Market View

Posted on April 6, 2018April 6, 2018 by Raj Gupta

Market Overview

The U.S. market is in a Rally Attempt within a Downtrend. We are now looking for a follow-through day before shifting the market into a Confirmed Uptrend or, conversely, an undercut of Monday’s lows (S&P 500: 2,553; Nasdaq: 6,805) before shifting the market back into a Downtrend. The majority of U.S. Focus List ideas are still forming new bases. We continue to recommend a patient approach, waiting for the follow-through day and waiting for ideas to firm and present better, more risk-optimal entry points. We maintain our cautious stance on the general market.

Stocks on our U.S. Focus List: Current Sentiment

By Sector

Retail ideas on the U.S. Focus List continue to show strong relative strength, with multiple ideas moving into new highs this week. LULU and FND both broke into new highs are now extended from ideal pivots. FIVE remains actionable as it builds the right side of a new base, while OLLI and WING continue to hold above their respec-tive 50-DMA. The Consumer Cyclical sector bounced off the 200-DMA this week, leading to positive action among a handful of ideas on the USFL. SKX and NFLX both regained the 50-DMA before pulling back Friday, while PLNT bounced off that same moving average. Conversely, semiconductor ideas within Technology remain weak. AMAT, CY, MRVL, MPWR, NVDA, and ON are all living below their 50-DMA as they form new bases.

New Ideas or Deletions

We added Continental Resources ( CLR ) and removed Centennial Res Dvlp ( CDEV ) and Logmein ( LOGM ) from the U.S. Focus List this week.

Global Sector Commentary

Posted on April 6, 2018April 6, 2018 by Kenley Scott

Key points from this week’s commentary:

While we do not recommend buying stocks aggressively at this time in the short-term global downtrend, we have noticed some positive activity from various stocks across our three Focus Lists. Relative strength improvement (against each countries’ respective benchmark index) has come from a variety of sectors, not just defensives, which is encouraging.

Actionable Names
U.S – SKX, CLR, FLIR
Developed – PBH.CA, TGYM.IT
Emerging – IEZ.IN, PI1.IN, NES.IN, IBK.IN, VGA.IN, HFC.IN

Global Focus Emerging Long

Posted on April 6, 2018April 6, 2018 by Ramesh R

Mainland China’s markets closed lower through Wednesday. Both the Shenzhen and the Shanghai closed with a loss of 1.2% each. The market continues to be in an Uptrend Under Pressure. The Shanghai closed 5.5% below its 200-DMA (~3,313), while the Shenzhen closed 4.0% below its 200-DMA (~1,908). The 100- DMA (~1,885) continues to act as a strong resistance level for the Shenzhen. We recommend a cautious approach for any fresh additions.

APAC Weekly Summary

Posted on April 4, 2018February 1, 2019 by Derek Higa

Market Conditions Swinging Bearish, HK Downtrend, FL Positives and Negatives, Pigeon, Nestle, Britannia

The MSCI Asia is testing 200-DMA support for the second time this year as the majority of Asian markets are turning bearish for the first time since pre-2017. This week we downgraded three markets: Hong Kong, Thailand, and Singapore. Performance for a majority of Asian markets is negative YTD. Further painting a bearish picture is the low number of stocks breaking out and near pivot (buy points) currently. Our sentiment remains unchanged as we have become increasingly cautious as global volatility has picked up over the last few weeks. We continue to advise a defensive approach.

Through all the negatives, there are still positives to point out. The majority of names on our list are currently still holding support levels above the 50-DMA (including those recently removed) and we are still noticing outperformance in Hong Kong Health Care names. This week, we provide a few Focus List names with Relative Strength that have made new 52-highs recently. Despite market conditions, these names are outperforming and core positions should continue to be held. On the opposite end, we also provide those that we believe should be kept on close watch due to high base stage count and/or weak share price action given current market conditions.