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 was a mixed picture for the US indices, with gains in the S&P 500 and Nasdaq 100 of 1.0% and 5.4% respectively, whilst the Dow Jones declined 0.5%. On the monthly time frame, the S&P 500 is not looking as bearish as last week with a potential indecision candle forming. The decline this month is 1.2%. On the weekly time frame, the S&P 500 gained 1.0%, countering the significant decline from the previous week. Price made an attempt at the weekly 50 SMA but failed. Whilst on the daily time frame, on Friday price failed at the 50 SMA, to close back below the 200 SMA. As mentioned last week, a mixed picture prevails in the S&P 500. As a result, we will apply patience and await direction from price itself.
The Nasdaq 100 was the best performer of the week for the US indexes. A strong gain of 5.4% pushed price above the weekly 50 SMA, along with all moving averages on the daily time frame. The Dow Jones index is finding resistance at the daily 200 SMA and closed the week with a small indecision candle.
This week the FTSE 100, the UK index, followed up last week with another large decline. In March, price has now declined 6.9%, its largest monthly decline since the pandemic in 2020. Price this week also closed below the weekly 50 SMA, resulting in our position changing to a monitoring stance.
OUTPERFORMING ASSET FOR THE WATCHLIST
Microsoft Corporation - MSFT
Microsoft needs little introduction. as the most prominent software seller dominating the PC market with its uber-popular Windows operating system and Office software packages. They also broke into gaming in 2001 with the Xbox and are not shy when it comes to acquiring websites such as Linkedin which they did for almost $27 billion in cash.
MSFT’s overall performance is unparalleled, with a trend dating back to July 2016. Whilst price declined throughout 2022, strength is building in price in 2023. In March, to date, price has gained an impressive 12%, its largest gain since October 2021. On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. Whilst on the daily time frame, price is also trading above all moving averages. We do however need to see the moving averages fully aligned, as the 50 SMA is currently below the 200 SMA. The next area of potential resistance is the $300 round number.
Looking ahead, our Phoenix community members will be monitoring this stock closely. Our community has traded this stock in the past for excellent profit.
OUTPERFORMING ASSET FOR THE WATCHLIST
Stryker Corporation - SYK
Stryker Corporation is an American multinational medical technologies corporation based in Kalamazoo, Michigan. Stryker’s products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialities.
SYK is a stock with a history of long-term trends dating back to 2013. Price created an all-time high in September 2021 before entering a period of consolidation until May last year when it declined to $200. It has subsequently rebounded. On the monthly time frame, price this month has been very bullish with a gain of 4.46%, following last month’s new all-time high of $284.
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, which are aligned.
Looking ahead, a continuation pattern above the all-time high, along with the formation of a linear trend, could present opportunities for our Phoenix community members.
This week prices have largely stabilised in the main US indices, although there remains volatility in specific sectors such as US banks. As mentioned last week, given the position of the indices below key moving average indicators, we will now not consider any new trades and closely monitor existing positions. 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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