Symbol: MSLH.GB

European Weekly Summary

Posted on by Tristan d'Aboville

Key points from this week’s report:

 

Europe Back to a Confirmed Uptrend
  • The Stoxx Europe 600 Index gained 1.1% to 394.02 today, its highest level in the last ~17 months. The index breached its previous rally’s high and thus was moved to a Confirmed Uptrend from an Uptrend Under Pressure. We recommend increasing exposure to European equities.
  • A similar action occurred at the country level: Belgium, Spain, Italy, Sweden, and France were moved to a Confirmed Uptrend after breaching previous rally highs. These countries joined Germany, Portugal, and the Netherlands which recorded a follow-through day last Friday. We now have a majority of countries in a Confirmed Uptrend.
  • The number of distribution days has started to decrease (3.69 on average in Europe) and the number of stocks breaking out of consolidation has started to increase again.

Weekly European Sector Review

Posted on by Tristan d'Aboville

Key points:

  • Leadership continues to emerge in Europe, indicating a persistent favorable trend. Leading sectors this week include Financials and Technology. The iShares DJ Stoxx 600 ( EXSA.DE ) remains in a Confirmed Uptrend with five distribution days.
  • Actionable ideas from our Focus List in these two sectors include Adyen ( ADYE.NL ), Dassault Systemes ( DSY.FR ), and Nemetschek ( NEMX.DE ).
  • We added ASML ( ASML.NL ) back to the Focus List (Long Ideas) this week. Credit Agricole
    ( CRDR.FR ) was added to our European list of Shorts.

European Weekly Summary

Posted on by Tristan d'Aboville

Key Points

  • The iShares DJ Stoxx 600 is in a Confirmed Uptrend since January 4 (follow-through day), with only one distribution day. The index is currently testing its 100-DMA and any break through this resistance would be another positive signal this short-term momentum will persist.
  • In this report, we detail our cautiously optimistic view on European markets and recommend gradually increasing exposure to the region as the market trades constructively above key supports. Our bottom-up approach leans toward defensive sectors Staples and Health Care, and indicates it is too early to jump aggressively on Cyclicals (Autos and Luxury stocks). The top picks from our Focus List include Davide Campari ( CPR.IT ), Diageo ( DGE.GB ). Carl Zeiss Meditec ( AFXX.DE ), and Vitrolife ( VITR.SE ).
  • In addition to our Focus List, we also list Stocks of Interest, which have solid O’Neil Ratings and Rankings and are trading near pivot. The list includes former European Focus List names, Redrow ( RDW.GB ), Wolters Kluver ( WSG.NL ), and Halma ( HLMA.GB ).
  • Lastly, we updated our list of shorts ideas after we removed Essity ( ESSI.BE ) and now look at new potential short candidates (pages six and seven).

WON Europe Today

Posted on by Veera Manju

We released our European Weekly Summary yesterday (please click here to access the report).

Key points: The iShares DJ Stoxx 600 is in a Confirmed Uptrend since January 4 (follow-through day), with only one distribution day. To remain constructive in the near-term, we want to see the index continuing to hold the key support and not fall back below that level. We remain cautiously optimistic. Although we see more stocks breaking out of consolidation or forming the right side of a base on improving technical characteristics, we cannot rule out failure of the current uptrend, given the weak economic environment. The Transportation and Retail sectors have shown strong performance in the past week. Among focus list names, Davide Campari (CPR.IT; CPR:IM) is actionable. Outside the Focus List, stocks of interest include Marshalls (MSLH.GB; MSLH:LN) and Interparfums (ITP.FR; ITP:FP).

European Weekly Summary

Posted on by Tristan d'Aboville

Key points:

  • The iShares DJ Stoxx 600 is in a Confirmed Uptrend since January 4 (follow‐through day), with only one distribution day. To remain constructive in the near term we want to see the index continuing to hold its 50‐DMA.
  • However, we remain cautiously optimistic given the poor economic environment, and recommend gradually allocating more risk toward European equities.
  • New addition to our Focus List this week: Edenred ( EDEN.FR ).
  • Actionable ideas from the Focus List include Davide Campari ( CPR.IT ).
  • Outside of the Focus List, stocks of interest include: Marshalls ( MSLH.GB ) and
    Interparfums ( ITP.FR ).

WON Europe Today

Posted on by Anuj Kumar Chouhan

European markets are trading more constructively. The Stoxx 600 is in a Confirmed Uptrend and we recommend gradually allocating more money toward the region as stocks break out of consolidation. For the first time since September 2018, the index closed above its 10-WMA on above-average volume this week.

European Weekly Summary

Posted on by Tristan d'Aboville

Key points:

  • The Stoxx 600 is in a Confirmed Uptrend and we recommend gradually allocating more money
    toward the region as stocks break out of consolidation.
  • From our Focus List:
     Actionable ideas include Vitrolife ( VITR.SE ), Carl Zeiss Meditec ( AFXX.DE ), and Davide
    Campari ( CPR.IT ).
     Ideas forming the right side of a base: Givaudan ( GIVN.CH ) and Mowi ( MHG.NO ).
  • Outside of our Focus List, stocks of interest include: Edenred ( EDEN.FR ) and Ei Group ( EIG.GB ).

 

European Focus Long

Posted on by Neeraj Khanna

European markets resumed their precipitous drop for the week
as steep declines in oil prices and volatility in Chinese equities
continue to fuel concerns of a global economic slowdown. Indices in
Denmark (-4.6%), Norway (-4%), Spain (-3.7%), Germany (-2.9%),
France (-2.7%), Sweden (-2.7%), Italy (-2.5%), the U.K. (-1.8%), and
Switzerland (-1.4%) notched losses of more than 1% for the week.

European Focus Long

Posted on by Neeraj Khanna

European markets ended the week sharply lower as a slide in
commodity prices and a weakening in China’s manufacturing activity
for the fifth consecutive month triggered a selloff in global markets.
Indices in Germany (-6.5%), Sweden (-5.3%), Italy (-5.3%), Spain
(-5%), France (-4.9%), Switzerland (-4.8%), Finland (-4.3%), Belgium
(-4%), the U.K. (-4%), and Denmark (-3.3%) lost more than 3% for the
week.