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
S&P 500 Momentum Continues With Its Strongest Performance Since March
Last week, both the S&P 500 and Nasdaq delivered notable gains, marking their strongest performances since March. The S&P 500 closed the week at $4410, a 2.6% increase over the past week. This positive momentum is encouraging and demonstrates the resilience of the market.
At Sublime Trading, our proven methodology revolves around a successful approach that prioritises factual evidence; market prices dictate our actions.
Throughout June, the S&P 500 has exhibited a bullish trend, accumulating a gain of 5.5% to date. While May’s performance was more modest, closing with a 0.2% gain, the overall trend remains positive. Looking at the bigger picture, the S&P 500 has returned an impressive 14.7% gain thus far in 2023.
On the weekly time frame, the S&P 500 continues to trade above both the 50 and 200 SMAs. We use this indicator as our barometer for overall trend direction, which indicates a positive market sentiment and suggests a favourable trend for the index. Furthermore, our proprietary tool, the Sublime trend filter, remains green, providing additional confirmation of the index’s positive conditions.
The FTSE 100, the UK’s premier index, closed the week with a gain of 1.1% at 7643. Price remains above the weekly 50 and 200 SMAs, but off the highs displayed in February.
OUTPERFORMING ASSET FOR THE WATCHLIST
Eli Lilly Corporation - LLY
LLY: Promising Momentum Results in All-Time High
Eli Lilly and Company (ticker: LLY) is a pharmaceutical company that develops and produces medication for various diseases and conditions. Its products are sold in approximately 125 countries. The company was founded in 1876 and is best known for its clinical depression drug Prozac. Lilly’s achievements include being the first company to mass-produce the polio vaccine and insulin.
LLY has been following a remarkable long-term trend since August 2018, witnessing an impressive gain of over 300%. This enduring upward movement speaks to the stock’s potential and its ability to deliver substantial returns over time.
More recently, LLY has exhibited a strong trend, particularly since surpassing last year’s high in April. This breakthrough has resulted in strong momentum, indicating positive market sentiment surrounding the stock.
LLY closed the week at $448, registering a modest increase of 0.4% over the past week. Furthermore, throughout June, LLY has demonstrated a bullish streak, with a noteworthy gain of 4.4% so far this month. Looking at the bigger picture, LLY has generated an impressive return of 22.4% in 2023, showcasing its potential as an attractive investment option.
Examining the technical indicators on the weekly time frame, LLY’s price continues to trade above both the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, remains consistently green, providing further confirmation of the stock’s favourable conditions.
On the daily time frame, the Sublime trend filter is also green, confirming positive momentum. Furthermore, LLY’s price is currently trading above the 20, 50, and 200 SMAs, reinforcing the bullish sentiment. The alignment of the moving averages serves as an indicator of near-term strength, while the utilisation of the 20 SMA as support has resulted in higher highs and higher lows, further solidifying the positive outlook.
Looking ahead, it is important to consider potential areas of resistance. The next significant hurdle for LLY lies at $500, a psychologically significant round number. If the stock manages to sustain a continuation pattern above its all-time high, it may present an enticing opportunity for our Phoenix community members. LLY’s history of long-term trends makes it a stock worth considering for those seeking lucrative investment prospects.
OUTPERFORMING ASSET FOR THE WATCHLIST
Booz Allen Hamilton - BAH
BAH: Strong Momentum and the All-Time High With Reach
Booz Allen Hamilton Holding Corporation (informally Booz Allen) (ticker: BAH) is the parent of Booz Allen Hamilton Inc., an American management and information technology consulting firm, headquartered in McLean, Virginia, in Greater Washington, D.C., with 80 other offices around the globe. The company’s stated core business is to provide consulting, analysis and engineering services to public and private sector organisations and nonprofits.
A relatively new stock, floating in 2010, price has been in an uptrend and displayed periods of linearity such as in 2019.
BAH concluded the week at $109, recording a very bullish increase of 4.8% over the past week. Moreover, throughout June, this stock has demonstrated bullish momentum, resulting in a gain of 13.5% to date this month.
Turning our attention to the technical indicators on the weekly time frame, BAH’s price continues to trade above both the 50 and 200 SMAs. This indicates a positive sentiment and suggests a favourable trend for the stock. Furthermore, our proprietary tool, the Sublime trend filter, remains green.
Shifting our focus to the daily time frame, the Sublime trend filter maintains its green signal, reinforcing the stock’s positive momentum. Furthermore, BAH’s price is trading above the 20, 50, and 200 SMAs, underscoring its bullish sentiment.
Looking ahead, the next significant obstacle for BAH lies at the $150 round number. A continuation pattern above the all-time high could present a promising opportunity for our Phoenix community members. BAH’s bullish long-term trend makes it a stock worth considering.
Looking Ahead
The S&P 500 continues to display resilience, sustaining recent strength and, in turn, presenting high probability opportunities for investors. The index’s robust performance in June and its strong gains throughout 2023 demonstrate the favourable market environment. The S&P 500’s momentum signals the potential for ongoing growth.
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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