocks with sound fundamentals and strong technical profiles.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back to their respective 50-DMA, before finding support and closing within the upper half of their weekly range. Support below the 50-DMA is ~4,233 on the S&P 500 and ~14,200 on the Nasdaq. Despite adding a distribution day on Tuesday, the overall count declined to three and two, respectively, with no expiration next week.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 is trending into all-time highs, while the Nasdaq continues to consolidate within 1% of a new high and above 21-DMA support. Distribution has mostly been avoided over the last two weeks, with the count now standing at four each, with two set to expire on the S&P 500 and three on the Nasdaq next week.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed the week at or near new highs and above all major moving averages including near-term support along the 10- and 21-DMA. Both indices avoided distribution this week, keeping the count at six and three, respectively, with two days expiring on the S&P 500 next week.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq traded relatively flat for the week, remaining within 1% of a new high and above near-term support along the 21- DMA. The longer-term lower end of support remains the rising 50-DMA on both indices. Upside resistance is still along the rising upper channel lines which is above 4,500 on the S&P 500 and above 15,300 on the Nasdaq. The distribution day count stands at six and three, respectively, with no expiration next week.
O’Neil Capital Equipment Sector Weekly
Vertiv Holdings ( VRT ): reported beat-and-raise Q2 FY21 results today before market open. Sales grew 25% y/y and adjusted EPS grew 94% y/y, beating estimates by 3.5% and 29.2%, respectively. The company raised FY21 sales guidance by 2.0% and adjusted EBITDA guidance by 3.6%, but pared adjusted operating margin guidance by 150bps to 11.8–12.2%. The stock is trading close to its 52-week high as it is extended from an ideal entry point. We recommend that investors look for a pullback to its 50-DMA (-5.8%) before accumulating.
Generac Holdings ( GNRC ): reported strong Q2 FY21 results today before market open. Sales grew to $920M (+68% y/y), beating estimates by 6%, while EPS grew to $2.39 (+71% y/y), beating estimates by 3%. The stock is testing resistance along its 21-DMA. It is extended from an ideal entry point. We recommend that investors look for a pullback to its 50-DMA before adding to positions.
Lincoln Electric ( LECO ): Reported better-than-expected Q2 FY21 results before market open yesterday. Sales grew 39% y/y while adjusted EPS grew 109% y/y, beating estimates by 5% and 13%, respectively. The stock bounced back from support along its 21-DMA and closed 1% lower. We recommend that investors add to positions above pivot of $136.04 (+0.2%)
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back to 10-DMA support in higher volume before closing off lows
and remaining within 1% of highs. The Nasdaq pulled back sharply to 21-DMA support in lower volume before also closing off intraday
lows. Both indices are holding trend with support below the 21-DMA still along the rising 50-DMA. The distribution day count stands at five
and three, respectively, with no expiration for two weeks.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly off 50-DMA support early last week before
gapping back to new all-time highs on Friday. Both are now pushing back toward their respective upper channel lines, which are above
4,500 on the S&P 500 and 15,100 on the Nasdaq. Support is again the rising 10- and 21-DMA. The distribution day count declined to four
and three, respectively, with no further expiration for two weeks.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly off 50-DMA support early this week before gapping back to new all-time highs on Friday. Both are now pushing back towards their respective upper channel lines which are above 4,500 on the S&P 500 and 15,100 on the Nasdaq. Support is again the rising 10- and 21-DMA. The distribution day count declined to four and three, respectively, with no further expiration for two weeks
