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 closed the week at 5,728, marking its second consecutive weekly decline with a 1.4% drop. Despite this recent softness, the index has demonstrated resilience, rallying 13% since its August lows, and October has broadly continued the upward momentum observed in recent months.
With the U.S. election on the horizon, market volatility may intensify, but our strategic approach – rooted in wide stop losses and a long-term view – is well-positioned to navigate potential fluctuations regardless of the outcome.
Year-to-date, the S&P 500 has achieved a commendable 22% gain, maintaining its overarching bullish trend in spite of intermittent market fluctuations. The index remains up 42% from its October 2023 low and has gained 67% from its October 2022 low, underscoring the strength of the sustained upward trend.
Broad indices like the S&P 500 offer a general market overview but often obscure standout individual performances. Throughout 2024, we’ve observed notable outperformance in stocks such as NVDA, FI, PWR, ORCL, MMC, PGR, WRB, BSX, WMT, GDDY, and RSG – all highlighted for their strong trends and growth potential in this newsletter.
Other U.S. indices showed mixed performance; the Nasdaq 100 also saw a dip, declining 1.6% for the week, while the Dow Jones displayed relative stability, posting only a 0.1% decrease.
In the U.K., the FTSE 100 continued its recent softness, closing down 0.9% to end the week at 8177.
In spite of uncertainty, our approach remains steadfast: we focus on disciplined analysis, guided by price action and trend-following principles, to capitalise on potential gains amidst fluctuating conditions.
OUTPERFORMING ASSET FOR THE WATCHLIST
Oracle Corporation – ORCL
Oracle Corporation (ticker: ORCL) is an American multinational computer technology corporation headquartered in Texas. In 2020, Oracle was the third-largest software company in the world by revenue and market capitalisation.
ORCL has established a record of consistent upward trends, demonstrated in its strong performance during 2021 and more recently from October 2022 onward. This steady rise underscores ORCL’s resilience and potential for sustained growth. After reaching an all-time high in June 2023, the stock retraced to the $100 level before regaining momentum, setting a new all-time high last month.
ORCL ended the week at $170, up 23% over the last two months. Since October 2023, the stock has consistently held the weekly 50 SMA as a support level and remains above both the 50 and 200 SMAs, signalling robust trend strength. The Sublime trend filter also continues to indicate a positive trend, though last week the price briefly dipped below the 20 SMA on the daily chart.
Looking forward, the $200 level presents the next potential resistance. Our Phoenix community members will be watching closely for any continuation patterns above the all-time high, as Oracle’s historical trend behaviour suggests promising trading opportunities ahead.
OUTPERFORMING ASSET FOR THE WATCHLIST
Stryker Corporation – SYK
Stryker Corporation (ticker: SYK) is an American multinational medical technologies corporation. Stryker’s products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling and emergency medical equipment; neurosurgical, neurovascular and spinal devices; as well as other medical device products used in a variety of medical specialities.
SYK has been a standout performer over the last decade, with a long-term trend history dating back to 2013. After a false breakout in April 2023, when price met resistance around the $300 mark, SYK experienced renewed momentum. January saw a resurgence, with the stock gaining over 12% that month, and more recently, SYK reached an all-time high in September. Although price continues to push higher, we are yet to see a fully defined upward trend emerge.
On the weekly timeframe, SYK remains strong, trading above both the 50 and 200 SMAs, and our proprietary Sublime trend filter remains green, signalling continued bullish sentiment. The daily chart confirms alignment, as the price consistently holds above key moving averages, maintaining the green signal on the trend filter. This alignment across multiple timeframes highlights SYK’s resilience and potential for future growth.
As we look ahead, the next key point for SYK is the development of a continuation pattern above its current all-time high. Should a more linear trend structure form in conjunction with this breakout, SYK may present a solid entry opportunity for Phoenix community members seeking exposure to a stock with a proven trend history. Stryker’s track record and its recent bullish momentum continue to reinforce the stock’s appeal within our portfolio.
Looking Ahead
Last week the U.S. markets booked a modest decline, and with the U.S. election just around the corner, we may see increased market volatility in the near term. Our approach, however, is built to manage such fluctuations effectively, ensuring that we remain well-positioned regardless of potential market turbulence.
Taking a step back, our disciplined, data-driven methodology has consistently delivered strong results. Our portfolio continues to benefit from sustained positive momentum in trending stocks, underscoring the robustness of our strategy focused on capturing gains from well-defined trends.
Currently, our holdings include a diverse range of stocks exhibiting strong upward trends. Guided by our core principle of allowing price action to lead our decisions, we are positioned to adapt to market dynamics while remaining prepared to capitalise on new opportunities as they emerge.
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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