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
The S&P 500 is having a standout year, and it’s worth taking a closer look at what’s driving this momentum. Year-to-date, the index is up an impressive 15.47%, with October alone adding over 1.5% to the gains. After breaking out in June and surpassing previous all-time highs, the S\&P has climbed about 10% since. Last week continued the positive trend with a 1.92% gain, capped off by a solid 0.79% rise on Friday.
So, what does this mean for you? Let’s break it down. The index is now in record-setting territory, staying above key support levels—essentially the “safety nets” that signal strength in the market. From a technical perspective, it’s holding steady above important averages, which is a good sign if you’re watching for consistent growth.
Looking ahead, the next big milestone is the 7,000 mark—a psychological target that many investors have their eyes on. While nothing in the market is guaranteed, the current trajectory shows resilience, and this could be an opportunity to learn how market trends shape long-term strategies. Whether you’re actively investing or just observing, keeping an eye on these patterns can help you make informed decisions and feel more confident navigating the ever-changing financial landscape.
Dow Jones
The Dow Jones Industrial Average is having a strong year, with a year-to-date gain of 10.96% and a 1.74% boost so far in October. It’s clear the blue-chip index is building steady momentum. While the Dow has slightly trailed other major indices this year—it only began hitting record highs in August—it’s now firmly on an upward path.
Right now, the Dow is trading at record levels, and the technical indicators suggest there’s room for more growth ahead. A key milestone to watch is the 50,000 mark, which carries significant psychological weight for investors. Here’s the crucial part: all three major U.S. indices are now aligned, setting new records together, which means October is shaping up to close particularly bullish.
If you’re tracking the market, this is a great time to stay focused and informed. The Dow’s progress shows how sticking with a long-term strategy can pay off, even if momentum takes time to build. Let’s see where this upward trend leads next.
Nasdaq 100
The Nasdaq 100, which is packed with tech companies, is really showing its strength this year. It’s up an impressive 20.68% year-to-date, and October itself has seen a 2.75% gain. This isn’t just a small bounce; the index is actually hitting new record highs, pushing past last year’s peak.
Looking at the charts, it’s clear the Nasdaq 100 is trading robustly, sitting comfortably above its important support levels. The technical indicators are all pointing to strong momentum, suggesting this bullish trend is likely to continue. The index is working its way to that 30,000 mark, which is a very real next target for this index. It’s an exciting time to watch these movements.
FTSE 100:
Let’s talk about the FTSE 100 for a moment. Honestly, at the start of 2025, few of us would have predicted such an exceptional year for the UK’s main index. But here we are! It’s climbed a significant 18.02% year-to-date, with October alone adding a solid 3.16% to those gains. This is more than just numbers; it’s a historic moment as the index eyes that psychologically important 10,000 level.
If you remember those April lows, largely driven by tariff concerns, the FTSE has actually rallied an impressive 28% since then. Last week was particularly strong, with a 3.11% gain, followed by a steady 0.7% on Friday. For those of us who follow the technical patterns, it even confirmed a “bull flag” formation on Thursday, with Friday’s movement suggesting that momentum is continuing upward.
What truly makes this performance stand out is that the FTSE is now sitting at record highs. Pushing past 10,000 won’t just be another number; it will mark a significant milestone for the index. Looking at the technical picture, it’s holding strong above all key support levels, with clear momentum pushing it higher. The current projection suggests we can expect this strength to continue, potentially seeing the index not just hit 10,000, but keep climbing from there. It’s a great reminder of how resilient markets can be.
PERFORMANCE REVIEW
Amphenol (APH)
Amphenol is having a standout year, and the numbers speak for themselves. The stock has surged an impressive 92.69% year-to-date, with October alone contributing 8.14% to the gains. Even after hitting record highs back in May, the momentum hasn’t slowed—it’s climbed another 69% since then. If you’ve been tracking this stock since December 2023, you’ve seen its consistent strength firsthand.
Now, let’s break this down. Despite some mixed movement on Friday after a positive push the day before, the overall trend remains solidly upward. On the weekly chart, the stock is holding above key support levels, backed by strong momentum. If you zoom in closer, the daily pattern shows it’s staying above all major moving averages, with the 20 and 50-day lines acting as reliable support zones. This is a great sign—it’s like having a safety net while you climb higher.
Earnings on October 22nd added to the story. The stock initially jumped higher on the report, then took a breather to fill the gap before resuming its upward trend. This kind of post-earnings consolidation might seem like a pause, but it’s actually a healthy sign—it gives the stock time to reset before pushing higher.
Looking ahead, $200 is the next target. If you’re already in, you’ve got a strong foundation. If not, or if you’re looking to build on your position, waiting for the next breakout from consolidation could be a smart move. Right now, this stock is showing all the hallmarks of a strong uptrend: momentum, support, and a clear path forward. Stay focused and use these opportunities to fine-tune your strategy—this setup has potential written all over it.
OUTPERFORMING ASSET FOR THE WATCHLIST
Apple (AAPL)
Apple’s stock has really been working its way back this year after facing some challenges. It’s seen a small climb of 4.95% year-to-date, with October adding another 3.22%. That yearly gain might seem modest, but it tells an important story: it’s recovered nicely from that dip during the April tariff situation and has even managed to break above last year’s high.
Looking ahead, if Apple can close above last year’s high by the end of October, it could really set the stage for a move towards $300. From a weekly perspective, the stock is clearly trading above its 200-day average, showing positive momentum. And on the daily charts, it’s holding strong above those key moving averages.
Now, if you’ve ever tracked Apple, you’ll notice it can be a bit more volatile than some of its mega-cap tech friends – sometimes the trading gets a little choppy. But don’t let that deter you; historically, this stock has a knack for establishing meaningful trends. Right now, it feels like we’re in a consolidation phase, so a bit of patience is key. The ideal scenario we’d hope to see is a move higher, perhaps a small pullback, and then a clear breakout to new highs. That would be a strong signal that the uptrend is back in full force, guiding us to its next big move.
Looking Ahead
60% percent of U.S. stocks are now trading above their 200-day moving average, up from 55% last week. This indicates that markets are stable following recent corrections and appear set to maintain the current bull trend.
Keep it simple. Keep it Sublime.
The ST Team
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