The first week of May sees the FTSE 100 push through key resistance and onto new highs for 2021 and the Dow Jones 30 onto new ATHs.
The S&P 500 continues to trade inside a mine area of consolidation whilst the Nasdaq 100 and the tech sector have seen weakness. Both the S&P 500 and the Nasdaq 100, however, are finding support at key levels.
This movement on the indices has seen a mixed reaction to stocks in our portfolio. Some have pushed further up whilst others have pulled back.
This is why we must build a balanced portfolio around the best-performing stocks in the best-performing sectors. Last year saw the tech sector boom following the recovery from CV19. This year has seen the Industrials and the Consumer sectors offer excellent stocks to add to the portfolio.
This is also why our analysis process always starts with professional scanners that make light work of scanning through sectors and highlighting the best high-probability stocks.
It is the accumulation of profit over the long-term moving between sectors, holding assets through periods of boom and through periods of correction, which is how wealth is created.
With that said, let’s move 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
FTSE 100
A strong April for the bulls has seen that momentum continue at the start of May, with price breaking out and printing another new high for 2021.
At the time of writing, price is trading above the weekly 200sma, a major level of resistance currently support. A close above this level by the end of the week will be significant for further momentum to the upside. The next major resistance directly above price is from 2015. The Sublime trend filters on the daily and weekly have both been green and aligned since March, suggesting that further momentum to the upside was always likely. It was just patience that was needed to let price confirm that.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. All three MAs are angling up and aligned. We now await to see how Friday closes.
UK STOCKS
Alliance Trust - ATST
A stock that has taken its time gathering momentum this year. However, a move of almost 7% to the upside could be an early sign that this is about to change. Price is now at the £10 major round number, which is immediate resistance. May has started bearish as expected at a key level, but the odds are always with the bulls to come in and push price through and onto further new ATHs. Patience is needed for now.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. The Sublime trend filter is also green. The daily and weekly timeframes are aligned. We now await the break and close above £10, and price to confirm a continuation of the trend. We will then start sharing signals with our Phoenix members.
CVS Group - CVSG
A stock with a good history of performance, recently broken out from consolidation and moved over 25% to the upside in April, is why our scanners are picking this up. Price is now trading above the £20 round number and printing new ATHs. The bullish momentum has continued at the start of May.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. The Sublime trend filter is also green. The daily and weekly timeframes are aligned. The trend has been supported well by the zonal area between the 20sma and the 50sma since breaking out in November last year. Price used the £20 round number as support for another strong breakout this week. Price is now likely to push towards £30.
Dechra Pharmaceuticals - DPH
A circa 20% move in April saw price breakout from a long-term consolidation and close above the £40 round number. The bullish momentum has continued at the start of May. Our Phoenix members have been alerted to this stock as price has a history of performing well.
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.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. The Sublime trend filter is also green. The daily and weekly timeframes are aligned. Breakout and pullback signals from now on will be shared with our Phoenix members as the trend develops.
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 bumpy start to May with price continuing to trade inside a mini consolidation creating intraday swings. Those without a process will be panicking. Those with a proven strategy will remain calm until price settles and gathers momentum again.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. The Sublime trend filter is also green. The daily and weekly timeframes are aligned. The 20sma has held strong as support this week. We now wait to see how the week ends. We continue to remain bullish and look for the best-performing stocks outperforming the indices.
US STOCKS
Equifax - EFX
A 30% move in April and a 4% move so far at the start of May is why we are monitoring this stock and sharing signals with our Phoenix members. The history of this stock has great appeal.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. The Sublime trend filter is also green. The daily and weekly timeframes are aligned. The gap up from a positive earnings release saw price break and close above $200. Further breakouts suggest that the gap up has added momentum to the trend. We will continue to share signals as price works its way towards $300 with a strategically placed stop-loss in play if price decides to pull back and fill the gap.
Eastman Chemical - EMN
A stock that has recently broken through a previous all-time high at $112 which was set back in March 2018. Price closed bullish last month with a move of over 5%, but this month we are already seeing a move of 6.52% and counting. Price has broken out of long-term consolidation which could explain the big sudden move this month.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play, albeit a slow-moving one.
The daily is trending but this trend displays areas of consolidation along the way and will require patience if a position is taken. The trend filter is currently green and price is trading above the 20sma, the 50sma and the 200sma. Now that new record highs are being created, we want to see the behaviour of this trend transform into a neat linear trend.
Genuine Parts - GPC
Price was in a really long-term period of consolidation which lasted between December 2014 and March 2021. Consolidation lasting for several years such as this one did is expected to result in a really strong move in the direction of the breakout. We are already seeing big moves with price last month closing up 7.78% and May so far is up 5.6%.
The weekly trend filter is showing green and price is above the 50sma and the 200sma with a bullish bar showing for this week so far.
On the daily timeframe price is trading above the 20sma, the 50sma and the 200sma. The recent bounce off the 20sma has been impulsive and we should continue to see a linear trend to the upside. Price has enough room to move before reaching $150 which is the next resistance level.
HCA Healthcare - HCA
Price is currently trending strong after breaking above last year’s high at $167 in February this year, and since then price has gone on to break above the $200 psychological resistance level which is now support.
The weekly is looking bullish and we are likely to end the week with a bullish candle. The trend filter is green and price is above the 50sma and the 200sma.
A strong trend is unfolding on the daily timeframe with price recently starting to use the 20sma as support. Price is above the 20sma, the 50sma and the 200sma and the trend filter is green confirming the trend we can see in play. Price has been trending well since November 2020 and we can potentially see this trend lasting for several more months.
Laboratory Corporation of America Holdings - LH
Price is heading straight up on the monthly timeframe which displays consecutive bullish candles from January this year. March’s candle took price above $250 and this month’s 3.98% move up is pushing price ever closer to the $300 round number.
Last week’s candle was an indecision candle but we are seeing a bullish candle this week and the trend filter is green with price trading above the 50sma and the 200sma.
A linear trend is forming here on the daily timeframe which is confirmed with the consistent number of candles coloured green by the trend filter. Price is using the 20sma as support and starting to build up more momentum with fewer pullbacks. Price is trading above the 20sma, the 50sma and the 200sma. With enough momentum, price should make light work of the $300 psychological level of resistance that stands in the way.
Pentair - PNR
Price is up 3.52% for May at the moment and this rise should increase as long as the buyers remain dominant over the sellers. Price is now moving towards $70.
On the weekly timeframe, price is trading above the 50sma, and the 200sma and the Sublime trend filter is green, confirming a bull trend in play.
On the daily timeframe we can see that price broke out of consolidation, which was also a cup & handle formation, and this breakout occurred in March this year above $59. Since the breakout, price has been trending nicely along the 20sma forming a linear trend. The trend filter is green and price is above the 20sma, the 50sma and the 200sma.
PPG Industries - PPG
This stock closed up 14.52% last month after bouncing off last year’s high at $149 as support. May is looking strong as well and could be set to close as a strong bullish candle. The move up so far is 4.65%.
The current weekly bar is bullish and the trend filter is green with price trading above the 50sma and the 200sma.
The daily timeframe is displaying a green trend filter and price is above the 20sma, the 50sma and the 200sma. Price gapped up 9.93% on April 16th due to a positive result from earnings. Price did not come down to fill the gap and instead continued to move to the upside and will likely trend towards the $200 psychological level of resistance. If this level is broken then we should continue to see a trend to the upside.
The FTSE 100 is finally on the move and US stocks are continuing to fly high with more breakouts emerging across the market.
If the S&P 500 closes above the recent high then we should be in for another profitable month. Stay up to date with market events by joining our FREE Launchpad Facebook group.
Keep it simple. Keep it Sublime.
The ST Team
