Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, a specifically selected outperforming asset with deep analysis. Finally, an analysis of an asset in our portfolio, including a discussion on the returns the asset generates for our Phoenix members.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
Following last week’s mixed performance, this week there were gains across the board in the US indices. However, volatility remains and we continue to support our community with insight into how to manage our positions during this period. On the monthly time frame, to date, it’s been a flat month for the S&P 500, with a gain of 0.4%. On the weekly time frame, the S&P 500 gained 1.6%, and as a result, regaining the weekly 50 SMA. This week’s gain builds on last week. Whilst on the daily time frame, price has recovered the 200 SMA. As mentioned in previous weeks, a mixed picture prevails in the S&P 500. As a result, we will apply patience and await direction from price itself.
The Nasdaq 100 was once again the best performer of the week for the US indices. Following last week’s substantial gain of 5.4%, this week the Nasdaq 100 gained a further 2.2%. On the daily time frame, the Nasdaq 100 has now pushed clear above all moving averages, and the moving averages are aligned and diverging – a sign of near-term strength. The Dow Jones index is finding resistance at the weekly 50 SMA.
This week the FTSE 100, the UK index, displayed indecision following last week’s significant decline. In March, price declined 6.0%, its largest monthly decline since the pandemic in 2020.
OUTPERFORMING ASSET FOR THE WATCHLIST
The Hershey Company - HSY
The Hershey Company, commonly known as Hershey’s, is an American multinational company and one of the largest chocolate manufacturers in the world. Hershey’s chocolate is available across the United States, and in over 60 countries worldwide.
HSY is a stock with a strong history of trends such as 2011-13, 2019, and 2021-22. Since December 2021 price has gained 36% whilst the S&P has declined 15% over the same period. Price performed very strongly in February with a gain of 6.1%, whilst in March price is also performing well with a gain to date of 4%. Price also created an all-time high this month $248.
On the weekly time frame, price continues to trade above the 50 and 200 SMA, and the Sublime trend filter remains green. Whilst on the daily time frame, price is also trading above the 50 and 200 SMA and the Sublime trend filter is also green. Price has used the pivot level at $243 as support and broken out to commence a new trend.
Looking ahead, a continuation pattern above this level could offer our Phoenix community members an opportunity in a very resilient stock in a generally bearish market. The next area of resistance is the $300 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
FTI Consulting - FCN
FTI Consulting is a business advisory firm headquartered in Washington, D.C., United States. FTI is one of the largest financial consulting firms in the world and consistently ranks as one of the top global management consulting firms. The company specialises in the fields of corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications and technology.
FCN is a stock that was first floated in 1996. The stock has displayed periods of solid trends, such as in 2007, 2018 and 2019. Between July and December 2022 price was in a period of consolidation. This month price has been bullish with a gain to date of 5.4%, along with an all-time high of $202. This follows a very strong month in February with a gain of 15.2%.
On the weekly time frame, the Sublime trend filter is green. Over the past two weeks, price has broken out to create a new all-time high. On the daily time frame below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. Whilst the moving averages are diverging and aligned.
Looking ahead, the next area of resistance is the all-time high which now coincides with the $200 round number. We will update our Phoenix community should opportunities arise in a bullish stock with a history of strong trends.
This week prices have largely stabilised in the main US indices, although there remains volatility in specific sectors such as US banks. As mentioned last week, given the position of the indices below key moving average indicators, we will now not consider any new trades and closely monitor existing positions. 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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