Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
As we mentioned last week, the main indices have recently been showing signs that strength to the upside is building. And this week we have seen that strength develop further with both the S&P 500 and Nasdaq 100 creating new ATHs.
The overall trend in the main indices remains bullish, and the probability is weighted towards the next market move being a continuation of the long term bull trend.
Understanding long term price action, technical patterns, and market cycles are all key teaching points we offer our members. During periods of consolidation, savvy investors and traders will exercise patience, recognising that the markets never move in a straight line. We expect our patience will be rewarded, as it repeatedly has in the past, with new opportunities along with compounding existing positions.
Looking at the indices:
- The S&P 500, after creating a new ATH on Tuesday at $4,270, has since retreated and used the 20sma as support.
- The Nasdaq 100 created a new ATH at $14,271.
- The Dow Jones 30 is in a period of consolidation and lagging behind the other indices. Price is currently trading below the 20sma and 50sma.
- The FTSE 100 found strength this but Friday is likely to close as a sizable bearish bar.
The natural movement to the stock market is seasonal, an important aspect many traders and investors fail to grasp whilst in the search of quick riches. There is a time to expose your portfolio, and there is a time to apply patience. Knowing when to do both is an essential ingredient to success. Less is absolutely more.
We continue to hold high-performing stocks in our portfolio, which we will add to during the next 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!
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
June’s price is showing bullish momentum and this week traded above the pivot high from 2015. A continuation of this momentum with a close above the May high at £7,164 could see price test the ATH at £7,904 in the coming months.
The Sublime trend filter continues to remain green on the weekly timeframe, with price trading above both the 50sma and 200sma.
On the daily timeframe below, we can see that this week price showed bullishness beyond the 20sma. 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 strong trending stock we have discussed many times in this newsletter and with our Phoenix community. Following May’s strong performance that added to the trend which commenced in November last year, June is currently showing an indecision candle as price is retesting the £50 round number.
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 50sma and the 200sma. However, this week’s pullback sees price trading below the 20sma, along with a retest of the £50 round number. As mentioned last week, we may be seeing early signs of a much-needed correction before the next leg up. A lengthy period of consolidation will be healthy to form a base for further strength towards the £100 major round number.
Croda International – CRDA
A stock we have been in since last year, this week price created an ATH at £72.50. Price in June has continued the momentum from previous months with a 2% gain to date.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green. This week price confirmed the bounce off the wPiv21.
On the daily timeframe below, price is above the 20sma and 50sma and the Sublime trend filter is green. Since the breakout from consolidation, price retested the wPiv21 and £70 round number, which has acted as a strong area of support. The longer the consolidation, the bigger the breakout. And we will continue to share signals with our Phoenix members, particularly if we see a linear trend develop towards the next round number at £100.
Halma - HLMA
A stock with a good history of trends. Price in June created a new ATH at £28.83 but price has since retreated, resulting in June to date being an indecision candle.
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 and 50sma and the Sublime trend filter is green. Price made several attempts to clear resistance at £26.40, and since doing so, has used this level as support. With earnings passing last week we will be watching to see if price can make a new ATH and move beyond the £30 round number. We will share any relevant breakout and pullback signals with our Phoenix members.
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 overall bullish trend remains intact as price on Tuesday created a new ATH at $4,270. Following May’s indecision candle, price in June has demonstrated the bullish momentum remains in place.
On the weekly timeframe, price continues to trade above the 50sma and 200sma and the Sublime trend filter remains green. The linear display of MAs demonstrates a strong trend is in play.
On the daily timeframe below, price continues to trade above the 20sma, 50sma and 200sma and the Sublime trend filter remains green. Since Tuesday’s ATH, price has since retreated and used the 20sma as support. The bulls remain in control of the S&P, and we continue to look for stocks that are outperforming the index.
US STOCKS
American Express – AXP
A good-performing stock that is currently taking a breather before its next move. Following the bullish move between February and May this year, where price increased by 36%, June is currently presenting as an indecision candle.
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 on Thursday retraced to the 20sma and is above the 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 in our community.
The Blackstone Group – BX
A stock with a mixed history but is currently in a strong trend. Since breaking above the previous year high at $65, price has performed an impulsive move, increasing by some 49%.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green. Since price broke above the wPiv21 in January this year, price retested this area which turned from resistance to support, with price continuing higher.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma, and all MA’s are consistently angling up, indicating a neat, linear trend. The Sublime trend filter is green. This week price reached a new ATH at $100 – an important round number. A break and close above this level followed by a continuation pattern could offer Phoenix members an opportunity. We will share the relevant breakout and pullback signals in our community.
Fortinet – FTNT
This stock continues to go from strength to strength. The current trend commenced when price broke out of consolidation in February this year and has since moved up an impressive 53%. Price this week created a new ATH at $238.
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, the graph shows a strong trend is in play. The structure of the trend is made up of higher highs and higher lows, with modest pullbacks finding support between the 20sma and 50sma. The most recent pullback found support at the MAs and the $200 round number. Price remains above the MAs and this week’s new ATH will be of particular interest to our Phoenix members who will be looking to add compounds to existing positions as this strong trend continues.
IHS Markit – INFO
A stock with a history of trends, a new trend could be emerging. June’s candle is currently showing strength with a new ATH confirmed this week at $111.
On the weekly timeframe, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green. During 2020 price made several attempts to break above the wPiv21. Following a clear breakout in November 2020, price retested this level before continuing higher. Price formed a similar pattern at the $100 round number where this level was resistance turned support.
On the daily timeframe, the Sublime trend filter is green and price is above the 20sma, 50sma and 200sma. A continuation of the current bullish trend will offer Phoenix members opportunities before the next area of resistance, being the $200 round number. We will share breakout and pullback signals with our Phoenix members as the trend develops.
Marsh & McLennan Companies – MMC
A move of over 700% from $17 in 2009 to $137 today shows why this stock should feature in a good investor’s portfolio. June is currently showing an indecision candle, which is not unexpected following the bullish moves of previous months.
On the weekly timeframe, 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 timeframe 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.
Perficient – PRFT
A cheap stock with a mixed history but has been performing well in recent months. Price in June is continuing the bullish, impulsive move with an increase of 11% to date, which follows increases of 12% and 9% in April and May, respectively.
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 200sma and the Sublime trend filter is green. This week price made a new ATH at $79. A continuation of the current bullish trend will offer Phoenix members opportunities before the next area of resistance, being the $100 round number. We will share signals with our Phoenix members as the trend continues.
Select Medical Holdings – SEM
Another cheap stock with a mixed history, it has, like many stocks on our watchlist, performed very well in 2021. June has continued the bullish momentum with price increasing by over 5% to date. Since breaking above the previous year’s high at $29, price has moved some 45% higher.
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 continues to trade above the 20sma, 50sma and 200sma. Since breaking above the wPiv21 level price has been using the area between the 20sma and 50sma as support. In terms of immediate resistance, price has the $50 round number to contend with. A continuation pattern above this level could offer Phoenix members both breakout and pullback opportunities.
The Nasdaq broke and closed above a previous ATH twice this week. It is leading the way as it did following the global pandemic last year. We should see a number of tech stocks follow suit continuing their bullish trends. To get the latest updates and analysis, then join our FREE Launchpad Facebook group.
Keep it simple. Keep it Sublime.
The ST Team
