Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
As we mentioned in previous weeks, strength in the main indices has been building, and this week we have seen this strength result in breakouts, with new ATHs in the S&P and Nasdaq indices.
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.
As a reminder, ‘the trend is your friend until the bend at the end’, and there is no sign of a bend just yet. Those insisting on calling tops are getting swallowed into the bull trend, losing time and money in the process. For those holding long positions, the market continues to reward with simple profits, particularly those who understand how to scan, enter, hold and compound on those stocks outperforming the indices.
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, following last week’s ATH another new high was achieved this week at $4,275.
- The Nasdaq 100, also continued its recent strength with an ATH at $14,438.
- The Dow Jones 30, currently lagging behind the other indices, this week closed back above the 50sma.
- The FTSE 100, following last week’s retreat to the 50sma, this week price found the strength to move above the 20sma.
The natural movement to the stock market is seasonal, an important aspect many traders and investors fail to grasp whilst in 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
As we approach the end of the month, June is currently displaying an indecision candle. Price is testing the pivot high from 2015 at £7,124, whilst being supported by the moving averages along with the £7,000 round number.
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 strength by bouncing off the 50sma. 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
Big Yellow Group – BYG
A very strong move in May with price moving up 9% has been followed up in June with an indecision candle. This stock has a history of trending, but it can swing and create deeper than desired pullbacks.
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 is trading above the 50sma and 200sma. This week the Sublime trend filter was a mix of green and grey, indicating indecision. After breaking out from consolidation on 10th May, price has since retested the resistance-turned-support level. We anticipate the bullish moves of previous months to resume, but we will apply patience and wait for price to dictate. We will share any signals with our Phoenix members. This is a stock to watch but not one that is high on our watchlist, given its history of performance.
Future – FUTR
A stock with a good history of trends and currently showing strong momentum. June’s candle has continued the bullishness of previous months with a 12% move higher. This week price closed above the £30 round number.
The Sublime trend filter is green on the weekly timeframe, and price is above the 50sma and 200sma.
The Sublime trend filter is also green on the daily timeframe below, and price continues to trade above the 50sma and the 200sma. The MAs are neatly aligned, indicating a strong, linear trend. Since retesting a major support level in November 2020, price has used the 20sma as support. With price above the £30 round number, we want to see a continuation pattern and the linear trend continue. We will share signals with our Phoenix members as the trend develops further.
St. James’s Place – STJ
A stock to watch as a trend could be emerging. In June price has continued its strong move, which commenced in November 2020 – price has now increased during this period by an impressive 67%.
On the weekly timeframe, price is above the 50sma and 200sma, and the Sublime trend filter is green.
On the daily timeframe below, price this week created an ATH at £15. Price is above the 20sma, 50sma and 200sma and the Sublime trend filter remains green. Since price broke above the Piv21 level at £12, price has consistently used the 20sma as support, whilst creating higher highs and higher lows. A stock that has been repeatedly mentioned in our Phoenix community, we will continue to update members of compound opportunities as this trend develops further.
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
As we near the end of the month, June is displaying a bullish candle. Price this week created an ATH at $4,275, demonstrating that the bullish trend remains intact.
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.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter remains green. Following last Friday’s close below the 50sma, this week price found the strength to strongly rebound and create the new ATH previously mentioned. The bulls remain in control of the S&P, and we continue to look for stocks that are outperforming the index.
US STOCKS
Boot Barn Holdings – BOOT
A stock with a mixed history but currently showing signs of a bullish move to the upside. June’s candle is displaying an increase in momentum with an 11% move to date. This week price also created an ATH at $85.
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 remains green, and price is above the 20sma, 50sma and 200sma. Since price broke above the wPiv21 in January this year, price has been using both the 20sma and 50sma as support. However, price action has not yet formed a clean, linear pattern. A break and close above the $100 round number, followed by a neat continuation pattern, could offer Phoenix members opportunities in this stock.
Fortinet – FTNT
As mentioned last week, this stock continues to go from strength to strength. The current impulsive trend has continued in June with a 10% increase to date, resulting in an ATH this week at $244.
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, since price closed above the wPiv21 level in February this year, price has used the area between the 20sma and 50sma as support. Price remains above the MAs and there is plenty of room for the trend to continue before the next area of resistance, being the $300 round number. 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. Price in June has been particularly bullish with an 8% move up, in turn creating an ATH at $114.
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.
On the daily timeframe below, the Sublime trend filter is green and price is above the 20sma, 50sma and 200sma. In May price retested the wPiv11 and has since used the 50sma as support. 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.
Moody’s – MCO
Another stock with a history of trends lasting several months and years. June’s candle has been particularly bullish with an 8% increase to date. This week price created an ATH at $363.
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. The Sublime trend filter is green. Between August 2020 and March 2021 price was in a prolonged period of consolidation below the $300 round number. Once price broke out beyond this level, price has used the area between the 20sma and 50sma as support. The next area of resistance is the $400 round number. We will share breakout and pullback signals with our Phoenix members as the trend develops.
Microsoft – MSFT
Following an indecisive month in May, June’s candle has displayed a very bullish move, with a 7% increase to date, in turn resulting in an ATH this week at $268.
On the weekly timeframe, price is trading above the 50sma and the 200sma and the Sublime trend filter continues to print green bars confirming the bull trend.
On the daily timeframe below, the Sublime trend filter is green, and price is above the 20sma, 50sma and 200sma. In the past week, the 20sma has crossed above the 50sma. The next area of resistance is the $300 round number. In the past, we have generated excellent profits from this stock, and we will continue to share breakout and pullback signals with our Phoenix members as the trend further develops.
Target – TGT
A stock with a mixed history including long periods of consolidation, over the past year price has formed an impulsive and bullish move. June’s candle has continued the pattern of recent months with a 6% increase to date, resulting in an ATH this week at $240.
On the weekly timeframe, the Sublime trend filter is green, and price is above the 50sma and 200sma.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is also green. This year, between January to March, price was in a period of consolidation below the $200 round number. Once price broke out above this level, price has used the 20sma as support. Price has plenty of space to continue its’ trend before the next round number at $300. Phoenix members have a position in this stock and will look to compound as opportunities present themselves.
West Pharmaceutical Services - WST
With a long history of trends, this stock is showing signs of the emergence of a new trend developing. Despite weakness earlier in the month, June’s candle has been bullish with a 3.5% increase to date. This follows price increases of 17% and 6% 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, the 50sma and the 200sma and all MAs are aligned and angling up, with a clear trend in place. Since price bounced off the 20sma on June 10th, price has shown further strength, resulting in an ATH this week at $362. Phoenix members also have a position in this stock and will look to compound as opportunities present themselves.
The S&P 500 and Nasdaq 100 both broke and closed above a previous ATH this week. The Dow 30 will follow in due time. Over the coming weeks, we expect to see momentum build, with more stocks following suit by 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
