Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected assets that are outperforming the market.

Let’s get into this week’s newsletter!

US & UK INDICES OVERVIEW

The robust performance observed in the markets last week continued into this week, culminating in new all-time highs for the S&P 500, Nasdaq 100, and Dow Jones indices. The S&P 500 closed the week at 5303, marking a 1.5% increase. Meanwhile, the Nasdaq 100 and Dow Jones indices recorded impressive gains of 2.1% and 1.3%, respectively. On a monthly basis, the S&P 500 has fully recouped the losses from April, with a notable 5.1% increase in May to date.

The bullish momentum in equity markets remains strong. The S&P 500 has surged 27% since its low in October 2023 and 51% since its low in October 2022.

We continue to see individual stocks perform well. Our portfolio currently comprises over 20 US stocks, including LLY, AMP, META and NVDA. We have compounded these assets resulting in excellent profit for our Phoenix community members.

The FTSE 100, the UK’s premier index, declined by 0.2% to close the week at 8420. Following a breakout above the all-time high four weeks ago, price has been bullish, resulting in a gain to date of 6.6%. As a result, we are now actively looking for opportunities.

PERFORMANCE REVIEW

Ameriprise Financial – AMP

Ameriprise (ticker: AMP) is a stock with a history of trends over the past 10 years. These trends, such as 2013 and 2020 have been linear and predictable. 

Our breakout strategy initially entered AMP in December 2020. Further positions have been taken as price has moved in our favour. Commencing in November, price has been particularly bullish, resulting in an all-time high.

The total performance to date is a 1766% Return On Investment, and 35% Return On Capital, applying a full portfolio risk of 2%. 

AMP is an excellent example of a trending stock. The total amount of time required to set up and manage this trade has been less than eight hours over three years – this is the benefit of trend trading; using higher time frames such as monthly and weekly charts avoids the noise and stress of shorter time frames. This approach enables busy professionals the freedom to pursue other interests and avoid hours each day in front of a trading screen.

OUTPERFORMING ASSET FOR THE WATCHLIST

Boston Scientific Corporation – BSX

Boston Scientific Corporation (ticker: BSX) is a biomedical/biotechnology engineering firm and multinational manufacturer of medical devices. The company is best known for the development of a drug-eluting stent which is used to open clogged arteries. The company is listed in the S&P 500. In 2023 it generated over $14 billion in revenue, and employs over 48,000 staff worldwide.

BSX is a stock with an excellent history of trends, particularly between 2013-2019. This pedigree gives us confidence that the stock has the potential to continue to trend in the future. Between 2020 – 2013 the stock was in a large range of consolidation. However, in March 2023 price broke out of the range and has since been bullish with a gain to date of over 50%. Price has been particularly impulsive in 2024.

BSX concluded the week at $75. On the weekly time frame, MMC continues to trade above both the 50 and 200 SMA. The Sublime trend filter is green, aligning with the bullish sentiment.

Whilst on the daily time frame, the Sublime trend filter also continues to signal green, consistent with the longer-term trend perspective. Price action on the daily frame shows BSX trading above the 20, 50, and 200 SMAs. The moving averages are fully aligned and diverging, indicating near-term strength.

Looking ahead, the next area of potential resistance is the $100 round number. In summary, this is a high pedigree stock we will continue to share opportunities with our Phoenix community members.

Looking Ahead

The volatility experienced in April has been fully countered by the strength observed this month. We believe the bullish trend continues to dominate both the US and UK equity markets. Our numerous positions are benefiting from this momentum. As always, we will let price action guide our next move.

At Sublime, our unwavering commitment lies in conducting thorough analysis based on objective data and factual evidence presented in the charts. By adopting this approach, we aim to provide valuable guidance to our esteemed Phoenix community, collectively exploring opportunities that hold the potential for long-term, profitable trades.

Keep it simple. Keep it Sublime.

The ST Team

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