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
The S&P 500 ended the week at 5865, delivering a 0.9% gain and setting a new record close. Since hitting its August lows, the index has climbed 15%, with October continuing the bullish momentum observed in previous months.
Year to date, the S&P 500 has posted an impressive 24% gain. Despite periods of market volatility, the bullish trend remains intact, with the index now up 44% from its low in October 2023 and 69% from the October 2022 low.
While broad indices like the S&P 500 provide an overall view of market trends, they don’t always capture the performance of individual stocks. We’ve seen notable outperformance in stocks such as NVDA, FI, PWR, ORCL, MMC, PGR, WRB, BSX, WMT, GDDY, and RSG, all of which we’ve highlighted in this newsletter throughout 2024.
The Nasdaq 100 built on recent momentum, increasing by 0.2%, while the Dow Jones gained 1.1%, also closing at a new all-time high.
Meanwhile, the FTSE 100 in the UK advanced 1.3%, closing the week at 8358 and retesting the resistance level it first encountered in June.
OUTPERFORMING ASSET FOR THE WATCHLIST
Apple Inc. – AAPL
Apple (ticker: AAPL) needs little introduction; the market leader in personal computers, mobile devices and software. Apple is the world’s largest technology company by revenue, with US$394.3 billion of revenue in 2022. It is also considered as one of the big five American information technology companies, alongside Alphabet (parent company of Google), Amazon, Meta Platforms, and Microsoft.
AAPL has demonstrated an exceptional long-term trend since October 2010, delivering gains of over 2,000%. After a particularly strong performance in 2021, the stock experienced a period of weakness in 2022, but bulls regained control in 2023. The price reached an all-time high in July 2023 before entering a phase of consolidation. Following a breakout in July, AAPL has gained over 20%.
Closing the week at $235, this month’s performance has set a new all-time high. On the weekly time frame, the price remains above both the 50 and 200 SMAs, and on the daily time frame, it continues to trade above all key moving averages. Additionally, our proprietary tool, the Sublime trend filter, signals a green indicator on both time frames, reinforcing the stock’s bullish outlook.
Looking ahead, the next significant resistance level is the recent all-time high, tested on Tuesday, followed by the $250 round number. If AAPL demonstrates a continuation pattern above these levels, it could present an opportunity for members of our Phoenix community, given the stock’s strong history of long-term trends.
OUTPERFORMING ASSET FOR THE WATCHLIST
White Mountains Insurance Group – WTM
White Mountains Insurance Group (ticker: WTM) is a diversified insurance and related financial services holding company based in Hamilton, Bermuda. Redomiciled from Delaware in 1999, the company conducts most of its business through its insurance subsidiaries and other affiliates.
WTM has exhibited a strong long-term trend since the end of the financial crisis in 2009, with gains exceeding 800%. More recently, after retesting the $1000 round number in December 2021, the stock has continued to trend upward, gaining 87%. This month has been particularly bullish, with a gain of over 10% to date, as the price approaches the all-time high set in June.
On the weekly time frame, WTM is trading above both the 50 and 200 SMAs, with our proprietary tool, the Sublime trend filter, signalling a green outlook. On the daily time frame, the Sublime trend filter is also green. Notably, this week the 20 SMA crossed above the 50 SMA, and all moving averages are aligned and diverging, suggesting potential near-term strength.
Looking forward, the next key resistance level is the all-time high, which aligns with the $1900 round number. If the price clears these levels, WTM could be poised for another extended trend, offering potential opportunities for members of our Phoenix community, who have benefited from trading this stock in the past.
Looking Ahead
This week, U.S. markets continued to build on the recovery from August’s downturn, with numerous stocks now reaching new all-time highs, a trend we have consistently highlighted in this newsletter. As previously noted, our disciplined and measured approach has proven highly effective, with our positions benefiting from the sustained positive market momentum. The gains in trending stocks have further strengthened the profitability of our open positions, reaffirming the robustness of our strategy.
We currently hold positions in a significant number of stocks demonstrating strong upward trends. As always, we remain committed to allowing price action to guide our decisions, ensuring that we stay aligned with market conditions and are well-positioned to seize emerging opportunities.
At Sublime, our unwavering commitment lies in conducting thorough analysis based on objective data and factual evidence presented in the charts. By adopting this approach, we aim to provide valuable guidance to our esteemed Phoenix community, collectively exploring opportunities that hold the potential for long-term, profitable trades.
Keep it simple. Keep it Sublime.
The ST Team
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