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
S&P 500 Continues to Climb Higher
The S&P 500 is continuing its march higher; this week gaining 1.0%. The continued strength in the S&P 500 is demonstrated by continued breakouts – this week there is evidence of growing strength, with 137 breakouts, compared to 89 last week. We are now seeing follow through in the broad market, following the AI/technology surge several months ago. The S&P 500 is now 32% above the lows of October 2022. On a sector basis, the S&P 500 comprises 11 sectors, and all sectors have breakouts, further strengthening the bull case. The S&P 500 is now less than 5% from the all-time high from January 2021.
Our portfolio currently consists of 10 US stocks and 2 currencies. We have compounded a number of stocks, as they are trending and performing well, in turn, delivering excellent profit for our Phoenix community members.
On the weekly time frame, the S&P 500 remains above both the 50 and 200 SMA (Simple Moving Average). The moving averages are aligned, indicating a consistent trend. Our proprietary tool, the Sublime trend filter, continues to present a green signal – for the 15th consecutive week – further reinforcing the strength of the current market. On the daily time frame, the S&P 500 is using the 20 SMA as support, creating a series of higher highs and higher lows. The Sublime trend filter is also presenting a green signal.
The FTSE 100, the UK’s premier index, had a very strong week with a modest gain of 0.4%, which follows up the previous two weeks’ gains of 5.6%. Price is above both the 50 and 200 SMAs and we will monitor this index for confirmation of direction.
OUTPERFORMING ASSET FOR THE WATCHLIST
Apple Inc. - AAPL
AAPL: New All-Time High For The World’s Favourite Personal Device Manufacturer
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 in 2022 revenue. As of March 2023, Apple is the world’s biggest company by market capitalisation. As of June 2022, Apple is the fourth-largest personal computer vendor by unit sales and the second-largest mobile phone manufacturer in the world. It is often 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 regained control.
Closing the week at $196, AAPL was bullish with an increase of 2.0% this week. Notably, this stock has demonstrated a particularly bullish trend during the month of June, boasting a gain of 9.4%. AAPL has delivered a substantial return of 50.8% since the beginning of 2023.
On the weekly time frame, AAPL continues to trade above the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, maintains a green signal, indicating a positive market sentiment. Furthermore, the alignment of the moving averages reinforces this positive outlook.
Similar to the weekly analysis, on the daily time frame, the Sublime trend filter also displays a green signal. Additionally, AAPL’s price remains above the 20, 50, and 200 SMAs, further confirming its strength. The alignment of the moving averages suggests a favourable near-term outlook, while the utilisation of the 20 SMA as a support level contributes to the creation of higher highs and higher lows.
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
Caterpillar Inc. - CAT
CAT: Rebounds in June and July, a New Breakout on the Horizon
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. The momentum displayed in October 2022 resulted in an all-time high in January. Price then pulled back until the bulls regained control in June, resulting in a gain to date of 27%.
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.
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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