Welcome to 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 generates for our Phoenix members.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week all US indices declined significantly, closing below key indicators. On the monthly time frame, the S&P 500 is looking particularly bearish with a decline to date in March of 2.2%, which follows a decline in February of 2.6%. In both months the S&P 500 showed signs of strength, but the bears ultimately gained control to push price down. On the weekly time frame, the S&P 500 fell back below the 50 SMA, however, price remains above the 200 SMA. Whilst on the daily time frame, price is now below all moving averages, however, the 20 and 50 SMA remain above the 200 SMA, so a mixed picture prevails.
The performance of the Nasdaq 100 is largely mirroring the S&P 500. On the weekly time frame price closed back below the 50 SMA but remained above the 200 SMA. The Dow Jones index matched the decline of the S&P 500 for the week, with a decline of 4.2%. Both the Nasdaq 100 and Dow Jones are also trading below all moving averages on the daily time frame.
The declines this week resulting in the main US indices trading below key moving averages change our overall position from looking for buying opportunities to neutral.
This week the FTSE 100, the UK index, had its worst week since September last year with a decline of 2.5%. However, overall the index remains in an uptrend, with price above last year’s high of 7687.
OUTPERFORMING ASSET FOR THE WATCHLIST
The Hershey Company - HSY
The Hershey Company, commonly known as Hershey’s, is an American multinational company and one of the largest chocolate manufacturers in the world. Hershey’s chocolate is available across the United States, and in over 60 countries worldwide.
HSY is a stock with a strong history of trends such as 2011-13, 2019, and 2021-22. Since December 2021 price has gained 36% whilst the S&P has declined 15% over the same period. Price performed very strongly in February with a gain of 6.1%. March is currently green with a modest increase of 0.2%, an outperformance compared to overall market declines.
On the weekly time frame, price continues to trade above the 50 and 200 SMA, and the Sublime trend filter remains green. Whilst on the daily time frame, price is also trading above the 50 and 200 SMA and the Sublime trend filter is also green.
Looking ahead, price continues to find resistance between $240-$243. A breakout and continuation pattern above this level could offer our Phoenix community members an opportunity in a very resilient stock in a generally bearish market. The next area of resistance is the $300 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
FTI Consulting - FCN
FTI Consulting is a business advisory firm headquartered in Washington, D.C., United States. FTI is one of the largest financial consulting firms in the world and consistently ranks as one of the top global management consulting firms. The company specialises in the fields of corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications and technology.
FCN is a stock that was first floated in 1996. The stock has displayed periods of solid trends, such as in 2007, 2018 and 2019. Between July and December 2022 price was in a period of consolidation. This month price has been bullish with a gain to date of 1.6%, along with an all-time high of $192. This follows a very strong month in February with a gain of 15.2%.
On the weekly time frame, the Sublime trend filter is green. Over the past two weeks price has consolidated following the big move on 23 February; this is to be expected. On the daily time frame below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. Whilst the moving averages are diverging, the 50 SMA remains below the 200 SMA.
Looking ahead, the next area of resistance is the all-time high which now coincides with the $200 round number. We will update our Phoenix community should opportunities arise in a bullish stock with a history of strong trends.
Last week’s weakness has continued into this week. As mentioned above, given the position of the indices below key moving average indicators, we will now not consider any new trades and closely monitor existing positions. Whilst we remain vigilant, we continue to share ideas with our Phoenix community for opportunities for excellent returns.
Keep it simple. Keep it Sublime.
The ST Team
P.S. Answer 21 rapid-fire questions about your investing approach and then as if by magic, we will give you recommendations that are right for you and you’ll unlock your FREE Bonuses that will improve your investing results over the next 3 to 5 years.).