Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected assets that are outperforming the market.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
S&P 500
Okay, let’s talk about the S&P 500 as we wrap up October. It’s been on quite a run, right? We’ve seen six straight months of gains since May, which is pretty impressive. Now, it’s eyeing that big 7,000 mark – a level that felt unattainable at the start of the year, but it’s looking more and more achievable.
Think about it: the index is up a solid 16.3% for the year so far, with October alone adding another 2.27%. Even this past week showed a healthy 0.71% climb. We saw a slight breather on Friday, which is totally normal, but the overall trend is undeniable.
From a technical perspective, everything is screaming “bullish.” The index is comfortably sitting above its key moving averages, whether you look at the weekly or daily charts. All those trend indicators? Green light all the way. What we need to keep our eyes on now is whether it can confidently break through that 7,000 level and keep that momentum going. If you’re like me, you’re probably thinking patience could really pay off here, especially if we see a solid “bull flag” pattern form before the next big push higher. It’s about knowing when to watch and when to act.
Dow Jones
Just like the S&P 500, the Dow Jones has also had a strong run, closing out its sixth straight month of gains. It’s up 11.8% for the year, with October alone adding 2.51%. This is the kind of steady performance we like to see.
Looking at the weekly chart, the Dow climbed 0.75%, continuing the uptrend we’ve seen for most of the year. Friday was a bit of a quiet day, with only a small 0.09% gain. I’m seeing some indecision in the recent candlesticks, which often tells me the market is taking a breath and consolidating before deciding on its next direction.
From a technical standpoint, the Dow looks just as strong as the S&P 500. It’s trading comfortably above its 200-day moving average, and the trend indicators are still pointing up. Based on what I’m seeing, this pattern suggests there’s room for more growth as we head into the final two months of the year. It’s a good reminder to stay patient and let the trend work for you.
Nasdaq 100
The Nasdaq 100, which is packed with tech stocks, has been a real standout this year, climbing an impressive 23.06% so far. October was a particularly good month, with the index jumping 4.77%. This really shows the continued investor confidence in the big tech companies that make up the index.
When I look at the charts from a technical standpoint, the Nasdaq is sitting comfortably above its key moving averages, and the trend indicators are all signalling bullish. This is great news for the technology sector as a whole and tells me that investors are still hungry for growth stocks. Much like the S&P 500, the Nasdaq has been hitting new highs since June, which means we’ve seen six straight months of positive momentum. It’s a powerful trend that’s worth paying attention to.
FTSE 100
The FTSE 100 has been on a strong run since it found its footing back in April. So far this year, it’s up nearly 19%, with a solid 4% of that gain coming in October alone. This consistent growth is encouraging to see.
What I find particularly interesting right now is that the index is approaching the 10,000 mark. This is a big psychological number, and I think we’ll see it tested in November. My gut tells me there’s a good chance it could break through and keep climbing. If you’re invested in the UK market, the last couple of months of 2025 could be quite exciting.
Looking at the charts, the signs are positive. The index is trading above its 200-day moving average, and the trend indicators are looking good. To me, this suggests the path of least resistance is upwards. My advice? Be patient and let this upward trend continue to play out.
PERFORMANCE REVIEW
Apple (AAPL)
Alright, let’s talk Apple. The stock had a great October, closing up 6.18% for the month, which pushed its year-to-date gain to a solid 7.97%. What’s really positive is that it actually closed above its 2024 high. That’s a strong signal of momentum building. We’re now looking at the $300 level as the next big target, a psychological milestone, if you will. On the weekly chart, it climbed 2.87%, holding steady above key technical points.
Now, Friday saw a little bit of profit-taking, with Apple dipping 0.38%. Don’t let that worry you too much, though. These minor pullbacks can actually be a healthy thing. It often means the stock is just consolidating, taking a breath and testing out those support levels. This kind of action frequently sets things up for the next big jump higher.
So, from a technical standpoint, everything still looks pretty positive across the board, with indicators showing good momentum. If you’re following Apple, the key here is patience. It’s working through this consolidation phase right now, and if history is any guide, it’s just getting ready for that next push towards that $300 goal. Keep an eye on it!
OUTPERFORMING ASSET FOR THE WATCHLIST
Amazon (AMZN)
Amazon had a fantastic October, with its stock price jumping over 11%. This big move pushed it past its previous high for the year, setting new records.
The most interesting move was during earnings week. After announcing strong results, the stock gapped up significantly, opening much higher than its previous close. Even though it dipped a little at the end of the week, it still finished up by almost 10% overall.
Breaking through its previous all-time high from February is a big deal. It suggests that Amazon’s stock might be entering a new upward trend. From a technical standpoint, things look positive.
So, what should you watch for now? The key is to see if this momentum continues. In an ideal world, the stock might pull back a bit to consolidate its recent gains before moving higher. This would actually be a good thing, as it could offer a better entry point for anyone looking to buy or add to their position. It’s also possible that the gap from earnings week gets filled, which is pretty common and not necessarily a cause for alarm. The most important thing is whether the overall uptrend holds, and right now, all signs point to yes.
Looking Ahead
55% percent of U.S. stocks are now trading above their 200-day moving average, down from 60% last week. A slight dip, but it indicates that markets have remained stable through this earnings season and appear set to maintain the current bull trend.
Keep it simple. Keep it Sublime.
The ST Team
P.S. Answer 21 rapid-fire questions about your investing approach and then as if by magic, we will give you recommendations that are right for you and you’ll unlock your FREE Bonuses that will improve your investing results over the next 3 to 5 years.
