Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
Last week the markets rebounded from levels of support we previously highlighted. And this week the markets have re-tested previous highs. The patience we have applied during this recent, anticipated pullback, has enabled our Phoenix community to continue holding long-term, profitable positions.
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.
At Sublime Trading, we have a clear trading plan that governs our approach. This is the value of our education programme, where we teach members the right techniques, to manage in all market conditions.
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 time frame, price is currently showing signs of strength, with the level being the pivot high from 2015 at 7124. If price can close December above this key level then we could see price push higher, with last year’s high at 7690 as the next level of resistance.
On the weekly time frame, the Sublime trend filter is green. Price is trading above the 50 and 200 simple moving averages (SMA).
On the daily time frame below, this week price could not maintain the momentum from last week and retreated to the 20 and 50 SMA. Price is trading above the 200 SMA. The Sublime trend filter this week also switched back to grey, indicating indecision. Our overall bias remains bullish, and we continue to look for stocks outperforming the Index.
UK STOCKS
Big Yellow Group - BYG
This stock has a history of trends, however, trends haven’t been the most linear when compared to high-quality trending stocks. On the monthly time frame, price suffered a pullback in September, but strength regained in October and November with gains of 6% and 10% respectively. December is currently showing an indecision candle.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green.
On the daily time frame below, since price closed above a key pivot level at £15.88, momentum has been building. This resulted in a new all-time high at £17.16. Price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is green. This is a stock to watch but not one that is high on our watchlist, given its history of performance. We will share any signals with our Phoenix members.
Croda International - CRDA
A stock we have been trading since last year. In September price retreated by 7%, however, October resulted in a reversal with a bullish engulfing candle. Price in November continued this momentum with a further gain of 7%. Whilst performance in December to date has been mixed, with a modest gain of 1.3%.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green.
On the daily time frame below, the Sublime trend filter is green, and price is trading above the 20, 50 and 200 SMA. Given the recent bullishness, price may pause, or retest the £100 round number. We will continue to monitor this stock to assess whether a trend can form above the round number. We will share updates with our Phoenix community.
Halma - HLMA
This is a stock with an appealing long-term trend, however, there have been sharp pullbacks along the way. On the monthly time frame, price is looking bullish overall. Since September’s pullback price has gained over 16% and is testing the all-time high at £31.89.
On the weekly timeframe, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green.
On the daily timeframe below, price is above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. Price on the lower time frames does not look clean, with deep pullbacks. We will monitor this stock, to assess whether a linear trend can develop above the all-time high. We will update our Phoenix community of any breakout or pullback opportunity in this stock.
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S&P 500
Following September’s seasonal decline, in October the bulls took back control with a gain of 7.0%. In November price initially showed strength, but subsequently weakened. Whilst December has initially shown weakness, but strength has resumed in the past week, resulting in a modest 1.9% gain to date.
On the weekly time frame, price continues to trade above the 50 and 200 SMA, and the Sublime trend filter remains green.
On the daily time frame below, last week price bounced off the zonal area of support at the key pivot level of 4550, which coincided with the 50 SMA. This week the Sublime trend filter has interchanged between grey and green, indicating indecision. 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
Apple - AAPL
Apple is one of the most popular stocks in the NASDAQ. It has a history of impulsive trends but does suffer periods of pullback and consolidation. On the monthly time frame, price was bullish following the pandemic where price moved from $60 to $130. However, since then the trend has been less linear. In November price broke out to create an all-time high, however, price subsequently pulled back to retest the previous year high at $139. Since then price has been bullish, with gains in November and December of 10% and 4% respectively. December is currently displaying an indecision candle, however we will await the end of the month to fully assess its performance.
On the weekly time frame below, price is in a long-term uptrend with price trading above both the 50 and 200 SMA, and the Sublime trend filter is green.
On the daily time frame below, price retreated during September to retest the previous year high at $139, then price climbed higher creating a series of higher highs and higher lows, culminating in an all-time high this week. The Sublime trend filter is green, and price is trading above the 20, 50 and 200 SMA. This stock has been discussed several times in the Phoenix community. A continuation pattern above the current all-time high could provide further opportunities before the $200 round number, the next area of resistance.
Berkshire Hathaway - BRK.B
A stock with a history of trends lasting 1-2 years. December is potentially a breakout month, with a gain to date of 8.5% and a new all-time high of $302.
The Sublime trend filter is green on the weekly timeframe, and price is trending above the 50 and 200 SMA. This stock’s consolidation is clear on the weekly chart – price has been round-bound since May this year, until this week where price has performed strongly, resulting in a breakout bar.
The daily time frame below shows an impulsive move since price bounced off the 200 SMA in early December. Price is currently trading above the 20, 50 and 200 SMA, and the 20 SMA should shortly cross the 50 SMA, the ‘golden cross’, a sign of bullishness. Price this week cross the $300 round number for the first time. If price can continue higher and use this level as support, we’re likely to see a trend develop. We will update our Phoenix community on further opportunities in this trending stock.
Centene - CNC
A similar stock to Berkshire.B, with periods of strong trends, however, there have also been sharp pullbacks and periods of consolidation. On the monthly time frame, December is proving to be a bullish month with a gain to date of 16%, a breakout above the previous year high, and an all-time high at $85.
On the weekly time frame, last week price bounced off a key pivot level at $72, and this week the momentum has continued, pushing the price higher. Price continues to trade above the 50 and 200 SMA, and the Sublime trend filter remains green.
On the daily time frame below, following the breakout above the key pivot level, price retreated to the 50 SMA, where price found support and has since made an impulsive move higher. Price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. The next area of resistance is the $100 round number. We will monitor this stock and update the Phoenix community if any high-quality signals emerge.
Quest Diagnostics - DGX
DGX doesn’t have the cleanest long term history. Price was in a long period of consolidation until price broke out in 2014. Since then price has moved higher, but price action has been mixed. December has seen an impulsive move higher, with a gain of 15.6% and an all-time high at $173.
On the weekly time frame, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green.
On the daily time frame below, the price most recently suffered a decline from the pullbacks experienced in September, where it found support at $140, before moving higher in an impulsive move. The Sublime trend filter is green and price is trading above the 20 and 50 SMA. The next area of resistance is the $200 round number. We will monitor this stock and update our Phoenix community on any opportunities.
Hershey Company - HSY
Hershey is another stock with a strong performance in December, with a gain of 8.25% and an all-time high of $193. This stock has a mixed history, with a strong trend occurring in 2011-MArch 2014.
On the weekly timeframe, price continues to trade above the 50 and 200 SMA, and the Sublime trend filter remains green.
On the daily timeframe below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. The daily and weekly time frames are aligned, confirming the trend in play since the breakout from consolidation. Price is now likely to make its way towards the $200 round number, the next area of support. We will update our Phoenix members of any opportunities in this stock.
Proctor & Gamble Company - PG
A stock with long periods of bullish momentum, but equally characterised by deep, sharp pullbacks. Price in November created a new all-time high, and that momentum has continued into December, with a further gain of 11.4% and an all-time high at $161.
On the weekly timeframe, price is above the 50 and 200 SMA, and the Sublime trend filter is green.
On the daily time frame below, price is trading above the 20, 50 and 200 SMA. The Sublime trend filter is green. Price is currently in an impulsive move higher, as we’ve previously seen in this stock. The next area of resistance is the $200 round number. A close above the current level could offer an opportunity, however, we need to be aware that price action is currently very strong and the price may retreat to the 20 or 50 SMA. We will apply patience and monitor this stock, and update our Phoenix members if an opportunity arises.
Public Storage - PSA
A storage company in a strong trend. In September price initially displayed strength with a (then) all-time high at $333, but weakened in the latter part of the month.
On the weekly timeframe, price is trading above the 50 and 200 SMA, and the Sublime trend filter is green. Since the breakout from consolidation in April, price retested a major pivot level at $267 and has since moved higher, gaining 37%.
On the daily timeframe, price is above the 20, 50 and 200 SMA. The Sublime trend filter is green, and price is looking particularly bullish. Looking ahead, a continuation above the current all-time high could offer an opportunity in this very bullish stock. The next area of resistance is the $400 round number. We will share any appropriate breakout and pullback signals with our Phoenix community.
This week the markets have shown the strength to remain within reach of recent all-time highs. With the holiday season upon us, we could see a rally into the remainder of the year. We will continue to monitor our positions, and act according to our trading plan, including taking new opportunities and compounding existing positions.
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Keep it simple. Keep it Sublime.
The ST Team
