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 leading US indices have continued to show strength, as the markets shrug off fears of the US banking crisis seen in February. Whilst we remain vigilant, we continue to share ideas with our Phoenix community for opportunities for excellent returns.
The S&P 500 has been in an upward trend since the beginning of the year, rising 7%. In the previous month, the index increased by 4%, whilst in the current month, as of April 9th, the S&P 500 is up by 0.1%.
The S&P 500 has been showing bullish tendencies in the weekly time frame, with the index gaining 3.3% in the previous week and 0.1% in the current week as of April 9. In terms of the moving averages, the S&P 500 is trading well above both its weekly 50 and 200 SMA, indicating a strong bullish trend. The moving averages are aligned positively. The weekly Sublime trend filter is green, indicating a bullish trend.
On the daily time frame, the S&P 500 is also showing a bullish trend. As of April 9, the index is trading well above its daily 20, 50 and 200 SMA. All three SMAs are aligned positively, and the daily Sublime trend filter is green, indicating a bullish trend.
Investor sentiment remains positive as the US economy continues to recover from the effects of the pandemic. Whilst we dont trade news events, there are a few upcoming events to be aware of, such as the Q1 earnings reports from major companies in the upcoming weeks, as well as the Federal Reserve’s monetary policy meeting scheduled for late April. We continue to closely monitor the major indices and update our Phoenix community accordingly.
OUTPERFORMING ASSET FOR THE WATCHLIST
Progressive Corporation - PGR
Progressive Corporation is an American insurance company, the third-largest insurance carrier and the largest commercial auto insurer in the United States. The company was co-founded in 1937 and is headquartered in Mayfield Village, Ohio. The company insures passenger vehicles, motorcycles, RVs, trailers, boats, PWC, and commercial vehicles. Progressive also provides home, life, pet, and other insurance through select companies. The company is ranked No. 74 on the 2021 Fortune 500 list of the top American corporations.
Looking at the monthly chart, PGR is in a long-term uptrend. It has been making higher highs and higher lows since 2016. PGR started the year at $129 and is currently trading at $147, an increase of 17%. Price has been in a strong trend, with an increase of 3% in April.
On the weekly chart, PGR is in a bullish trend and the Sublime trend filter is green. Price has been consistently making higher highs and higher lows since the end of last year. The weekly 50 and 200 SMA are both aligned in an upward direction and the price is currently trading above both these averages, indicating bullish momentum.
Looking at the daily chart, the price of PGR is currently trading above the 20, 50 and 200 SMA, however, the moving averages are not yet fully aligned. The Sublime trend filter is green.
PGR is scheduled to announce its first-quarter 2023 earnings on April 19, which is an essential event for investors to watch. Analysts are optimistic about the company’s future growth prospects, as PGR has consistently delivered strong financial results over the past several quarters. In terms of investor sentiment, PGR has relatively high institutional ownership, with about 83% of the shares being held by institutional investors. This suggests that there is a high level of confidence in the company’s future growth prospects among professional investors. Overall, the sentiment towards PGR stock appears to be positive, and the stock may continue to trend higher in the coming months. A continuation pattern above the all-time high could offer our Phoenix community an opportunity in a very bullish stock. The next area of resistance is the $200 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
Eli Lilly Corporation - LLY
Eli Lilly and Company is a pharmaceutical company that develops and produces medication for various diseases and conditions. Its products are sold in approximately 125 countries. The company was founded in 1876 and is best known for its clinical depression drug Prozac. Lilly’s achievements include being the first company to mass-produce the polio vaccine and insulin.
Since the start of the year, the stock’s price has been flat but has recovered from weakness earlier in the year – in March and April price gained 10% and 7% respectively.
On the weekly timeframe, the stock is exhibiting a bullish trend with a green Sublime trend filter. In the previous week, the stock saw an increase in price of 2%. In the current week, the bullish momentum has increased, with a gain of over 7%. Price is trading above both the 50 and 200 SMA, and the moving averages are also aligned in an uptrend, which indicates a strong bullish trend for the stock.
On the daily timeframe, the stock is trading above the 20, 50 and 200 SMA, which suggests a bullish trend. The daily Sublime trend filter is also green, which reinforces the positive sentiment of the stock.
Eli Lilly and Company’s stock is in a strong position, with a long-term uptrend and bullish trends on both the weekly and daily timeframes. The stock is trading above key moving averages, which further reinforces the bullish sentiment of the stock. We will continue to monitor this stock and update our Phoenix community with any opportunities in a very bullish stock.
Looking Ahead
This week the US indices have continued the near-term strength following the weakness seen in February due to the US banking situation. With the leading US indices rebounding strongly resulting in the moving averages aligning across all indices on the major time frame, we are considering new opportunities. 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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