How do you see the European and American indicators at this moment, on the verge of maximums?
Let’s start, if you like, with the Americans, the S&P 500. And what we are seeing is a clear strength. We have seen last Friday’s falls that made a minimum, that is, they left us support at the minimum of the session and from there what we are seeing has been a phase of consolidation on one side within a trend that is clearly bullish. Therefore, for now I say that we can continue to be optimistic.
The initial scare that the market gave us, due to the idea that there could be tariffs between the United States and China again, has calmed down. With this, all investors are once again focusing on what the Federal Reserve is going to do, whether it is going to lower interest rates, also on business results and in the United States clearly on artificial intelligence and technology. So for now we are optimistic and we cannot say anything else. We have support at 6,500 points, as long as it remains above, the most normal thing would be to attack the upper part of the lateral range at this timewhich would be to exceed the 6,774 area, and with that if it ends up breaking it and we see a daily close above those levels, then the next objective would be 7,000. So for the moment optimistic in the United States.
If I go to the Nasdaq OMX, we’re going to see something similar. Let’s put it on the screen. Well, we see that last Friday’s low is support. The resistance would now be at 25,200also maximum from last Friday. If we break these levels, we would set the next objective as the psychological level, a round number, 26,000 points. on the Nasdaq. So a clear upward trend, we are in the best seasonal period of the year, for now the only thing we can do is stay calm and follow the trend, which is positive.
In the case of the EURO STOXX 50, in Europe, we see how the 5,666 zone is already being broken, which is the resistance zone to the previous maximum, and therefore, well, we are at maximums. If I go to the monthly chart, we see that we are at unseen highs, well, historical highs, because the resistance to the highs of March 2000 was broken and we are at historical highs, so clearly positive trend and at the moment there is nothing that makes us think otherwise. To add some reference to take into account in the case of Stoxx, well the lows of 5,553as long as it remains above, well, nothing, positively.
In the case of DAXSame thing, we see that here it is true that it is good, since we have a little more lateral range, more consolidating, but the trend is also still bullish, we are above the average of 200. The key support is at 23,270, as long as it remains above, since we are still in a positive and long-term trend.
In the case of the IBEX 35, we are also going to take a look at our index and here we see even more strength than in the rest. In the end, attention in Europe is focusing on banks and industrial companies, seeing if the economic cycle can be extended as much as possible and in this environment of searching for cyclical assets, since banking in Spain has a great weight and that means that we are seeing constant increases in the Ibex 35, which is also not only accompanied by banking, but also by utilities. So for nothing, as long as it remains above 15,415, bullish trend and tranquility in the market.
Stocks that have a good technical trend at this time
Right now we have strength in quite a few values. I’m going to name some of them and then we’ll go into some of them in more depth, but for example, Mapfre and Banco Sabadell, Laboratorios Rovi, ENCE, Bankinter, Indra, which is one of the ones we’re going to look at now, MERLIN Properties and IAG (Iberia), we have Acciona, Acerinox, Iberdrola, Acciona Energías Renovables, BBVA, Naturgy (Natural Gas) and Enagas.
These are the strongest ones we have in the market right now, so if I had to make an investment portfolio for the last quarter, I would consider making a diversified portfolio within these values, I wouldn’t get away from them, but they are the strongest. Let’s put on the screen, for example, Indra, it is a value that is clearly strong. We have seen that has exceeded the 40 euro area by action and therefore, we would have the idea here that the lateral zone that we could have has been broken. We are going to propose, instead of Fibonacci, we are going to propose it with a rectangle. We had two lows at the bottom, two highs at the top. It has broken upwards and we still have an activated projection towards at least the zone of at least 46.54. We are right now trading at 42.82. Then it must be said that Indra’s fundamentals are at full strength right now. We are seeing growing profits, record order books, expanding margins, so all of that is very positive for Indra.
Another value that we could look at, going a little out of the ordinary, and it is a value that is being searched a lot right now by Spanish investors on Google, we are talking about Airbus, which also has great fundamentals, with a historical order book, strong cash generation and well, yes, it is true that it has had two delays in deliveries, but in general the fundamentals are very positive, and at a technical level we see it too, slight consolidation, but trend clearly bullish, so as long as it stays above 198.10 you can be perfectly in value.
And then finally we are going to show Elecnor, which is one of the securities that have just been added to the portfolio, which is the one that I said to operate with barrier options. I already take advantage of you and tell you that now there are more than a thousand assets that can be operated, among them I tell you EchNor, which is a company with solid and stable fundamentals, that has had recent income and that is clearly in an upward trend, so as long as it remains above 24.14, it is also a value that can perfectly be kept in the portfolio, and well, if one wants to adjust the 18 a little more, or put a barrier, put it below 26.68, which is the first support, or below 24, depending on whether we want to be more or less leveraged, but as I said, strongly bullish value also in the Spanish market.
What do you expect from earnings season on both sides of the Atlantic? Do you think uncertainty can increase despite the levels in the remaining two months of the year?
I believe that in the United States the focus will clearly be on big technology companies. The results of these companies are going to be decisive, they are going to be what tells us if the S&P 500 is going to be able to continue rising or if there is going to be some volatility, but well, it seems that what is expected is that the companies continue to do well. All the focus is also on artificial intelligence, on the growth that there may be in the future in the entire sector, with which, well, obviously the key is for these large companies to maintain their margins and maintain the growth of their profits to continue supporting the index.
In the case of Europe, Attention will focus more on banking and industrywhich are evidently more sensitive to these economic accelerations and also to this weaker consumption. If the results of these companies continue to be maintained, it will be thought that the economic cycle continues to expand, it continues to extend at least in time and that means that these companies, which are the ones that are pulling the wagon in a certain way, will cause the European indices to also continue to rise, which I believe is the most likely.
How can we amplify our investments right now?
If we go directly to see the IG platform to be able to show it and I am going to show you what the platform of barriers and options, barrier options, would be. I do look for, for example, Elecnor, which as I said is one of the companies that have just been added, so that we can see all of them, a quick review, so that we can see the new ones that have been added, because before we had four options in Spain and now we already have BBVA, Santander, Sabadell, OHL, Inditex, Telefónica, Acerinox, Bankinter, Energy Corporation, DIA, Elecnor, Iberdrola, Rovi and Puig.
These are the ones that have been added and that we will add if our investors ask us to do so, as more companies to operate. Many more have been added in the United States, in the end the most negotiated and the most demanded, meaning that right now we would have the platform of barrier options super complete.
Let’s say that if I wanted to put a barrier, for example, an operation in Elecnor with a barrier, for example, below 25.46, I would know that what it was going to ask me initially to open the position was going to be a guarantee, which is what we would put as a stop, and normally what I usually do here, my way of operating is to first decide where I am going to put the stop or the barrier. If it is 24.45, well I say, what price is it at right now? Well, it is trading at 27.10.
So what I would do is, there is a difference of 1.65 euros per share, so if, for example, I wanted to risk 1,000 euros, what I would do is take 1,000 and divide it by 1.65 and I would say that the equivalent would be 606 shares. Well, in this case we would take the equivalent in barrier options, a call barrier option, we would have the stop already set on that barrier at 25.45.
If he touches it, I lose the 1,000 euros that I plan to lose and I won’t lose any more. If the operation goes in my favor, then I can obtain unlimited profits in relation to the trend going in my favor. So, these would be the advantages of trading with barrier options: having completely limited risk and unlimited profits by taking advantage of the leverage.