Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
As we have discussed in recent weeks, the main indices broadly remain inside consolidation; however, this week, there have been signs that strength to the upside is building with the S&P 500 breaking out and printing a new ATH.
The overall trend in the main indices remains bullish, and the probability is weighted towards the next market move being a continuation of the long-term bull trend.
Understanding long term price action, technical patterns and market cycles are all key teaching points we offer to 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, bounced off the daily 50sma, used the 20sma as support and this week printed a new ATH at $4,249.
- The Nasdaq 100, used both the 20sma and 50sma as support and is within touching distance of the ATH at $14,078.
- The Dow Jones 30, this week, used the 20sma as support.
- The FTSE 100 found support at the high of January 2021 and continues to use the 20sma as support.
The natural movement to the stock market is seasonal, as an aspect that many fail to grasp in the 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 a number of stocks in our portfolio, which we will add to on 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 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
June price action is still trading inside consolidation, but the 7000 round number continues to hold firm as support. A break and close above the high of May is needed to confirm a breakout.
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 price continues to use the 20sma as support. The Sublime trend filter is currently green, and price remains above the 50sma and 200sma. This week price tested the top of the zonal area at 7115 but was pushed back into the zonal area. Our bias overall remains bullish, and we continue to look for stocks outperforming the index.
UK STOCKS
Ashtead Group - AHT
A trending stock we have discussed several times in this newsletter and our Phoenix community. Following May’s strong performance that added to the trend in play from November last year, June is showing bearishness with the expected pullback to retest the £50 round number as support.
On the weekly timeframe, the Sublime trend filter is green, and price is above the 50sma and 200sma.
On the daily timeframe below, the Sublime trend filter is also green, and price continues to trade above the 50sma and the 200sma. However, this week’s pullback sees price trading below the 20sma to retest the £50 RN. We may be seeing early signs of a much-needed correction before the next leg up. A lengthy period of consolidation will be healthy to form a base for further strength towards the £100 major round number.
Tritax Big Box REIT - BBOX
A stock to watch for an emerging trend. In June price continued the overall bullish move with an increase to date of 2.4%. This followed increases in April and May of 6.0% and 3.5%, respectively.
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 moved above £2. Price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. The MAs are aligned and neatly angling up, suggesting a linear trend is forming. We will be monitoring this stock and will update Phoenix members as the trend develops further. We would like to see price target the £10 level, the next round number above price.
Intermediate Capital Group - ICP
A stock with a mixed history. Price can trend, but pullbacks have been deep and choppy. A breakout in April with an 18% move was followed by an indecision candle in May. However, June is showing signs of bullish strength returning.
On the weekly timeframe, price is above the 50sma and 200sma, and the Sublime trend filter is green. Following a BO in April 2021, price pulled back to the wPiv21 level and since found further strength.
On the daily timeframe below, price created an ATH this week at £23.19. Price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. A continuation pattern above the recent ATH could offer Phoenix members an entry opportunity before the next level of resistance, being the £50 round number. Phoenix members will be updated with signals 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
The overall bullish trend remains intact as price on Thursday printed a new ATH at $4,250. Following May’s indecision candle, in June price has started the month strongly.
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 is in place.
On the daily timeframe below, price continues to trade above the 20sma, 50sma and 200sma and the Sublime trend filter remains green. After May’s pullback to the 50sma, followed by last week’s pullback to the 20sma, price this week continued to show its strength by printing an ATH. The bulls remain in control of the S&P, and we continue to look for stocks that are outperforming the index.
US STOCKS
Duke Realty - DRE
A high performer over the past three months, this stock produced an ATH this week at $49.72, beating the previous ATH from 2007. Whilst May produced an indecision candle, price in June has continued its bullish move with a 7% increase to date.
On the weekly timeframe, the Sublime trend filter continues to remain green, with price trading above both the 50sma and 200sma.
On the daily timeframe below, following the breakout above the 2020 high, price retested the zonal area between the 20sma and 50sma and made a strong bounce higher. Price is now back above the 20sma, 50sma and 200sma, and all MAs are neatly angling up, indicating a linear trend. The Sublime trend filter is green. Price has reached a significant level at the $50 round number. A continuation of the trend above the RN will offer opportunities. Phoenix members will be updated with signals as this trend develops further.
KKR & Co - KKR
A cheap stock with good upside potential but one that has a mixed history of performance. Bullish movement between February and April saw price move up by some 42%. May and June have seen price pause as it remains in consolidation. Our preference is a breakout to the upside.
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, we can see the consolidation price has been in since printing the ATH in May. Price is above the 50sma and the 200sma and closed back above the 20sma on Thursday. The Sublime trend filter is currently green. A breakout and new ATHs will see price target the $100 round number, the next major resistance above price. Phoenix members will be updated with signals as this trend develops further.
MasTec - MTZ
A strong performer in recent months, this stock continues to go from strength to strength. Since breaking above the 2020 high at $74, this stock has moved 60% higher. In May price moved up 11%, whilst price this month is currently taking a breather before its next potential move up.
On the weekly timeframe, price continues to trade above the 50sma and the 200sma and the Sublime trend filter remains green.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. Price has recently been using the 20sma as support as price makes higher highs and higher lows. This week price made a new ATH at $122.33. Price is currently retesting the 20sma, and a bounce off this level, followed by a continuation pattern, will offer Phoenix members further opportunities in a strong performing stock. We will share additional signals accordingly.
Robert Half International - RHI
A stock with a mixed history of sustained trends but also deep pullbacks and corrections. This has not been the most straightforward stock to invest in. However, a very bullish April, where price broke above the 2018 high of $80, was followed by an indecision candle in May. Bullish momentum has picked up again in June with a 3% increase to date and an ATH at $91.92.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter remains green.
On the daily timeframe, price is above the 20sma, 50sma and 200sma and the Sublime trend filter remains green. The trend in play since the recovery from CV19 has been choppy, but with price now creating new ATHs, we may see a change in trend structure. A break and close above $100 will be significant for further strength. Again, this is not a stock at the top of our list but one to watch as it has good upside potential.
Steel Dynamics - STLD
A stock with a mixed track record that has recently been demonstrating signs of a bullish trend. Since breaking above the 2018 high at $52 in April, price has moved up another 24%. This month price is taking a breather before its next potential move.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green, confirming an emerging bull trend.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. Since breaking above the weekly Piv21 level, price has been using the 20sma as support, making higher highs and higher lows. Phoenix members will be particularly interested in this week’s new ATH, and members will be updated with signals as this trend develops further.
T-Mobile US - TMUS
Another stock on Phoenix members’ radar that has performed well in recent months. Since price broke above the $100 RN price has risen by 47% to print a new ATH this week at $148.70.
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 above the 20sma, 50sma and 200sma and the Sublime trend filter is green. A continuation of the current bullish trend will offer opportunities, and we will update our Phoenix members with signals as this trend develops further. The next area of resistance is the $200 round number.
Perficient - PRFT
Another cheap stock with good upside potential but one that has a mixed history of performance. Trends have been short-lived, and price action, in general, has been choppy. The current trend in play is looking positive. Since breaking the 2020 high at $54 in January 2021, price has moved higher by an impressive 41%. The bullish trend of April and May has continued in June with a 6% increase to date.
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 and the Sublime trend filter is green. Since the breakout this year, the MAs have been consistently angling up, indicating a neat and linear trend in play. This week price made an ATH just short of $76. A continuation of the current bullish trend will offer Phoenix members opportunities before the next area of resistance being the $100 RN. We will share signals accordingly.
The S&P 500 is leading the way with a breakout this week. We now want the Nasdaq 100 and the Dow 30 to follow. This will be the sign we require for further bullish price action. Stay up to date with market events by joining our FREE Launchpad Facebook group.
Keep it simple. Keep it Sublime.
The ST Team
