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
This week the S&P 500 recorded a modest decline of -0.1% to close at 5117. This week marked the first week in 2024 that the index did not print an all-time high. As we have stated in this newsletter many times, price never moves in a straight line. The index remains above the key moving averages on both the weekly and daily time frames. We will let price dictate our next move. The index has gained 25% since the October 2023 low and 46% since the October 2022 low.
We continue to see individual stocks perform well. Our portfolio currently comprises over 20 US stocks, including LLY, AMP, META and NVDA. We have compounded these assets resulting in excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, gained 0.9% to close at 7727. Price remains range bound between 7200 and 7770. 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
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 concluded the week at $56, resulting in a gain of 2.1% over the past week. Notably, this stock has demonstrated very bullish price action following the most recent earnings report on 22nd February. Since then price has gained 15%, resulting in an all-time high. During the movement price also closed above the previous year high and $50 round number which was previously acting as resistance.
On the weekly time frame, CPRT maintains a trading position above the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, continues to display a green signal, reflecting a positive market sentiment.
Whilst on the daily time frame, the Sublime trend filter remains green, and price continues to trade above the 20, 50, and 200 SMAs.
Looking ahead, the next area of potential resistance is the important $100 round number. A continuation pattern above the current level could offer members of our Phoenix community an opportunity in a stock with a history of long term trends.
OUTPERFORMING ASSET FOR THE WATCHLIST
Republic Services Inc. – RSG
Republic Services, Inc. (ticker: RSG) is a provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. The company operates through collection operations, landfill operations, transfer station operations and recycling operations segments.
RSG has a history of linear trends, including between 2014 and 2020, and 2021. More recently, commencing in November, price has been bullish with a gain of 26% and all-time high.
On the weekly time frame, the price continues to trade above both the 50 and 200 SMA. Our proprietary tool, the Sublime trend filter, remains green and the moving averages are aligned.
Whilst on the daily time frame, the Sublime trend filter is also green. Price is trading above the 20, 50 and 200 SMAs, and the moving averages are also aligned. And price is consistently using the 20 SMA as support.
Looking ahead, the next area of potential resistance is at the $200 round number. A continuation pattern above the all-time high could present an opportunity for our Phoenix community members to invest in a strong trending stock.
Looking Ahead
The past two weeks have seen muted returns on the S&P 500, which is to be expected given the recent bullish price action. However, the bulls remain in control of the US equity markets. We have a large number of positions which are profiting from this momentum. As always, we will let price dictate our next move.
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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