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 Roars to Highest Close Since August 2022
Continuing its recent strong performance, the S&P 500 powered to its highest closing level since August 2022. The index closed at 4299, a gain of 0.4% over the previous week.
At Sublime Trading, our proven methodology revolves around a successful approach that prioritises factual evidence; market prices dictate our actions.
As we delve into June’s market action, the S&P 500 continues to display bullish momentum, with an impressive 2.8% gain this month. And across 2023 the S&P 500 has delivered a strong gain of 11.8%. The all-time high for the index stands at 4820, leaving the current price 10.8% below that significant milestone.
On the technical front, the bulls remain firmly in control as the S&P 500 continues to trade above both the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, maintains its green status, signifying a positive market environment. Furthermore, the moving averages are aligned, reinforcing the index’s current strength.
Shifting our focus to the daily timeframe, the Sublime trend filter also remains green. Price is displaying strength by trading above all moving averages, while the alignment of the moving averages underscores the index’s stability and potential for further gains.
The FTSE 100, the UK’s premier index, closed the week with a decline of 0.6% at 7562. Price remains above the weekly 50 and 200 SMAs, but off the highs displayed in February.
PERFORMANCE REVIEW
Hubbell Inc. - HUBB
Hubbell Incorporated (ticker: HUBB) is an American company that designs, manufactures, and sells electrical and electronic products for non-residential and residential construction, industrial, and utility applications. Hubbell was founded in 1888, and is ranked 602 by Fortune.
We first entered HUBB in May, compounding on multiple occasions. Price broke above a key pivot level in April and has formed a bullish trend, gaining 14%. On both the weekly and daily timeframes the moving averages are aligned. The next area of potential resistance is the $400 round number.
The total performance to date is a 102% Return On Investment and 2% Return On Capital, applying a full portfolio risk of 2%.
HUBB is a good example of how a stock can form a bullish trend following a breakout from a key resistance level. The total amount of time required to set up and manage this trade has been less than one hour over the past month – this is the benefit of trend trading; using higher time frames such as monthly and weekly charts to avoid the noise and stress of shorter time frames. This approach enables busy professionals the freedom to pursue other interests and avoid hours each day in front of a trading screen.
OUTPERFORMING ASSET FOR THE WATCHLIST
Oracle Corporation - ORCL
ORCL: Tech Titan Defies Gravity with Impressive Bullish Momentum
Oracle Corporation (ticker: ORCL) is an American multinational computer technology corporation headquartered in Texas. In 2020, Oracle was the third-largest software company in the world by revenue and market capitalisation. The company sells database software and technology (particularly its own brands), cloud engineered systems, and enterprise software products, such as enterprise resource planning (ERP) software, human capital management (HCM) software, customer relationship management (CRM) software (also known as customer experience), enterprise performance management (EPM) software, and supply chain management (SCM) software.
ORCL has been on an impressive long-term journey ever since the dotcom bubble burst back in 2002. Since then, it has managed to gain an incredible 1355%. This stock has a history of delivering bullish periods, and its most recent run lasted from March to November 2021.
More recently ORCL has been displaying bullish momentum with a 80% gain to date and reaching an all-time high. At the week’s close, ORCL was $110, marking a 3.8% increase over the past week alone. And if we take a step back and look at the bigger picture, ORCL has returned an impressive 34.1% gain in 2023.
On the weekly time frame, ORCL continues to exhibit strength as it trades above both the 50 and 200 SMAs. Our trusted proprietary tool, the Sublime trend filter, remains green, reinforcing the positive sentiment. The moving averages are nicely aligned, signalling a promising outlook. In fact, last September, after a retreat to the 200 SMA, ORCL bounced back with vigour, gaining over 70% since then.
Switching to the daily time frame, the Sublime trend filter remains firmly in the green zone, indicating favourable conditions. Price continues to trade above the 20, 50, and 200 SMAs. The moving averages are aligned and diverging, which suggests that near-term strength will continue. Furthermore, price is consistently using the 20 SMA as support, leading to higher highs and higher lows – a clear sign of upward momentum.
Looking forward, our attention turns to the next significant hurdle: the $150 round number. If ORCL continues to trend, it could present an opportunity for our Phoenix community members. This stock, with a history of strong trends, makes it an attractive prospect for astute investors.
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 at the start of June and its remarkable gains throughout 2023 exemplify a highly favourable market environment. Although surpassing the all-time high remains a goal yet to be achieved, the S&P 500’s present position, coupled with its robust market indicators, 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
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.
