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
S&P 500 Continues to Climb Higher
This week the S&P 500 again continued its move higher, gaining 0.7%. The strength in the S&P 500 is demonstrated by the consistent number of breakouts – this week there are 89, the same as last week. The S&P 500 is now 30% above the lows of October 2022. On a sector basis, the S&P 500 comprises 11 sectors, and all sectors have breakouts, further strengthening the bull case.
On the weekly time frame, the S&P 500 remains above both the 50 and 200 SMA (Simple Moving Average). The moving averages are aligned, indicating a consistent trend. Our proprietary tool, the Sublime trend filter, continues to present a green signal – for the 14th consecutive week – further reinforcing the strength of the current market. On the daily time frame, the S&P 500 is using the 20 SMA as support, creating a series of higher highs and higher lows. The Sublime trend filter is also presenting a green signal.
The FTSE 100, the UK’s premier index, had a very strong week with a gain of 3.1%, which follows up the previous weeks’ gain of 2.5%. Price is now above both the 50 and 200 SMAs and we will monitor this index for confirmation of direction.
OUTPERFORMING ASSET FOR THE WATCHLIST
Republic Services Inc. - RSG
RSG: Breakout Above Last Year’s High
Republic Services, Inc. (ticker: RSG) is a provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. The company operates through collection operations, landfill operations, transfer station operations and recycling operations segments.
RSG has demonstrated a history of long-term trends, including between 2014 and 2020, as well as in 2021. Since October 2021, the price has been consolidating, but there are indications of bullishness. RSG closed the week at $155, representing a 3.3% increase over the past week. In 2023, RSG returned a gain of 20.2%.
On the weekly time frame, the price continues to trade above both the 50 and 200 SMA. Our proprietary tool, the Sublime trend filter, remains green and the moving averages are aligned.
Whilst on the daily time frame, the Sublime trend filter is also green. The price is trading above the 20, 50 and 200 SMAs and continues to use the zone between the 20 and 50 SMA as support. Since the 20 SMA crossed the 50 SMA in March, price has been making a series of higher highs and higher lows, indicating a bullish trend.
Looking ahead, the next area of resistance is at the $200 round number. A continuation pattern above the all-time high could present an opportunity for our Phoenix community members to invest in a strong trending stock.
OUTPERFORMING ASSET FOR THE WATCHLIST
Builders FirstSource Inc. – BLDR
BLDR: Impulsive Trend Pushes Price to All-time Highs
Builders FirstSource, Inc. (ticker: BLDR) is a Fortune 500 company that is a manufacturer and supplier of building materials. The company is headquartered in Dallas, Texas, and is the largest supplier of building products, prefabricated components and value-added services in the US. They serve new residential construction, repair and remodelling professionals.
BLDR has a history of impulsive trends, as evidenced during 2020-2021. Following a long period of consolidation throughout 2022, in March price broke out and has subsequently trended higher with an impulsive move. This week BLDR created an all-time high of $149.
On the weekly timeframe, price continues to trade above the 50 and 200 SMAs. Whilst our proprietary tool, the Sublime trend filter, remains green, reinforcing the bullish outlook.
The daily time frame demonstrates a strong trend is in play. The structure of the trend comprises a series of higher highs and higher lows, with modest pullbacks finding support at the 20 SMA.
This week’s new all-time high will be of particular interest to our Phoenix community. The next area of potential resistance is the $150 round number. A brek and close above this level, followed by a continuation pattern could offer an opportunity for our Phoenix community.
Looking Ahead
The momentum in the main indexes, such as the S&P 500, continues. The bulls are firmly in control, resulting in many 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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