The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq traded relatively flat yesterday, continuing to hold support along their respective 200-DMA. Distribution remains at four days on the S&P 500 and three on the Nasdaq, with one day expiring on each next week.
Symbol: LPTY.HK
APAC Weekly Summary
Key Points:
- Major APAC markets continue to act constructively but are due for consolidation in the near term in our view.
- Should this happen, we would look for support to hold above or at key moving averages (200-DMA).
- To remain constructive, leading ideas (RS Rating > 80) should also hold support while indices pull back.
- Large caps have largely underperformed over several weeks but this week, we are noticing more rotation into quality large-cap growth ideas globally.
- RS Ratings for technology stocks have improved the most over the last four weeks.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and the Nasdaq staged downside reversals yesterday, adding a fourth and third distribution day, respectively. Both indices must continue holding support along their respective 200-DMA to remain constructive. We will move the market status to an Uptrend Under Pressure should that level break.
Global Sector Commentary
Key Points:
- Global breakouts are back above their long-term weekly average for the first time since August 2018.
- The largest contributors are the U.S. and China, with more recent pickup in Europe.
- The number of names on each of our Focus Lists is sharply rising.
- Since the beginning of February, we have added a total of 47 ideas: 19 developed, 16 emerging, and 12 U.S.
- Of the 47, 38 are actionable now; please see the attached for buy-able names.
WON Global View
The U.S. market is in a Confirmed Uptrend.The S&P 500 and Nasdaq pulled back yesterday, picking up a third and second distribution day, respectively. Overall, the distribution day count still remains low and both indices continue to hold above 200-DMA support. We will be more concerned should distribution begin to cluster, resulting in a break below moving-average support.
Global Focus Developed
Australia’s ASX All Ordinaries Index rose 0.51% this week. Te index remains in a Confrmed Uptrend with no distribution days. Te index is trading 5.69% above its 50-DMA and 2.86% above its 200-DMA
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq staged upside reversals yesterday, finding support at their respective 10-DMA to close relatively flat for a second straight session. Distribution remains low at two days on the S&P 500 and one on the Nasdaq.
APAC Weekly Summary
Key Points:
- The majority of APAC markets are in a Confirmed Uptrend. Taiwan and Malaysia were upgraded last week.
- China’s markets are leading the year-to-date performance, with A-share markets as clear standouts. The CSI 300 has gained nearly 23% year-to-date but is due for a pause or pullback.
- Moreover, A-share breakouts have been impressive thus far. The number has risen to multi-year highs.
- India, on the other hand, has been disappointing. Geopolitical tensions and upcoming elections are pulling focus from the market.
- Keep an eye on China infrastructure plays.
- Focus List Idea: China Railway Construction (CRC.CN; 601186: CH) is approaching an entry point.
Global Financial Sector Overview
Some highlights from this report:
- Payment processors add value at multiple levels of the supply chain. Our top picks are PYPL and ADYE.NL.
- U.S. banks are lacking any positive growth catalyst, while emerging market banks offer ample room for growth due to underpenetrated financial markets. Our top picks in the latter are HFC.IN and IO3.BR.
- In the insurance sector, we favor Brazil’s growing but underpenetrated market and Asia’s market, which is growing with its rising middle class. Our top ideas here are SUA.BR, AGP.HK, and PING.HK.
- This report accompanies Dean Kim’s webinar on the Financial sector on Thursday, February 28 at 8am PT/11 am ET.
WON Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq traded relatively flat yesterday, consolidating in lower volume. Support remains the 200-DMA.
