Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
This week the S&P recorded its 50th all-time high of 2021; a rare event, only occurring seven times in nearly 100 years. As the markets continue higher, characterised by regular pullbacks to areas of support, along with higher highs and higher lows, we continue to take confidence that the long-term bull market that commenced in 2009 will continue.
Last week’s pullback to support was short-lived, with the indices rebounding this week. Many traders will often panic during pullbacks, as they lack a process and alignment with the natural movement to price. Good investors simply look to support levels where the declines will find exhaustion.
We offer our Phoenix members the key teaching points to understand long-term price action, technical patterns, and market cycles. 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 been in the past, with new opportunities along with compounding existing positions.
Looking deeper into the main indices:
- The S&P 500, this week price rebounded from last week’s pullback, to close above the 20sma and create a new all-time high at $4,502.
- The Nasdaq 100, similarly found support at the 50sma and rebounded to create an all-time high at $15,402.
- The Dow Jones 30, also bounced off support but could not find the momentum to create an all-time high, however is trading above the 20sma and 50sma.
- The FTSE 100 found support to move back above the 20sma and 50sma, however price is struggling to break above the pivot level from 2015 at 7125.
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.
We continue to hold high-performing stocks in our portfolio, which we have been adding to during this 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!
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 timeframe, for several months price has struggled to break above the pivot high from 2015 at 7124. Earlier this month price showed strength, however, in the latter half of the month price weakened and consolidated around this level. The patience we have applied during this time should reward us with opportunities in stocks that break out from long periods of consolidation.
Following last week’s weakness, where price retreated to the 7000 round number, price this week regained strength to consolidate above the 200sma. Price remains in a period of consolidation. The Sublime trend filter is currently green.
On the daily timeframe below, price this week bounced to close above both the 50sma and 200sma. The Sublime Trend filter is interchanging between green and grey, indicating indecision. Our overall bias, however, remains bullish, and we continue to look for stocks outperforming the Index.
UK STOCKS
Alliance Trust - ATST
A stock that is in an overall uptrend, but has taken its time gathering momentum this year. In August the candle is bullish, with price also trading above the £10 round number. An all-time high was created this month at £10.34.
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. Following the break out above the pivot level at £8.80 in November 2020, price has been in an uptrend, however the trend has not been clean, with areas of consolidation along the way up.
On the daily timeframe below, price is trading above the 20sma, the 50sma and the 200sma. The Sublime trend filter is also green. The change in candle colour between green and grey is indicating indecision. We now await a continuation pattern above the £10 round number, and ideally a linear trend. Once confirmed, we will then start sharing signals with our Phoenix members.
Keywords Studios - KWS
Overall price is bullish and trending nicely above last year’s high at £29.56, along with the £30 round number. This stock has a history of long term trends such as between 2016 to 2018. Price created an all-time high in August 2020 however price then went into a period of consolidation, until this month.
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 the 200sma and the Sublime trend filter is also green, confirming alignment with the weekly timeframe and between the moving averages. As the latest period of consolidation has been several months, we need to see a clean continuation pattern above the £30 round number, which could offer our Phoenix members an opportunity in a stock that has trended well in the past. The next level of resistance is the £40 round number. 
Blackrock Throgmorton - THRG
A strong history of long-term trends and a fresh breakout above a major round number makes this stock one to watch. Since price broke the Piv21 level in December 2020 at £7.25 price has moved up 40%. This month price created a new all-time high at £10.16.
On the weekly timeframe, the Sublime trend filter is green, and price is above the 50sma and 200sma.
On the daily timeframe below, since price broke above the pivot level from December 2020 price has been using both the 50sma and 20sma as support. Price now needs to consolidate above the £10 round number. A continuation pattern above this level could offer Phoenix members an entry opportunity. The next level 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
As we are nearing the end of the month we can see that the August candle is smaller than previous months, with a gain to date of 1.6%. This is to be expected given it’s the northern summer holiday season. This week price created a new all-time high at $4,502.
On the weekly timeframe, price continues to trade above the 50sma and 200sma, and the Sublime trend filter remains green. The body of this week’s candle is presently an engulfing candle.
On the daily timeframe below, price is above the 50sma and 200sma. This week, price bounced off the 50sma to trade above the 20sma and create a new all-time high. This week the Sublime trend filter returned to green. As previously discussed, the bulls remain in firm control of the S&P, and we continue to look for stocks that are outperforming the index.
US STOCKS
Bruker - BRKR
A stock that doesn’t have the cleanest history, however since breaking the previous all-time high in January 2021 price has been in a linear trend. The current month’s candle is bullish with a 6.5% gain to date and a new all-time high of $88.25.
On the weekly timeframe, price is above the 50sma and 200sma. The Sublime trend filter is green.
On the daily timeframe below, since breaking above the pivot level at $54 in December 2020, price has been using both the 20 SMA and 50 SMA as support. The next area of resistance is the $100 round number. A break and close above this level followed by a continuation pattern could offer Phoenix members an opportunity in a stock that has trended very well during 2021.
Blackstone - BX
A stock with a mixed history but is currently in a strong trend. Since breaking above the previous year high at $65, price has performed an impulsive move, increasing by some 89%. This week price reached a new all-time high at $123.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green. Since price broke above the wPiv21 in January this year, price retested this area which turned from resistance to support, with price continuing higher.
On the daily timeframe below, price is trading above the 20sma, 50sma and 200sma, and all MA’s are consistently angling up, indicating a neat, linear trend. The Sublime trend filter is green. Throughout 2021 price has been regularly using the 20sma and 50sma as support, giving confidence of a trend continuation. The next area of resistance is the $200 round number. We will continue to share any relevant breakout and pullback signals in our Phoenix community.
Garmin - GRMN
A stock with a mixed history, price did not form a clear trend until it broke above the £100 round number in November 2020. Since then price has moved up 64%, and this month created a new all-time high at $175.
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 also trading above the 20sma, 50sma and 200sma, with all moving averages angling up, indicating a neat trend is underway. The Sublime trend filter is green. Since price broke above the $100 round number, there have been short periods of consolidation with retracement below the 50sma. However, since price broke out again in July this year a linear trend has formed with price using the 20sma as support. The next level of resistance is the $200 round number. We will continue to update our Phoenix community with opportunities in the strong performing stock.
Keysight Technologies - KEYS
A stock with a long history of trends going back to 2016. This month price created an all-time high at $176 and since breaking above the previous all-time high created in February 2021, price has formed a bullish trend with a gain in August of 7%.
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, it has been using the 20sma as support, creating higher highs and higher lows. The next area of resistance is the $200 round number. A continuation pattern above the current price could offer Phoenix members further opportunities in this high-performance stock.
Synopsys - SNPS
A stock that has trended well from as far back as 2013, when it broke out of a 13 year period of consolidation. Since then price has been in a broad uptrend. Since the low of April 2020 at $122, price has gained over 170%! In August price gained over 13%
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 green, confirming alignment with the weekly timeframe. Following the last round of earnings price gapped up clear of the $300 round number and all-time high from February 2021. A pull back and continuation pattern above the current level could offer Phoenix members an opportunity is this high-performing stock. Further strength to the upside will see price move towards $400 which will act as resistance.
Trimble - TRMB
On the monthly timeframe price is looking bullish. Since price cleared the monthly pivot level from 2018 price has gained 104%. And following a bullish August where price has gained over 10%, price is fast approaching the $100 round number.
On the weekly timeframe, the Sublime trend filter is green and price is trading above the 50sma and 200sma.
On the daily timeframe below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. Following a period of consolidation from the 6th April to the 29th July, price broke out before pulling back to the 20sma. The next area of resistance is the $100 a number which is a significant level. A breakout, retest and continuation pattern above this level could offer Phoenix members further opportunities in a stock that has performed very well during 2021.
Workiva - WK
A stock with a mixed history of sustained trends and deep pullbacks. Following the impacts suffered as a result of the covid pandemic, price has shown strength, gaining over 365% since April 2020. In February 2021 price reached the major $100 round number, where price pulled back to the zone around the daily 200sma. However, price has since continued higher, with gains in June, July and August of 17%, 15% and 6% respectively.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green, confirming a bull trend in play.
On the daily timeframe below, price broke above the weekly pivot level at $115, but followed up with a retest of this level, and has since bounced off the 20sma and continued higher. Price is above the 20sma, 50sma and 200sma and the Sublime trend filter is green. Patience is required as price spiked following earnings on 3 August and we require a breakout above this level. We will update our Phoenix community if any high probability opportunities emerge in this trending stock.
Another week of new all-time highs in the S&P and Nasdaq, whilst it was a week of healthy gains but not breakouts for the Dow and FTSE. A good number of stocks continue to have record growth, allowing our Phoenix members to compound and add more positions to their already profitable positions.
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 £197 (+ VAT).
Keep it simple. Keep it Sublime.
The ST Team
