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 closed above 5000 for the first time. This represents a 22% run for the index – with gains in 14 for the past 15 weeks. The bulls are firmly in control of the index.
The S&P 500 gained 1.4% over the week, to close at 5027, an all-time high. Similarly, the Nasdaq 100 and Dow Jones Index also recorded fresh all-time highs. This confluence of strength gives us confidence that the momentum we have seen since November will continue in 2024.
We continue to see individual stocks perform well. Our portfolio currently compromises over 20 US stocks, including LLY, AMP and META. We have compounded these assets, in turn, delivering excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, closed the week with a decline of 0.6%. 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
Cigna Corporation – CI
Cigna (ticker: CI) is an American multinational managed healthcare and insurance company based in Bloomfield, Connecticut. Its insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and services. The company ranked No. 12 in the 2021 Fortune 500 list of the largest United States corporations by total revenue.
CI is a stock that has a history of trends, such as in 2013-2015 and 2017. Throughout 2022 CI significantly outperformed the US indices, gaining of 68%. In 2023 price weakened between January to May, until price reach the $250 half round number, where the buyers stepped back in, resulting in a gain to date of 36%.
On the weekly time frame, price is trading above the 50 and 200 SMA. Our proprietary tool, the Sublime trend filter, is green. Whilst on the daily time frame the Sublime trend filter is also green. The moving averages are aligned on all time frames, providing confidence in the strength of the trend.
Looking ahead, a continuation pattern above the all-time high could present opportunities for our Phoenix community members in a stock we have traded for excellent returns in the past.
OUTPERFORMING ASSET FOR THE WATCHLIST
Cadence Design Systems Inc. – CDNS
Cadence Design Systems, Inc. (ticker: CDNS) is an American multinational computational software company, founded in 1988 by the merger of SDA Systems and ECAD, Inc. The company develops software, hardware and intellectual properties (IP) used to design chips, systems and printed circuit boards, as well as IP covering interfaces, memory, analogue, SoC peripherals, data plane processing units, and verification.
CDNS has demonstrated a consistent upward trajectory since 2012, making it an appealing stock for long-term investors. Between December 2021 and February 2023, the stock experienced a period of consolidation. However, in March, the stock broke out of this range, resulting in a gain to date of 62%. As a result CDNS is high on our watchlist.
On the weekly time frame, CDNS continues to trade above the 50 and 200 SMAs, indicating positive market sentiment. Our proprietary tool, the Sublime trend filter, remains green, reinforcing the bullish outlook. Similarly, on the daily time frame, the Sublime trend filter remains green, further evidence of a favourable market sentiment. CDNS is trading above the 20, 50, and 200 SMAs.
Looking ahead, after closing above $300 this week, we will monitor the stock to assess where this level acts as support. Should a continuation pattern emerge above this level, our Phoenix community members may find an opportunity in a stock that has yielded very profitable trades in the past.
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
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