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 the US indices demonstrated strength with the S&P 500 and Nasdaq both retaking the weekly 50 SMA, whilst the Dow Jones index bounced off the same SMA. On the monthly time frame, the S&P 500 closed February with a decline of 2.6%. Whilst March has started with strength. As mentioned, on the weekly time frame the S&P 500 has regained the 50 SMA. Whilst on the daily time frame, price closed back above the daily 50 SMA to trade marginally below the 20 SMA. On the daily time frame, the moving averages remain aligned but mixed.
The performance of the Nasdaq 100 is largely mirroring the S&P 500. February closed with a decline of 0.4%. The Dow Jones index also had a gain for the week, but faces resistance on the daily time frame, closing marginally below both the 20 and 50 SMA.
This week the FTSE 100, the UK index, showed a return to strength with a gain of 0.9%. The strength in January continued in February with a gain of 1.4%. On the daily time frame, price is trading around the 20 SMA, and above both the 50 and 200 SMAs.
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 485%. Throughout 2022 price was bullish with a gain of 82%. And the momentum has continued into 2023 with an all-time high in January of $136.
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 in November 2020, price has used the 50 SMA as support – an indicator that gives us confidence the long-term trend will continue.
Whilst on the daily time frame, price remains above all moving averages and the Sublime trend filter is also green. Following the all-time high, price retreated to support at $114, a minor pivot level, before the bulls took back control. Price is now trading above all moving averages.
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 - 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 is a stock our Phoenix community traded successfully throughout 2020 and 2021 when the stock increased by over 200%. Since October 2021 price action has been mixed, but climbing. In 2023 the bulls have maintained control, resulting in an all-time high of $169 in February.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. The Sublime trend filter is also green on the daily time frame. Price is currently trading above all moving averages.
Looking ahead, we will monitor the current price action. A continuation pattern above the all-time high and the formation of a linear trend could present opportunities for our Phoenix community members in a stock that has delivered a good profit in the past.
Looking Ahead
Last week’s weakness was countered by strength this week. 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
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