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 S&P 500 continued its surge higher with a gain of 1.7%, in turn resulting in an all-time high of 5111. With the Nasdaq 100 and Dow Jones Index also printing all-time highs this week, our confidence in the trends continuing remains strong.
The S&P 500 closed the week at 5089. The index has gained 24% since the October 2023 low. The bulls are firmly in control of the index.
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, in turn, delivering excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, had a muted week with a decline of 0.1% to close at 7706. Price remains range bound between 7200 and 7750. Should strength return, the next major area of potential resistance is the pivot high from 17 April at 7936. The all-time high is 8047. We continue to monitor this index, waiting for confirmation of direction.
OUTPERFORMING ASSET FOR THE WATCHLIST
Nvidia Corporation – NVDA
Nvidia Corporation (ticker: NVDA) is an American multinational technology company. It is a software company which designs graphics processing units (GPUs), application programming interface (APIs) for data science and high-performance computing as well as system on a chip units (SoCs) for the mobile computing and automotive market. Nvidia is also a dominant supplier of artificial intelligence hardware and software. In a world increasingly reliant on technology, the chances are that the technology you are using is being powered by an NVDA GPU!
NVDA has established a track record of long-term trends, particularly since October 2022, resulting in a gain of 589%. Closing the week at $788, strength continues with the bulls firmly in control.
On the weekly time frame, NVDA continues to trade above both the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, remains green, indicating positive market sentiment. Whilst on the daily time frame, the Sublime trend filter is also green. The price remains above the 20, 50, and 200 SMAs.
Looking ahead, the next area of potential resistance is the $800 round number. Should NVDA exhibit a continuation pattern above the all-time high, it could present an opportunity for our Phoenix community members, who have profited handsomely from this stock in the past.
OUTPERFORMING ASSET FOR THE WATCHLIST
CBOE Global Markets – CBOE
CBOE Global Markets (ticker: CBOE) is an American company that owns the Chicago Board Options Exchange and the stock exchange operator BATS Global Markets. Founded in 1973 by the Chicago Board of Trade and member owned for several decades, on March 11, 2010 the Chicago Board Options Exchange (CBOE) filed paperwork to launch an initial public offering and began trading on the NASDAQ stock exchange on June 15, 2010. In 2022 the CBOE had revenue of $3.96 billion and 1543 employees.
CBOE is a relatively new stock, floating in 2010. Between December 2012 and January 2018 price was in a strong trend, gaining 293%. Price then entered a long period of consolidation. However in August price broke out and has subsequently gained 41%. Importantly, CBOE has a history of forming a trend following a breakout from a key pivot level – this is a vital part of stock selection.
On the weekly time frame, price is in a strong uptrend. Price is trading above both the 50 and 200 SMAs, and the Sublime trend filter is green. Whilst on the daily time frame, price remains above all moving averages and the Sublime trend filter is also green. Price is in a trend, evidenced by a series of higher highs and higher lows.
A continuation pattern above the current all-time high could offer our Phoenix community members an opportunity in a stock with a history of long-term trends. The next area of potential resistance is the $200 round number.
Looking Ahead
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
P.S. Answer 21 rapid-fire questions about your investing approach and then as if by magic, we will give you recommendations that are right for you and you’ll unlock your FREE Bonuses that will improve your investing results over the next 3 to 5 years.
