Confirmed Uptrend – Page 55 – WILLIAM O'NEIL+CO

Market View

Posted on June 8, 2018June 19, 2018 by Raj Gupta

The U.S. market is in a Confirmed Uptrend. The S&P 500 broke out of a four-week trading range this week and is now set to test resistance at ~2,800, while the Nasdaq broke into a new all-time high. Distribution stands at five days on each index with no expiration next week. Leadership, despite a big pullback on Thursday, remains healthy as the majority continues to hold above prior pivots or key moving-average support. We maintain our positive view on the general market and continue to recommend buying high quality ideas at exact pivot points or areas of support, and avoid chasing ideas that become too far extended from risk-optimal entry points.

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

By Sector

Retail ideas on the U.S. Focus List led this week. FIVE gapped up more than 20% on earnings following a similar move from LULU last week. OLLI and HOME also reported good quarters and both moved back into new highs. HD continues to con-structively form the right side of a new base and remains actionable. WING, AMZN, and BABA are also trading at or near new highs. Financial ideas also rallied this week, with Regional Banks TCBI, ZION, and WAL at new pivot points and Pay-ment Processors MA, V, and SQ all hitting new highs. PYPL and GPN both remain actionable as they approach prior highs. Conversely, Technology ideas, after leading over the last two weeks, pulled back on Thursday. MKSI gapped down below its 200-DMA, while software ideas RP, NOW, RNG, TYL, VEEV, and TEAM pulled back off recent new highs but remain intact as they hold above 50-DMA support.

New Ideas or Deletions

No changes were made to the U.S. Focus List this week.

US Focus Long

Posted on June 8, 2018June 8, 2018 by Raghavendra K

Market View

Posted on June 1, 2018June 19, 2018 by Raj Gupta

The U.S. market is in a Confirmed Uptrend. The S&P 500 remains range-bound above its 50-DMA, while the Nasdaq is now approaching a new all-time high. Distribution remains elevated, however multiple days expire next week. Leadership remains healthy with many ideas hitting new highs across multiple sectors. We maintain our positive view on the general market as long as the S&P 500 remains above its 50-DMA.

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

By Sector
Technology ideas on the U.S. Focus List led for a second straight week. Multiple names found support at their 50-DMA including GRUB, PSTG, GOOGL, NVDA, NOW, ON, and SPLK. Other ideas continue trade at new highs including TEAM, ADBE, CRM, MPWR, and TYL. Internet-Retail has also been very strong with both AMZN and BABA breaking back into new highs. Health Care ideas continue to trend higher with ABMD, ALGN, ILMN, and IDXX all reaching new highs, and EW breaking above resistance on Friday and turning actionable. Financial ideas are mixed. Payments continue to act well with PYPL, SQ, MA, and V all trading at or near new highs, while Banks remain under pressure. MS is now trading below its 200-DMA, while ZION, WAL, and TCBI are all at-tempting to hold support along their respective 50-DMA.

New Ideas or Deletions
No changes were made to the U.S. Focus List this week.

US Focus Long

Posted on June 1, 2018June 2, 2018 by Raghavendra K

Market View

Posted on May 25, 2018June 19, 2018 by Raj Gupta

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.

US Focus Long

Posted on May 25, 2018May 25, 2018 by Raghavendra K

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, however, one day expires at the close Tuesday and two more fall off the week after. Leadership remains healthy with many ideas still hitting new highs, while the majority are forming the right side of their respective bases. We maintain our positive stance on the general market.

European Focus Long

Posted on May 25, 2018May 25, 2018 by Raghavendra K

This week through Thursday, the Stoxx 600 posted a decline of about 1% and, in the process, recorded a distribution day, taking its tally to three. The index is in a Confirmed Uptrend, as it continues to trade about 3% above its 10- and 40-WMA. This week, we added Worldline (WLN.FR; WLN:FP) to our Focus List.

Market View

Posted on May 18, 2018May 18, 2018 by Raj Gupta

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq are consolidating the last two weeks of gains, holding above their respective 50-DMA. Meanwhile, the Russell 2000 broke out into new all-time highs. Distribution did rise this week, but we will begin to see expiration next Thursday. Leadership continues to act well, with multiple ideas across the U.S. Focus List trading at new highs. We maintain our positive stance on the general market.
Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 71 ideas (one addition) lost 0.2% on average this week, outperforming the S&P 500 (-0.5%) and the Nasdaq (-0.7%).

By Sector
Retail ideas on the U.S. Focus List led this week. OLLI jumped more than 5% on the week back into all-time highs and is now extended from an ideal pivot. LULU reached a new century mark and also remains extended. HOME continues to trend higher off its 21-DMA, while FIVE bounced off its 50-DMA, turning actionable. Health Care ideas also performed well with ABMD, ALGN, and ILMN all reaching new highs. UNH also found support at its 50-DMA and remains actionable. Technology ideas pulled back this week. Software ideas RHT and NOW pulled back to their respective 50-DMA, while PAYC pulled back to its 100-DMA. Internet-Content names GOOGL and WUBA also pulled back to their respective 50-DMA. Conversely, MPWR, PSTG, and SPLK remain at or near new highs.

New Ideas or Deletions
We added Weight Watchers Intl to the U.S. Focus List this week.

US Focus Long

Posted on May 18, 2018May 18, 2018 by Midhun Parameswaran

The U.S. market is in an Uptrend Under Pressure. After yesterday’s big upside reversal off support, indices remain 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&P500 have an E A/D Rating.

European Focus Long

Posted on May 18, 2018May 18, 2018 by Midhun Parameswaran

This week, as of Thursday, the Stoxx 600 was trading at 52-week highs. It gained 0.86%, compared with its previous weekly gain of 1.39%, and continues to trade 1.39% above its 50-DMA and 2.04% above its 200- DMA. Of the 17 European markets, 12 remain in a Confirmed Uptrend and the rest are in a Rally Attempt.