As previously discussed in our weekly newsletter, the main indices remain inside areas of consolidation. Following the bullish moves of previous months, this is expected as price takes a breather before its next move.
The overall trend on the indices remains bullish, and the probability is weighted towards the next market move being a continuation of the long term bull trend. As savvy investors, we remain patient and ready to pounce once the markets move again. A continuation of the bull trend will reward our patience with new opportunities along with compounding existing positions.
Looking at the indices:
- The S&P 500, since bouncing off the daily 50sma, is now using the 20sma as support.
- The Nasdaq 100 found support at the high of last year and is now using the 20sma and 50sma as support.
- The Dow 30 also bounced off the daily 50sma is now using the 20sma as support.
- The FTSE 100 found support at the high of January 2021 and now continues to use the 20sma as support.
During these periods of indecision in the market, many panic and abandon their plan – if they have one. However, good investors remain and not only expect these periods but embrace them. Periods of consolidation initially offer pullback entry points but are also healthy for the next leg up.
We remain bullish and long and continue to hold a number of stocks in our portfolio. We will add to these assets on the next round of breakouts. New stocks are also being considered and being added to the portfolio. Throughout the process, we continue to share signals with our Phoenix members.
Let’s get into this week’s newsletter!
Here is how the best performing UK & US stocks, as picked out by our scanning process, have
performed this week.
For a glossary of terms click here.
OUTPERFORMING STOCKS COVERED THIS WEEK
UK Stocks
US Stocks
FTSE 100
In May, price closed as an indecision candle as price found resistance at the 2015 Piv9 level at 7128. The 7000 round number continues to hold as support. Therefore, there is little surprise that price is currently consolidating in this zonal area.
On the weekly timeframe, the Sublime trend filter continues to remain green, with price is being further supported by the 200sma.
On the daily timeframe below, we can see that price continues to use the 20sma as support. The Sublime trend filter is currently green, and price remains above the 50sma and 200sma. Our bias overall remains bullish, and we continue to look for stocks outperforming the index.
UK STOCKS
Ashtead Group - AHT
A high-performing stock we have discussed for several months in our trading community. May closed with an imposing 11% bullish move, maintaining the trend that emerged in November 2020.
On the weekly timeframe, the Sublime trend filter is green, and price is above the 50sma and 200sma.
On the daily timeframe below, the Sublime trend filter is also green, and price continues to trade above the 20sma, 50sma and the 200sma. All three MAs are consistently angling up, confirming a neat, linear trend. Following a close above the £50 round number, price formed a neat flag formation and continued higher in the past week. We continue to update our Phoenix members with any signals on this high-performing stock.
St. Jame’s Place - SJT
A stock to watch as a trend could be emerging. In May, price continued its strong move, which started in November 2020, and price has now increased during this period by an impressive 60%.
On the weekly timeframe, price is above the 50sma and 200sma, and the Sublime trend filter is green.
On the daily timeframe below, price this week created a new ATH. Since price broke above the Piv21 level at £12, price has consistently used the 20sma as support whilst creating higher highs and higher lows. We will continue to update Phoenix members of compound opportunities as this trend develops further.
Blackrock Throgmorton Trust - THRG
A strong history of long-term trends and a fresh breakout makes this stock one to watch. Since price broke the Piv21 level in December 2020 at £7.25 price has moved up 19%. In May, price formed an indecision candle which was not unexpected following April’s 11% increase.
On the weekly timeframe, the Sublime trend filter is green, and price is above the 50sma and 200sma.
On the daily timeframe below, price reached £9 where it then pulled back to between the 20sma and 50sma. Price has since rebounded, and this week created a new ATH at £9.09. A continuation pattern above the recent ATH could offer Phoenix members an entry opportunity before the next level of resistance, being the £10 round number.
If you have watched the 4-part series and are keen to get started, then book yourself in for a 1-2-1 call with a member of the Sublime Trading team. |
S&P 500
Price remains in an overall bullish trend. Price in May closed the month with an indecision candle. During the earlier part of May price experienced a 3.8% pullback, but price recovered in the latter part of the month to close with a modest 0.13% gain. The overall strength continues to sit with the bulls, who will seek to continue the long-term trend.
On the weekly timeframe, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green.
On the daily timeframe price continues to trade above the 50sma and 200sma and the Sublime trend filter remains green. After May’s pullback hit the 50sma, price has since bounced and is now using the 20sma as support. We want to see price hold above the 20sma and then create new ATHs above $4,238, which was the high made on 7 May 2021. Our stance continues to remain bullish in line with the long-term trend.
US STOCKS
Ally Financial Inc - ALLY
Another stock on the Phoenix members’ radar that has performed exceptionally well in recent months. Since price broke through the Piv21 at $35, it has increased by 55% to print a new ATH this week at $56.61.
On the weekly timeframe, price is above both the 50sma and 200sma and the Sublime trend filter is green.
On the daily timeframe below, price has formed a very linear trend, using the 20sma as support. Price is trading above the 20sma, 50sma and 200sma, whilst the Sublime trend filter is green. Price has plenty of space to move before the next round number at $100. A continuation of the current trend will offer Phoenix members further opportunities to compound existing positions. We will share the relevant breakout and pullback signals.
American Express - AXP
Price continues its upward move in this strong, bullish trend. During May, price increased by 4%, and June has started strongly with a 3% move to date. Since price made a new ATH in March 2021, price retested the previous year’s high at $138 and has since moved higher, making a new ATH on 2 June 2021 at $165.69.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is green. Since breaking out of consolidation, price has been using the 20sma and 50sma as support. The next area of resistance is the $200 round number. A continuation of the current bullish trend will offer Phoenix members further compounding opportunities. We will share the relevant breakout and pullback signals.
Extra Storage Space - EXR
A stock with an excellent history of performance. During May, price formed an indecision candle, however June has started strongly with a 3% move up to date. Following the break above the Piv21 at $124 price has increased by 23%.
On the weekly timeframe, price continues to trade above the 50sma and 200sma. The Sublime trend filter remains green.
On the daily timeframe below, in the past week price has bounced strongly off the 20sma and printed a new ATH on 2 June at $154.31. Price is trading above the 50sma and 200sma and the Sublime trend filter remains green. Phoenix members will continue to be updated with compound opportunities as this stock continues its bullish move towards the next area of resistance, the $200 round number.
Goldman Sachs - GS
A stock with a mixed track record but is currently showing signs of a strong bullish trend. A 7% move in May has been followed up by a 4% increase in June to date.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green, confirming an emerging bull trend.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma. Since price broke out from a long period of consolidation in March 2021, price has been using the area between the 20sma and 50sma as support, making higher highs and higher lows. Phoenix members will be particularly interested in this week’s new ATH but will wait for price to clear the $400 round number before considering further opportunities. This is a fairly expensive stock so not for all account sizes.
Life Storage - LSI
A stock with a history of sustained trends running for multiple years. A very bullish April was followed by a bullish May where price increased by 12%. June to date has continued the momentum with a 4% increase.
On the weekly timeframe, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green.
On the daily timeframe, price is above the 20sma, 50sma and the 200sma, and all MAs are angling up, demonstrating a strong trend is in play. The Sublime trend filter remains green. This week price has made light work of the $100 round number, printing a new ATH at $103.50. A continuation pattern above this level will offer Phoenix members an opportunity in the very bullish stock. We will share the relevant breakout and pullback signals.
Prologis - PLD
A stock that offers a history of long periods of trends and has printed a new ATH this week. A very strong performance in April was followed up by an indecision candle in May. However, June has demonstrated a trend is emerging with a 3% increase to date.
On the weekly timeframe, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green.
On the daily timeframe below, price is above the 20sma, 50sma and the 200sma and the Sublime trend filter is green. Following a break above the Piv21 level at $112, price retested this level and has since moved higher to print a new ATH at $122.16. The next level of resistance is the $200 round number. Phoenix members will be watching this stock closely to see if a long-term trend develops. We will share the relevant breakout and pullback signals.
Pentair - PNR
A stock in a linear, bullish trend, price completed May with a 7% increase. June has continued the trend, printing a new ATH this week at $70.76.
On the weekly timeframe, price is trading above the 50sma and the 200sma, whilst the Sublime trend filter is green, confirming a bull trend is in play.
On the daily timeframe below, we can see that price broke out of consolidation on 5 October 2020, and initially used the 50sma as support. More recently, price has used the 20sma as support, indicating improved linearity in the trend. Price has plenty of room to move before the next area of major resistance, being the $100 round number. Phoenix members will be updated with signals as this trend develops further.
Despite breakouts required in the indices, stocks continue to break out. This is why we scan for and invest in stocks performing better than the average, which is what the indices represnt. Stay up to date with market events by joining our FREE Launchpad Facebook group.
Keep it simple. Keep it Sublime.
The ST Team
