A vast difference in the markets this week compared to last week with a recovery in the S&P 500 from the pullback of the last 2 weeks and with that a recovery in stocks and also the emergence of new trends.
Our scanning and analysis process has been in overdrive as we filter through all the opportunities to share the very best signals with our Phoenix members.
This week has once again highlighted the following:
- The trend is always your friend.
- The importance of patience.
- The need for a proven process.
- Why holding and compounding is king.
- A grounding in what trading psychology really means.
- Ego before profit will always be a one way trip to disaster.
Top-callers will once again have disappeared into the woodworks and those who had closed their positions in panic will now be regretting their decisions. Both the need to be right and trading on emotions have no longevity in the markets.
By applying patience and following our proven trend following process, we have allowed our positions to recover, added pullback positions to the portfolio and we are now loading up on the next round of breakouts.
Simple, effective and extremely profitable particularly when using leveraged spread betting or CFD accounts.
And that is with risking no more than 1% to 2% on each asset and a stoploss in play on every single position placed in the account.
We focus on the downside and let the profit come to us, the hallmark of good investing.
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.
And with that said, 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
- Ashtead Group – AHT
- Croda International – CRDA
- CVS Group – CVSG
US Stocks
- American Express – AXP
- Berkshire Hathaway – BRK.B
- Cigna – CI
- Comcast – CMCSA
- Darling Ingredients – DAR
- Walt Disney Company – DIS
- Starbucks – SBUX
FTSE 100
Price has moved up around 1.5% in the last week adding to a move of almost 4% from the low of March. The bigger picture sees price still trading in consolidation and needing a breakout.
On the weekly timeframe, price is still trading between the 200sma as resistance and the 50sma as support and the Sublime trend filter continues to remain green.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma with the trend filter turning green this week. The bigger picture shows the trend filter continuing to alternate between green, grey and red confirming price is in consolidation. Overall, we continue to have a bullish stance and will continue to add the best-performing stocks into the portfolio.
The UK stocks that have made it onto this week’s newsletter are: (click on charts to open in a new window)
UK STOCKS
Ashtead Group – AHT
A stock that has held very well through the recent pullback and moving around 8.5% since the open taking price through the £40 round number and onto new ATHs. Price has moved over 40% since the breakout from consolidation in November of last year.
The weekly continues to display bullishness with price trading above the 50sma and the 200sma and the Sublime trend filter remaining green.
On the daily timeframe below, we can see the quality of the trend in clarity with price being well supported by the 20sma and the 50sma if needed. The 200sma continues to angle up confirming a bullish bias. Alignment still in play between the weekly and the daily timeframes with the Sublime trend filter also being green. This continues to perform well for investors who hold and compound. We will continue to share signals with Phoenix members.
Croda International – CRDA
A stock still in our portfolio but one that continues to trade inside a period of consolidation dating back to October. The longer the consolidation the bigger the breakout so patience is very much a virtue when stocks start moving sideways.
The weekly still paints a bullish picture with price trading above the 50sma and the 200sma and the Sublime trend filter continuing to remain green through this consolidation.
The daily timeframe below shows the consolidation in more detail with the Sublime trend filter alternating between green, grey and red since October. The 20sma and the 50sma are flat confirming a consolidation but the 200sma is holding strong as support confirming a bullish bias to price. Patience needed until both the ATH and the £70 round number are cleared after which we will consider further positions for the portfolio and restart sharing signals with Phoenix members.
CVS Group – CVSG
A new stock shared with our Phoenix members and one that displays all the hallmarks we look for in order for a stock to be added to the portfolio. It has a good history of performance, volume is good, it has broken out from a long-term area of consolidation and is now printing new ATHs.
The weekly is bullish with price trading above the 50sma and the 200sma and the Sublime trend filter is green and has been green since July 2020.
The daily timeframe below shows the trend that has been in play since the recovery from CV19. The trend, on the whole, is linear but does have the tendency to pullback to the 50sma. If this trend structure persists moving forward, we are likely to consider a pullback entry once price starts trading above the £20 round number. We will continue to share signals with Phoenix members.
Now is the perfect time to start preparing for when stocks do make a move. A recovery in this index will mean we can start looking to place long trades. Further declines and we can start looking to short stocks like we did back in 2008.
The market is poised to hand out some unique opportunities for excellent profit and growth for those who have learned to position themselves correctly.
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
A complete turn around in price from the PB of the previous 2 weeks with a move of almost 6% to the upside from the low of last week. It was the high of 2020 which held strong as support pushing price up with Thursday’s bar even printing a new ATH before closing below the high of February. We now need to see how the week ends with a close above the major round number a possibility in the near future.
The weekly timeframe continues to display bullishness with price trading above the 50sma and the 200sma and the Sublime trend filter continuing to remain green.
The daily timeframe below shows the swift recovery in price with price now trading back above the 20sma and the 50sma and the Sublime trend filter now back to being green. The 200sma continues to angle up confirming the bias is and has been bullish for a very long time now. We continue to compound on stocks already in our portfolio that were not stopped out during the recent pullback as well as adding new emerging stocks being picked out by our scanning process.
US STOCKS
American Express – AXP
A move of 7% to the upside since breaking out from consolidation this month shows early signs of promise for investors. In addition, this stock has a history of performing well, has broken out from consolidation, has good volume and is now printing new ATHs. With price trading above the high of last year, this stock is looking promising.
The weekly timeframe is confirming the early signs of a trend with price trading above the 50sma and the 200sma and the Sublime trend filter being green.
On the daily timeframe below, we can see price trading above the 20sma, the 50sma and the 200sma and price trading above support. The MAs are angling up and fanning out confirming the emergence of a trend. The Sublime trend filter is green aligning with the weekly timeframe. The next set up above $150 that meets our trading plan will be added to the Phoenix signal service.
Berkshire Hathaway – BRK.B
The momentum from last month when price broke out from a period of consolidation stretching back to January 2018 has continued this month with a move of over 8.5% so far.
The weekly timeframe continues to confirm the emergence of a trend with price trading above the 50sma and the 200sma and Sublime trend filter continuing to remain green.
On the daily timeframe below, we can see the emerging trend in clarity with price trading above the 20sma, the 50sma and the 200sma and with the MAs angling up and fanning out confirming a bull trend is in play. The Sublime trend filter is green but breakout bars have been wicky meaning we have applied patience with this stock before sharing signals with our Phoenix members. They are well aware of this stock and understand exactly what criteria needs to be met before we can consider an entry. Patience for now.
Cigna – CI
An excellent history of performance, breaking out from consolidation, a move of around 15% since the start of the month leading to new ATHs and volume that adds confidence, one can see why this has been picked out by our scanning and analysis process.
The weekly timeframe is confirming the emergence of a trend with price trading above the 50sma and the 200sma and the Sublime trend filter is green.
The daily timeframe below shows in detail the emergence of the next leg up with price trading above support, the MAs and the Sublime trend filter being green. The 20sma has recently moved above the 200sma and this indicator is angling up confirming bullishness. Phoenix members have been made aware of this stock but we await further confirmation in the bull trend to avoid a fake breakout before adding this to the signal service.
Comcast – CMCSA
A move of around 7.5% to the upside since the start of the month confirms why we saw early potential in this stock and shared it with our Phoenix members. This is a cheap stock with good upside potential based on its history, volume and that price is trading above the high of last year.
The weekly timeframe sees price continue to trade above the 50sma and the 200sma and the Sublime trend filter is green.
On the daily timeframe below, we can see the emergence of the trend from consolidation and when we first highlighted this for our Phoenix members. This has since produced further signals and now have multiple positions in play. As the trend develops, we want to see price use the 20sma and the 50sma as support and for the 200sma to continue to angle up and for price to target the $100 round number. We will continue to share signals with our Phoenix members.
Darling Ingredients – DAR
A stock that has moved over 650% since the recovery from CV19 from $10 to almost $80 and one we have been sharing signals on with our Phoenix members since last year. March has seen price move over 23% printing new ATHs in the process. Investors are being very handsomely rewarded.
Little change on the weekly timeframe with price continuing to trade above the 50sma and the 200sma and the Sublime trend filter remaining green.
The daily timeframe below shows how well the 20sma and then the 50sma have held strong as support even through the recent pullback pushing price further onto new ATHs. The daily timeframe continues to angle confirming a long-term bullish bias. Given how long price has been in trend, there is likely to be a period of consolidation in the near future with the $100 mark the likely area. If you are not in this then you are better off focusing on new emerging trends as opposed to chasing a trend that has moved as much as this one has.
Walt Disney Company – DIS
A position was taken on this stock this week and shared with our Phoenix members. This is a stock that has performed very well for us back between 2012 and 2015 with a 170% move to the upside from $45 to $123. A break and close above $200 was the catalyst to add this back into the portfolio. We do like to keep an eye on stocks that have performed well for us in the past as they are likely to perform well in the future.
The weekly confirms the start of a new trend with price trading above the 50sma and the 200sma and the Sublime trend filter being green.
On the daily timeframe below, we can see the break out from consolidation and price trading above the 20sma and the 50sma, and the 200sma has been angling up since around November of last year. The Sublime trend filter is green and aligned with the weekly timeframe. The signs are strong for a continuation to the upside towards $250.
Starbucks – SBUX
A stock we entered in on, got stopped out of and now waiting patiently to re-enter in on. March has seen price remain in consolidation so far but with price pushing higher, a breakout is on the horizon.
No change on the weekly timeframe since January with price trading inside consolidation but above key support and the 50sma and the 200sma. The Sublime trend filter is still green confirming why we are still bullish.
The daily timeframe below shows price trading back around the current ATH, the Sublime trend filter is green and price is trading above the 20sma, the 50sma and the 200sma. It is common for price to move into an area of consolidation when it first starts printing new ATHs so patience for now until we get the breakout and the right set up. Our Phoenix members are poised to act when signals are shared.
The week was strong in the stock market and we saw the Dow Jones create a new all-time high. The S&P is edging ever closer to the $4000 round number and new sectors are leading the way forward including the ‘Financials’ sector.
Make sure to check in next week to stay up to date with the progress of the recovery in the markets and don’t forget to join our FREE Launchpad Facebook group.
Keep it simple. Keep it Sublime.
The ST Team
