Welcome to our weekly newsletter 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!
US & UK INDICES OVERVIEW
This week the leading US indices have continued to show strength, as the markets shrug off fears of the US banking crisis seen in February. On the monthly time frame, the S&P 500 closed with a gain of 3.7%, reversing the weakness seen earlier in the month. On the weekly time frame, the S&P 500 gained 3.3% – its best week since November. Price is trading above the 50 and 200 SMA and the Sublime trend filter is green. Whilst on the daily time frame, price is trading above all moving averages and the Sublime trend filter is also green. The patience we have applied in recent weeks appears to be bearing fruit, as market strength grows.
The Nasdaq 100 was once again the best performer of the week for the US indices. More impressive was the performance during March where the index gained 9.7%. The Dow Jones index, the laggard of the three leading US indices, also showed strength to close above the weekly 50 SMA. The Dow Jones is also trading above all moving averages on the daily time frame. We now have all US indices trading above all moving averages both the weekly and daily time frames – this gives us confidence in the overall strength of the market.
This week the FTSE 100, the UK index, also showed strength resulting in price closing above the weekly 50 SMA. On the daily time frame, the picture is mixed, with price above the 20 and 200 SMA, but below the 50 SMA.
OUTPERFORMING ASSET FOR THE WATCHLIST
Cadence Design Systems - CDNS
Cadence Design Systems, Inc. is an American multinational computational software company, founded in 1988 by the merger of SDA Systems and ECAD, Inc. The company develops software, hardware and intellectual properties (IP) used to design chips, systems and printed circuit boards, as well as IP covering interfaces, memory, analogue, SoC peripherals, data plane processing units, and verification.
CDNS is a stock we traded throughout 2020 and 2021 for a good profit. With a strong history of trends dating back to 2011, CDNS is a good example of a stock with excellent pedigree. In recent months price has displayed strength, with gains in March and April of 5.5% and 8.9% respectively. This month’s price created an all-time high of $210.
On the weekly time frame, price continues to trade above the 50 and 200 SMA, and the Sublime trend filter is green. Since price found support at 50 SMA in January, price has been bullish. Whilst on the daily time frame, price is also trading above the 50 and 200 SMA and the Sublime trend filter is also green. The moving averages are aligned. And price is consistently using the 20 SMA as support, providing confidence that price is in a steady trend.
Looking ahead, a continuation pattern above the all-time high could offer our Phoenix community members an opportunity in a very bullish stock. The next area of resistance is the $300 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
Stryker Corporation - SYK
Stryker Corporation is an American multinational medical technologies corporation based in Kalamazoo, Michigan. 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. It has subsequently rebounded. On the monthly time frame, price this month has been very bullish with a gain of 8.6%, resulting in an all-time high of $286.
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
This week prices have rebounded strongly following the weakness seen in February due to the US banking situation. With the leading US indices rebounding strongly resulting in the moving averages aligning across all indices on the major time frames , we will now consider new opportunities. Whilst we remain vigilant, we continue to share ideas with our Phoenix community for opportunities for excellent returns.
Keep it simple. Keep it Sublime.
The ST Team
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