A week of huge importance in the stock market.
The FTSE 100 is clearing key resistance levels. The S&P 500, the Nasdaq 100 and the Dow 30 are aligned and creating record ATHs.
Stocks continue to break out or recover from pullbacks.
Our portfolio has recovered from the recent declines and we are now moving further into profit. The stocks we bought into at support during the pullback are adding good profit into the portfolio. We are also taking this further and compounding on the breakouts.
Our process is simple:
- Establish overall market conditions using the indices.
- Use scanners and bespoke tools to find the best-performing stocks.
- Use a BO strategy when the markets are in trend.
- Use a PB strategy to buy in at support during periods of decline.
- Compound strategically and within solid risk management principles.
- Exit using a trailing stop-loss.
Apply patience, remain neutral, let the process take over and watch the account grow steadily but exponentially over time.
Get it wrong, as most do, and it is a nightmare journey. Get it right, as we do, and it is a life-changing journey.
The FREE Facebook Community called the Launchpad is a great place to get involved in conversations
around stocks mentioned in this newsletter and opportunities that may arise during the week.
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
- Ashtead Group – AHT
- JD Sports Group – JD.
- St James’s Place STJ
- Arthur J. Gallagher – AJG
- Berkshire Hathaway – BRK.B
- Cadence Design Systems – CDNS
- Deere & Co – DE
- Extra Space Storage – EXR
- Maximus – MMS
- Nvidia – NVDA
FTSE 100
A significant week. Price has currently moved around 4.5% since the start of the month, taking price onto new ATHs for 2021. Price is also above the 7000 round number and now pushing through the weekly 200sma. These are levels you will have heard us mention numerous times in this newsletter that, if price broke and closed above, we are likely to see further strength to the upside. Another example of how ‘the trend is your friend’ and how S/R levels get broken when price is in a trend.
On the weekly timeframe, price is now trading above the 50sma and at the time of writing above the 200sma. We want price to close above the 200sma ideally by the end of trading on Friday. The Sublime trend filter has remained green since December.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma with all 3 MAs aligned and angling up, confirming the emergence of the bull trend from consolidation price has been in since the start of the year. The Sublime trend filter is green, also confirming the start of the next bull leg up. We were right to continue to focus on bullish stocks when the misguided always look for tops and reversals, a surefire way to failure. Let’s see how stocks have performed this week.
UK STOCKS
Ashtead Group – AHT
Since the start of the month, a move of almost 8% has pushed price further towards the £50 round number. Price has now moved circa 55% since the breakout last year and an excellent example of why you want to enter into trends at the base of the breakout from consolidation.
On the weekly timeframe, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green.
On the daily timeframe below, price continues to trade above the 20sma, the 50sma and the 200sma with all 3 MAs angling up, confirming a bull trend. Price has predominantly been using the 20sma as support which is an indication of a linear trend. This stock has been in a consistent trend for five months, so we may see a correction form, but until then, our Phoenix members will continue to manage their positions which are performing well, and we will continue to share signals with them.
JD Sports Fashion – JD.
A stock that has performed very well for us in the past, particularly between 2015, when price first cleared the £1 mark, and 2017 when the reversal came in. Price was also trending well before CV19, but the correction at the start year was aggressive, as was the case across stock markets in general. The recovery has been slow compared to other stocks, but price is now attempting to break out from consolidation, with April having printed new highs with a move of over 11% so far this month.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming the start of a potential bull trend.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma with all 3 MAs aligned and angling up, also confirming bullishness. This week has seen price pullback to retest support levels. The next breakout will suggest a trend continuation, but it is a break and close above the £10 major round number directly above price that will be of particular interest to us and when we will alert our Phoenix members to entry points through the signal service.
St James’s Place – STJ
A stock that has the potential to trend based on its history, but it has not always been the smoothest ride. An almost 5% move to the upside in April so far, adding to the 120% recovery from CV19. This has taken price out of consolidation it has been in since January 2018.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming the emergence of a bull trend from consolidation.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma with all 3 MAs aligned and angling up, also confirming bullishness. Price this week has seen the start of a pullback that may drop deeper to the 20sma or even the 50sma. These levels are likely to act as support before the next breakout to the upside. We will monitor this closely and share signals with our Phoenix members as this is close to meeting our trading plan. The next key level of resistance above price is the £20 round number, a level that price will make light work of as it gathers momentum to the upside.
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S&P 500
Our primary indicator of the stock market continues to go from strength to strength in April with a move of over 5% so far since the start of April. The Dow Jones 30 and the Nasdaq 100 are also creating new ATHs this week, aligning all three major US indices.
On the weekly timeframe, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green.
On the daily timeframe below, price continues to trade above the 20sma, the 50sma and the 200sma with all 3 MAs angling up, confirming the bull trend. We now need to be aware that there has not been a clean pullback and retest of the $4000 round number as support. A correction is due, and it will happen. We need to let price dictate when that will happen and the depth of the pullback, and we will react and manage positions accordingly. We will continue to remain bullish and share signals of the best-performing stocks across all sectors with our Phoenix members.
US STOCKS
Arthur J. Gallagher – AJG
A stock that has an excellent history of performance and never far from our watchlist. April has seen a move of over 8.5% taking price out of consolidation and onto new ATHs.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming the emergence of a bull trend from consolidation.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma with all 3 MAs aligned and angling up, also confirming bullishness. The consolidation is likely to act as a base for the next leg up. We are now sharing signals with our Pheonix members with a view of seeing price push towards $200 and beyond.
Berkshire Hathaway – BRK.B
A stock that has recovered well from the recent pullback when we entered a pullback position and have now compounded further using our breakout strategy. All signals have been shared with our Phoenix members. Price has moved over 5% since the start of April, taking price onto new ATHs.
On the weekly timeframe, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green.
On the daily timeframe below, price continues to trade above the 20sma, the 50sma and the 200sma with all 3 MAs angling up, confirming the bull trend. This week’s breakout is likely to see price push towards $300 as the next level of resistance.
Cadence Design Systems – CDNS
A stock we have been holding since $90 in June of last year, and that moved over 62% since our first entry. We have multiple positions running along the length of the trend, with all signals shared with our Phoenix members. Since creating the current ATH in February, price has been trading inside an area of consolidation.
On the weekly timeframe, price has remained above the 50sma, and the 200sma and the Sublime trend filter has remained green throughout consolidation.
On the daily timeframe below, price is trading above all 3 MAs. The 20sma has moved back up the 50sma, confirming a golden cross, aligning the MAs. The 20sma is above the 50sma, which is above the 200sma. The Sublime trend filter is now green again. All the signs point to further strength to the upside, but we need price to confirm this with a breakout. We will then continue to share signals with our Phoenix members.
Deer & Co – DE
A stock we have been in since August of last year when price first broke and closed above $200. Since then, price has moved up over 90%, with the current ATH just short of $400. We have multiple positions in play, with all signals shared with our Phoenix members.
On the weekly timeframe, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green.
On the daily timeframe below, price continues to trade above the 20sma, the 50sma and the 200sma with all 3 MAs angling up, confirming the bull trend. Price has been in a mini consolidation since creating the current ATH in March. The decline has been well supported by the 20sma. A break and close above $400 will be significant for further strength and when we will resume sharing signals with our Phoenix members.
Extra Space Storage – EXR
A stock with an excellent history of performance that recently broke out from consolidation has moved over 14% since the breakout. April has seen a move of around 7% so far. Several breakout signals have already been shared with our Phoenix members.
On the weekly timeframe, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green.
On the daily timeframe below, price continues to trade above the 20sma, the 50sma and the 200sma with all 3 MAs angling up, confirming the bull trend since the breakout. Price is likely to target the $200 round number as the next area of resistance above price.
Maximus – MMS
Price moved over 460% between 2010 and 2015 from $12 to $70, which confirms this stock has the potential to trend well. Since 2015, price has been creating further highs but with price whipsawing up and down in consolidation. March saw price finally break out from consolidation, and that momentum has continued through April with a combined move of over 15.% so far.
On the weekly timeframe, price continues to trade above the 50sma and the 200sma. The Sublime trend filter remains green.
On the daily timeframe below, price continues to trade above the 20sma, the 50sma and the 200sma with all 3 MAs angling up, confirming the bull trend since the breakout. The trend has been supported by the 20sma. Price is now pushing towards $100, the first maor resistance level above price. A break and close above this level will be significant. We are sharing signals with our Phoenix members and will also do so once price confirms a trend continuation above $100.
Nvidia – NVDA
A stock that exemplifies the importance of patience and how those investors who embrace patience are handsomely rewarded. We have held positions since last year. Price had moved around 100% from $300 in May to just under $600 in September, and since then, price has been trading inside an area of consolidation. April so far has seen a move of over 20%, which has finally taken price out of consolidation and onto new ATHs.
On the weekly timeframe, price has remained above the 50sma, and the 200sma and the Sublime trend filter has remained predominantly green throughout consolidation.
We can see the long-term consolidation price has been in since last year on the daily timeframe below. The Sublime trend filter is now green with price printing new ATHs. The 20sma is pushing above the 50sma, a golden cross, with both MAs trading above the 200sma. The longer the consolidation the bigger the breakout, and if this breakout holds, we expect price to make its way to $1000 over the long term. We will resume sharing signals with our Phoenix members once this meets our trading plan.
With the FTSE constantly breaking resistance levels and the Nasdaq now creating new ATHs again along with the other indices, the markets are going from strength to strength. Keep up to date with market events by joining our FREE Launchpad Facebook group.
Keep it simple. Keep it Sublime.
The ST Team
