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
The S&P 500 closed the week at 5567, a weekly gain of 1.95%, and an all-time high. The muted performance over the past two weeks was merely price pausing before this week’s move. Similar movement was seen in the Nasdaq 100, whilst the Dow Jones Index remains in a period of consolidation. Year to date, the S&P 500 has gained an impressive 17%.
As a result, the bullish momentum in equity markets remains strong. The S&P 500 has surged 34% since the low in October 2023 and 57% since the low in October 2022.
We continue to see individual stocks perform well. Our portfolio currently comprises over 20 US stocks, including LLY, AMP, META, NVDA and MCK. We have compounded these assets on multiple occasions, resulting in excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, had a volatile week, but made a modest gain of 0.5%, to close at 8204. Following a breakout above the all-time high in April, price has been bullish. As a result, we are now actively looking for opportunities.
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 January 2024, following a fresh all-time high. As price has moved in our favour, further compound positions have been added. Price was very bullish in January and February. A pullback in April has been countered by further strength, resulting in a total gain of 55%, and an all-time high on Friday of $540.
The total performance to date is a 1,945% Return On Investment, and 39% 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 three hours over six 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
Marsh & McLennan Companies – MMC
Marsh & McLennan Companies, Inc. (ticker: MMC) is a global professional services firm, with businesses in insurance brokerage, risk management, reinsurance services, talent management, investment advisory, and management consulting. Its four main operating companies are Marsh, Guy Carpenter, Mercer, and Oliver Wyman. MMC ranked #212 on the 2018 Fortune 500 ranking. In 2017, Business Insurance ranked MMC #1 of the world’s largest insurance brokers.
MMC is a stock with an excellent history of trends dating back as far as 2013. This pedigree gives us confidence that the stock has the potential to continue to trend in the future. Notably, in June 2023, price broke out above the previous year’s high at $183. Since then, price has been moving higher, resulting in an all-time high in June of $217.
MMC concluded the week at $214. On the weekly time frame MMC continues to trade above both the 50 and 200 SMA. The Sublime trend filter remains consistently green, aligning with the bullish sentiment.
Whilst on the daily timeframe, the Sublime trend filter, our proprietary tool, also continues to signal green, consistent with the longer-term trend. Price action on the daily frame shows MMC trading above the 20, 50, and 200 SMAs. These moving averages are also aligned and diverging, giving us further confidence in the strength of the trend.
Looking ahead, a close above the recent all-time high could present an opportunity for our Phoenix community members in a stock with a strong history of linear, long term trends.
Looking Ahead
We believe the bullish trends in US equities will continue. Our multiple positions are benefiting from this momentum. As always, we will let price action guide 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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