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 concluded the week at $4119, reflecting a modest -0.3% decline from the previous week. During May, the index displayed weakness with a 1.2% decline to date, yet it has generated a 7.2% gain since the start of the year. Notably, the index stands 14.5% below its all-time high of $4820, and 2022 saw a decline of 12.7%.
On the weekly time frame, the S&P 500 continues to trade above the 50 and 200 SMAs, while our proprietary Sublime trend filter tool remains green, and the moving averages are aligned. On the daily time frame, the Sublime trend filter also registers green, and the index is trading slightly below the 20 SMA but remains above both the 50 and 200 SMAs.
As the economic landscape continues to evolve amidst concerns of a potential recession, high inflation, and interest rates, the US indices have demonstrated impressive resilience. At Phoenix, we are continuously monitoring these developments and engaging with our community of investors to identify promising opportunities that offer exceptional returns. With a vigilant and steadfast approach, we remain committed to optimising our investment strategy and achieving success in today’s challenging market environment.
This week the FTSE 100, the UK index, again displayed modest weakness with a decline of -0.3%. Price remains above the weekly 50 and 200 SMA. Whilst on the daily time frame, price remains below the 20 SMA but above the 200 SMA.
OUTPERFORMING ASSET FOR THE WATCHLIST
Copart Inc. - CPRT
Copart, Inc. (ticker: CPRT) is a global provider of online vehicle auction and remarketing services to automotive resellers such as insurance, rental car, fleet and finance companies in 11 countries; the US, Canada, the UK, Germany, Ireland, Brazil, Spain, UAE, Bahrain, Oman and Finland. Headquartered in Dallas, Texas, Copart has more than 200 physical locations around the world, where it houses more than 10,000 acres of vehicle inventory.
CPRT has demonstrated a strong upward trend since March 2016, with a remarkable gain of 656%. During the week, CPRT closed at $82, reflecting a weekly increase of 3.8%. Since the beginning of May, this stock has displayed a bullish trend, with a gain of 3.8%. In the current year, CPRT has delivered a gain of 34.4%. The all-time high for CPRT stands at $82, and its current price is at par with the all-time high.
On the weekly time frame, CPRT’s price remains above the 50 and 200 SMA, with our proprietary Sublime trend filter still indicating a green signal. The moving averages are aligned, and the price has recently closed above the previous all-time high.
On the daily time frame, the Sublime trend filter remains green, and the price is trading above the 20, 50, and 200 SMA. The price is trending above the 20 SMA and making higher highs and lower highs, signalling a bullish trend.
Looking forward, the $100 round number represents the next area of resistance. A continuation pattern above the all-time high could present an opportunity for members of our Phoenix community to capitalise on this strong trending stock.
OUTPERFORMING ASSET FOR THE WATCHLIST
General Mills Inc. - GIS
General Mills, Inc., (ticker: GIS) is an American multinational manufacturer and marketer of branded processed consumer foods sold through retail stores. Today, the company markets many well-known North American brands, as well as breakfast cereals under the General Mills name, including Cheerios, Lucky Charms and Cocoa Puffs.
GIS, a stock with a long-term trend dating back to 1986, closed at $91 at the end of last week, registering a 1.1% increase over the past week. The stock has been bullish in May, with a gain of 2.2% to date, and has returned an 8.3% gain since the start of 2023. Currently, the stock is trading at 0.0% below its all-time high of $91.
On the weekly time frame, GIS is trading above the 50 and 200 SMA, while the Sublime trend filter, our proprietary tool, remains green. The moving averages are aligned, and price has been bullish since bouncing off the 50 SMA in February.
On the daily time frame, the Sublime trend filter is also green, and price is trading above the 20, 50, and 200 SMA. The moving averages are aligned and diverging, indicating short-term bullishness.
Looking ahead, the next area of resistance for GIS is the $100 round number. A continuation pattern above this level could offer our Phoenix community members an opportunity in a very resilient stock in a generally bearish market.
Looking Ahead
Despite a brief pause in the markets this week amid ongoing fluctuations, the leading US indices have demonstrated impressive resilience. This sustained strength has resulted in aligned moving averages across all primary time frames, creating opportunities for our valued Phoenix community of investors.
As we closely monitor market developments, we work in close partnership with our Phoenix community to identify promising avenues for generating exceptional returns. Despite ongoing volatility, we remain unwavering in our commitment to achieving profitable trades.
Keep it simple. Keep it Sublime.
The ST Team
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