Welcome to another edition of 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 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 the US and UK equity markets have again displayed extreme volatility, with Monday and Tuesday recording back-to-back gains of over 2%, followed by an almost full reversal on Thursday and Friday.
On the monthly time frame, the S&P 500 is displaying a modest gain of 1.3%, despite the extreme volatility. On the weekly time frame, the S&P 500 gained 1.3%. Importantly, price remains above the weekly 200 SMA, which is currently acting as support. On the daily time frame, price continues to look bearish with price trading well below the 20, 50 and 200 SMA. On Thursday price gained to reach the 20 SMA before the bears took back control. The outlook for the S&P is to watch for the 200 SMA to hold; a failure could lead to weakness, possibly to the 3000 round number.
The volatility in the S&P 500 was seen across the markets, with wild swings in the Nasdaq 100 and Dow Jones indices, albeit gaining 0.4% and 1.8% respectively. Unlike the S&P 500, the Nasdaq and Dow Jones are both trading below the weekly 200 SMA which will be a point of concern for the bulls.
This week the FTSE 100, the UK index, gained 1.41% to move back above the weekly 200 SMA. The potential support level at 6788 we mentioned last week is holding; but should this level fail, then the next level of support is the prior year’s low at 6397.
OUTPERFORMING ASSET FOR THE WATCHLIST
ConocoPhillips - COP
ConocoPhillips (ticker: COP) is an American multinational corporation engaged in hydrocarbon exploration and production. It is based in the Energy Corridor district of Houston, Texas. The company has operations in 15 countries, with 49% of its production in the United States.
COP is a stock with an interesting history of strong trends, such as 2004-6 and more recently, throughout 2021. Since price broke above last year’s high at $78, strength has been prevalent, resulting in a gain of 52%.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. Since price broke above the pivot high at $67 in September, price has shown strength, using the 50 SMA as support. This week’s price gapped and formed a bullish candle.
On the daily time frame, the Sublime trend filter is also green. Price is currently trading above all moving averages, which are all aligned. Price is also trading comfortably above the $100 round number.
Looking ahead, a continuation pattern above the current all-time high at $124 could offer our Phoenix community members an opportunity in a good-performing stock. The next area of resistance is the $200 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
Marathon Petroleum Corporation - MPC
Marathon Petroleum Corporation (ticker: MPC) is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011. In 2018, Marathon Petroleum became the largest petroleum refinery operator in the United States, with 16 refineries and over 3 million barrels per day of refining capacity.
MPC is another stock with a history of solid trends such as 2016-2018, and more recently, following the covid pandemic, where price has since gained 385%. Throughout 2022 price has been bullish with a gain of 67%. Price made an all-time high in June at $114.
On the weekly time frame, price is in an uptrend. Price is trading above both the 50 and 200 SMA, and the Sublime trend filter is green.
Whilst on the daily time frame, price has recently moved above the 20 and 50 SMA. Price is also trading above the 200 SMA, and all moving averages are aligned.
Looking ahead, a continuation pattern above the current all-time high at $114 could offer our Phoenix community members an opportunity in a good-performing stock. The next area of resistance is the $200 round number.
Looking Ahead
This week the US and UK indices have again demonstrated significant volatility. We continue to monitor all markets actively, scanning for opportunities such as the stocks described today, along with the JPY forex pairs and Dollar strength, and sharing these with our Phoenix community for excellent returns.
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The ST Team
