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 index closed the week at $4132, experiencing a slight decrease of -0.9% over the past week. May has been bearish for the index, with a decline to date of -0.9%, although the year-to-date gain for 2023 is a healthy 7.5%. Despite being 14.3% below its all-time high of $4820, the S&P 500 has remained resilient. In 2022, the index faced a decline of 12.7%.
On the weekly time frame, the S&P 500 index continues to trade above the 50 and 200 SMA with the Sublime trend filter, our proprietary tool, maintaining a green signal, and the moving averages aligned.
On the daily time frame, the Sublime trend filter also remains green, and the index is trading above the 20, 50, and 200 SMA. The index retreated to the 50 SMA this week, where it found support.
Despite the concerns related to a potential recession, high inflation, and interest rates, the US indices have exhibited remarkable fortitude. As we actively monitor these evolving circumstances, we are proactively engaging with our Phoenix community to identify promising opportunities that offer exceptional returns. Our approach remains highly vigilant and steadfastly committed to optimising our investment strategy.
This week the FTSE 100, the UK index, displayed modest weakness with a decline of -1.2%. Price remains above the weekly 50 and 200 SMA. Whilst on the daily time frame, price has retreated to close between the 20 and 50 20 SMAs. Price remains above the 200 SMA and the moving averages are all aligned.
OUTPERFORMING ASSET FOR THE WATCHLIST
Arthur J Gallagher & Co - AJG
Arthur J. Gallagher & Co. (ticker: AJG) is an American global insurance brokerage and risk management services firm headquartered in Rolling Meadows, Illinois (a suburb of Chicago). The firm was established in 1927 and is one of the largest insurance brokers in the world.
AJG is a familiar stock to our Phoenix Community, having delivered excellent profits during 2017-18 and 2020-21. After a period of consolidation since November last year, this stock has broken out and has been particularly bullish throughout April and May.
AJG closed the week at $214, reflecting a 2.9% increase over the past week. During May, this stock maintained its bullish trend, with a gain of 2.9% to date. Throughout 2023, AJG has delivered a strong return of 13.2%. The stock is currently trading at its all-time high of $214.
On the weekly time frame, AJG’s price continues to trade above the 50 and 200 SMA, and the Sublime trend filter, our proprietary tool, remains green. The moving averages are aligned.
On the daily time frame, the Sublime trend filter is also green, and AJG’s price is trading above the 20, 50, and 200 SMAs. The moving averages are aligned and diverging, indicating near-term bullishness.
Looking ahead, the next area of resistance is the $300 round number. A continuation pattern above this level could present an opportunity for our Phoenix community members to invest in this very resilient stock, especially in a generally bearish market.
OUTPERFORMING ASSET FOR THE WATCHLIST
Quanta Services Inc. - PWR
Quanta Services (ticker: PWR) is an American corporation that provides infrastructure services for electric power, pipeline, industrial and communications industries. Capabilities include the planning, design, installation, program management, maintenance and repair of most types of network infrastructure. Quanta Services employs about 40,000 people. Its operating companies achieved combined revenues of about $11 billion in 2018. It is headquartered in Houston, Texas. In 1998, Quanta went public on the New York Stock Exchange and was added to the S&P 500 index in June 2009.
Our Phoenix Community members will be aware that PWR has been trending upward since August 2020, and the stock has gained an impressive 321% since then.
As of the latest week, PWR closed at $171, representing a 0.6% increase from the previous week. In May, the stock is bullish, with a gain of 0.6% to date. For the year 2023, PWR has returned a solid 19.6% gain.
While PWR is currently 0.6% below its all-time high of $172, price continues to trade above the 50 and 200 SMA on the weekly time frame. The Sublime trend filter, our proprietary tool, also remains green and the moving averages are aligned.
On the daily time frame, the Sublime trend filter is also green, and price is trading above the 20, 50, and 200 SMA. The zonal area between the 20 and 50 SMAs acts as a support level for the stock. Additionally, PWR is making a series of higher highs and lower lows, indicating a bullish trend.
Looking ahead, the next area of resistance for PWR is the $200 round number. A continuation pattern above the all-time high could provide an opportunity for our Phoenix community members to invest in this strong trending stock.
Amidst a backdrop of market fluctuations, the US indices have shown remarkable resilience, continuing to recover from the US banking situation. The sustained strength of the leading US indices has resulted in aligned moving averages across all primary time frames, presenting opportunities for our Phoenix community of investors.
As we keep a watchful eye on market developments, we proactively collaborate with our Phoenix community to identify potential avenues for generating exceptional returns. Despite ongoing volatility, we remain steadfast in our pursuit of 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.