Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected stocks that are outperforming the market.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
The S&P 500 closed the week at 4604, its highest close since March 2022. The weekly gain of 0.2% is the sixth consecutive gain following the pullbacks of August to October. The index has gained 32% since the October 2022 lows.
Our long term position, which we have repeatedly stated in this newsletter, is that the equity markets are in a bull trend, which commenced in 2009. Our position has proved correct, despite a series of pullbacks – which require patience and discipline.
On the weekly time frame, price is trading above both the 50 and 200 SMAs (Simple Moving Average). Importantly, price has now confirmed a series of higher highs and higher lows since October 2022. Whilst on the daily time frame, price is also trading above the key moving averages, the 20, 50 and 200 SMAs, and the moving averages are all aligned and diverging – a key sign of bullish momentum.
Given price is above all key moving averages mentioned above, we are actively seeking new positions from our watchlist.
We continue to see individual stocks perform well. Our portfolio currently compromises 21 US stocks and 1 currency. We have compounded a number of these assets, in turn, delivering excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, gained 0.3%. Price remains range bound between 7200 and 7700. On the weekly time frame, price remains marginally below the weekly 50 SMA, but remains above the weekly 200 SMA. Whilst on the daily time frame price is trading above the 20 and 50 SMA, but below the 200 SMA. Should strength return, the next major area of potential resistance is the pivot high from 17 April at 7936. The all-time high is 8047. We continue to monitor this index, waiting for confirmation of direction.
OUTPERFORMING ASSET FOR THE WATCHLIST
Apple Inc. - AAPL
Apple needs little introduction; the market leader in personal computers, mobile devices and software. Apple is the world’s largest technology company by revenue, with US$394.3 billion of revenue in 2022. It is also considered as one of the big five American information technology companies, alongside Alphabet (parent company of Google), Amazon, Meta Platforms, and Microsoft.
AAPL has exhibited an impressive long-term trend since October 2010, resulting in a gain of over 1580%! While the stock displayed a particularly bullish performance throughout 2021, it experienced a period of weakness in 2022. However, in 2023, the bulls have regained control, delivering a substantial return to date of 50.8%.
Closing the week at $196, price was bullish with a gain of 2.3%. November was a particularly bullish month with a gain of 11.2%, and the strength has continued into December with a gain to date of 3.0%.
Price is trading above all key moving averages on both the weekly and daily time frames. And ur proprietary tool, the Sublime trend filter, has a green signal on both time frames.
Following a fake breakdown below the daily 200 SMA in late October, price has rebounded strongly, gaining 18%.
Looking ahead, the next significant level of potential resistance at the $200 round number. Should AAPL demonstrate a continuation pattern above its all-time high, members of our Phoenix community may find an opportunity in a stock with a robust history of long-term trends.
OUTPERFORMING ASSET FOR THE WATCHLIST
Visa Inc. - V
Visa Inc. (ticker: V) is an American multinational financial services corporation headquartered in San Francisco, California. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world’s most valuable companies.
Visa has demonstrated a strong, bullish trend since July 2012, solidifying its position as a top-performing stock by gaining over 700%. In November price created an all-time closing high at $257.
On the weekly time frame, Visa is trading above both the 50 and 200 SMAs, and our proprietary tool, the Sublime trend filter, is green. Following a test of the 50 SMA in October, price has been bullish with a gain of 13.0%.
Shifting focus to the daily time frame, the moving averages are also aligned, and the Sublime trend filter is green. The October 2022 pullback was also to the daily 200 SMA.
Looking ahead, the next significant area of potential resistance is the $300 round number. Should a continuation pattern form above this level, an opportunity could form for our Phoenix community members in a stock with a history of long-term trends.
Looking Ahead
The strength in equities observed in November has continued into the first week of December. The patience we applied during the pullback in September and October is proving to be the correct decision, as the long term trend has resumed in full. As long term inventors, patience is a key weapon in our arsenal. Our position is the bulls remain in control, resulting in opportunities for savvy investors, such as those in our Phoenix community.
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
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.
