Tag: Confirmed Uptrend

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend into higher highs
with just two distribution days each. Near-term support remains the sharply rising 10- and 21-DMA.
All 11 sectors, 173 of 197 industry groups, and 82% of S&P 500 stocks are trading above their respective 50-
DMA. Technology is now trading ~17% above its 200-DMA, the largest spread in the last decade. Health Care
is trading ~13% above its 200-DMA, the largest spread since 2015. While these two sectors have been trending
higher for the last few months, Utility, Transportation, and Consumer Staple just broke to new highs this week.
Leading industry groups over the past week include Wholesale Drugs ( MCK ), Transportation Logistics ( XPO ), Mobile Homes ( THO ), Building Products/Services ( IBP ), Home Builders ( PHM ), Semiconductors ( QCOM ), and Utilities ( SO ).

China A Shares

Posted on by Sandeeep N

The CSI 300 declined 0.2% for the week on lower volume, ending a six-week gaining streak. The market remains in a Confirmed Uptrend with four distribution days. The index has been consolidating after hitting 52-week highs, remaining constructive. We continue to be positive on the general market. A phase-one trade deal between the U.S. and China was signed, easing tensions but still leaving major problems unsolved. China’s GDP grew 6.1% y/y in 2019, the weakest growth in nearly 30 years. More stimulus is expected to boost sluggish demand. Immediate support is at ~4,100 then at ~4,000. We expect the CSI 300 to continue consolidating around 4,200, with strong resistance at ~4,400. Investors are advised to focus on quality ideas with strong expectations approaching earnings season and select those emerging from solid bases or strongly rallying from key support levels.

US Focus

Posted on by Sandeeep N

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend into higher highs with just two distribution days each. Near-term support remains the sharply rising 10- and 21-DMA.

European Focus

Posted on by Sandeeep N

On Thursday, the Stoxx 600 closed 0.22% higher and is up 0.33% from last Friday’s close. Today, the Stoxx 600 is gaining 0.79% following better-than-expected GDP data from China. It followed a trade deal with the U.S. earlier this week.

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged downside reversals Friday
but continue to hold trend with a low number of distribution days. Near-term support remains the rising 10- and
21-DMA. Distribution stands at three days on the S&P 500 and two on the Nasdaq, with one day expiring on
each Tuesday.
Ten of 11 sectors, 152 of 197 industry groups, and 73% of S&P 500 stocks are trading above their respective
50-DMA. Leading industry groups over the past week include Software ( CRM ), Internet ( GOOGL ), Medical
Equipment ( ISRG ), Managed Care ( UNH ), Aerospace/Defense ( CAE ), and Payment Processors ( GPN ). Lagging
industry groups over the past week include Transportation Equip Mfg ( TRN ), Oil & Gas ( NBL ), Mining ( AG ), and
Discount Retail ( OLLI ).

China A Shares

Posted on by Saminathan Jaganathan

The CSI 300 rose 0.44% this week on higher volume and remains in a Confirmed Uptrend
with four distribution days. Although U.S.-Iran tensions disturbed the market, stronger-thanexpected
December price data eased worries about the economy to some degree. News that
China is sending a team to the U.S. early next week to sign a phase-one trade deal also boosted
sentiment. We remain positive on the general market as the CSI 300 is holding well above
support at ~4,100, and we see the next level of resistance at ~4,403. Investors are advised to stay
patient as significant distribution could occur with the expiration of lockup periods of a large
number of shares approaching the end of January. We recommend focusing on ideas emerging
from solid bases or rebounding from key support levels with heavy volume. Also, be mindful of
companies’ announcements going into the season of preliminary FY19 earnings results.

US Focus

Posted on by Saminathan Jaganathan

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq staged downside
reversals Friday but continue to hold trend with a low number of distribution days. Near-term
support remains the rising 10- and 21-DMA. Distribution stands at three days on the S&P 500
and two on the Nasdaq, with one day expiring on each Tuesday.

European Focus

Posted on by Saminathan Jaganathan

On Thursday, the Stoxx 600 ended the day 0.31% above last Friday’s
close and remained in a Confirmed Uptrend. During the week, we
upgraded Germany to a Confirmed Uptrend. Of the 17 indices we cover,
14 are in a Confirmed Uptrend, two are in an Uptrend Under Pressure,
and one in a Rally attempt.

Market View

Posted on by Raj Gupta

U.S. Market

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend constructively
into higher highs. Both indices found support off their respective 10-DMA on Friday, closing off session lows. The
distribution count remains low with two days expiring next week.

Leadership has begun to narrow from peak levels with growth ( SPYG ) outperforming value ( SPYV ) to start the
new year. Though all 11 sectors remain above their respective 50-DMA, Technology has extended gains while
Consumer Staple, Utility, and Basic Material have pulled back. 162 of 197 industry groups also remain above
their respective 50-DMA, however this is down from 178 groups last week. Leading industry groups over the
past week include Aerospace Defense ( NOC ), Software ( COUP ), Internet ( JD ), Data Storage ( MU ), Fiber Optics
( LITE ), Semiconductors ( AMD ), and Oil & Gas ( PSXP ). Lagging industry groups over the past week include Steel
( X ), Food ( GIS ), Personal Care ( CL ), Utilities ( ED ), Biotech ( INCY ), and Reits ( WELL )

US Focus

Posted on by Midhun Parameswaran

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trend constructively into higher highs. Both indices found support off their respective 10-DMA on Friday, closing off session lows. The distribution count remains low with two days expiring next week.