Welcome to another edition of 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 is generating for our Phoenix members.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week, the US and UK equity markets have been muted in comparison to recent weeks. Price never moves in a straight line, and one of our core principles is always to let price dictate.
On the monthly time frame, the S&P 500 has continued November with modest strength, gaining 2.3% to date – this follows a gain of 7.8% in October. Since the low on 13th October, price has gained 13%. On the weekly time frame, the S&P 500 traded within a very tight range of only 3.0%. On the daily time frame, price remains above both the 20 and 50 SMAs and the cross of the 20 SMA above the 50 SMA has been confirmed. Price remains below the 200 SMA. As discussed last week, the outlook for the S&P is to watch for further price action to challenge both the 4000 round number and the daily 200 SMA at 4055.
The muted performance in the S&P 500 was seen across all US indices, with a decline in the Nasdaq 100 of 1.0%, whilst the Dow Jones index was flat with a gain of just 0.1%.
This week the FTSE 100, the UK index, gained 0.9% to close above the weekly 50 SMA. Price remains above the weekly 200 SMA.
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 solid trends such as 2016-2018, and more recently, following the covid pandemic, where price has since gained 471%. Throughout 2022 price has been bullish with a gain of 91%. Price made an all-time high this month at $123.
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 continues to trend above all moving averages, and all moving averages are aligned.
Looking ahead, a continuation pattern above the current all-time high at $123 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
W.R. Berkley Corporation - WRB
W. R. Berkley Corporation is a commercial lines property & casualty insurance holding company organised in Delaware and based in Greenwich, Connecticut. The company operates commercial insurance businesses in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia and reinsurance businesses in the United States, United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa.
WRB is a stock that has been in a long-term trend, but the quality of the trend has been mixed. This stock performed well during 2019 and, more recently, following a breakout above last year’s high in February, price has been bullish with a gain of 31%.
On the weekly time frame, the Sublime trend filter is green. Price is trading above the 50 and 200 SMA. in September price retested the 50 SMA, found support, and has since gained 16%.
On the daily timeframe below, a pullback last week to the 50 SMA has been countered with a strong move up this week. Price is once again trading above the 20, 50 and 200 SMA, and the moving averages are aligned. The Sublime trend filter is green.
Looking ahead, a break and close above the all-time high made earlier this month at $76 could provide our Phoenix community with an opportunity in a stock with a history of solid trends.
Looking Ahead
This week the US and UK indices have been somewhat muted when compared to recent volatility. We continue to monitor all markets actively, scanning for opportunities such as the stocks described today, along with the JPY forex pairs and Dollar strength, and sharing these with our Phoenix community for excellent returns.
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Keep it simple. Keep it Sublime.
The ST Team
