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 5871, falling short of closing above the significant 6000 level for the second consecutive week. This behaviour is not unusual at such a critical round number, as bulls and bears continue to battle for control. The index declined by 2.1% over the week, although November has shown broader bullishness, with a month-to-date gain of 3.5%.
Equity markets appear to have stabilised following the U.S. election. As expected, our strategy—emphasising wide stop losses and long-term trends – successfully navigated October’s volatility, ensuring our positions remained robust despite fluctuations.
Year-to-date, the S&P 500 has delivered a strong 24% return, maintaining its bullish trajectory. The index has risen 44% from its October 2023 low and 69% from its October 2022 low, reflecting the durability of the ongoing uptrend.
While indices like the S&P 500 provide a broad market perspective, they can obscure the exceptional performance of individual stocks. Throughout 2024, notable outperformers like NVDA, FI, PWR, ORCL, MMC, PGR, WRB, BSX, WMT, GDDY, and RSG have been spotlighted in this newsletter, often before their trends became widely evident.
Other U.S. indices also struggled, with the Nasdaq 100 posting a 3.4% decline, while the Dow Jones fell 1.2% after reaching a new all-time high earlier in the week.
In the UK, the FTSE 100 continued its subdued performance, slipping 0.1% to close at 8030, retesting its weekly 50 SMA as it grapples with ongoing weakness.
OUTPERFORMING ASSET FOR THE WATCHLIST
Republic Services Inc. – RSG
Republic Services, Inc. (ticker: RSG) is a provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. The company operates through collection operations, landfill operations, transfer station operations and recycling operations segments.
RSG has a proven history of strong linear trends, notably between 2014 and 2020, as well as in 2021. In recent months, the stock has resumed its bullish momentum, gaining 43% since November and achieving an all-time high this month.
On the weekly timeframe, the stock continues to exhibit strength, trading above both the 50 and 200 SMAs. Our proprietary Sublime Trend Filter confirms this positive outlook with a green signal, and the alignment of moving averages further reinforces the trend.
On the daily timeframe, the Sublime Trend Filter remains green, reflecting sustained positive sentiment. The price is trading above the 20, 50, and 200 SMAs, with all moving averages aligned. After a brief consolidation range beginning in July, where the price tested the $200 round number, a breakout occurred on 8th November. This was followed by a retest of the breakout level, a typical technical behaviour.
Looking ahead, the $300 round number stands as the next potential resistance level. A continuation pattern forming above the all-time high and the $200 round number could offer Phoenix community members a promising opportunity to participate in a well-established upward trend.
OUTPERFORMING ASSET FOR THE WATCHLIST
Go Daddy – GDDY
GoDaddy Inc. is an American publicly traded Internet domain registry, domain registrar and web hosting company headquartered in Tempe, Arizona, and incorporated in Delaware. As of 2023, GoDaddy is the world’s fifth largest web host by market share, with over 62 million registered domains. The company has around 21 million customers and over 6,900 employees worldwide.
GDDY has a history of strong trends, such as the one observed between 2017 and 2018, providing confidence in the stock’s potential for similar performance in the future. From October 2018 to November 2023, the stock underwent a prolonged consolidation phase before breaking out and entering a bullish trend. Since December last year, GDDY has gained an impressive 93%.
The stock ended the week at $183 and remains above both the 50 and 200 SMAs on the weekly timeframe. Our proprietary Sublime Trend Filter continues to indicate a green signal, reinforcing the positive long-term outlook.
On the daily timeframe, the Sublime Trend Filter also remains green, consistent with the broader trend. GDDY is trading above the 20, 50, and 200 SMAs, with the zone between the 20 and 50 SMAs acting as a reliable support area. This has enabled the price to form a series of higher highs and higher lows, further validating the upward momentum.
Looking ahead, the $200 round number represents the next potential resistance level. A continuation pattern above this level could present a compelling opportunity in a stock demonstrating a robust and sustained trend.
Looking Ahead
Last week, U.S. markets posted one of the year’s strongest gains as buyers re-entered after the election, driving equities sharply higher in line with prevailing trends. This week, however, markets have pulled back from those highs, reflecting some consolidation after the recent surge.
Our disciplined, data-driven approach continues to demonstrate its effectiveness. Despite the retreat, our portfolio remains well-positioned, benefitting from strong momentum in trending stocks and reinforcing the resilience of our trend-focused strategy.
We maintain a diversified portfolio of stocks with robust upward trends. Guided by our principle of letting price action shape our decisions, we remain agile and ready to respond to evolving market dynamics while capitalising on new opportunities.
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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