Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
In last week’s newsletter we discussed the frequency the S&P has recorded all-time highs during 2021; this week another all-time high was recorded. As the markets continue to perform strongly, our fundamental approach of letting price dictate our decision making continues to deliver profits to our Phoenix members’ portfolios.
Successful trading is based on a very simple set of principles that, when applied consistently, can deliver incredible, stress-free results.
We offer our Phoenix members the key teaching points to understand long-term price action, technical patterns, and market cycles. We teach our members how to take advantage of periods when the markets are trending, along with opportunities when the markets pull back.
Successful trading is a game of discipline and patience. We expect our patience will be rewarded, as it repeatedly has been in the past, with new opportunities along with compounding existing positions.
Looking deeper into the main indices:
- The S&P 500, this week price continued the momentum from last week to create a new all-time high at 4546.
- The Nasdaq 100, similarly found momentum to also create an all-time high at 15702.
- The Dow Jones 30, is currently in a tight range just below the all-time high at 35630, and this week was supported by the 20sma.
- The FTSE 100, found strength in the latter part of this week to move back above the 20sma, however price is struggling to break above the recent pivot level at 7218.
The overall trend in the main indices remains bullish, and the probability remains weighted towards the continuation of the long-term bull trends established in 2009.
We continue to hold high-performing stocks in our portfolio, which we have been adding to during this round of breakouts. Good quality opportunities continue to present themselves, which allows us to diversify further. We continue to share setups and signals with our Phoenix members.
Let’s get into this week’s newsletter!
PS To get FREE lifetime access to our bespoke analysis tools used in these images and a host of other free essential goodies, complete the ‘Are You On Track To Retire Wealthy’ scorecard!
Here are 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
On the monthly timeframe, for several months price has struggled to break above the pivot high from 2015 at 7124. During August price showed strength, however, in the latter half of the month price weakened, consolidated and closed at 7120. The patience we have applied during this time should reward us with opportunities in stocks that break out from long periods of consolidation.
Following recent weakness, where price retreated to the 7000 round number, price has subsequently moved higher but remains in an area of consolidation between the pivot high at 7224 and support at the 7000 round number and weekly 200sma. The Sublime trend filter is currently green.
On the daily timeframe below, price this week maintained its position within the tight range mentioned above. The Sublime Trend filter is interchanging between green and grey, indicating indecision. Our overall bias, however, remains bullish, and we continue to look for stocks outperforming the Index.
UK STOCKS
Alliance Trust - ATST
A stock that is in an overall uptrend, but has taken its time gathering momentum this year. In August the candle closed bullish, with a 3.4% gain in the month and a close above the £10 round number.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming the existence of a bull trend. Following the breakout above the pivot level at £8.80 in November 2020, price has been in an uptrend, however, the trend has not been clean, with areas of consolidation along the way up.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. The Sublime trend filter is also green. This week price displayed improved momentum and moved beyond the moving averages. We now apply patience to see if a linear trend can develop. Once confirmed, we will then start sharing signals with our Phoenix members.
Polar Capital Technology Trust - PCT
A stock with a history of trends and volatility, this week created a new all-time high at £25.88. Between January and July this year, price was in a period of consolidation, between the all-time high set in February 2021 at £24.46 and the £20 round number. However, throughout July price made several attempts to break out, before doing so on 24th August.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green. This week price is displaying an indecision candle.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. All MAs are currently aligned. We will now apply patience and see if price breaks clear of the recent all-time high and form a linear trend. We will share any breakout or pullback signals with our Phoenix members.
Blackrock Throgmorton - THRG
A strong history of long-term trends and a fresh breakout above a major round number makes this stock one to watch. Since price broke the Piv21 level in December 2020 at £7.25, price has moved up 42%. This month price created a new all-time high at £10.36.
On the weekly timeframe, the Sublime trend filter is green. Price is above the 50sma and 200sma, and displaying a neat, linear trend.
On the daily timeframe below, since price broke above the pivot level from December 2020 price has been using both the 50sma and 20sma as support. Price now needs to consolidate above the £10 round number. A continuation pattern above this level could offer Phoenix members an entry opportunity. The next level of resistance is the £20 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
The month of August closed with a strong end, displaying a bullish candle with a 2.9% gain. As mentioned earlier, the S&P continues to create new all-time highs. August is the seventh consecutive month of gains in a very bullish market. This week price created a new all-time high at 4545.
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 50sma and 200sma. Last week, price bounced off the 50sma to trade above the 20sma. Whilst this week, the momentum has continued. The Sublime trend filter is green. As previously discussed, the bulls remain in firm control of the S&P, and we continue to look for stocks that are outperforming the index.
US STOCKS
Apple - AAPL
One of the most popular stocks with over 70 million shares traded daily, it makes this week’s newsletter as it has a history of impulsive trends, and price could be setting up for the next move. In June price broke above the previous year high of $139, and since then has gained an impressive 12%.
On the weekly timeframe, price is above the 50sma and the 200sma and the Sublime trend filter is green. This week price created a new all-time high at $155.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is also green confirming alignment with the weekly timeframe. With price now breaking out of a period of resistance and trading above the $150 round number, the probability of a linear trend forming are high. This stock is frequently a top performer, so well worth applying patience for the right set-up, which we will share with our Pheonix members.
AMN Healthcare Services - AMN
AMN is a stock with a mixed history. However, following the pandemic, price has been in a linear trend, particularly since May this year when price broke above the pivot high from 2020. August was a particularly strong month with a gain of 10%.
On the weekly timeframe, the Sublime trend filter is green and price is trading above the 50sma and 200sma. This week price created a new all-time high at $116.
On the daily timeframe below, since price broke above the pivot high from 2020, price has formed a series of higher highs and higher lows, using the 20sma as support. Price is currently trading above the 20sma and 50sma, and the Sublime trend filter is green. With price comfortably above the $100 round number, we now want to see a continuation of the linear trend. We will share any trading opportunities with our Phoenix community.
Comcast - CMCSA
CMCSA is an interesting stock, with a history reflecting all trading conditions; long periods of consolidation, deep pullbacks, and linear trends. Price first showed evidence of a trend during the dot-com bubble in 1999. Following that price went into a long period of consolidation until June 2012, where price broke above the 2007 pivot high, to then form a bullish linear trend until July 2017. Following the pandemic, Price has formed another bullish trend and this month created its latest all-time high at $62.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is currently green.
On the daily timeframe below, price has moved higher in recent months without displaying a clear, linear trend. Price has been using both the 20sma and 50sma as support. The Sublime trend filter is also green. This week price has been particularly bullish, which could be an indication of a new, linear trend. Our Phoenix community have a position in the stock and we will look to compound as and when the new trend develops.
Equifax – EFX
The history of this stock has great appeal. A bullish 27% move in April resulted in price creating an all-time high and break above the $200 round number. Price action in May and June was indecisive, which was to be expected before its next move. In July the bullish momentum has recommenced with a 9% gain, which was followed up by a gain of 4.5% in August.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play. This week price has been particularly bullish, resulting in a new all-time high at $278.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma. The Sublime trend filter is also green. Following the gap up from April earnings, price has continued higher, using both the 20sma and 50sma as support. In August price formed a double bottom pattern using the $250 round number as support, and has since broken higher. We continue to share signals with our Phoenix community, as price works its way towards the next level of resistance, being the $300 round number.
Extra Space Storage – EXR
This stock is one of our community’s best performers during 2021. A stock with an excellent history of performance. Following the break above the Piv21 at $124 price has increased by an incredible 54%. August’s candle is the seventh sixth consecutive month of price gains.
On the weekly timeframe, price continues to trade above the 50sma and 200sma. The Sublime trend filter remains green.
On the daily timeframe below, this week price created a new all-time high at $192. 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.
Stryker - SYK
SYK is a stock that has also has a history of long-term trends but also deep pullbacks. This stock first displayed a trend in mid-2013 where price moved from $60 to $175. Following the pandemic, price quickly recovered, and in April this year closed above the previous year high. However, price has struggled to establish a clean trend.
On the weekly timeframe, price initially closed above the previous year high in November 2020, came back to retest the pivot level, before moving higher; however price has struggled to find momentum. Price is above the 20sma and 50sma, and the sublime trend filter is green.
On the daily timeframe below, price has been oscillating between green, grey and red on the Sublime trend filter, in turn indicating indecision. On 28th July price created a head-fake and subsequently pulled back to the zonal area between the 50sma and 200sma. Since 11th August price has moved higher, albeit without clear evidence of momentum. Given its history this stock needs wide stops and patience to successfully trade it.
TransUnion - TRU
A stock that commenced trading publicly in June 2015, trended well throughout 2017 and 2018. More recently, a trend has been in place since price broke above the previous year high at $103 in April this year.
On the weekly timeframe, the Sublime trend filter is green. Price is above the 50sma and 200sma. In December 2020 price initially broke above $100 and the pivot high from 2020, but failed to gain momentum, in turn creating a head fake. Price then retreated to the weekly 50sma where it found support and has since formed a linear trend.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma. The Sublime trend filter is green. Since price broke out above the 2020 pivot high and $100 round number, price has been using the zonal area between the moving averages as support. A continuation of this pattern could offer Phoenix members an opportunity to take advantage of a high performing stock.
Another week of new all-time highs in the S&P and Nasdaq, whilst it was a week of consolidation for the Dow and FTSE. A good number of stocks continue to have record growth, allowing our Phoenix members to compound and add more positions to their already profitable positions.
To get up to speed on how to accurately analyse the markets, consider completing the ‘Are You On Track To Retire Wealthy’ scorecard and unlock your FREE gift – Lifetime access to the Launchpad Investor Starter Kit priced £297 (+ VAT).
Keep it simple. Keep it Sublime.
The ST Team
