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 strength building in the markets, led by ‘Big Tech’ stocks such as Microsoft and Nvidia. This week, momentum has continued with further bullishness, including several breakouts and all-time highs in our portfolio of stocks. 

Whilst inexperienced traders would likely have panicked during September’s pullbacks, members in our Phoenix community are now taking advantage of these moves, having maintained their positions, and even profited by seeking pullback opportunities.

In this week’s newsletter, we have introduced a new section called Stock In Focus, where we deep dive into how we have traded a particular stock.

This week’s Stock In Focus is Nvidia.

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 time frame, during October price has shown bullishness, with a gain to date of 1.5%. As we have discussed for several months, price has struggled to close above the pivot high from 2015 at 7124 – price is currently above this level, but we must wait until the completion of the month to fully assess price action.

On the weekly time frame, price has maintained its position above 7000 round number and 200sma. The Sublime trend filter is currently green indicating potential strength building. At its current level, price remains in a period of consolidation, which commenced in April this year, however, price is pushing up against the pivot high of this range. 

On the daily time frame below, this week price has continued to trade above all moving averages; 20sma, 50sma and 200sma. The Sublime trend filter this week has maintained green, a continued sign strength is building. Our overall bias remains bullish, and we continue to look for stocks outperforming the Index.

UK STOCKS

JD Sports Fashion - JD

JD is a stock we have previously discussed in this newsletter. Following the pandemic, price has been in an uptrend. However, price action has been mixed, with a combination of impulsive moves along with pullbacks. In September price was initially bullish, with a breakout and an all-time high, but price closed with a gain of 3.9%. In October price has continued to be mixed.

On the weekly time frame, price is above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily time frame below, price is currently trading within an area converging with both the 20sma and 50sma. Importantly, price remains above the 200sma. The Sublime trend filter is interchanging between grey and green, indicating decision. This stock has a 5-1 stock split on 1 November, which may result in price volatility. Phoenix members will be standing aside until this event passes. The next area of resistance is the all-time high currently at £11.65, followed by the £20 round number.

Polar Capital Technology Trust - PCT

A stock with a history of trends but coupled with volatility. 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. Throughout July price made several attempts to break out, before finally doing so on 24 August. Price created an all-time high in September at £25.94, however price subsequently retreated to re-test the previous year high at £23.70.

On the weekly time frame, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily time frame below, price is below the 20sma but above the 200sma. The Sublime trend filter is interchanging between red and grey, indicating indecision. Phoenix members will now apply patience, to assess whether price can stabilise above the previous year high. The next area of resistance is the all-time high currently at £25.94, followed by the £30 round number.

 

Rentokil Initial - RTO

On the monthly time frame, price has been in a long-term trend since May 2015. More recently, price has displayed bullishness since closing above the £5 round number. Price extended this bullishness to close above the £6 round number to create an all-time high, however, price has subsequently retreated.

On the weekly time frame, price is trading above both the 50sma and 200sma, and the Sublime trend filter is green. As mentioned, price in the past three weeks has been pushed down by the bears to retest the pivot level at £5.80.

On the daily time frame below, price is currently trading back above the 20sma and 50sma and is using both the pivot level previously mentioned as support. These levels appear to be holding and, as a result, Phoenix members will be looking to see if price can regain its strength and continue the long-term trend. The next area of resistance is the all-time high currently at £6.20, followed by 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

The month of September closed with a bearish engulfing candle and a decline of 4.9%. This represents the first monthly decline since January this year. In October the bulls took back control, reversing September’s decline, with a gain of 5.5%.

On the weekly time frame, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green.

On the daily time frame below, this week price performed strongly, moving clear of the 20sma and 50sma. As a result, the Sublime trend filter switched from grey to green. Price is now re-testing the all-time high at 4551. Our overall view remains unchanged, that the bulls remain in firm control of the S&P and, as a result, we continue to look for stocks that are outperforming the index.

US STOCKS

Accenture - ACN

On the monthly time frame, price is bullish overall. Since price broke above the previous year high at $271 in March this year, price has been bullish, with an increase of 28%. September’s decline of 4.9% has been reversed in October with an increase of 8.5%.

On the weekly time frame, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily time frame below, the Sublime trend filter is green and price is above the 20sma, 50sma and 200sma. Since price broke above the $300 round number, price used the 20sma until September’s pullbacks resulted in a deeper decline in price. Price has rebounded strongly following September’s pullbacks. Price has plenty of room to move to the next area of resistance, being the $400 round number. We will continue to update our Phoenix community with signals in this high-performing stock.

Ameriprise – AMP

Price was in a strong trend between November last year and April this year, gaining some 60%. However, in recent months price action has been mixed; in August price gained 6%, whilst in September price declined 3%. However, price rebounded strongly in October with a gain to date of 12%.

On the weekly time frame, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green.

On the daily time frame below, price is currently trading above the 20sma, the 50sma and the 200sma, and the Sublime trend filter is green. Price made a series of head fakes at a key pivot level at $270, however, once price broke out, it moved quickly, gaining 10% in three weeks. This stock has earnings on 26 October. Phoenix members will assess price following this event, along with how price reacts to the $300 round number.

Broadridge Financial Solutions – BR

A top performer for our Phoenix community, with an excellent history of trends. Price made significant gains between 2013 and 2018, from $25 to $140, a move of over 440% to the upside. Price then went through a lengthy period of consolidation with price eventually breaking out in November 2020, and has since pushed onto new all-time highs.

On the weekly time frame, price is still above the 50sma and the 200sma and the Sublime trend filter is green.

On the daily time frame below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green, confirming alignment with the weekly time frame. This stock was added to our portfolio this week with signals being shared with our Phoenix members and we will continue to do so as the trend develops. The next major level of resistance is $200.

The Carlyle Group – CG

This stock has a mixed history, having originally floated in May 2012, it failed to form any clear direction until March this year when it broke above the previous year high at $35.

On the weekly time frame, price is above the 50sma and the 200sma and the Sublime trend filter is green. In the past three weeks price has been particularly bullish, with a gain of 14%.

On the daily time frame below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is green, confirming alignment with the weekly time frame. This week the moving averages performed a golden cross, with the 20sma closing above the 50sma. This stock has earnings on 28 October. Phoenix members will assess price following this event The next area of resistance is the $100 round number.

Marsh & McLennan Companies – MMC

A move of over 840% from $17 in 2009 to $169 today shows why this stock should feature in a good investor’s portfolio. During September price retreated to re-test the $150 round number, but price has subsequently been bullish with a gain of 11% to create an all-time high.

On the weekly time frame, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green. Price has made an impulsive move higher following the break above the wPiv21 at $121.

On the daily time frame below, price is trading above the 20sma, the 50sma and the 200sma and the Sublime trend filter is green. This has shot out of the blocks since breaking out from consolidation and will target $200 as the next key area of resistance. We will continue to share signals with our Phoenix members as the bullish trend continues.

Nvidia - NVDA

Nvidia has been one of the best-performing stocks in the Phoenix portfolio.

This stock met our trading criteria in August 2020, with a history of trending for multiple years (2016-18 and 2019-20), along with a breakout, an all-time high and close above a round number ($400 at the time, before the stock split). However, after initially taking a position, the stock went into a long period of consolidation – some 275 trading days! Most traders would have lost patience and closed their position, but as trend traders, we understand price doesn’t always trend. We maintained our position, and in June 2021 price broke out again which offered a compounding opportunity. We compounded again in late June and August.

We currently have four positions in this stock. This stock has a return to date of 14% on our starting portfolio balance. We risked just 1% of our portfolio balance on this stock – the ROI (return on investment) to date has been an incredible 1,350%. The trade has been open for 416 calendar days. And the total amount of time taken to manage the trade over that period has been less than two hours.

NVDA is a good example of the power of trend trading – simple, time-efficient and highly profitable. This example demonstrates that a trader only needs a few such trades each year to generate extremely good returns.

Looking ahead, NVDA has recovered well from September’s pullbacks. It’s maintaining its position above the moving averages on both the weekly and daily time frames and is approaching its all-time high at $230. The next ahead of resistance is the $300 round number. We will continue to monitor this stock and discuss further compounding opportunities with our Phoenix community.

Microsoft - MSFT

A stock with an impressive trend going back to July 2016! September’s loss of 6.6% snapped a three-month bullish move between June to August – which included a gain of 23%. However in October strength has returned with September’s losses being erased, and a gain to date of 10%. Price remains bullish and we anticipate the long term trend to continue.

On the weekly time frame, price is trading above the 50sma and 200sma, and the Sublime trend filter continues to be green, confirming the bull trend.

On the daily time frame below, the Sublime trend filter has quickly returned to green, with a gain of 11% in two weeks. Price is currently above the 20sma, 50sma and 200sma. With the recent move, price is back above the $300 round number. In terms of the outlook, earnings are due on 26 October – Phoenix members will reassess their position following this event. If the $300 round number holds as support, the next area of resistance is the $400 round number.

Whilst the markets have been broadly weak during September, this was to be expected given the bullish moves in July and August. During the first three weeks of October, the markets have rebounded strongly. The economy is showing good signs of recovery and a good number of stocks continue to have record growth. As a result, our Phoenix members will continue to compound and add more positions to their already profitable portfolios.

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


Tags


You may also like

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Get in touch

Name*
Email*
Message
0 of 350
>