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 Continues to Climb Higher
This week the S&P 500 pulled back by -2.3%. This is to be expected after the strength displayed since March. This week’s weakness has resulted in 24 breakouts compared to 137 breakouts last week. On a sector basis, the S&P 500 comprises 11 sectors, and 5 sectors have breakouts, a reduction from all 11 in previous weeks.
Our portfolio remains unchanged, consisting of 10 US stocks and 2 currencies. We have compounded a number of stocks, as they are trending and performing well, in turn, delivering excellent profit for our Phoenix community members.
On the weekly time frame, the S&P 500 remains above both the 50 and 200 SMA (Simple Moving Average). The moving averages are aligned, indicating a consistent trend. Our proprietary tool, the Sublime trend filter, continues to present a green signal – for the 16th consecutive week – further reinforcing the strength of the current market. On the daily time frame, the S&P 500 is using the 20 SMA as support, creating a series of higher highs and higher lows. The Sublime trend filter is also presenting a green signal.
The FTSE 100, the UK’s premier index, also displayed weakness with a decline of 1.7%. Price remains in a range, with price above both the 50 and 200 SMAs and below the all time high at 8047. We continue to monitor this index, waiting for confirmation of direction.
OUTPERFORMING ASSET FOR THE WATCHLIST
Marathon Petroleum Corporation - MPC
Marathon Petroleum Corporation (ticker: MPC) is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011. In 2018, Marathon Petroleum became the largest petroleum refinery operator in the United States, with 16 refineries and over 3 million barrels per day of refining capacity.
MPC is a stock with a history of strong trends such as 2016-2018, and more recently, following the covid pandemic, where price has since gained 745%. Throughout 2022 price was bullish with a gain of 82%. And the momentum has continued into 2023 with a gain to date of 19% and an all time high this month.
On the weekly time frame, price is in an uptrend. Price is trading above both the 50 and 200 SMA, and the Sublime trend filter is green. Since price broke above the 50 SMA on 26 June, price has been bullish, gaining 18%. Whilst on the daily time frame, price remains above all moving averages and the Sublime trend filter is also green.
A continuation pattern above the current all-time high could offer our Phoenix community members an opportunity in a good-performing stock. The next area of resistance is the $200 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
Quanta Services Inc. - PWR
Quanta Services (ticker: PWR) is an American corporation that provides infrastructure services for electric power, pipeline, industrial and communications industries. Capabilities include the planning, design, installation, program management, maintenance and repair of most types of network infrastructure. Quanta Services employs about 40,000 people. Its operating companies achieved combined revenues of about $11 billion in 2018. It is headquartered in Houston, Texas. In 1998, Quanta went public on the New York Stock Exchange and was added to the S&P 500 index in June 2009.
PWR has demonstrated a strong, bullish trend since July 2020, solidifying its position as a top-performing stock. Throughout 2023 the stock has maintained its bullish stance, delivering a gain of 40%.
Examining the weekly time frame, PWR continues to trade above both the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, is displaying a green status, highlighting the prevailing positive sentiment. Furthermore, the alignment of moving averages further supports the bullish outlook.
Shifting focus to the daily time frame, the Sublime trend filter also maintains its green status, reinforcing the favourable trend. PWR’s price remains above the 20, 50, and 200 SMAs. The stock is finding support within the zonal area created by the 20 and 50 SMAs, forming a series of higher highs and higher lows.
Looking ahead, the next significant area of potential resistance is the $200 round number – a level reached this week. Should PWR exhibit a continuation pattern above this level, it could present a promising opportunity for our Phoenix community members, considering PWR’s robust bullish long-term trend.
Looking Ahead
The momentum in the main indexes, such as the S&P 500, continues despite this week’s modest pullback. Our position is the bulls are firmly in control, resulting in many opportunities for savvy investors, such as those in our Phoenix community.
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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