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 5969, marking a 1.7% weekly gain. Price continues to hover around the critical 6000 level, reflecting the ongoing battle between bulls and bears. November remains a strong month so far, with gains to date of 4.6%.
Year-to-date, the S&P 500 has delivered an impressive 26% return, maintaining its bullish trajectory. The index has climbed 46% from its October 2023 low and 71% from its October 2022 low, underscoring the resilience of the ongoing uptrend.
While broad indices like the S&P 500 provide an overall market perspective, they often mask standout individual performers. Throughout 2024, stocks such as NVDA, FI, PWR, ORCL, MMC, PGR, WRB, BSX, WMT, GDDY, and RSG have been highlighted in this newsletter, frequently ahead of their significant upward trends.
Other U.S. indices also regained strength, with the Nasdaq 100 advancing 1.9% and the Dow Jones adding 2.0%, closing the week at an all-time high.
In the UK, the FTSE 100 rebounded with a 2.5% weekly gain, bouncing off the weekly 50 SMA to demonstrate renewed strength.
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 ended the week at $63, recording a significant 10.6% gain and reaching an all-time high. This strong performance followed Friday’s earnings report. Before this breakout, the stock had been consolidating within a $50-$58 range since April.
On the weekly timeframe, CPRT has regained its position above the 50 SMA. The Sublime Trend Filter, our proprietary tool, is showing a green signal, indicating positive sentiment.
On the daily timeframe, the Sublime Trend Filter also remains green. Following Friday’s surge, CPRT is now trading above the 20, 50, and 200 SMAs, with the moving averages aligned.
Looking ahead, the next significant resistance level is the $100 round number. A continuation pattern above Friday’s breakout could present an opportunity for Phoenix community members in a stock with a proven history of long-term trends.
OUTPERFORMING ASSET FOR THE WATCHLIST
McKesson Corporation – MCK
McKesson Corporation (ticker: MCK) is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools. The company delivers a third of all pharmaceuticals used in North America and employs over 51,000 employees. McKesson had revenues of $276 billion in its fiscal year ending March 31, 2023.
MCK has demonstrated a history of sustained long-term trends, notably between 2013-2014 and more recently since 2021. After breaking out in March 2021, the stock has exhibited remarkable strength, gaining over 230%. Following an all-time high in July, the price pulled back to the $500 round number before finding support. Strength has since returned, with the price now retesting the July highs. November has been particularly strong, with a gain of 24.5% so far.
On the weekly timeframe, MCK continues to trade above the 50 and 200 SMAs, with the Sublime Trend Filter indicating bullish momentum.
On the daily timeframe, the Sublime Trend Filter is also green, with the price trading above the 20, 50, and 200 SMAs. Since the earnings announcement on 6th November, the stock has gained over 18%, with bulls firmly back in control.
Phoenix community members have successfully traded MCK for significant profits over the years. As the trend progresses, we anticipate further opportunities to add to positions. The next key resistance level is the $700 round number.
Looking Ahead
The U.S. equity markets have shown remarkable strength and resilience recently, in turn pushing equities higher in alignment with broader trends.
Our steadfast, data-driven methodology continues to deliver results. Even amidst short-term pullbacks, our portfolio remains strategically positioned, thriving on the strong momentum of trending stocks and highlighting the robustness of our trend-following approach.
With a diverse selection of stocks exhibiting solid upward trends, we remain committed to allowing price action to guide our decisions. This adaptability ensures we are well-prepared to navigate shifting market conditions and seize emerging opportunities with confidence.
At Sublime, we are dedicated to detailed, objective analysis driven by chart-based data and evidence. This focus allows us to support our Phoenix community in identifying potential for sustained, profitable trades.
Keep it simple. Keep it Sublime.
The ST Team
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