Welcome to another edition of 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 is generating for our Phoenix members.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week the US markets were shortened due to the Thanksgiving holiday on Thursday.
On the monthly time frame, the S&P 500 has continued November with modest strength, gaining 3.2% to date – this follows a gain of 7.8% in October. Since the low on 13th October, price has gained 15%. On the weekly time frame, the S&P 500 eeked out a gain of 1.6%. On the daily time frame, price remains above both the 20 and 50 SMAs. Price remains marginally below the 200 SMA, which may act as resistance next week. As discussed last week, the outlook for the S&P is to watch for further price action to challenge both the 4000 round number and the daily 200 SMA. the S&P 500 has yet to trade above the daily 200 SMA since April.
The Nasdaq 100 gained just 0.7% for the week. Whilst the Dow Jones was again the best performer of the US indices with a gain of 1.9% over the shortened week.
This week the FTSE 100, the UK index, gained 1.4%, to close clear of the weekly 50 SMA. Price remains above the weekly 200 SMA.
OUTPERFORMING ASSET FOR THE WATCHLIST
Eli Lilly And Company - LLY
Eli Lilly And Company is a stock which first floated in 1970; it wasn’t until twenty-five years later that a trend emerged, lasting over two years! The stock suffered a low point following the great financial crisis of 2007-8, but since then has been in a long-term trend, gaining some 1,350%! Whilst trends historically haven’t been the cleanest, price shows signs of genuine bullishness. Price broke out above last year’s high in March and has since gained over 28% whilst the S&P 500 has declined by 10% over the same time frame.
On the weekly time frame, the price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. This week’s price continued its strength to the upside, retesting the all-time high created earlier in the month. The Sublime trend filter is also green on the daily time frame. Price is currently trading above all moving averages, which are all aligned.
With earnings out of the way, a continuation pattern above the current all-time high could offer our Phoenix community members an opportunity in a bullish stock. The next area of resistance is the $400 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
AmerisourceBergen - ABC
AmerisourceBergen Corporation is an American drug wholesale company that was formed by the merger of Bergen Brunswig and AmeriSource in 2001. They provide drug distribution and consulting related to medical business operations and patient services. AmerisourceBergen handles about 20% of all of the pharmaceuticals sold and distributed throughout the United States and ranked 10th on the Fortune 500 list for 2020 with over $179 billion in annual revenue
ABC is a stock that has a history of long-term trends, as evidenced on the monthly time frame between 2009-2015. However, more recently price action has been mixed. Throughout 2022 this stock has shown signs of bullishness, countering the overall market performance. Price continued strength from December 2021 into the new year, resulting in a series of all time highs, peaking at $167 in April. Price then retreated to the previous year’s high before bouncing to the upside in October. This strength continued into November, resulting in an all-time high of $169.
On the weekly time frame, the Sublime trend filter is green. Price is trading above the 50 and 200 SMA. And on the daily timeframe below, recent indecision following earnings was temporary and strength resumed. Price is once again trading above the 20, 50 and 200 SMA, and the moving averages are aligned. The Sublime trend filter is green.
Looking ahead, a continuation pattern above the current all-time high could provide our Phoenix community with an opportunity in a stock with a history of long-term trends.
This week the US and UK indices continued modestly higher. We continue to monitor all markets actively, scanning for opportunities such as the stocks described today, along with the JPY forex pairs and Dollar strength, and sharing these with our Phoenix community for excellent returns.
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Keep it simple. Keep it Sublime.
The ST Team