Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
This week FACEBOOK defied its sceptics and ‘expert’ commentators by printing another all-time time, despite a broad market pullback. FACEBOOK has performed strongly since it broke above the $300 round number, gaining 24% in just 5 months.
Successful trading is based on a very simple set of principles that, when applied consistently, can deliver incredible, stress-free results. Our Phoenix community is made up of people from all walks of life, and no finance or trading experience is necessary to take advantage of our training and previous success in the financial markets.
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 pulled back from last week’s all-time high to tag the 20 simple moving average. The all-time high remains at 4546.
- The Nasdaq 100, this week briefly created an all-time high at 15710, before retreating into a tight area of consolidation just below the all-time high.
- The Dow Jones 30, last created an all-time high on 16 August, and this week weakened further to close below the 50 simple moving average. The all-time high remains at 35630.
- The FTSE 100, initially found strength but in the latter part of this week weakened to close below the 50 simple moving average.
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. Whilst we continue to share setups and signals with our Phoenix members.
Let’s get into this week’s newsletter!
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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. In early August price showed strength, however since then price has weakened, and this week moved back below the 2015 monthly pivot level.
On the weekly timeframe, price remains above the 7000 round number, along with the 50sma and 200sma. The Sublime trend filter is currently green. At its current level, price is at the base of the consolidation range, which commenced in April 2021.
On the daily timeframe below, price has closed below both the 20sma and 50sma. As a result, the Sublime Trend filter is currently grey. Our overall bias, however, remains bullish, and we continue to look for stocks outperforming the Index.
UK STOCKS
Games Workshop Group - GAW
This stock has a mixed history with periods of bullish trends combined with periods of pullback. Price is currently positioned just below the previous year high at £12.16.
To date, September has been a bullish month with a gain of 3.2%, however price is immediately faced with resistance.
On the weekly timeframe, price this week again attempted to break through the previous year high. Price has made several attempts at this level, which was created in November 2020. Price Is currently above the 50sma and 200sma, and the Sublime trend filter is green.
The daily timeframe below, price is currently trading above the 20sma, 50sma and 200sma, whilst the Sublime trend filter is also green. In recent weeks the trend filter has interchanged between grey and green, indicating indecision. A break and close above the previous year high, along with a continuation pattern, could offer Phoenix members an opportunity in a stock that has trended well in the past. The next area of resistance is the £20 round number.
Rightmove - RMV
A stock with a history of trends but with mixed performance in recent years. Between 2010 to 2013 price was in a linear trend. However since then price has moved higher, but with deep pullbacks along the way. In August price reached a new all-time high at £7.34, however price pulled back to test the £7 level. During September to date, strength has returned with a gain in the month of 5%.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.
On the daily timeframe below, the Sublime trend filter is green and price is above the 20sma, 50sma and 200sma. The strength this month has resulted in an all-time high at £7.44. A continuation pattern above the recent high could offer Phoenix members an opportunity before the next level of resistance, being the £10 round number.
Scottish Mortgage Investment - SMT
The stock with an attractive history of bullish, long-term trends, however has also experienced periods of short, impulsive pullbacks. In July 2016 price broke above the monthly pivot level, and formed a linear trend up to mid-2018. Price then went into a period of consolidation, before it once again broke through the monthly pivot level at £6.50 in April 2020. Price then formed another bullish, linear trend until February 2021. Price has since been in consolidation.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green. Since 21 June this year, price has been displaying indecision candles, as price is yet to establish a clear direction.
On the daily timeframe below, the sublime trend filter is green and price is trading above the 20sma, 50sma and 200sma. This week price bounced off the 20sma, however we are standing aside on the stock until we see a clear breakout from the previous all-time high on pivot high at $14.19. This stock has a history of forming bullish linear trends following periods of consolidation, which is currently the situation. We continue to monitor the stock and will update our Phoenix community if a linear trend develops.
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S&P 500
The month of August closed with a strong end, displaying a bullish candle with a 2.9% gain. August was the seventh consecutive month of gains in a very bullish trend. In September the S&P is initially showing weakness, but we are only a few trading days into the month, and it is anticipated there will be some adjustment following the return from the northern hemisphere summer break.
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. This week price has pulled back to the 20sma. The Sublime trend filter is green. We now wait to see if price will bounce off this level; as always, we let price dictate. 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. In last week’s newsletter we discussed a possible break out, and this week we are seeing such break out develop. Building on the momentum of previous months where price gained 22% between June to August, this week price created an all-time high at $157.
On the weekly timeframe, price is above the 50sma and the 200sma and the Sublime trend filter is green. Last week price printed a breakout bar.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is also green. With price now breaking out of a period of resistance and trading above the $150 round number, the probability of a linear trend forming is high. This stock is frequently a top performer, so well worth applying patience for the right set-up, which we will share with our Phoenix members.
Cubesmart – CUBE
A stock with a history of trends. Following the break out of five years of consolidation, price has made a bullish move with a 45% increase. July and August’s performance were particularly bullish with gains of 7% and 8% respectively. To date, September is displaying an indecision candle, which is not unexpected given the recent moves.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green.
On the daily timeframe below, since breaking above the wPiv21 price has used the 20sma as support. The daily trend filter is green and price is above the 20sma, 50sma, and 200sma. Price is currently pulling back to the 20sma. If this level does not hold, then price could be supported by the 50sma which is currently coinciding with the $50 round number. To date our Phoenix community has multiple positions in this high performing stock and we await price to dictate the next move.
Edwards Lifesciences - EW
A stock in an overall trend, but with periods of pullbacks. Since price broke above the previous year high at $92 in April 2021, price has formed a linear trend. July’s gain of 8% was followed up with a gain of 4% in August, and September is also displaying bullishness with a further 4% gain to date. This week price created an all-time high at $123.
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.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma. The Sublime trend filter is also green. Between April to June 2021 price formed a neat cup and handle formation and has since continued higher using the 20sma as support. We will continue to share signals with our Phoenix community, as price works its way towards the next level of resistance, being the $200 round number.
Facebook - FB
As discussed in the introduction, in recent months this stock has performed really well. Since price broke above the previous year high and $300 round number, price has gained 24% in just 5 months. August was a particularly bullish month with a gain of 6.5%.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green, confirming an emerging bull trend is in play.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma. Since price broke out in April this year, it has been using the area between the 20sma and 50sma as support, in turn making higher highs and higher lows. We will continue to update our Phoenix members on this popular stock.
Keysight Technologies - KEYS
A stock with a long history of trends going back to 2016. This month price created an all-time high at $182. The bullish momentum is showing few signs of slowing with a 9% gain in August.
On a weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is also green. Since price broke above the previous all-time high in February 2021, price has consistently used the 20sma as support, in turn creating higher highs and higher lows. The next area of resistance is the $200 round number. A continuation pattern above the current price could offer Phoenix members further opportunities in this high-performing stock.
Microsoft - MSFT
A stock with an impressive trend going all the way back to July 2016! Price created the previous year high in September 2020. Following that, price went into a period of consolidation, where it broke out again in January 2021. Price has gained 25% since April.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter continues to be green, confirming the bull trend.
On the daily timeframe below, the Sublime trend filter is green, and price is above the 20sma, 50sma and 200sma. Since breaking out in January 2021, price initially used the 50sma as support. However, more recently, price has used the 20sma as support, demonstrating a more bullish trend is underway. With price recently closing above the $300 round number, we now apply patience to see if this level will hold. A continuation pattern above this level could offer Phoenix members further opportunities in a stock that has been one of our best performers during 2021.
Nvidia - NVDA
NVDA is another one of our best-performing stocks in the Phoenix portfolio. Following our recent discussion in this newsletter, the stock has continued to power higher. During the second half of 2020, price was in a period of consolidation around $150, until price broke out in May this year. Following June’s powerful gain of 23%, price took a breather in July with an indecision candle. However, in August strength returned with a gain of 14.8% and an all-time high of £230. To date, September is displaying an indecision candle, however it’s early in the month.
On the weekly timeframe, the Sublime trend filter continues to be green, and price is trading above the 50sma and 200sma.
On the daily timeframe below, the Sublime trend filter is green and price is trading above the 20sma, 50sma and 200sma. Continued strength and the formation of a linear trend should see price move towards the next round number at $300. Phoenix community members have multiple positions running in this stock, taking full advantage of the compounding opportunities that have presented themselves in recent months.
Whilst it was a week of consolidation for the indices across the board, 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.
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Keep it simple. Keep it Sublime.
The ST Team
