Confirmed Uptrend – Page 65 – WILLIAM O'NEIL+CO

Market View

Posted on June 30, 2017June 30, 2017 by Raj Gupta

The U.S. market was downgraded to Uptrend Under Pressure Thursday after the Nasdaq closed below its 50-DMA and picked up a sixth distribution day. Leadership ideas across Technology are still basing, though many have undercut short-term support levels and will need more time before they present ideal pivot points. We rec-ommend a more cautious approach, waiting for indexes to firm and for distribution to expire before initiating new positions.

Stocks on our U.S. Focus List—Current Sentiment
Our USFL of 64 ideas (including two removals) lost 2.4% on average this week, underperforming the S&P 500 (-0.6%) and the Nasdaq (-2%).

By Sector
Financial ideas led this week aided by a rally in the Banks. FRC, MS, and WAL are all back above their respec-tive 50-DMAs, while CFG is trading just below that level. The Technology sector closed back below its 50-DMA resulting in a further decline across multiple U.S. Focus List ideas. WB, MCHP, AVGO, QTWO, GOOGL, and CRM are all basing below their respective 50-DMAs. TYL, SSNC, MDSO, ADBE, and RHT continue to show con-structive action, trading above support with A/D Ratings of B+ or better.

European Markets Shifting Negative

Posted on June 30, 2017June 30, 2017 by Kenley Scott

Twenty-three developed markets were down 1.0% on average and 17 are in a Confirmed Uptrend, the 47th week with a majority. Twenty-three emerging markets rose 0.2% on average and 18 markets are in a Confirmed Uptrend, the 28th week with a majority.

Market View

Posted on June 23, 2017June 24, 2017 by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to hold above its 21-DMA, while the Nasdaq is holding above its 50-DMA. Distribution remains low, though there will be no expiration for over two weeks. Our U.S. Focus list has risen to 66 ideas, the highest number in over two years as leadership continues to expand.

Stocks on our U.S. Focus List: Current Sentiment
Our USFL of 66 ideas (including four net additions) gained 2.9% on average this week, outperforming the S&P 500 (0.2%) and the Nasdaq (1.8%).

By Sector
Health Care ideas led this week aided by a first stage breakout in the IBB. Biotech ideas VRTX and REGN ex-tended their gains before pulling back on Friday. New ideas, BIVV and CELG, are holding their pivot points and remain actionable. RGEN, a play on the secular growth of biologic drugs, broke above $40 resistance and is now testing all-time highs. A handful of Technology ideas were boosted by quality earnings reports. RHT and ADBE both broke into new highs. NTES also bounced off its 50-DMA and moved back into all-time highs. Our few Consumer Cyclical ideas also fared well. PLNT continues to trend higher and new addition, MGM, is also trending higher with support from its 50-DMA. The Banks, on the other hand, are reversing course. MS and FRC continue to hold above their respective 50-DMAs, but CFG and WAL have quickly given up that level of support.

U.S. Growth Continues to Outperform

Posted on June 23, 2017June 24, 2017 by Kenley Scott

Twenty-three developed markets were flat on average and 20 are in a Confirmed Uptrend, the 46th week with a majority. Twenty-three emerging markets rose 0.7% on average and 18 markets are in a Confirmed Uptrend, the 27th week with a majority.

US Focus Long

Posted on June 23, 2017June 24, 2017 by Vinaya Kumar

Market View

Posted on June 16, 2017June 16, 2017 by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 continues to hold above its 21-DMA, while the Nasdaq is holding above its 50-DMA. Distribution remains low with an additional day set to expire next week. Though Technology has taken a hit over the last week, the sector is still sitting above its 50-DMA and looks to be consolidating rather than breaking down. We will become concerned should these support levels on both the major averages and leading ideas give way.

Stocks on our U.S. Focus List—Current Sentiment
Our USFL of 61 names lost 0.9% on average this week, underperforming the S&P 500 (0%) and in-line with the Nasdaq (-0.9%).

By Sector
Consumer Cyclical ideas, including the home builders, acted well early in the week before pulling back on Thursday and Friday. PHM is working on a cup-with-handle breakout. New addition, PLNT, broke into new highs on Wednesday and continued to work higher to close the week. The Banks (FRC, MS, CFG, WAL) consolidated gains from last week and are still holding above their respective 50-DMAs. Technology ideas were mixed, though the majority are still pulling back to short-term levels of support. Ideas showing the best relative strength over the past five days include PAYC, SSNC, ATVI, and MDSO. Ideas still in the process of pulling back include COHR, WB, NTES, VEEV, AMAT, NOW, MCHP, AVGO, MPWR, CRM, GOOGL, and RHT.

US Focus Long

Posted on June 16, 2017June 17, 2017 by Pramod Gopal

Second Week of Global Losses as Distribution Rises

Posted on June 16, 2017June 16, 2017 by Kenley Scott

Twenty-three developed markets fell 0.7% on average and 21 are in a Confirmed Uptrend, the 45th week with a majority. Twenty-three emerging markets fell 0.5% on average and 18 markets are in a Confirmed Uptrend, the 26th week with a majority.

Market View

Posted on June 9, 2017June 9, 2017 by Raj Gupta

The U.S. market remains in a Confirmed Uptrend. The S&P 500 held its 21-DMA Friday, avoiding distribution. The Nasdaq, however, picked up its third distribution day after multiple Technology ideas came under severe selling pressure. We will be looking for the Nasdaq and individual Tech ideas to hold above Friday’s lows next week. Further downside in the Nasdaq will result in the index testing its 50-DMA at ~6057. We will remain positive on the market as long as the major averages and the majority of leadership ideas hold above their respective 50-DMAs.

Stocks on our U.S. Focus List—Current Sentiment
Our USFL of 61 names (including four additions) lost 1.1% on average this week, underperforming the S&P 500 (-0.3%), but outperforming the Nasdaq (-1.6%).

By Sector
There was clear rotation occurring in the marketplace Friday. USFL Bank ideas found support near their respective
200-DMAs and rallied strong to close the week. We view all four ideas (FRC, MS, WAL, and CFG) as actionable
at current levels. FRC is the clear leader among the four, breaking out of a Stage 2 flat base in heavy
volume. Conversely, Technology ideas sold off in very heavy volume and most are now testing short-term levels
of support. We will be looking for each of these ideas to hold Friday’s lows over the next several sessions and
continue to trade above their respective 50-DMAs.

US Focus Long

Posted on June 9, 2017June 10, 2017 by Vinaya Kumar

The U.S. market remains in a Confirmed Uptrend. The S&P 500 held its 21-DMA Friday avoiding distribution. The Nasdaq, however, picked up its third distribution day after multiple Technology ideas came under severe selling pressure. We will be looking for the Nasdaq and for individual Tech ideas to hold above Friday’s lows next week. Further downside in the Nasdaq will result in the index testing its 50-DMA at ~6057. We will remain positive on the market as long as the major averages and the majority of leadership ideas hold above their respective 50-DMAs.