Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
This week we have seen the markets maintain their position at, or near, recent all-time highs which, as we mentioned last week, is to be expected during the US earnings season.
However, a stagnant set of indices doesn’t necessarily result in a static portfolio performance. The benefit of selecting high quality stocks, such as those in the Phoenix portfolio, is that we continue to see our portfolios outperform the main indices.
In the past week we have seen excellent returns in stocks such as Nvidia, Microsoft, Tractor Supply Company, and Cadence Design Systems – all which have been analysed in this newsletter numerous times throughout 2021.
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, as we have discussed for several months, price has struggled to close above the pivot high from 2015 at 7124. In November price initially showed strength, but has weakened, resulting in an indecision candle to date. 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. Price this week is pulling back to a pivot level at 7224.
On the daily time frame below, price has moved below the 20sma but is 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
Experian - EXPN
A stock with a mixed history, but a new breakout could result in a new, linear trend emerging. Price in November created a new all-time high at £35.13.
On the weekly time frame, on 18 October this year price broke above a key pivot level. Price initially continued higher before stalling at the previous all-time high. 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, the 50sma and the 200sma and the trend filter is also green confirming alignment with the weekly timeframe and between the moving averages. This week price initially dropped following earnings but regained its strength. The next area of resistance is the £40 round number. A break and close above this level will suggest further strength, and we will update Phoenix members if we consider entries for the portfolio.
Ferguson – FERG
A stock that has moved higher over time, but in the past has suffered deep pullbacks. On the monthly time frame, October reversed September’s decline with a bullish engulfing candle and a 6.4% gain. The strength has continued in November with a further 10% gain to date.
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 a linear trend. This week price created a new all-time high at £121.55. This week we have shared trading opportunities in the stock with our Phoenix community members, The next area of resistance is the £150 round number.
Polar Capital Technology Trust - PCT
A stock with a history of trends and volatility, this week created a new all-time high at £27.10. Between January and July this year, price was in a period of consolidation, before breaking out. However, price has yet to form a new, linear trend.
On the weekly time frame, price is trading above the 50sma and 200sma, and the Sublime trend filter is green. This week price is displaying a break out candle following a small flag formation.
On the daily time frame below, price is above the 20sma, 50sma and 200sma, and the Sublime trend filter is green. All moving averages are currently aligned. The next area of resistance is the £30 round number. We have had this stock in our portfolio since last year and will continue to update our Phoenix community of further opportunities.
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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 has maintained its position just below the all-time high at 4720. 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 7%.
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 $189. 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.
Entegris - ENTG
A stock with a long history of trends going back to 2016. In the past two months, price has been particularly bullish with gains of 12% and 9%.
On the weekly time frame, price is trading above the 50sma and 200sma, and the Sublime trend filter is green. Price has been particularly bullish since breaking above a key pivot level on 11 October.
On the daily time frame below, price has recently displayed mixed price action, which demonstrates why assessing price action on the higher time frames presents a clearer picture. As mentioned above, since breaking out in mid-October, price has been bullish and a linear trend could be forming. This week, price closed above the $150 round number for the first time. Phoenix members will monitor this stock closely for opportunities. The next area of resistance is the $200 round number.
ETSY - ETSY
A stock that has gone from strength to strength from the recovery from the global pandemic, breaking out at just under $80 back in May of last year and now priced at just under $300, a move of over 290%.
On the weekly time frame, price is above the 50sma and 200sma and the Sublime trend filter is still green.
On the daily time frame below, price is also above the 20sma, 50sma and 200sma and the Sublime trend filter is green confirming alignment with the weekly timeframe and between the moving averages. With many stocks pulling back in September, this is one of the few stocks that has performed better than the broad market. However, given the nature of price action, this is a stock that is more suited for a pullback strategy. If price breaks and closes above $300 then we can expect further moves to the upside, and we will update our Phoenix members accordingly.
Keysight Technologies - KEYS
A stock with a long history of trends going back to 2016. This month price created an all-time high at $196. The bullish momentum is showing few signs of slowing with an 8% 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. The next area of resistance is the $200 round number. A continuation pattern above the current price and the round number could offer Phoenix members further opportunities in this high-performing stock.
KLAC - KLAC
The next stock is KLA corporation. On the monthly time frame, price is looking bullish and price is trading above last year’s high and also above the $400 round number.
On the weekly time frame, the Sublime trend filter is green and price is above the 50sma and 200sma.
On the daily timeframe, the trend filter is green and price is trading above the 20sma, 50sma and 200sma. We can again see on the daily timeframe where the pullback occurred in September, where price almost reached a 200sma, and since then price has continued to move to the upside. A continuation pattern above the current level could offer Phoenix members an opportunity to be a long-trending stock. The next area of resistance is the $500 round number.
Synopsis - SNPS
Synopsis is a stock whose price has risen dramatically since 2012, however, there have been periods of sharp pullbacks along the way. In September, price pulled back 15% to the zonal area around the $300 round number which coincided with a key pivot level. However, in October, the bulls came in and fully reversed the decline, resulting in new all-time highs in both October and November.
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, the Sublime trend filter is green, and price is above the 20sma, 50sma and 200sma. This stock has a history of trending for months and in some cases years; Phoenix members will monitor it closely to see if a linear trend can develop above the current all-time high. The next area resistance is the $400 round number.
Tractor Supply Company - TSCO
This is a stock that has been traded in the Phoenix community since price broke above the $150 round number and the previous year high at $156. Since then, price has formed a bullish move to the upside, culminating in an all-time high this week at $231.
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 broke out to new all-time highs following last week’s flag formation. Price is above all moving averages; 20sma, 50sma and 200sma, and the Sublime trend filter is green. Phoenix members will continue to monitor this stock for further opportunities. The next area of resistance is the $300 round number.
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.
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Keep it simple. Keep it Sublime.
The ST Team
