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Welcome to the first edition of our weekly newsletter for 2023 where we provide an overview of the main US and UK indices, a specifically selected outperforming asset with deep analysis. Finally, an analysis of an asset in our portfolio, including a discussion on the returns the asset generates for our Phoenix members.

Let’s get into this week’s newsletter!


Last year was a tumultuous year for US indices with declines in the S&P 500, Dow Jones and Nasdaq of 19%, 9% and 33% respectively. Our Phoenix community was able to safely navigate through this period by prioritising capital preservation. At Sublime Trading we have a principle that choosing to stand aside is a position. 

January has started with bullishness. On the monthly time frame, the S&P 500 has gained 4% and is very close to the 4000 round number. More importantly, price has closed above the 200 SMA, the first time since March last year. With price now above the 200 SMA on both the weekly and daily time frames, we are now actively looking for bullish stocks.

Similarly, the Nasdaq 100 gained 5% in January, whilst the Dow Jones also gained 3%.

This week the FTSE 100, the UK index, broke out and is displaying bullishness. January has gained 5%. Since the lows in October last year, price has gained over 17%.


Ametek - AME

AMETEK, Inc. is an American multinational conglomerate and global designer and manufacturer of electronic instruments and electromechanical devices with headquarters in the United States and over 220 sites worldwide. The company was founded in 1930. AMETEK has been ranked as high as 402 on the Fortune 500. The firm has also consistently been on the Fortune 1000 rankings list as well as the Fortune Global 2000.

AME is a stock that has been in a long-term uptrend since 2003. With a history of long-term trends, as evidenced by the monthly time frame between 2004-2008, 2012-2014, and 2021. Throughout 2022 this stock has been in a large range between $100 – $150. However, price was bullish towards the end of 2022 which continued into January. As a result, price is close to an all-time high of $148.

On the weekly time frame, the Sublime trend filter is green and price is trading above the 50 and 200 SMA. In mid-December price made a (failed) attempt at an all-time high. However, since then price has found strength. And on the daily time frame below, price is trading above the 20, 50 and 200 SMA, and the moving averages are aligned. The Sublime trend filter is green.

Looking ahead, we will assess whether price can break out above the all-time high. A continuation pattern above this level could provide our Phoenix community with an opportunity in a stock with a history of long-term trends.


Caterpillar - CAT

Caterpillar Inc. is an American Fortune 500 corporation and the world’s largest construction-equipment manufacturer. Caterpillar traces its origins to the 1925 merger of the Holt Manufacturing Company and the C. L. Best Tractor Company, creating a new entity, California-based Caterpillar Tractor Company. In 2018, Caterpillar was ranked number 65 on the Fortune 500 list and number 238 on the Global Fortune 500 list. Caterpillar stock is a component of the Dow Jones Industrial Average.

CAT is a stock that has a history of trends, such as in 2016-2018 and 2020-21. Throughout the second half of 2021 and 2022, the stock was in a large range. However, the momentum displayed since October 2022 has continued, resulting in the stock this month breaking out to all-time highs. In January the stock gained 7.9% with an all-time high of $259.

On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. Whilst on the daily time frame the Sublime trend filter is also green. Price is currently trading above all moving averages, which are all aligned.

Looking ahead, the next area of resistance is the $300 round number. Price is forming a linear trend and could be headed for another extended trend, which could present opportunities for our Phoenix community members in a stock we have traded for excellent returns in the past.

Looking Ahead

This week’s momentum has been to the upside. Whilst we remain vigilant, there are early signs our patience throughout 2022 could be rewarded with another healthy bull run in equities. We continue to share ideas with our Phoenix community for excellent returns.

Keep it simple. Keep it Sublime.

The ST Team

P.S. Answer 21 rapid-fire questions about your investing approach and then as if by magic, we will give you recommendations that are right for you and you’ll unlock your FREE Bonuses that will improve your investing results over the next 3 to 5 years.).


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