Confirmed Uptrend – Page 67 – WILLIAM O'NEIL+CO

Market View

Posted on May 12, 2017May 13, 2017 by Raj Gupta

The U.S. market is in a Confirmed Uptrend as indices continue to consolidate in a tight range above support
levels. Signs of institutional selling (distribution days) remains muted with four on the S&P 500 and two on the
Nasdaq, with an additional day set to expire on each index next week. With growth ideas in favor, and many
accelerating higher, we highly recommend not chasing ideas, but rather waiting for stocks to consolidate or pullback
into areas of support. We maintain our positive outlook on the U.S. market.

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

Our USFL of 58 names (one net removal) gained 0.7% on average this week, outperforming the S&P
500 (-0.4%) and the Nasdaq (0.4%).

By Sector
Across the USFL, the Retail sector outperformed, led by China based e-commerce ideas including JD and
BZUN. BABA continues to trend higher along its 10-DMA and is testing all-time highs at ~$120. Breadth of
ideas across Technology remains wide as COHR jumped higher on better-than-expected results, while gaming
stocks, ATVI and TTWO, continue to benefit from strong industry tailwinds. Conversely, Capital Equipment ideas
lagged, led lower by WAGE. The Company reported positive Q1 results; however, traded lower off its 50-DMA
and is currently finding support along the lower end of its base.

While U.S. Pauses, Several Other Markets Heating Up

Posted on May 12, 2017May 13, 2017 by Kenley Scott

Twenty-three developed markets gained 0.3% on average and 22 are in a Confirmed Uptrend, the 40th week with a majority. Twenty-three emerging markets gained 1.1% on average and 18 markets are in a Confirmed Uptrend, the 21st week with a majority.

US Focus Long

Posted on May 12, 2017May 13, 2017 by Vinaya Kumar

The U.S. market is in a Confirmed Uptrend as indices continue to consolidate in a tight range above support levels. Signs of institutional selling (distribution days) remains muted with four on the S&P 500 and two on the Nasdaq, with an additional day set to expire on each index next week. With growth ideas in favor, and many accelerating higher, we highly recommend to not chase ideas but rather wait for stocks to consolidate or pull back into areas of support. We maintain our positive outlook on the U.S. market.

European Focus Long

Posted on May 12, 2017May 13, 2017 by Vinaya Kumar

European markets consolidated recent weeks’ gains, declining 0.4% on average. However, the major markets continue to trade quite constructively and the U.K. was shifted to a Confirmed Uptrend from Under Pressure. The U.K. was the best performing market, gaining 1.9% for the week. The other key markets of Germany (+0.4%) and France (-0.5%) continue to trade well above support at their 50-DMAs and both remain in a Confirmed Uptrend.

US Focus Long

Posted on May 5, 2017May 6, 2017 by Vinaya Kumar

The market remains in a Confirmed Uptrend. U.S. indices are consolidating gains over the last few weeks, still holding above support levels and avoiding distribution. There are currently four distribution days on the S&P 500 and three on the Nasdaq, with each set to lose an aditional day next week. The majority of leadership ideas continue to act well, with most moving higher post earnings. Therefore, we remain constructive on the general market until we see concerning technical action among leadership ideas and the major averages alike.

European Focus Long

Posted on May 5, 2017May 6, 2017 by Vinaya Kumar

With the French election outcome and the U.S. Fed decision to leave interest rates unchanged, European markets rallied strongly for the short trading week. Markets were up almost 3% on average, led by gains of more than 4% from Belgium, Italy, Portugal, and Ireland. France (+3.1%) and Germany (+2.2%) reached new 52- week highs and are trading well above their 50-DMAs. The U.K. (+1.3%) continues to lag, trading below its 50-DMA, and remains Under Pressure.

Markets Move Up Again, Health Care Working Globally

Posted on May 5, 2017May 6, 2017 by Kenley Scott

Twenty-three developed markets gained 1.4%, led by 2%+ average gains in Europe. Twenty markets are in a Confirmed Uptrend, the 39th week with a majority. Twenty-three emerging markets gained 0.4% on average and 16 markets are in a Confirmed Uptrend, the 20th week with a majority.

US Focus Long

Posted on April 28, 2017April 29, 2017 by Vinaya Kumar

The market was moved back into a Confirmed Uptrend on Monday after the S&P 500 broke above its downward trending upper channel line and the Nasdaq broke onto all-time highs. Distribution fell to five days on the S&P and two on the Nasdaq, however no expiration will occur next week. Leadership continues to act well, with multiple USFL ideas breaking out into new highs on strong earnings results. After such a strong move, consolidation should be expected. We are looking for the S&P 500 to hold its 50-DMA should this occur.

European Focus Long

Posted on April 28, 2017April 29, 2017 by Vinaya Kumar

The Stoxx Europe 600 is headed for a strong gain of 2.31% this week, despite the pullback Thursday and Friday. Investors rejoiced at the outcome of the first round of the French presidential election. Centrist Emmanuel Macron is the favorite in the second round against the hard right’s Marine LePen. Macron is seen as positive for the eurozone, whereas LePen has expressed intentions to take France out of the EU. The second round is May 7.

Market View

Posted on April 28, 2017May 1, 2017 by Raj Gupta

The market was moved back into a Confirmed Uptrend on Monday after the S&P 500 broke above its downward
trending upper channel line and the Nasdaq broke into all-time highs. Distribution fell to five days on the
S&P and two on the Nasdaq, however no expiration will occur next week. Leadership continues to act well, with
multiple USFL ideas breaking out into new highs on strong earnings results. After such a strong move, consolidation
should be expected. We are looking for the S&P 500 to hold its 50-DMA should this occur.
Stocks on our U.S. Focus List—Current Sentiment
Our USFL of 59 names gained 2.2% on average this week, outperforming the S&P 500 (1.5%) and inline
with the Nasdaq (2.3%).

By Sector
Earnings played a heavy role in sector outperformance this week. Technology ideas continued to move higher,
led by GOOGL, RNG, NOW, WDC, MDSO, and CAVM, all of which reported better-than-expected earnings.
AMZN also gapped up on earnings Friday. Health Care ideas within the USFL were mixed with ALGN and IDXX
gapping up on earnings, and NUVA and CELG pulling back into their respective bases. Banks continue to form
the right side of their respective bases with most still finding resistance along their 50-DMAs. CFG has cleared
above this level of resistance and is now offering an aggressive entry point ahead of new highs.