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
The S&P 500 closed the week at 5635, achieving a gain of 1.5%. The index has risen 10.0% since the August lows and is now less than 1% below its intraday all-time high.
Year to date, the S&P 500 has delivered an impressive 18% gain. The bullish momentum in equity markets remains robust, with the S&P 500 surging 35% since the October 2023 low and 58% since the October 2022 low.
While major indices like the S&P 500 provide broad market direction, they do not capture the entire picture. We continue to see strong outperformance from individual stocks such as MCK, UNH, KO, GDDY, and MMC—all of which we have analysed in recent months.
The Nasdaq 100 gained 1.1%, continuing its momentum from the previous week. The Dow Jones increased by 1.2%, setting a new all-time high close of 41180.
The FTSE 100, the UK’s premier index, gained just 0.2%, closing at 8328. After breaking above its all-time high in April, the price has since returned to a range between 8100 and 8300.
OUTPERFORMING ASSET FOR THE WATCHLIST
W.R. Berkley Corporation – WRB
R. Berkley Corporation (ticker: WRB) is an American commercial lines property & casualty insurance holding company. WRB operates commercial insurance businesses in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia and reinsurance businesses in the United States, United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa.
WRB is a stock with a history of long-term trends, although the quality of these trends hasn’t always been linear. The stock performed well in periods during 2019, 2022, and 2023. In January, the price created an all-time high with a breakout, before retreating to the $50 round number. More recently, strength has returned, resulting in gains of 5.2% and 5.6% over the past two months.
On the weekly timeframe, the Sublime trend filter is green, with the price trading above the 50 and 200 SMAs. After being range-bound from April to July, the price has since broken out.
On the daily timeframe, the stock pulled back to the 200 SMA on 19th July before gaining 13%. The price is now trading above the 20, 50, and 200 SMAs, with the moving averages aligned and diverging. The Sublime trend filter remains green.
Looking ahead, a break and close above the all-time high made in March at $60 could present our Phoenix community with a promising opportunity.
OUTPERFORMING ASSET FOR THE WATCHLIST
Stryker Corporation – SYK
Stryker Corporation (ticker: SYK) is an American multinational medical technologies corporation. Stryker’s products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialities.
SYK is a stock with a history of long-term trends dating back to 2013. A false breakout occurred in April 2023, where the price failed at the $300 round number. In January, the bulls regained control, with the price gaining over 12% that month. The stock created an all-time high in March 2024 before weakening to the daily 200 SMA.
On the weekly timeframe, the price is trading above the 50 and 200 SMAs, and the Sublime trend filter is green. The Sublime trend filter also remains green on the daily timeframe, with the price currently trading above all moving averages.
Looking ahead, a continuation pattern above the all-time high, along with the formation of a linear trend, could present opportunities for our Phoenix community members.
Looking Ahead
The US indices continue to recover from August’s volatility, with the overall strength in U.S. equity markets remaining intact. Our calm and measured approach earlier in the month allowed our Phoenix Community to maintain nearly all positions in U.S. stocks, which are benefiting significantly from this momentum. As always, we will let price action guide 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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