Recent Articles in Asian Markets

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.

We maintain our bullish outlook for the S&P 500, Nasdaq Composite, Russell 2000 and the Mid-Cap MDY. Their intermediate to long-term trends remain positive, and we would use any near-term weakness to add to long positions.

Short-term, the S&P 500, Nasdaq Composite and Russell 2000 pulled back to zones where we should see prices starting to hold and turn up from. The intermediate to long-term trends remain positive and we maintain our bullish view. We also remain bullish the Midcaps and would look to buy near-term weakness in the MDY.

For the purpose of generating long ideas in the financial sector outside of the U.S., we screened and ranked the 192 stocks in the iShares Global Financial ETF (IXG). In this list we find 67% of the stocks making a 1-month relative high vs. the IXG with 55% in a confirmed absolute uptrend and another 25% on the verge of confirming an uptrend. We are measuring an uptrend using a long-term smoothing, the 40-week moving average. When we look at these stocks relative to the IXG, we find 37% in a relative uptrend. For investors needing to have exposure in this sector, we offer a number of stocks with very favorable absolute and relative trends in place.

Not much has changed in a week. Upside momentum remains firm and we have a number of indices above their 40-week average. Although most of the U.S. indices reviewed are overbought short term, it’s a “good overbought” where any weakness is short lived and met with more demand.

Not much has changed in a week. Momentum continues to build, and we have the S&P 500, Nasdaq Composite, Mid Cap (MDY) and Dow Transports making their way above their 40-wk. averages.

Upside momentum remains very firm for a number of U.S. indices and we want to stay the course on our intermediate to long-term call which is bullish.