Welcome to another edition of our weekly newsletter where we provide an overview of the main US and UK indices, a selected asset with deep analysis, and finally, an analysis of an asset we have in our portfolio, including a discussion on the returns the asset is generating for our Phoenix members.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week has witnessed weakness in the US indices. The week prior displayed modest strength with a gain of 2%, and the week prior indicated an equal decline of 2.3%. These weekly gains and declines are typical of a range. As previously mentioned, we will maintain patience and wait for price to dictate the next move.
This week the FTSE 100, the UK index, was neutral over the week but displayed volatility during the week with an intra-week swing of 3%. On the weekly time frame, price remains above the 200 SMA but below the 50 SMA. On the daily time frame, price is trading above the 20 SMA but below the 50 and 200 SMA.
OUTPERFORMING ASSET FOR THE WATCHLIST
UNH - UnitedHealth Group Incorporated
United Health Group Incorporated is an American multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. UnitedHealth Group is the world’s eighth-largest company by revenue and second-largest healthcare company behind CVS Health by revenue, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group’s overall revenue. The company is ranked 8th on the 2021 Fortune Global 500. UnitedHealth Group has a market capitalization of $400.7 billion as of March 31, 2021.
The long-term trend in this stock is impressive, maybe second to Microsoft for long-term linearity. Whilst April to June monthly candles were indecisive, July is displaying bullishness, with a gain to date of 3.1%.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. This week price initially displayed weakness but closed the week with a gain of 2.1%.
On the daily time frame, the Sublime trend filter is also green. Price is currently trading above all moving averages. This week price responded positively to earnings, with a bounce on Friday. Price has been in a long-term range but is poised to break out.
Looking ahead, we will monitor the current price action. A continuation pattern above the all-time high at $553, along with the formation of a linear trend could present opportunities for our Phoenix community members.
PERFORMANCE REVIEW
USDJPY
USDJPY is an asset with a history of trends. As we mentioned in recent weeks discussing CHFJPY and GBPJPY, investing in forex assets can be difficult, but with the right knowledge and support, such as that which our Phoenix community receive, successfully trading the asset class is achievable.
We first entered USDJPY earlier this year. Price has been particularly bullish since price broke above last year’s high at 115.52, with a gain to date of 20%. June’s monthly candle has displayed bullishness which has been followed up with a bullish candle in July. The return to date on the total portfolio is currently modest, however, we have compounded this position this week and we anticipate this asset trending for many months.
The total amount of time required to set up and manage this trade has been less than one hour – this is the benefit of trend trading; using higher time frames such as monthly and weekly charts avoids the noise and stress of shorter time frames. This approach enables busy professionals the freedom to pursue other interests and avoid hours each day in front of a trading screen.
Looking Ahead
This week the US and UK indices have again demonstrated volatility. As a result, we need to apply patience and wait for signs of a clear direction. We continue to actively monitor all markets, scanning for opportunities such as the stocks described today, along with the JPY forex pairs, and sharing these with our Phoenix community for good returns.
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Keep it simple. Keep it Sublime.
The ST Team
