Recent Articles in European Markets

The recent volatility and market weakness triggered a number of ellipse buys in the U.S. indices while most of the European indices have pulled back to support areas which keep them positive. The trade war headlines has brought the Shanghai Composite below its long-term average and uptrend off the January low. This puts the index in a weak position and cancels our bullish call.

Not much has changed in our view. We remain constructive on all the developed markets and cautious on the Kospi 100. Both the Russell 2000 and Mid-Cap MDY have pulled back to a support area where we would be adding exposure.

We remain bullish on many of the equity markets we cover on a weekly basis. The S&P 500 has cleared the 3000 mark and we believe our long-term target of 3180 off the 2009 low will be achieved in the months to come.  Stay long!

We remain bullish on almost all markets we cover on a weekly basis. Upside momentum has increased for these markets and we highlight our near and long-term targets.

Our intermediate to long-term views have not changed.

We remain bullish on most markets reviewed. Both the S&P 500 and Nasdaq Composite have pulled back to ellipse support to trigger a buy on a daily basis.

Using our multi-factor model, we ranked and reviewed the ACWI index for strong scoring stocks on a 3-week basis.

We believe this volatility, due to trade tensions with China, will be well contained and offer opportunities to add to long positions.

Momentum continues to build for China's Shanghai Composite and we would be adding exposure.

There is more improvement in the European indices as these markets continue to trade higher with very little daily pullbacks. We would be adding exposure to Germany as the DAX carves out a low as it did in 2016, and we have an initial target of +11% from here. We remain bullish the CAC, Spain’s IBEX, Italy’s FTSE MIB and the U.K. ETF (EWU).

We compared and reviewed a list of U.S. and Non-U.S. industrial stocks using the XLI and EXI ETFs. After a -5% decline in March for the XLI and a -4% decline for the EXI, both ETFs have started to turn up within the context of a 3-month absolute uptrend.

We remain bullish on an intermediate to long-term view for the S&P 500, Nasdaq Composite, Russell 2000, the Dow Transports and the Mid-Cap MDY. Momentum continues to expand in a positive way as can be seen with the weekly charts of the S&P and Nasdaq Composite. The Dow Utilities are starting to lose upside momentum as it trades at its prior target area, we would be a seller of the group.

We highlight the consumer discretionary sector which has the third strongest model score out of the 11 sectors. We believe there is more upside here. The healthcare sector continues to trend nicely off the December low.

The SMH is clearing a 1-year downtrend with strong momentum.

The DXY has pulled back to channel support and is reversing from this oversold area.