Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected assets that are outperforming the market.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week the markets experienced volatility not seen in recent months. On Monday the S&P 500 challenged the all-time high before gapping down on Tuesday. This was followed by a 1.2% decline on Thursday, and a 1.1% rebound on Friday. In summary, a decline over the week of 1.0%. Similar volatility was seen in the Nasdaq 100 and Dow Jones Index.
Despite this short term volatility, the strength remains with the bulls. The S&P 500 index has gained 26% since the October 2023 low and 47% since the October 2022 low.
We continue to see individual stocks perform well. Our portfolio currently comprises over 20 US stocks, including LLY, AMP, META and NVDA. We have compounded these assets resulting in excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, declined by 0.5% to close the week at 7911. However, recent strength is still prevalent as price challenges the all-time high of 8047. The next level of potential resistance is the 8000 round number, along with the all-time high 8047. We continue to monitor this index, waiting for confirmation of trend formation.
PERFORMANCE REVIEW
Meta Platforms – META
META (ticker: META) owns and operates Facebook, Instagram, Threads, and WhatsApp, among other products and services. It is considered one of the Big Five American information technology companies, alongside Google’s parent company Alphabet, Amazon, Apple, and Microsoft.
Our breakout strategy initially entered META in December 2023 following a fresh all-time high. Further compound positions have been taken, as price has moved in our favour. Price has been particularly bullish with a total gain of 64%, resulting in an all-time high of $531 this week.
The total performance to date is a 1,778% Return On Investment, and 36% Return On Capital, applying a full portfolio risk of 2%.
This stock is an excellent example of a trending stock. The total amount of time required to set up and manage this trade has been less than two hours over five months – this is the benefit of trend trading; using higher time frames such as monthly and weekly charts avoids 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
ConocoPhillips – COP
ConocoPhillips (ticker: COP) is an American multinational corporation engaged in hydrocarbon exploration and production. It is based in the Energy Corridor district of Houston, Texas. The company has operations in 15 countries, with 49% of its production in the United States.
COP is a stock with an interesting history of strong trends, such as 2004-6 and more recently, throughout 2021-22. Price created an all-time high in November at $138. Price subsequently retreated to the $100 round number where it found support. Throughout March and April price has been bullish, with gains of 13% and 5% respectively.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter, our proprietary tool, is green. Whilst on the daily time frame, the Sublime trend filter is also green. Price is currently trading above all moving averages, which are all aligned and diverging, indicating near-term strength.
Looking ahead, a continuation pattern above the current all-time high at $138 could offer our Phoenix community members an opportunity in a good-performing stock. The next area of potential resistance is the $200 round number.
Looking Ahead
The volatile markets have not influenced our strategy. We believe the bulls remain in control of the US equity markets. We have a large number of positions which are profiting from this momentum. As always, we will let price dictate our next move.
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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