| European Weekly Review 17 August 2010 By Michele Affortunati |
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| Close | Weekly Volume | Weekly Change | P&F Trend | Stop | |||||
| Euro Stoxx | 257.36 | 5,653.2m | -11.51 | -4.3% | Bull 
| 27 May 2010 | 247.50 | ||
| Euro Stoxx 50 | 2698.29 | 3,917.4m | -128.98 | -4.6% | Bear
| 12 Aug 2010 | 2850.00 | ||
| France CAC40 Index | 3597.6 | 571.2m | -179.77 | -4.8% | Bull
| 14 Jun 2010 | 3400.00 | ||
| Germany DAX Index | 6110.57 | 477.0m | -241.03 | -3.8% | Bull
| 27 May 2010 | 6050.00 | ||
| Netherlands AEX Index | 323.14 | 456.0m | -12.75 | -3.8% | Bull
| 27 Jul 2010 | 315.00 | ||
| Spain IBEX 35 Index | 10258.3 | 1,021.2m | -554.30 | -5.1% | Bull
| 11 Jun 2010 | 9800.00 | ||
| Sweden OMX Index | 1046.09 | 455.2m | -27.44 | -2.6% | Bull
| 11 Jun 2010 | 1010.00 | ||
| Switzerland SMI Index | 6285.66 | 230.0m | -106.08 | -1.7% | Bull
| 5 Aug 2010 | 6050.00 | ||
| Closing prices last 5 days | |||||||||
Stock Index
The Euro Stoxx 50 consolidates into the short term uptrend (i.e. sequence of higher lows) and is now oversold in our stochastic indicator.
Index Breadth
Index Breadth has now unwound from overbought and indicates that 60% of the stocks in Europe are in P&F uptrend.
Sector Bulls & Bears
This week we highlight the Euro Stoxx Construction & Materials sector finding short term support at 230 and is oversold in our stochastic indicator. We watch to open a long position in Vinci and expect oversold rallies to take place in materials stocks such as Lafarge and Holcim.
We also highlight the Utilities sector correcting into potential short term base formations. We open a long position in EDF and watch to open a long in E.On.
Stock Action
EDF pulls back into short term price and relative base formations and exhibits bullish volume characteristics. We open a long position and target €37.
We watch to open a long position in Vinci, which has pulled back into potential short term base formations and is oversold in our stochastic indicator.
Model Portfolio
In our long book we highlight DnB NOR ASA consolidating above the previous breakout level at 70 and set to reassert the short term uptrend.
| Date | Stock | Code | Type | Open Price | Current Price | % P&L | Target | Stop |
| 11 Jan 2010 | Unilever NV | UNA | Long | 21.995 | 21.09 | -4.11% | 25.70 | 19 |
| 1 Feb 2010 | Saipem SpA | SPM | Long | 23.78 | 27.17 | +14.26% | 30 | 22.00 |
| 1 Mar 2010 | Siemens AG | SIE | Long | 64.77 | 74.9 | +15.64% | 80 | 60 |
| 6 Apr 2010 | Maersk B | MAERSKB | Long | 42750 | 47510 | +11.13% | 50000 | 40000 |
| 4 May 2010 | Zurich Financial Services AG | ZURN | Long | 236.8 | 232.6 | -1.77% | 280 | 220 |
| 12 May 2010 | Daimler AG | DAI | Long | 40.00 | 39.955 | -0.11% | 48 | 36 |
| 17 May 2010 | Michelin | ML | Long | 55.1 | 59.88 | +8.68% | 61 | 50 |
| 1 Jun 2010 | L'Oreal SA | OR | Long | 76.51 | 78.1 | +2.08% | 90 | 71 |
| 1 Jun 2010 | Adidas-Salomon AG | ADS | Long | 40.99 | 42.455 | +3.57% | 48 | 38.50 |
| 1 Jun 2010 | SAP | SAP | Long | 35.84 | 34.91 | -2.59% | 40 | 33.25 |
| 14 Jun 2010 | Novartis AG | NOVN | Long | 55.3 | 52.65 | -4.79% | 61 | 53 |
| 5 Jul 2010 | Banco Santander Central Hispano SA | SAN | Long | 8.684 | 9.445 | +8.76% | 9.6 | 8.25 |
| 5 Jul 2010 | AXA | CS | Long | 12.24 | 13.095 | +6.99% | 14.30 | 11.65 |
| 6 Jul 2010 | Alstom | ALO | Long | 38.39 | 40.81 | +6.30% | 46.8 | 35 |
| 12 Jul 2010 | DNB Nor Asa | DNBNOR | Long | 72.7 | 72.45 | -0.34% | 80 | 70 |
| 26 Jul 2010 | BNP Paribas | BNP | Long | 54.00 | 52.58 | -2.63% | 60 | 47.5 |
| 26 Jul 2010 | ING Groep NV | INGA | Long | 7.60 | 7.205 | -5.20% | 9 | 6.5 |
| 2 Aug 2010 | Statoil | STL | Long | 127.20 | 123.2 | -3.14% | 140 | 120 |
| 2 Aug 2010 | Veolia Environnement | VIE | Long | 21.80 | 19.835 | -9.01% | 26 | 18.80 |
| 2 Aug 2010 | Merck | MRK | Long | 68.35 | 69.41 | +1.55% | 77 | 64 |
| 10 Aug 2010 | GERM VDAX VOLATILITY IDX | VDAX | Long | 21.24 | 23.55 | +10.88% | 26 | 16 |
| 16 Aug 2010 | Electricite De France | EDF | Long | 32.93 | 32.93 | 0.00% | 37 | 30 |
We make no changes in our short book.
| Date | Stock | Code | Type | Open Price | Current Price | % P&L | Target | Stop |
| 21 Jun 2010 | Orkla | ORK | Short | 47.87 | 50.1 | -4.66% | 43 | 51 |
| 19 Jul 2010 | Philips Electronics NV | PHIA | Short | 23.615 | 22.655 | +4.07% | 18 | 27 |
| 10 Aug 2010 | ANSALDO STS SPA | STS | Short | 9.865 | 9.65 | +2.18% | 7 | 11 |
| 10 Aug 2010 | SR Teleperformance | RCF | Short | 19.07 | 18.285 | +4.12% | 17 | 20 |
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