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Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.

This week represents the first full week following October’s market rebound, and the recent momentum has continued. This price action is pointing towards another rally into the end of the year, commonly known as a ‘Santa Claus’ rally. 

In last week’s newsletter, we focussed on stocks that have rebounded strongly following September’s broad market pullbacks. Of the ten stocks we analysed, nine stocks had exceeded their pre-September high points. This illustrates the power of the trend and why, as long-term trend traders, we are not concerned about short term price action that may not align with our expectations.

The resurgence in the markets has been led again by ‘Big Tech’, notably Nvidia and Microsoft. Two weeks ago we discussed Nvidia in detail, and this week we revisit its performance.

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, during October price has shown bullishness, completing the month with a gain of 2.1%. As we have discussed for several months, price has struggled to close above the pivot high from 2015 at 7124. November is initially showing signs of continued momentum, which is consistent with the US indices, in turn reaching its highest level since February 2020.

On the weekly time frame, the Sublime trend filter is green, and price is trading above the 50sma and 200sma.

On the daily time frame below, price has continued to trade above all moving averages; 20sma, 50sma and 200sma. The Sublime trend filter this week has maintained green, a continued sign strength is building. Our overall bias remains bullish, and we continue to look for stocks outperforming the Index.

UK STOCKS

Ashtead Group - AHT

A trending stock we have repeatedly discussed in this newsletter and with our Phoenix community. Price was bullish in October with a gain of 8.5%. To date, November has continued the momentum, with price creating a new all-time high this week at £63.70.

The Sublime trend filter is green on the weekly time frame, and price remains above the 50sma and 200sma.

On the daily time frame below, the Sublime trend filter is green and price is above the 20sma, 50sma and 200sma. The strength discussed last week has continued this week with a break out above the previous all-time high. The next area of resistance is the £100 major round number. We will continue to update our Phoenix community on this high-performing stock.

Croda International - CRDA

A stock we have been successfully trading since last year. October reversed the previous month’s decline in full by displaying a bullish engulfing candle and a gain of 10.7%. November has started in the same pattern with a new all-time high of £96.68.

On the weekly time frame, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily time frame below, price is trading above the 20sma, 50sma and 200sma. This week the 20sma crossed above the 50sma, the ‘golden cross’; a sign of bullishness. The Sublime trend filter is green. As mentioned last week, the last time this stock broke out from resistance (May this year) it trended for several months. The next area of resistance is the £100 round number. If the trend can re-emerge, opportunities could develop which we will share with our Phoenix community.

 

Ferguson – FERG

A stock that has moved higher over time, but in the past has suffered deep pullbacks. Similar to the previous stock, October reversed September’s decline with a bullish engulfing candle and a 6.4% gain.

On the weekly time frame, price is trading above the 50sma and 200sma and the Sublime trend filter is green.

On the daily time frame below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. All MAs are currently neatly aligned, and the 20sma is moving away from the 50sma, indicating that a linear trend could be forming. This week price created a new all-time high. This week we have shared trading opportunities in the stock with our Phoenix community members, The next area of resistance is the £20 round number.

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

September closed with a bearish engulfing candle and a decline of 4.9% – the first monthly decline since January this year. However, in October the bulls took back control, reversing September’s decline, with a gain of 7.0%.

On the weekly time frame, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green.

On the daily time frame below, this week price again performed strongly resulting in a new all-time high at 4685. The Sublime trend filter is green, and price is trading above all moving averages, which are now aligned on all timeframes. 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

Accenture - ACN

Accenture is a stock that has been in a long-term trend, dating as far back as 2011. Price has been particularly bullish since breaking above the previous year high in February this year. Since then prices gained over 34%, with a particularly strong October with a gain of over 12%. This strength has continued into the first week of November with an all-time high of $360.

On the weekly time frame price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily timeframe below, price is also trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is also green. Following the pullbacks experienced in September, price has rebounded strongly with a new all-time high printed this week. Phoenix community members will continue to monitor this stock and consider further opportunities. The next area of resistance is the $400 round number.

Blackstone Inc. - BX

Blackstone is a stock that was in a long period of consolidation without any clear direction until February 2021. Once price broke above the previous year high at $66 price has been extremely bullish with a gain to date of over 120%, including a gain of 19% in October. This momentum has continued into the first part of November with price this week creating an all-time high at $146.

On the weekly time frame, the Sublime trend filter is green, and price is trading above the 50sma and 200sma. During September price suffered a pullback to $109, a level also tested in August this year, however, the bulls were able to regain control in October.

On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma, whilst the Sublime trend filter is green. As mentioned earlier, price has been bullish during October, resulting in price breaking out above the previous all-time high of $137. Initially, price could not sustain its momentum and as a result retreated to the pivot high, where price found support and has subsequently used this area as support. Phoenix members will continue to monitor this stock to assess if a clean trend can develop. The next area of resistance is the $200 round number.

Extra Space Storage - EXR

Extra Space Storage is a stock that we have traded in our Phoenix community throughout 2021. Price suffered a pullback during September, but has since regained strength, with a gain in October of 18%, this week creating a new all-time high.

On the weekly time frame price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily time frame below, as mentioned with other stocks, price suffered during the September pullbacks, however, the bulls have come in and price has regained strength. Price is trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. This week the 20sma closed above the 50sma, the ‘golden cross’. The moving averages are now aligned on all timeframes. Price has now reached an important level – $200 round number. Phoenix members will again be carefully monitoring this stock, to assess how price responds to the round number. A continuation pattern above the current level could offer another opportunity in this trending stock.

Keysight Technologies - KEYS

Keysight Technologies is a stock that was first listed in October 2014. The stock has been in a long term uptrend since mid-2016, with short periods of pullbacks generally followed by a breakout and further strength. Most recently this occurred in September, where price pulled back by 8.4%, only for price to reverse the following month with a gain of 9.6%.

On the weekly timeframe, price is trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. This week price recorded its fourth consecutive week of strong gains, in turn creating a new all-time high at $186.

On the daily time frame below, price is also trading above the moving averages, and the Sublime trend filter is green. Price is now positioned for the 20sma to cross the 50sma, the ‘golden cross’, a sign of bullishness. Phoenix community members have positions in this stock and will be looking to compound upon further strength, and once price clears the $200 round number.

Microsoft - MSFT

A stock with an impressive trend going back to July 2016! As mentioned last week, September’s pullback was 8.8%, whilst the rebound in October was 17.6%. The performance in November to date has continued the trend with a further gain and a new all-time high of $337.

On the weekly time frame, price is trading above the 50sma and 200sma, and the Sublime trend filter continues to be green, confirming the bull trend. Last week’s gain of 7.3% was the largest weekly gain since February last year.

On the daily time frame below, the Sublime trend filter has quickly returned to green, with a gain of 11% in two weeks. Price is currently above the 20sma, 50sma and 200sma. With the recent move, price is comfortably above the $300 round number. Phoenix members will continue to monitor this stock for further opportunities. The next area of resistance is the $400 round number.

Motorola Solutions - MSI

Motorola Solutions is a stock that was in a trend between 2017 and 2018, with a further breakout in early 2019, before price suffered because of the pandemic. Price subsequently recovered and broke out from the previous year high in May this year, and subsequently found strength with a gain of over 34%.

On the weekly time frame price is trading above the 50sma and 200sma, and the Sublime trend filter is green.

On the daily time frame below, price is trading above the 20sma, 50sma and 200sma. This week the 20sma crossed above the 50sma, resulting in full alignment of the moving averages both on the daily and weekly charts. The Sublime trend filter is currently green. Following the pullback in September price has performed strongly, with a break and close above the previous all-time high. However, price is currently battling with the $250 round number. With earnings this week, Phoenix members will be watching the stock closely to assess whether a linear trend can develop beyond this round number. The next level of potential resistance is the $300 round number.

Nvidia - NVDA

Nvidia has been one of the best-performing stocks in the Phoenix portfolio. As we mentioned at the outset of this newsletter, we have analysed this stock further, to demonstrate the power and simplicity of trend trading.

The performance this week has again demonstrated the rewards on offer for a disciplined approach to trend trading. At the time of writing this stock has delivered returns (ROI) of over 3,600%!

NVDA is a good example of the power of trend trading – simple, time-efficient and highly profitable. This example demonstrates that a trader only needs a few such trades each year to generate extremely good returns.

Looking ahead, NVDA is maintaining its position above the moving averages on both the weekly and daily time frames. Price this week reached the $300 round number with very bullish momentum. We will continue to monitor this stock and discuss further compounding opportunities with our Phoenix community.

This week the markets have continued to reward our patience with breakouts across the board, resulting in all-time highs in the indices. Whilst the FTSE has broken out from a long period of resistance and is showing strength. As a result, our Phoenix members will continue to compound and add more positions to their already profitable portfolios.

To get up to speed on how to accurately analyse the markets, consider completing the ‘Are You On Track To Retire Wealthy’ scorecard and unlock your FREE gift – Lifetime access to the Launchpad Investor Starter Kit priced £297 (+ VAT). 

Keep it simple. Keep it Sublime.

The ST Team


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