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
This week the S&P 500 declined by -2.5% to close the week at 4117. In October price has declined by -4.0%. Price is now trading below the weekly 50 SMA (Simple Moving Average) and daily 200 SMA. Price remains above the weekly 200 SMA (at 3940). As mentioned last week, as price is trading below the daily 200 SMA we are not taking any new bullish positions, and will continue to closely monitor the US indices. Price remains 18% above the October lows, and we continue to remain long-term bullish. We will let price dictate our next move.
Successful trading is a game of discipline and patience. We expect our patience will be rewarded, as it repeatedly has been in the past, with new opportunities along with compounding existing positions. At Sublime Trading, we have a clear trading plan that governs our approach. This is the value of our education programme, where we teach members the right techniques to manage in all market conditions.
Despite recent weakness we continue to see individual stocks perform well. Our portfolio currently compromises 15 US stocks and 3 currencies. 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, followed up last week’s weakness with a further decline of -1.5%. In October price has declined by -4.2%. Price is trading below the weekly 50 SMA, but remains above the weekly 200 SMA. There is potential support at the pivot low from March at 7207. Looking at the bigger picture, price remains in a large range of consolidation between 7200 and 7700. 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
Cigna Corporation - CI
Cigna (ticker: CI) is an American multinational managed healthcare and insurance company based in Bloomfield, Connecticut. Its insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and services. The company ranked No. 12 in the 2021 Fortune 500 list of the largest United States corporations by total revenue.
CI is a stock that has a history of trends, such as in 2013-2015 and 2017. Throughout 2022 this stock significantly outperformed the US indices, gaining over 46%. In 2023 price weakened between January to May, until price reach the $250 half round number, where the buyers stepped back in. During October strength continued resulting in a gain to date of 6.0%.
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. On 13th October price broke out above $300; price has since retreated to retest this important level.
Looking ahead, price remains below the all-time high of $340. Whilst potential support is the $300 round number, along with the daily 20 and 50 SMA, and the weekly 50 SMA. Given the current weakness in the US indices, we are applying patience. A close above the all-time high and the formation of a continuation pattern could present opportunities for our Phoenix community members in a stock we have traded for excellent returns in the past.
OUTPERFORMING ASSET FOR THE WATCHLIST
FTI Consulting Inc. - FCN
FTI Consulting (ticker: FCN) is a business advisory firm headquartered in Washington, D.C., United States. FTI is one of the largest financial consulting firms in the world and consistently ranks as one of the top global management consulting firms. The company specialises in the fields of corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications and technology.
FCN is a stock that was first floated in 1996. The stock has displayed periods of solid trends, such as in 2007, 2018 and 2019. Throughout 2022 and 2023 price has been in an uptrend, however convincing direction. This week price created an all-time high of $218.
On the weekly time frame, the Sublime trend filter is green. Whilst on the daily time frame below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. This week price responded favourably to earnings, gaining 18%.
Looking ahead, we will monitor this week’s price action, to assess whether price will form a continuation pattern above the all-time high. The next area of potential resistance is the $300 round number. We will update our Phoenix community should an opportunity arise in a stock with a history of strong trends.
Looking Ahead
This week has seen the bears again challenge the gains previously recorded in October. As long term inventors, patience is a key weapon in our arsenal. We continue to apply the necessary patience, and await price to dictate our next move. Despite the recent pullback, 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
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