Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected stocks 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 recovery with a gain of 1.3%, to close at 4415, its highest closing level since August. Whilst on the monthly time frame, November has gained an impressive 5.3% to date.
On the weekly time frame, price is trading above both the 50 and 200 SMAs (Simple Moving Average). On the daily time frame, price is also trading above the key moving averages, the 20, 50 and 200 SMAs, however the moving averages are not yet fully aligned. Price is now 26% above the October lows and, given the return of price above key moving averages mentioned above, we are actively seeking new positions from our watchlist.
We continue to see individual stocks perform well. Our portfolio currently compromises 15 US stocks and 3 currencies. We have compounded a number of these assets, in turn, delivering excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, incurred a decline during the week of -0.8%. On the weekly time frame, price remains below the weekly 50 SMA, but remains above the weekly 200 SMA. Looking at the bigger picture, price remains in a large range of consolidation between 7200 and 7700. 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 and fabless 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, spanning various periods including 2016-2018, 2020-2021, and more recently since last October. These trends have resulted in significant price gains of 388%, 327%, and 307% respectively. Consequently, NVDA’s consistent performance in long-term trends instil confidence for long term investors, such as ourselves, in its future potential.
Closing the week at $483, strength is returning and price is challenging the all-time high from August. Since May price has been in a period of consolidation with the $400 round number acting as a strong level of support. Over the past two weeks price has bounced off this key level, gaining 18%.
On the weekly time frame, NVDA continues to trade above both the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, remains consistently green, indicating positive market sentiment. Additionally, the alignment of moving averages further reinforces this optimistic outlook. 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 a confluence of the all-time high at $503 and the $500 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
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, price broke out above last year’s high at $183. Since then, price attempted to break out but pulled back to the previous all-time high. However, in November the bulls regained control with a gain to date of 5.7%.
MMC concluded the week at $200. 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 also continues to signal green, consistent with the longer-term trend perspective. Price action on the daily frame shows MMC trading above the 20, 50, and 200 SMAs. Whilst the moving averages are also aligned, further reinforcing the strength of the current trend.
Looking ahead, the next notable area of potential resistance is immediately ahead, being the $200 round number. Investors in our Phoenix community will be vigilant for the potential emergence of a continuation pattern above the previous all-time high and the round number. A continuation pattern beyond these levels could provide an enticing opportunity for our Phoenix community members, particularly given the prevailing bullish long-term trend in this stock.
Looking Ahead
This week has seen the bulls continue to strengthen their position, resulting in the markets recovering from the declines seen in September and October. As long term inventors, patience is a key weapon in our arsenal. We continue to apply the necessary patience, and await price to dictate our next move. Our position is the bulls remain in control, resulting in opportunities for savvy investors, such as those in our Phoenix community.
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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