Twenty-three developed markets fell 0.2% on average and 15 are in a Confirmed Uptrend, the 51st week with a majority. Twenty-three emerging markets gained 0.2% on average and 20 markets are in a Confirmed Uptrend, the 32nd week with a majority.
Tag: Confirmed Uptrend
Market View
The U.S. market remains in a Confirmed Uptrend. Volume remains light, but leadership continues to act well and distribution remains muted. There is a heavy dose of earnings hitting the market next week that will drive market direction in the near-term. We are looking for short-term support along the 21-DMA to hold on both the S&P 500 and Nasdaq should we get a pullback.
Stocks on our U.S. Focus List—Current Sentiment
Our USFL of 67 ideas gained 1.3% on average this week, outperforming the S&P 500 (0.5%) and the Nasdaq (1.2%).
By Sector
Biotech ideas led this week aided by a 20% move in VRTX following positive clinical trial results. CELG is now breaking into new YTD highs ahead of earnings Thursday. BIVV also looks poised to breakout, now testing re-sistance just above $63. Consumer Cyclical ideas also acted well. NFLX gapped up into all-time highs on earn-ings. MGM regained its 50-DMA after news of its inclusion into the S&P 500. Technology was again mixed. FB, RP and POWI continued higher after breaking out last week. Conversely, MDSO and NOW pulled back after reaching new highs last week. The Transportation sector weakened this week. Our sole Transportation idea, FDX, pulled back to its 50-DMA after stating that their FY 2018 results would be impacted by the cyber attack on TNT Express last month.
Emerging Continues to Lead, Europe Remains Weak
Twenty-three developed markets fell 0.6% on average and 16 are in a Confirmed Uptrend, the 50th week with a majority. Twenty-three emerging markets were flat on average and 19 markets are in a Confirmed Uptrend, the 31st week with a majority.
US Focus Long
The U.S. market remains in a Confirmed Uptrend. Volume remains light, but leadership continues to act well and distribution remains muted. There is a heavy dose of earnings hitting the market next week that will drive market direction going forward. We are looking for short-term support along the 21-DMA to hold on both the S&P 500 and Nasdaq should we get a pullback.
European Focus Long
The Stoxx Europe 600 index is finding resistance near its 50- DMA. It failed to hold on to last week’s momentum and, as of Thursday’s close, it had lost 0.72% for the week. This week also saw a few status downgrades: Ireland, Spain, and Sweden were moved to a Confirmed Downtrend. While we have France in a Confirmed Uptrend, the index looks unable to retake its 50-DMA, and we would advise caution at this stage.
Market View
The U.S. market has been moved back into a Confirmed Uptrend. Though volume continues to come in below average, the S&P 500 closed at a new all-time high and the Nasdaq closed above resistance at 6303. The ac-tion of leadership remains strong, with multiple ideas forming the right side of their respective bases or even breaking out into new highs. Q2 earnings season has begun and will drive market direction over the next sever-al weeks.
Stocks on our U.S. Focus List—Current Sentiment
Our USFL of 66 ideas gained 2.3% on average this week, outperforming the S&P 500 (1.4%) and in-line with the Nasdaq (2.6%).
By Sector
Technology ideas across the USFL outperformed this week. Internet-Content led as FB gapped up into all-time highs. WB, GRUB, and GOOGL all regained their respective 50-DMAs. Chinese Retail-Internet also outper-formed. BZUN and BABA moved further into all-time highs, while JD bounced off its 50-DMA. Conversely, the Banks all pulled back after multiple earnings were released Friday morning. All four USFL Banks (CFG, FRC, MS, WAL) remain above their respective 50-DMAs and technically still intact.
Markets Shaking off Distribution
Twenty-three developed markets gained 1.9% on average and 19 are in a Confirmed Uptrend, the 49th week with a majority. Twenty-three emerging markets rose 0.7% on average and 18 markets are in a Confirmed Uptrend, the 30th week with a majority.
US Focus Long
The U.S. market has been moved back into a Confirmed Uptrend. Though volume continues to come in below average, the S&P 500 closed at a new all-time high and the Nasdaq closed above resistance at 6303. The action of leadership remains strong, with multiple ideas forming the right side of their respective bases or even breaking out into new highs. Q2 earnings season has begun and will drive market direction over the next several weeks.
Global Technology Sector
Our Technology Global Financial Sector Report includes an in-depth look at the technology sector in the U.S., EMEA, and APAC markets as well as actionable technology stock picks curated by our research team using the O’Neil Methodology. Some highlights from the report: Despite the recent technical pullback in U.S. software-related names, consolidation remains constructive while the fundamental outlook for high-quality ideas remains strong. In the global hardware industry, the outlook for semiconductor equipment, manufacturing, display, and memory is positive for the remainder of 2017. As long as leading technology stocks continue to act well and the uptrend in the general market remains intact, we would continue to selectively build long positions as entry points present themselves.
Markets Still Shaky but India Rising
Twenty-three developed markets were down 0.1% on average and 16 are in a Confirmed Uptrend, the 48th week with a majority. Twenty-three emerging markets rose 0.7% on average and 18 markets are in a Confirmed Uptrend, the 29th week with a majority.
