Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
With the conclusion of the third-quarter earnings season, we have seen the markets pull back to areas of support. Combined with a short week in the US due to the Thanksgiving holiday, the markets are poised to commence their next move into the close of the calendar year.
This year has been another fantastic year of results for the Sublime Trading Team and Phoenix Community. We will be providing a year-end summary in due course. We have demonstrated throughout the year the benefit of choosing high probability stocks that outperform the indices.
Let’s get into this week’s newsletter!
PS To get FREE lifetime access to our bespoke analysis tools used in these images and a host of other free essential goodies, complete the ‘Are You On Track To Retire Wealthy’ scorecard!
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, as we have discussed for several months, price has struggled to close above the pivot high from 2015 at 7124. This level was cleared in October with a close at 7238. In November price initially showed strength, but is currently displaying an indecision candle. We will await the end of the month to fully assess the position.
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 moved above the 20sma following a pullback to the pivot level at 7224. Price is also trading above the 50sma and 200sma. The Sublime trend filter this week has maintained its green status. Our overall bias remains bullish, and we continue to look for stocks outperforming the Index.
UK STOCKS
Allianz Technology Trust - ATT
This stock has a history of long trends. Since price broke out above the previous year high, price has been bullish, with gains in October and November of 9% and 11% respectively. Price this month created a new all-time high of £3.74.
On the weekly timeframe, price is trading above the 50sma and the 200sma and the Sublime trend filter is green.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is also green confirming alignment with the weekly timeframe and between the moving averages. This week price retreated to the 20sma, which has acted to date as support. Following the recent breakout, this stock has been discussed in the Phoenix community. A break and close above the current all-time high could offer an opportunity in a stock with a history of long-term trends.
Big Yellow Group - BYG
This stock has a history of trends, but is not as clean as ATT. On the monthly time frame, price suffered a pullback in September, but since a break out above the previous year high in May, price has been in a strong trend with a gain of 32%.
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, this week price closed back above a key pivot level at £15.88. This resulted in a new all-time high at £16.37. Price is trading above the 20sma, 50sma and 200sma, 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 has continued this momentum with a further gain of 4% to date.
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 this week retreated to the 20sma where it found support. Price is also currently battling with the significant £10 round number. The Sublime trend filter is green, and price is trading above the 20sma, 50sma and 200sma. We will continue to monitor this stock to assess whether a trend can form above the £10 round number. We will share updates with our Phoenix community.
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
Following September’s seasonal decline, in October the bulls took back control with a gain of 7.0%. In November the momentum slowed, but this was to be expected with earnings season underway. In November, to date price has gained 2.0%.
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 attempted a new all-time high but could not find momentum. The new all-time high 4744 was momentary and price subsequently retreated to the current area of mini-consolidation. The Sublime trend filter remains green, and price is trading above all moving averages. 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
Cadence Design Systems - CDNS
Cadence Design Systems is a stock that has been in the Phoenix portfolio for well over a year and we have been trading this for great success. On the monthly time frame, price has been in an uptrend since 2012. Price suffered during the pandemic but since April 2020 has been in a strong uptrend including a gain in October of 14%, which has been followed by in November with a gain of over 6%.
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, during September price retreated to an important pivot level at $150, and has subsequently moved higher, creating an all-time high this week at $190. However, in the latter part of the week price weakened to re-test the 20sma. The Sublime trend filter is green, and price is trading above the 20sma, 50sma and 200sma. The next area of resistance is the $200 round number. We will continue to update our Phoenix community members with opportunities in this high performing stock.
Illinois Tool Works - ITW
A stock with a mixed history of impulsive trends along with periods of decline and consolidation. Following the general market decline in September, price has been bullish, with gains in October and November of 10% and 6% respectively.
On the weekly time frame, this week price has reached a critical pivot level. The Sublime trend filter is green and price is above the 50sma and 200sma.
On the daily time frame below, price is trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. As mentioned, a recent close above a key pivot level needs to hold, along with a continuation pattern, for this to be considered further by our Phoenix community. The next area of resistance is the $300 round number.
Keysight Technologies - KEYS
A stock with a long history of trends going back to 2016. This month price created an all-time high at $201. The bullish momentum is showing few signs of slowing with an 11% gain to date in November.
On a 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 20sma, 50sma and 200sma, and the Sublime trend filter is also green. Since price broke above the previous all-time high in February 2021, price has been bullish. Price suffered a pullback in September but regained strength in October, and the momentum has continued throughout November. The next area of resistance is the $200 round number, which price reached this week. A continuation pattern above the current price and the round number could offer Phoenix members further opportunities in this high-performing stock.
LKQ - LKQ
Another stock with a mixed history, but could be showing signs of a sustained trend. Price trended in 2011-13 but also experienced long periods of consolidation. However, price broke out above the previous all-time high at $38 in February this year, price has been bullish, with a gain of 55%.
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, since price broke above the pivot level at $53 it has displayed bullish momentum. The Sublime trend filter is green, and price is trading above the 20sma, 50sma and 200sma. Phoenix members will be monitoring this stock closely, looking for a trend to develop. The next area of resistance is the $100 round number.
McDonald’s - MCD
A stock with a mixed history of trends and long periods of consolidation. November is displaying a bullish candle with a gain of 5%, resulting in a new all-time high at $258.
On the weekly time frame, price is above the 50sma and the 200sma and the trend filter is green.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma and the Sublime trend filter is also green confirming alignment with the weekly timeframe. Over recent months the periods of consolidation have been shorter, indicating that this stock may be ready to form a linear trend. Following this most recent breakout, we will monitor the stock for signs of a linear trend, and update the Phoenix community accordingly. The next area of resistance is the $300 round number.
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 at $150.
On the weekly timeframe, price is above the 50sma and the 200sma and the trend filter is green.
On the daily time frame below, price this week closed above a key pivot level at $147. Price is trading above the 20sma, 50sma and 200sma. The Sublime trend filter is green. A close above the $150 round number and continuation pattern above the recent all-time high could offer Phoenix members an opportunity in a stock with a history of impulsive trends.
Union Pacific - UNP
UNP is a new stock to our newsletter and one that has been picked up recently by our scanners with price breaking out from consolidation. This stock has a history of trending well, as was the case between 2010 – 2015. October was a particularly bullish month with a gain of 23%. This momentum has continued into November with a further gain and a new all-time high.
On the weekly timeframe, price is above the 50sma and the 200sma and the trend filter is green.
On the daily timeframe below, price is above the 20sma, the 50sma and the 200sma and the Sublime trend filter is also green, confirming alignment with the weekly timeframe. Price broke out this week after re-testing the 20sma. The next area of resistance is the $300 round number. We will update our Phoenix community on opportunities.
This week the markets have continued to reward our patience with breakouts in our selection of high-performing stocks. 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
