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 we have seen strong moves in all three main US indices – S&P 500, Nasdaq 100, and Dow Jones 30, gaining 6.3%, 7.4% and 5.2% respectively. However, bulls need to be aware that we’ve been here before during 2022, and we need to be careful when assessing near-term strength. As we near the end of June we can start to consider the June candle. What is noteworthy is that all three indices have found support at the low of 2021. We will now apply patience to assess where these levels hold.
This week the FTSE 100, the UK index, also had a bullish week, gaining 2.7%. On the weekly time frame, price remains above the 200 SMA but below the 50 SMA. Price is trading below the 20, 50 and 200 SMA on the daily time frame.
OUTPERFORMING ASSET FOR THE WATCHLIST
US Dollar Basket - WRB
R. Berkley Corporation is a commercial lines property & casualty insurance holding company organised in Delaware and based in Greenwich, Connecticut. The company 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 that has been in a long-term trend, but the quality of the trend has been mixed. This stock performed well during 2019 and, more recently, following a breakout above last year’s high in February, price has been bullish with a gain of 22%.
On the weekly time frame, the Sublime trend filter is green. Price is trading above the 50 and 200 SMA. Price appears to have formed a base at $65.50, with several failed attempts to close below this level since May.
On the daily timeframe below, price is trading above the 200 SMA but below the 20 and 50 SMA. The Sublime trend filter is grey. Given the recent market decline throughout 2022, this stock has been a clear outperformer and should be on every investor’s watchlist. We will update our Phoenix community should opportunities arise in a stock with a history of strong trends.
PERFORMANCE REVIEW
CHFJPY
We last wrote about CHFJPY in our newsletter on 5th June this year. CHFJPY is an asset with a history of trends. Trading forex assets can be complex, but with the right knowledge and support, such as that which our Phoenix community receive, profitable investing in forex assets is achievable.
We first entered CHFJPY in October 2021 and have since compounded. We monitored the asset through the pullback in May which has to date proven to be the correct approach. This asset made a higher high and higher low between 8 – 15 June, and this week made an all-time high at 141.89. June’s candle has been particularly bullish with a gain to date of 5.2%. The return to date on total portfolio value exceeds 3% using a real risk of just 2%.
The total amount of time required to set up and manage this trade has been less than one hour over nine months – 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 markets have demonstrated near-term strength. However, we need to apply patience and wait for any follow-through, as evidenced by high highs and higher lows on higher time frames. We continue to actively monitor all markets, scanning for opportunities such as 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
