| European Weekly Review 17 August 2010 By Michele Affortunati |
|
| 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 |
Recommend a friend! Tell your friends to mention your name when subscribing to Investors Intelligence, and get a months free access to a service of your choice! For more information, email sbarnes@investorsintelligence.com.
Also available online at www.investorsintelligence.com. Unauthorized forwarding, copying or reproduction of this report will be treated as a breach of copyright. To subscribe, visit the website or contact Investors Intelligence on +44 (0)20 7352 5435 or email support@investorsintelligence.com.
This report has been produced and compiled by Investors Intelligence, a division of Stockcube Research Limited which is authorised and regulated by the Financial Services Authority, according to the requirements of the Financial Services and Markets Act 2000. It is distributed by Stockcube and is provided for information purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time Stockcube and any of its officers or employees may, to the extent permitted by law, have a position or otherwise be interested in any transactions, in any investments (including derivatives) directly or indirectly the subject of this report. Also Stockcube may from time to time perform other services (including acting as adviser or manager) for any company mentioned in this report. The value of securities can go down as well as up, and you may not get back the full amount you originally invested. Derivatives in particular are high risk, high reward investment instruments and an investor may lose some or all of his/her original investment. If you make an investment in securities that are denominated in a currency other than that of GB Pounds you are warned that changes in rates of foreign exchange may have an adverse effect on the value, price or income of the investment. The investments referred to herein may not be suitable investments for all persons accessing these pages. You should carefully consider whether all or any of these are suitable investments for you and if in any doubt consult an independent adviser. This report is prepared solely for the information of clients of Stockcube who are expected to make their own investment decisions without reliance on this report. Neither Stockcube nor any officer of Stockcube accepts any liability whatsoever for any direct and consequential loss arising from use of this report or its contents. This report may not be reproduced, distributed or published by any recipient for any purpose without the prior express consent of Stockcube
Copyright 2005 by Stockcube Research Ltd.
