Welcome to our weekly newsletter, where we offer insights into stock setups that we share with our Phoenix members.
MICROSOFT was the stand-out stock this week from our portfolio. During a period of pullbacks, MICROSOFT has performed strongly, rebounding by 3.8% from Monday’s intraday low, to create an all-time high close at $305.22. Our Phoenix community members have multiple positions in this high-performing stock, and we will continue to look for further opportunities as its long-term bull run continues.
Read on to hear more about our other high-performing stocks in this strong bull market!
September is historically one of the weakest trading months of the calendar year. And over the past two weeks, the markets have shown general weakness compared to the impulse moves displayed in recent months. However, we have several stocks in our portfolio, such as MICROSOFT, that continue to outperform the market.
We offer our Phoenix members the critical teaching points to understand long-term price action, technical patterns, and market cycles. We teach our members how to take advantage of periods when the markets are trending, along with opportunities when the markets pull back.
Successful trading is a game of discipline and patience. 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 continued last week’s weakness to close between the 20sma and 50sma. The all-time high remains at 4546.
- The Nasdaq 100, this week price initially showed weakness but found support at the 20sma. The all-time high remains at 15710.
- The Dow Jones 30, last created an all-time high on 16 August, and this week continued to display weakness, to form a period of consolidation below the 50sma. The all-time high remains at 35630.
- The FTSE 100, a quiet trading week with no significant price action to date. Price remains between the 50sma and 7000 round number.
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. Whilst we continue to share setups and signals with our Phoenix members.
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
On the monthly timeframe, for several months price has struggled to break above the pivot high from 2015 at 7124. In September price initially showed strength, but over the past two weeks price has weakened, and moved back below the 2015 monthly pivot level.
On the weekly timeframe, price remains above the 7000 round number, along with the 50sma and 200sma. The Sublime trend filter is currently green. At its current level, price is at the base of the consolidation range, which commenced in April 2021.
On the daily timeframe below, price traded this week below both the 20sma and 50sma. As a result, the Sublime Trend filter is currently interchanging between grey and red. However, our overall bias remains bullish, and we continue to look for stocks outperforming the Index.
Ashtead Group - AHT
A trending stock we have repeatedly discussed in this newsletter and with our Phoenix community. May’s strong performance was followed up with a period of consolidation during July and August. However, this month the strength has returned with a gain of 8.3% to date.
The Sublime trend filter is green on the weekly timeframe, 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. This week price broke out from a period of consolidation which commenced on 22 July. As a result, price created an all-time high at £62.24. With a breakout and trend continuation, price is headed towards the £100 major round number. We will continue to update our Phoenix community on this high-performing stock.
Greggs - GRG
Price is currently in a linear trend with 10 consecutive months of gains – October 2020 to August this year; a gain of 156%! September has, to date, displayed weakness which is not unexpected given the recent gains.
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 50sma and 200sma but this week closed below the 20sma. The Sublime trend filter is green. Since July 2019 price made several attempts to clear strong resistance at £25. However, since breaking out from this level in June this year, price has gone on to create an all-time high. The next area of resistance is the £50 round number. We will continue to update the Phoenix community of opportunities in this bullish stock.
JD Sports Fashion- JD
A stock with a strong history of trends, particularly between November 2013 and May 2017. Following the pandemic, price moved higher however price action has not been particularly clean. More recently, the close above the £10 round number has resulted in an impulsive move higher. A gap following earnings this week has resulted in an all-time high at £11.65.
On the weekly timeframe, price initially broke out above the pivot high and prior year high at £8.90, before pulling back to use this level of support. Following the most recent bouts of this level
Price has been an impulsive trend. Price is currently 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. Following a break and close above the £10 round number, price retreated to retest this level which coincided with the 20sma. Following the recent gap up, we now need to see a continuation pattern as price moves towards the next area of resistance, being the £20 round number. We will continue to update our Phoenix community members in this stock.
The month of August closed with a strong end, displaying a bullish candle with a 2.9% gain. August was the seventh consecutive month of gains in a very bullish trend. In September the S&P is initially showing weakness, which is not unexpected given the gains of the previous months.
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 50sma and 200sma. This week price has pulled back to trade between the 20sma and 50sma. As a result the Sublime trend filter is grey. We now wait to see if this support zone will hold and wait for price to resume the bull trend; as always, we let price dictate. The bulls remain in firm control of the S&P, and we continue to look for stocks that are outperforming the index.
Apple - AAPL
One of the most popular stocks with over 70 million shares traded daily. In last week’s newsletter we discussed the likelihood of a breakout, which did occur before price pulled back last Friday to the 20sma. Consistent with what we have seen across the board this week, price in APPLE has weakened and stabilised at support.
On the weekly timeframe, price is above the 50sma and the 200sma, and the Sublime trend filter is green.
On the daily timeframe below, price is above the 50sma and 200sma. Price this week closed below the 20sma and, as a result, the Sublime trend filter is currently grey. Price is supported by a significant pivot level at $145. Given this week’s weakness, we now await strength to resume in this stock, initially by closing above the $150 round number and the 20sma. This stock is frequently a top performer, so well worth applying patience for the right set-up, which we will share with our Phoenix members.
Entegris - ENTG
This is a stock that has a long history of impulsive trends, however there have been periods where price has pulled back in equal fashion. Since the pandemic price has performed very well with a gain of 217%. Since price broke above the $100 round number in October 2020, price has been in a period of consolidation. However, this week price broke above a key pivot level, and September is showing strength with a 10.8% gain during the month.
On the weekly timeframe, the trend filter is green, and price is trading above the 50sma and 200sma.
On the daily timeframe below, following the period of consolidation, which commenced on 5 April this year, this week price broke out to create an all-time high at $133.30. Price is trading above the 20sma, 50sma and 200sma, and the moving averages are now all aligned. The Sublime trend filter is green. We will monitor the stock to see if a continuation pattern forms above the current level and we will update our Phoenix community of opportunities in stock that has a history of impulsive, bullish trends.
Life Storage – LSI
A stock with a history of sustained trends running for multiple years. The current trend continues this pattern, with August’s candle being the ninth consecutive month of price gain. September is currently displaying weakness, however we are only partway through the month.
On the weekly timeframe, price continues to trade 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 all moving averages are angling up, demonstrating a strong trend is in play. The Sublime trend filter remains green. When price initially broke above the previous year’s high at $80, it used the zonal area between the 20sma and 50sma as support. As the trend has developed, it has become more linear and price has used the 20sma as support. Price this week pulled back again to test the zonal area between the moving averages. A break out above the all-time high at $130 could offer further opportunities to Phoenix members. The next area of resistance is the $200 round number.
Microsoft - MSFT
As we discussed last week, this stock has an impressive trend going all the way back to July 2016. Price created the previous year high in September 2020. Following that, price went into a period of consolidation, where it broke out again in January 2021. Price has gained 28% since April.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter continues to be green, confirming the bull trend.
The Sublime trend filter is green on the daily timeframe below, and price is above the 20sma, 50sma and 200sma. Since breaking out in January 2021, price initially used the 50sma as support. However, more recently, price has used the 20sma as support, demonstrating a more bullish trend is underway. With price recently closing above the $300 round number, we now apply patience to see if this level will hold. A continuation pattern above this level could offer Phoenix members further opportunities in a stock that has been one of our best performers during 2021.
Public Storage - PSA
A storage company in a strong trend. On the monthly timeframe price continues to be bullish. August continued the strength of previous months with a gain of 3.6%. In September price initially displayed strength with an all-time high at $333, however recently price has displayed weakness.
On the weekly timeframe, price is trading above the 50sma and 200sma and the Sublime trend filter is green. Since the breakout from consolidation in April, price retested a major pivot level at $267, and has since moved higher, gaining 19%.
On the daily timeframe, price is above the 50sma and 200sma. The Sublime trend filter is currently grey, as price has closed between the 20sma and 50sma. Looking ahead, a continuation above the current all-time high could offer an opportunity in this very bullish stock. We will share any appropriate breakout and pullback signals with our Phoenix community.
Visa – V
A high-performing stock that we have traded in the past for excellent profit. Since the covid pandemic price has been moving higher but price action hasn’t been particularly linear. Following a breakout above the previous year high April this year price appeared to be forming a bullish trend, however during September price has weakened.
On the weekly timeframe, price is trading above the 50sma and 200sma, and the Sublime trend filter is green.
On the daily timeframe below, the Sublime trend filter is red as price is trading below the 20sma and 50sma. This week price again touched the 200sma; a key test for price will be if this level can hold. We will update Phoenix members of appropriate breakout or pullback opportunities as this trend develops. For now, we will apply patience and let price dictate.
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 386%. 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 impressive gains since June this year. In September price has gained 7%.
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. Following a spike due to earnings on 4 August, price retested the 20sma and has since continued higher. We will update our Phoenix community if any high probability opportunities emerge in this trending stock.
Whilst it was a week of consolidation for the indices across the board, a good number of stocks continue to have record growth, allowing our Phoenix members to compound and add more positions to their already profitable portfolios.
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Keep it simple. Keep it Sublime.
The ST Team