Symbol: NXT.AU

APAC Weekly Summary

Posted on by Derek Higa

As with most global markets, February has been a roller coaster for APAC markets. Looking at the MSCI Asia, a swift selloff began at the end of January and only lasted into the first full week of the month. This was quickly followed by a rebound to the 50-DMA. The benchmark has settled down in the most recent week, with below average volume, which may be largely due to the long Lunar holiday. Distribution remains elevated with many markets in an Uptrend Under Pressure, so we continue to recommend a cautious approach to buying stocks. This week’s action is constructive but we are not overlooking a continued shake out scenario especially after a strong 2017. There may be many reasons (rising interest rates being most significant) to believe we are closing in on the end of a strong global bull cycle but we remain unbiased and largely focused on the market trends that are the cornerstones of the O’Neil Methodology

In this week’s note, we reviewed what happened in APAC markets this month from an O’Neil perspective by examining current market conditions in major markets and assessing sector strength and relative performance using our Sector Rotation Graph. We believe the Consumer Cyclical sector should be watched closely as relative performance is improving.

Market View

Posted on by Raj Gupta

Market Overview

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to hold above the Febru-ary 14th follow-through day (FTD) with one distribution day each. A handful of leading ideas have been able to push into higher highs (PLNT, MB, TAL, OLLI, NOW, PSTG, RHT, GRUB, RNG, etc.), though most ideas continue to build the right side of new bases. Following our discipline, we continue to recommend a slow approach, gradually committing capital to actionable ideas as the Confirmed Uptrend remains intact.

Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 74 ideas (four additions) gained 2% on average this week, outperforming the S&P 500 (0.5%) and the Nasdaq (1.4%).

By Sector

Since the February 14th FTD, Technology and Utility are leading, rising nearly 3% each. Most of the Utility move was made Friday after the sector jumped more than 2%. Within Technology, MB broke out on earnings this week, turning actionable. ON and CY also both regained their respective 50-DMAs. Conversely, Energy, Con-sumer Staple, and Retail are lagging since the FTD, all flat to down 1%. Within Energy, NEP, NBLX, and CDEV continue to lag, while FANG remains a leader, regaining its 50-DMA. Within Retail, WING pulled back to its 50-DMA post-earnings, while HD reversed lower off its 50-DMA and is now forming a new base.