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 finished the week at 6090, marking a solid gain of over 1.0% and reaffirming its position above the critical 6000 round number. With an impressive monthly return of 5.7% – the largest since November last year – the index’s upward momentum has carried into December. U.S. equity markets continue to show strong bullish dominance.
So far this year, the S&P 500 has delivered an outstanding 28% return, climbing 48% from its October 2023 low and 73% from its October 2022 low.
While indices like the S&P 500 provide a high-level view of the market, they often overshadow exceptional individual stock performances. This year, standout stocks such as NVDA, FI, PWR, ORCL, MMC, PGR, WRB, BSX, WMT, GDDY, and RSG have been highlighted in this newsletter, frequently ahead of their significant bullish trends.
Among other U.S. indices, the Nasdaq 100 surged by 3.3% this week, achieving a new all-time high, while the Dow Jones posted a quieter performance, declining by 0.8%.
In the UK the FTSE 100 ended the week at 8309, a modest 0.3% increase. Notably, the index tested the pivotal 8400 level before retracing, remaining within its broader consolidation range.
PERFORMANCE REVIEW
Meta Platforms – META
META (ticker: META) owns and operates Facebook, Instagram, Threads, and WhatsApp, among other products and services. It is considered one of the Big Five American information technology companies, alongside Google’s parent company Alphabet, Amazon, Apple, and Microsoft.
Our breakout strategy identified META as a key opportunity in January 2024, initiating a position following a decisive close above the previous year’s high. As the price continued to advance, additional compound positions were strategically added. January and February were marked by robust bullish momentum, and while a pullback occurred in April, the stock has since resumed its upward trajectory, achieving a remarkable total gain of 75% and reaching a record high of $624.
This trade has delivered exceptional results, with a 3,064% Return on Investment and a 61% Return on Capital, managed with a total portfolio risk of just 2%.
META exemplifies the potential of trend-following strategies. Managing this trade has required only a few hours of oversight across ten months, underscoring the efficiency of this approach. By concentrating on higher time frames, such as monthly and weekly charts, trend trading eliminates the distractions and stress of shorter time frames. This methodology offers busy professionals the freedom to focus on other priorities while capitalising on significant market opportunities.
OUTPERFORMING ASSET FOR THE WATCHLIST
Visa Inc. – V
Visa Inc. (ticker: V) is an American multinational financial services corporation headquartered in San Francisco, California. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world’s most valuable companies.
Visa has demonstrated a strong and consistent bullish trend since December 2011, establishing itself as a top-performing stock with gains exceeding 1100%. In March, the stock reached an all-time high before experiencing a pullback to the July 2021 pivot high. However, the bulls have since regained control, driving further gains, including an 8.7% rise in November.
On the weekly timeframe, Visa continues to trade above both the 50 and 200 SMAs. Our proprietary tool, the Sublime Trend Filter, remains green, signalling a positive market outlook. Since testing the 50-day SMA in July, the stock has gained over 25%, extending its long-term upward trend.
On the daily timeframe, Visa is trading above all major moving averages, which are aligned to indicate near-term strength. Following its earnings report on 29 October, the price gapped up, with a further gap up on 6 November. Price has successfully consolidated above the $300 round number, reflecting ongoing bullish momentum.
Looking ahead, the next potential resistance level is the $350 round number. If a continuation pattern forms, it could offer a compelling opportunity for our Phoenix community members to capitalise on a stock with a proven history of long-term trends.
Looking Ahead
The U.S. equity markets continue to demonstrate strength, driving equities higher in alignment with prevailing trends.
Our disciplined, data-driven strategy consistently delivers results. Even during periods of short-term pullbacks, our portfolio remains strategically positioned, capitalising on the strong momentum of trending stocks and reinforcing the resilience of our trend-following approach.
With a well-diversified selection of stocks exhibiting robust upward trends, we remain firmly committed to letting price action guide our decisions. This approach ensures we are agile, prepared to navigate evolving market dynamics, and poised to capture new 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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