NOMA.JP – WILLIAM O'NEIL+CO

APAC Weekly Summary

Posted on February 13, 2019March 7, 2019 by Derek Higa

Key Points:
There was no change in the MSCI Asia or market conditions through Wednesday. The MSCI is consolidating near resistance while the majority of APAC remains in a Confirmed Uptrend. As of Thursday (February 7), we added nine new ideas to our APAC Focus List. We continue to notice constructive price action across sectors. The number of stocks above the 200‐DMA is rising. This is encouraging. Japan is in a Rally Attempt and we are still waiting for an official follow‐through day. The Nikkei is in its twenty‐ninth trading session without one, despite rising ~12% above December lows.

Looking back at Rally Attempt days over the past 10 years, it is rare that the Nikkei not have a strong follow‐through day.
The longest Rally Attempt most recently was from March to May 2018. The number of stocks breaking out or in pivot is still low historically. Currently, the most improvement in stocks with RS Ratings greater than 80 are among mid‐cap Japanese stocks ($2B to $10B market cap). Japan’s Sector Graph shows short‐term rotation into Technology and Cap Equipment. Although they are still lagging longer term, we are noticing early signs of improvement. We provided an Interest list of Japanese ideas with both strong fundamental growth and improving technical ratings. In our Focus List, we highlighted Lasertec (LASE.JP; 6920: JP).

Global Technology Sector— Software

Posted on November 28, 2018February 1, 2019 by Cornelio Ash

Are software stocks buyable after a 15% pullback off highs? In this report, Senior Equity Analyst Cornelio Ash details why he is cautious on software even though long-term growth drivers such as the transition to the cloud and AI remain intact after another strong earnings season.

Some highlights from this report:

After rising for 22 consecutive months, the North American Software Index ( IGV ) broke its uptrend in October 2018. The gaming industry is an area of concern, especially due to China’s recent censorship and gaming approval reform. Cloud and AI services are driving secular growth, benefiting companies that specialize in IaaS and Saas. Watch Cornelio Ash share his expertise in his Software Webinar on Thursday November 29 at 8am PT/11am ET.

APAC Weekly Summary

Posted on October 31, 2018February 1, 2019 by Derek Higa

All 13 APAC markets continue to trade below their 200-DMA, but many have avoided making new lows over the past three days, which leaves open the possibility of a follow-through day. Considering the amount of overhead supply created over the past week, we remain skeptical and cautious but are sticking to our discipline nonetheless, as follow-through days often happen when least expected and when bearish sentiment is at its hightest.

Like the U.S. market, the MSCI Asia has found support the past two days, but we believe it is still too early to be aggressive overall, especially when it comes to buying growth ideas that have yet to form constructive bases. We recommend staying patient and looking for a follow-through day to provide an initial signal. That being said, we have screened for growth ideas that are trading constructively and could provide leadership should a new rally begin. Lastly, in this note, we highlight two Focus List ideas, Divis Labs ( DVL.IN; DIVI: IN ) and new addition Makalot ( MIK.TW; 1477: TT ).