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 S&P 500 closed the week at 4784. This represents a gain for the week of 1.8%, whilst price has gained 0.3% to date in January. This follows very strong gains in November and December of 8.9% and 4.4% respectively. Price is less than 1% below the all-time high of 4818.
The bulls remain in control of the equity markets. This aligns with our long term position, which we have repeatedly stated in this newsletter, is that the bull trend in equity markets commenced in 2009. Our position has proved correct, despite a series of pullbacks. Our deployment of patience and discipline during these periods bears fruit once the trends returns, as we are witnessing in the equities markets.
We continue to see individual stocks perform well. Our portfolio currently compromises over 20 US stocks. 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, closed the week with a decline of 0.8%, to tretest the weekly 50 SMA. Price remains range bound between 7200 and 7750. 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
Builders FirstSource Inc. – BLDR
Builders FirstSource, Inc. (ticker: BLDR) is a Fortune 500 company that is a manufacturer and supplier of building materials, serving new residential construction, repair and remodelling professionals. The company is headquartered in Dallas, Texas, and is the largest supplier of building products, prefabricated components and value-added services in the US.
BLDR has a history of impulsive trends, as evidenced during 2020-2021. Following a long period of consolidation throughout 2022, in March price broke out and has subsequently trended higher with an impulsive move. A decline during September and October has been met by renewed buying resulting in an all-time high last month.
On the weekly time frame, price continues to trade above the 50 and 200 SMAs. Whilst our proprietary tool, the Sublime trend filter, remains green, reinforcing the bullish outlook.
The daily time frame demonstrates a strong trend is in play. With the 20, 50 and 200 SMAs aligned and diverging, indicating near-term strength. The Sublime trend filter is also green.
Last week’s all-time high will be of particular interest to our Phoenix community. The next area of potential resistance is the $200 round number. A continuation pattern above the all-time high could offer an opportunity for our Phoenix community.
OUTPERFORMING ASSET FOR THE WATCHLIST
Stryker Corporation - SYK
Stryker Corporation (ticker: SYK) is an American multinational medical technologies corporation. Stryker’s products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialities.
SYK is a stock with a history of long-term trends dating back to 2013. Price previously created an all-time high in September 2021 before entering a period of consolidation until May last year when it declined to $200. Price subsequently rebounded, resulting in an all-time high this month. On the monthly time frame, price has started 2024 with strength, resulting in a gain to date of 4.5%.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. The Sublime trend filter is also green on the daily time frame. Price is currently trading above all moving averages, which are aligned.
Looking ahead, a continuation pattern above the all-time high, along with the formation of a linear trend, could present opportunities for our Phoenix community members.
Looking Ahead
The bulls remain in control. We have a large number of positions in US equities which are profiting from this momentum. As the price of the S&P 500 is approaching the all time high, we can expect some volatility. However, as always, we will let price dictate our next move. As long-term inventors, patience is a key weapon in our arsenal.
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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