Despite the volatility this week, the MSCI Asia has yet to determine a clear direction. It is still trading in a sideways consolidation since its first test of the 200-DMA in February of this year. We continue to look for the 200-DMA to serve as support and remain in “wait and see” mode until a change in trend. Overall, we recommend a cautious approach and being more selective in buying stocks. If the index continues to weaken, we view February lows as the next support level (~4% lower). In individual markets, pressure is increasing. This is noticeable in the rising average distribution day count. Nearly all markets in a Confirmed Uptrend (with the exception of New Zealand) are Under Pressure. We also downgraded Malaysia to a Downtrend.
Symbol: NXT.AU
Market View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade in a tight range above their respective 50-DMA. The S&P 500 does have an elevated distribution day count, however, one day expires at the close Tuesday and two more fall off the week after. Leadership remains healthy with many ideas still hit-ting new highs, while the majority are forming the right side of their respective bases. We maintain our positive stance on the general market.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 72 ideas (one addition) gained 0.1% on average this week, underperforming the S&P 500 (+0.3%) and the Nasdaq (+1%).
By Sector
Technology ideas on the U.S. Focus List led this week. ON and MRVL both regained their respective 50-DMA, while ADBE and MPWR both moved into new highs. Multiple other Technology ideas are now bouncing off their respective 50-DMA including RHT, NOW, and NVDA. Health Care ideas also continue to act well, with ABMD, ALGN, SUPN, and UNH all testing all-time highs. Conversely, Energy pulled back sharply to close the week. FANG gapped down below its 50-DMA and is now testing its lower channel line. CLR pulled back to its 50-DMA, while WRD is now consolidating more than 10% off all-time highs.
Global Focus Developed Long
Australia’s ASX All Ordinaries Index declined 0.81% this week. It is trading 2.14% above its 40-WMA and is currently in a Rally Attempt.
Global Focus Developed Long
Australia’s ASX All Ordinaries Index declined 0.41% this week. It is trading 3.13% above its 40-WMA and is currently in a Rally Attempt.
Global Focus Developed Long
Australia’s ASX All Ordinaries Index declined 0.41% this week. It is trading 3.13% above its 40-WMA and is currently in a Rally Attempt.
Global Focus Developed Long
Australia’s ASX All Ordinaries Index increased 0.99% this week.
It is trading 3.73% above its 40-WMA and is currently in a Rally
Attempt.
Market View
The U.S. market is in an Uptrend Under Pressure. After yesterday’s big upside reversal off support, indices re-main under accumulation. Regaining and holding above resistance at the 50-DMA will increase our confidence in the market. For now, we continue to advise a selective approach to buying, with a focus on high relative strength stocks, as both the Nasdaq and S&P 500 have an A/D Rating of E.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 71 ideas (one net removal) gained 1.3% on average this week, underperforming the S&P 500 (-0.2) and in line the Nasdaq (1.34%).
By Sector
Small cap Technology ideas on the U.S. Focus List outperformed due to strong earnings results from QTWO and RP. Both ideas are extended. MB is breaking out from a cup consolidation ahead of earnings next week. Pockets of Health Care remain strong as IDXX and ABMD broke out into all-time highs on bullish earnings results. IDXX is actionable from a cup-with-handle consolidation. In Retail, WING was an outlier, after gapping up ~10%. WING remains extended. Conversely, a few names, including KLXI, PAGS, and PVH, were hit with heavy distri-bution and pulled back into their respective bases.
Global Focus Developed Long
Australia’s ASX All Ordinaries Index increased 1.86% this week. It is trading 2.89% above its 40-WMA and is currently in a Confirmed Uptrend.
Global Focus Developed Long
Australia’s ASX All Ordinaries Index increased 1.32% this week. It is trading 1.2% above its 40-WMA and is currently in a Rally Attempt.
Global Focus Developed Long
Australia’s ASX All Ordinaries Index increased 0.67% this week. The index is trading at its 40-WMA and is currently in a Rally Attempt.
