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 concluded the week at 6032, achieving a 1.1% weekly gain. This marks a milestone as the index closed above the critical 6000 level for the first time on the weekly time frame, coinciding with the close of November. The index delivered an impressive monthly gain of 5.7%, the largest since November last year.
U.S. equity markets remain firmly under bullish control.
Year-to-date, the S&P 500 has achieved a remarkable 27% return, rising 47% from its October 2023 low and 72% from its October 2022 low.
While indices such as the S&P 500 provide a broad market overview, they can overshadow the exceptional performance of individual stocks. This year, stocks like NVDA, FI, PWR, ORCL, MMC, PGR, WRB, BSX, WMT, GDDY, and RSG have consistently been spotlighted in this newsletter, often before their substantial upward trends became widely evident.
Other U.S. indices also exhibited continued strength. The Nasdaq 100 advanced 0.7%, while the Dow Jones gained 1.4%, closing the week at a record weekly high.
In the UK, the FTSE 100 ended the week at 8287, reflecting a modest 0.3% gain. The index has returned to the familiar 8000–8400 range discussed in prior updates.
OUTPERFORMING ASSET FOR THE WATCHLIST
Boston Scientific Corporation – BSX
Boston Scientific Corporation (ticker: BSX) is a biomedical/biotechnology engineering firm and multinational manufacturer of medical devices. The company is best known for the development of a drug-eluting stent which is used to open clogged arteries. The company is listed in the S&P 500. In 2023 it generated over $14 billion in revenue, and employs over 48,000 staff worldwide.
BSX has a strong history of sustained trends, notably between 2013 and 2019, which supports confidence in its ability to continue performing well in the future. From 2020 to 2023, the stock remained in a broad consolidation phase. However, since breaking out in March 2023, it has demonstrated bullish momentum, gaining over 87% to date. The price has been particularly impulsive in 2024, advancing 58%. November has been a standout month, delivering a 7.9% gain and achieving an all-time high.
BSX closed the week at $91. On the weekly time frame, the stock is trading above both the 50 and 200 SMAs, with our proprietary Sublime trend filter signalling green, confirming bullish sentiment. Similarly, the daily time frame reflects a green Sublime trend filter, aligning with the longer-term positive trend.
Looking forward, the next potential resistance level lies at the $100 round number. BSX remains a high-quality stock, and we will continue to monitor and share opportunities with our Phoenix community members should the price break out and establish a continuation pattern above the all-time high and key round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
UnitedHealth Group Inc. – UNH
United Health Group Incorporated is an American multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. UnitedHealth Group is the world’s eighth-largest company by revenue and second-largest healthcare company behind CVS Health by revenue, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group’s overall revenue. The company is ranked 8th on the 2021 Fortune Global 500. UnitedHealth Group has a market capitalization of $400.7 billion as of March 31, 2021.
UNH boasts a remarkable long-term trend, rivalled only by Microsoft in terms of linearity. From July 2013 to December 2018, and again from May 2020 to January 2023, the stock displayed strong, sustained upward momentum. Since then, it has entered a broad consolidation phase between $450 and $550. In July, the price attempted a breakout but retreated to the pivot high at $555. However, the bulls regained control, driving an 8.1% gain in November.
On the weekly time frame, the price is trading above both the 50 and 200 SMAs, with our proprietary Sublime trend filter signalling green. Following a rejection of the 200 SMA in April, the price has rallied, achieving a 38% gain.
On the daily time frame, the Sublime trend filter is also green, with the price trading above all key moving averages. The alignment of these moving averages further indicates near-term strength.
Looking ahead, we will closely monitor the current price action. Stability above the $600 round number is the first key milestone. Should the price establish a continuation pattern above the all-time high and form a linear trend, it could present significant opportunities for our Phoenix community members.
Looking Ahead
The U.S. equity markets continue to display strength, in turn pushing equities higher in alignment with broader trends.
Our steadfast, data-driven methodology continues to deliver results. Even amidst short-term pullbacks, our portfolio remains strategically positioned, thriving on the strong momentum of trending stocks and highlighting the robustness of our trend-following approach.
With a diverse selection of stocks exhibiting solid upward trends, we remain committed to allowing price action to guide our decisions. This adaptability ensures we are well-prepared to navigate shifting market conditions and seize emerging opportunities with confidence.
At Sublime, we are dedicated to detailed, objective analysis driven by chart-based data and evidence. This focus allows us to support our Phoenix community in identifying potential for sustained, profitable trades.
Keep it simple. Keep it Sublime.
The ST Team
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