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
Following two weeks of muted returns, strength returned to the S&P 500 this week. The index gained 2.3% to close at 5234. This performance has resulted in another all-time high. The index remains above the key moving averages on both the weekly and daily time frames. The index has gained 27% since the October 2023 low and 48% since the October 2022 low. The Nasdaq 100 and Dow Jones Index also recorded all-time highs, giving us confidence in strength in the broad market.
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.
Strength also returned to the FTSE 100, the UK’s premier index, gaining 2.6% to close at 7931. Price has now broken out of the range between 7200 and 7770 which we have been highlighting over recent months. The next level of potential resistance is the 8000 round number, along with the all-time high 8047. We continue to monitor this index, waiting for confirmation of trend formation.
OUTPERFORMING ASSET FOR THE WATCHLIST
Fiserv Inc. – FI
Fiserv Inc. is an American multinational company that provides financial technology services to clients across the financial services sector, including: banks, thrifts, credit unions, securities broker dealers, mortgage, insurance, leasing and finance companies, and retailers. In October 2015, Fiserv, Inc. was ranked third by revenue among technology providers to U.S. banks.
FI is a stock that has a history of linear trends. Between January 2020 and November 2023 price was in a large range. Price has since broken out and formed a linear trend, gaining 37%, resulting in a new all-time high.
On the weekly time frame, FI remains above both the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, maintains a green signal. Since price retested the weekly 200 SMA in October, price has been bullish.
Meanwhile, on the daily time frame, the Sublime trend filter also remains green. Price is trading above the 20, 50, and 200 SMA. Price is in a linear trend, consistently using the 20 SMA as support.
Looking ahead, the next level of potential resistance is the $200 round number. A breakout above the current all-time high, with confirmation, could offer an opportunity for our Phoenix community in a stock with a long history of sustained trends.
OUTPERFORMING ASSET FOR THE WATCHLIST
Builders FirstSource Inc. – BLDR
Builders FirstSource, Inc. (ticker: BLDR) is a Fortune 500 company that is a manufacturer and supplier of building materials, serving new residential construction, repair and remodelling professionals. The company is headquartered in Dallas, Texas, and is the largest supplier of building products, prefabricated components and value-added services in the US.
BLDR has a history of impulsive trends, as evidenced during 2020-2021. Following a long period of consolidation throughout 2022, in March price broke out and has subsequently trended higher with an impulsive move. A decline during September and October has been met by renewed buying resulting in an all-time high last month.
On the weekly time frame, price continues to trade above the 50 and 200 SMAs. Whilst our proprietary tool, the Sublime trend filter, remains green, reinforcing the bullish outlook.
The daily time frame demonstrates a strong trend is in play. With the 20, 50 and 200 SMAs aligned and diverging, indicating near-term strength. The Sublime trend filter is also green.
Last week’s all-time high will be of particular interest to our Phoenix community. The next area of potential resistance is the $300 round number. A continuation pattern above the all-time high could offer an opportunity for our Phoenix community.
Looking Ahead
This week the strength of the bulls in the main US indices was again evident, resulting in a new round of all-time highs. 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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