Tag: Confirmed Uptrend

Market View

Posted on by Raj Gupta

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq are both trading above their respective 50-DMA, while the Russell 2000 is trading at all-time highs. Leadership is broadening with 10 of 11 sectors now trading above their respective 50-DMA and multiple ideas reaching new highs this week. Going forward, we will be looking for the major averages to hold support along the 50-DMA and avoid distribution. We are also look-ing for the U.S. Focus List count to increase and for breakouts to progress further into new highs. With market conditions improving, we recommend putting additional capital to work with a focus on high relative strength ideas from leading and/or improving industry groups.

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

Our USFL of 70 ideas (one net removal) gained 3.5% on average this week, outperforming the S&P 500 (2.4%) and the Nasdaq (2.7%).

By Sector

Technology and Health Care ideas on the U.S. Focus List led this week. Within Health Care, multiple ideas broke out including SUPN which became quickly extended after Friday’s move. ABMD also continues to hit new highs each day and remains extended. ALGN reached a new pivot Friday, turning actionable, while ILMN and IDXX remain at pivot points. Within Technology, software ideas are the clear leaders. TEAM, SPLK, VEEV, ADBE, NOW, CRM, and RHT among others are all trading at new highs after coming under heavy accumulation this past week. Retail ideas, which had been leading with Energy prior to this week, are now consolidating gains. WING, FIVE, and LULU pulled back off highs, while HOME and OLLI continue to trend higher.

US Focus Long

Posted on by Balaji NG

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq are both trading
above their respective 50-DMA, while the Russell 2000 is trading at all-time highs. Leadership
is broadening with ten of 11 sectors now trading above their respective 50-DMA and multiple
ideas reaching new highs this week. Going forward, we will be looking for the major averages
to hold support along the 50-DMA and avoid distribution. We are also looking for the U.S.
Focus List count to increase and for breakouts to progress further into new highs. With
market conditions improving, we recommend putting additional capital to work with a focus
on high relative strength ideas from leading and/or improving industry groups.

European Focus Long

Posted on by Balaji NG

This week through Thursday, the Stoxx 600 gained about 1.3% and
reached its highest level since early February. The index is currently
in a Confirmed Uptrend and continues to trade 4.5% above its 10-
WMA and 3% above its 40-WMA.

US Focus Long

Posted on by Raghavendra K

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.

US Focus Long

Posted on by Midhun Parameswaran

The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq are now finding resistance at their respective 50-DMA. We will be looking for both to regain this level and for volume trends to improve in order to become more confident in the market. Leadership is also very thin outside of Energy. Ideas have been unable to break out and move into higher highs. Therefore, we continue to recommend a cautious and patient approach until market conditions improve.

European Focus Long

Posted on by Midhun Parameswaran

This week, the Stoxx 600 retook its 200-DMA on Monday, retaining its gains throughout the week. With Q1 earnings season in full swing, the index was up 0.5% on a weekly basis as of Thursday, compared with a gain of 0.7% the prior week. As of Thursday’s close, the Stoxx 600 was 2.6% above its 50-DMA and 0.55% above its 200-DMA. Of the 17 European markets, 11 remain in a Confirmed Uptrend, including the Stoxx 600, while the remainder is in a Rally Attempt.

Market View

Posted on by Raj Gupta

Market Overview

The The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade in choppy fashion, closing back below their respective 50-DMA on Friday. We will be looking for each to regain that level early next week as a further break lower will likely result in a move back to the 200-DMA. This is a bifurcated market. Multiple ideas are still hitting new highs or consolidating constructively, while multiple other ideas, most-ly from lagging industry groups, are also gapping down to new lows post earnings. We continue to recommend a selective and patient approach, buying only leading ideas from leading and/or improving industry groups as they break out of sound price bases on heavy volume.

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

Our USFL of 74 ideas (one net addition) gained 1.7% on average this week, outperforming the S&P 500 (+0.5%) and the Nasdaq (+0.6%).

By Sector

Energy remains the clear leading sector. CLR and WRD are now extended from a proper pivot, however FANG remains actionable after regaining its 50-DMA this week. Retail ideas continue to act well with AMZN regaining the 50-DMA, and WING, HOME, LULU, FND, OLLI, and FIVE all still trading at or near new highs. Financial closed the week strong, despite mostly sideways action. SCHW, TCBI, SIVB, FLT, SQ, and PYPL are all now back above the 50-DMA. Conversely, Technology closed back below its 50-DMA this week, following a big selloff in semiconductors. Multiple ideas including MRVL, MKSI, AMAT, and CY are all now back below their 50-DMA.

US Focus Long

Posted on by Midhun Parameswaran

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to trade in choppy fashion, closing back below their respective 50-DMA on Friday. We will be looking for each to regain that level early this week as a further break lower will likely result in a move back to the 200-DMA. This is a bifurcated market. Multiple ideas are still hitting new highs or consolidating constructively, while multiple other ideas, mostly from lagging industry groups, are also gapping down to new lows post earnings. We continue to recommend a selective and patient approach, buying only leading ideas from leading and/or improving industry groups as they break out of sound price bases in heavy volume.

European Focus Long

Posted on by Midhun Parameswaran

The iShares DJ Stoxx 600 continues its upward trend, closing the week with a small gain of 0.68%. Since we spotted a follow-through day on April 5, the index has broken above its 50-DMA and is trading just below its next level of resistance at the 200-DMA. A majority of European markets are now in a Confirmed Uptrend, including France, Germany, and the U.K. New leadership has been emerging and in our European Weekly Summary we highlighted several names that look attractive.

Market View

Posted on by Raj Gupta

Market Overview

The U.S. market is in a Confirmed Uptrend. On Tuesday, the S&P 500 and Nasdaq staged a Day 6 follow-through, giving the go-ahead to gradually buy high-quality stocks with strong sales and earnings as they break out of sound price bases. Going forward, we will be looking for the major averages to regain their respective 50-DMA and for upside volume to pick up as indices clear resistance. We will also be looking for leadership to broaden as the majority of leading ideas are currently consolidating ahead of earnings, with few yet to break out. Our confidence in the follow-through day will increase if we begin to see these factors play out over the next few weeks. Conversely, signs that this follow-through day will fail include a clustering of distribution coupled with failed breakouts in leading ideas.

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

Our USFL of 73 ideas (including four additions) gained 2.9% on average this week, outperforming the S&P 500 (+2%) and the Nasdaq (+2.8%).

By Sector

Energy led all sectors by a wide margin this week. Recent USFL additions, CLR and WRD, are leading the Oil&Gas-U.S. Expl&Prod industry group, and both remain actionable at new highs. Technology ideas also led this week, with the majority of software names bouncing off their respective 50-DMA. These names include TEAM, SPLK, RHT, RNG, TYL, QTWO, ADBE, and PAYC. Semiconductors are still recovering with a few regaining their respective 50-DMA this week, including MPWR, AMAT, CY, ON, and MKSI. Conversely, Financial ideas have lagged this recent move higher. Banks, including MS, TCBI, WAL, and SIVB, as well as payment processors, WP, PYPL, SQ, and FLT, all continue to consolidate around their respective 50-DMA.