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 S&P 500 pulled back by -2.1% to close the week at 4370, which follows declines in the previous two weeks. To date, the month of August is displaying weakness with a decline of -4.78%. However, price remains 24% above the October 2022 lows. This week is notable with 103 breakouts compared to 63 breakouts last week, despite the S&P declining more than last week – in turn demonstrating signs of hidden momentum. As an index, the S&P 500 provides broad market direction; the benefit of individual stock picking is an opportunity to pick the best performing stocks in the best performing sectors.
We currently hold 11 US stocks and 2 currencies. We have compounded a number of these assets, as they are trending and performing well, in turn, delivering excellent profit for our Phoenix community members.
On the weekly time frame, the S&P 500 remains above both the 50 and 200 SMAs (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 18th consecutive week – further reinforcing the strength of the current market. Whilst on the daily time frame, the S&P 500 has closed below both the 20 and 50 SMAs. Our view is this price action is simply a pullback, is a broader pattern of higher highs and higher lows which commenced in October. We will let price dictate our next move.
The FTSE 100, the UK’s premier index, also displayed weakness with a decline of -3.4%. Price remains in a range, with price below the 50 SMA and above the 200 SMA. The all time high is 8047. We continue to monitor this index, waiting for confirmation of direction.
OUTPERFORMING ASSET FOR THE WATCHLIST
Visa Inc. - V
Visa Inc. (ticker: V) is an American multinational financial services corporation headquartered in San Francisco, California. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world’s most valuable companies.
Visa has demonstrated a strong, bullish trend since July 2012, solidifying its position as a top-performing stock by gaining over 700%. More recently, Visa peaked in July 2021, and has since been in a large area of consolidation. Since October the stock has had bullish momentum, and could be ready to breakout – the longer the period of consolidation, the larger the breakout!
On the weekly time frame, Visa is trading above both the 50 and 200 SMAs. Our proprietary tool, the Sublime trend filter, is displaying a green status, highlighting the prevailing positive sentiment. Furthermore, the alignment of moving averages further supports the bullish outlook.
Shifting focus to the daily time frame, the moving averages are also aligned, and the stock is finding support at the 50 SMA.
Looking ahead, the next significant area of potential resistance is the all-time high followed by the $300 round number. Should Visa challenge the all-time high, a continuation pattern above this level could present a promising opportunity for our Phoenix community members, considering Visa’s long-term trend.
OUTPERFORMING ASSET FOR THE WATCHLIST
CHF/JPY is the symbol used to denote the currency exchange rate for the Swiss Franc and Japanese yen. CHF/JPY is one of the most liquid and traded currency pairs in the world.
CHF/JPY is an asset with a history of trends. The most recent trend commenced in September, and has subsequently gained 34%. On the monthly time frame, price has been bullish with notable gains in April of 4.9% and June of 5.4%.
On the weekly time frame, price is trading above both the 50 and 200 SMAs. Whilst on the daily time frame, the strong trend is evident from the linear movement, where price is constantly using the 20 SMA as support.
Looking ahead, the next area of potential resistance is the 200 round number. As we have this asset in our portfolio, compounding on multiple occasions, we will continue to monitor it, and update our Phoenix community with further opportunities.
Price action on higher time frames, such as monthly and weekly, tells us the momentum in the main indexes continues despite the recent pullback. Our position is the bulls are in control, resulting in 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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