Navigating the Markets: Weekly Insights from Diamond Ridge Financial Academy

Good evening, everyone!  

I’m thrilled to connect with all of you here at Diamond Ridge Financial Academy and share valuable investment insights. I hope my perspective adds value to your journey and I wish you a wonderful evening ahead!

Recently, we’ve been analyzing tech trends and the global economic landscape, focusing on investment strategies in AI and the digital economy. Right now, the global economy is undergoing profound changes with digital transformation and tech innovation driving growth. Emerging technologies like AI, big data and blockchain are rapidly integrating into all sectors, giving new momentum to economic development.  

In the AI field, areas like autonomous driving, smart healthcare and intelligent manufacturing are reshaping traditional industries and creating new business models and investment opportunities. In the digital economy, sectors like digital assets, fintech and digital entertainment are building a new economic ecosystem, offering investors a variety of choices.

In the field of technical methods, this week we studied the principles of technical analysis. By combining trend analysis with quantitative trading systems, we provided many precise trading recommendations. For example, we accurately predicted the range-bound movement of the FTSE 100 index, identified breakout trends in crypto and gave precise analysis of forex and crude oil. Tonight, we’ll review this week’s analysis and trades to summarize practical strategies.

Let’s start with the stock market.

For UK stock market, the FTSE 100 index opened this week at 8287.3 points, peaked at 8388.3 and closed at 8308.6. The performance was up on Monday and Tuesday, down on Wednesday and Friday, showing range-bound movement for the week. Here’s how the UK stock market's sectors performed this week:

Monday, gains in aerospace & defense, autos & parts and insurance pushed the index higher.  

Tuesday, mining, aerospace & defense and pharma & biotech led the gains.  

Wednesday, losses in fixed-line telecoms, pharma & biotech and electricals dragged the index lower.  

Thursday, gains in beverages, insurance and mobile telecoms supported the index.  

Friday, losses in fixed-line telecoms, gas, water & utilities and mining pulled the index down.

Overall, the FTSE 100 rose slightly by 0.26% this week, showing almost no movement. The lack of further gains was mainly due to fading expectations of a short-term rate cut by the Bank of England, which left the market without strong upward momentum. However, there were significant sector movements that created many profit opportunities. Aerospace, defense and biotech led the gains, while fixed-line telecoms and gas lagged.  

The rise in aerospace stocks was mainly driven by escalating regional conflicts. Modern warfare relies heavily on drones, aviation and related technologies, which is why we strongly recommend stocks in the aerospace and defense sectors.

One standout stock is Rolls-Royce.  

We strongly recommended buying this stock on Nov 26 with a reference price around £5.35. As shown in the chart, its pattern perfectly matches our chief analyst Professor Hanover’s "Price Trend Theory": in an uptrend, the lows keep getting higher and the highs keep breaking new records.  

This precise analysis helped students following this trade earn over 10% profit, once again proving the powerful combination of economic and technical analysis in delivering solid returns.  

We already took profit at £5.95, but since this stock aligns with the AI-driven tech revolution, we plan to buy again if it pulls back to around £5.70.

In the US stock market, the three major indexes had mixed performance this week. The Dow Jones Index entered a correction after two weeks of gains, dropping 0.6%. The S&P 500 Index continued its two-week rally, rising 0.96%. The Nasdaq Index performed the best, surging 3.31%, boosted by AI and digital economy momentum.  

Key factors driving US stock market fluctuations include:  

1. Trump’s economic policies.  

Earlier this week, President-elect Trump announced plans to increase tariffs on China, Mexico and other countries, creating negative sentiment in global stock markets. Later, his tone softened, easing some pressure, but the Dow, heavily weighted with traditional manufacturing still faced headwinds.

2. Escalating global conflicts boosting demand for defense and aerospace tech.

While Lebanon and Israel appear to be observing a ceasefire, conflicts in the Middle East are still heating up. Escalation in Syria and South Korea’s “martial law” situation this week highlight rising global military tensions. The US is also using external conflicts to divert attention from its debt crisis and domestic economic issues. Against this backdrop, defense-related tech stocks are set for continued gains.  

3. Major economic data like nonfarm payrolls directly influencing stocks.  

As the world’s largest economy, US developments and Fed policies impact all major investment assets globally. For example, if nonfarm payroll data shows strong job growth in AI-related industries, it signals positive momentum and better future earnings for the sector, lifting AI-related stocks worldwide.  

On the flip side, strong nonfarm data weakens expectations for Fed rate cuts. Slower rate cuts in the US could delay global central banks’ easing measures, which directly affects stocks, forex and crypto prices.

In the US stock market, we recommended stocks based on tech trends and current economic conditions. Highlighted picks include Super Micro Computer (SMCI), Trump Media & Technology Group (DJT), Tesla (TSLA) and TeraWulf (WULF). The most notable one is Trump Media & Technology Group (DJT).

Fundamentals for DJT:  

1. DJT’s performance and expansion plans provide significant growth potential.  

2. DJT benefits from Trump’s economic effect, as his upcoming term is likely to drive short-term stock gains.  

3. DJT aligns with the dual drivers of digital economy and AI technology, offering massive upside opportunities.

Technical Analysis, as shown in the chart, this stock's movement perfectly matches the "price trend theory" and our quantitative trading system gave a clear buy signal. On Nov 29, we strongly recommended a buy with a target entry price around $30.5. The stock then rose for four consecutive days, hitting the first target of $36.5 on Wednesday this week.  

For those who followed this trade, the gain was about 20%. This stock still has room to run and can be held as a mid-term position, with a long-term target above $49.5. Specific trading tips will depend on your capital and portfolio allocation.  

For real-time short-term buy or sell signals, please contact the assistants at Diamond Ridge Asset Financial Academy to receive.

In the forex market, GBP/USD showed a slight upward trend this week.

The price movement was mainly influenced by two factors:  

First, The Bank of England's rate cut expectations.  

On Monday, weaker-than-expected UK economic data boosted expectations of a BOE rate cut, coupled with a rising US Dollar Index, causing GBP/USD to drop. From Tuesday onward, comments from the BOE governor reduced short-term rate cut expectations, leading GBP/USD to recover.  

Second, The Fed’s rate cut expectations and their impact on forex.

This week US economic data was solid, especially Monday’s manufacturing PMI, which came in much stronger than expected and caused a sharp drop in GBP/USD. However, as the Dec Fed meeting approaches and markets increasingly expect a 25-basis-point rate cut, GBP/USD rebounded.  

As shown in the chart, Monday morning’s technical analysis aligned perfectly with the actual price movements.

We accurately predicted GBP/USD's rebound and resistance levels by analyzing price patterns and support/resistance zones.  

Students who followed real-time trading signals from our assistant earned solid profits in the forex market this week!

In the oil market, prices continued to fall this week, with WTI dropping 1.5%.

The main factors affecting oil price movements this week were:  

First, The Middle East conflict.

For example, tensions arose over the ceasefire agreement between Israel and Hezbollah, as both sides accused each other of violations. Escalating conflicts in Syria and the Russia-Ukraine war also added some risk premium to oil prices.  

Second, The OPEC+ meeting.

Reports showed that OPEC+ (which includes Russia) agreed on Thursday to extend current supply cuts until April 2025. They plan to slightly increase production starting in April next year but will maintain reductions until the end of 2026. However, the delay in boosting production led to continued drops in oil prices.  

As expected, the actual price movement aligned with predictions.

The chart above shows Friday’s technical analysis, which was followed by oil prices declining as forecasted.

Of course, the biggest highlight this week was digital assets tied to crypto.

For example, BTC, following our earlier suggestion to buy near $90K, BTC broke through $100K on Thursday before pulling back to $90.5K, giving us a great buying opportunity. Students who followed this trade earned over 10% returns.  

Another example is Eth. Since its move tends to lag BTC a bit, Eth broke out last week as expected and we anticipate it will continue to rally after this pullback. According to the technical analysis (see chart), buying near $3.5K during the pullback has already resulted in prices reaching $4K. That means students trading Eth earned over 15% this week. From a long-term perspective, with digital economy growth and supportive policies in the US and UK, mainstream digital assets are set to see continued upward trends.

At the same time, tech stocks related to crypto also saw strong gains.  

These assets can be divided into three categories:  

1. AI tech stocks tied to big data and the digital economy, like C3.ai (AI), Innodata (INOD) and Applovin Corporation (APP).  

2. Stocks investing in crypto or shifting into digital assets, such as Microstrategy Incorporated (MSTR), Marathon Holdings (MARA) and Tesla (TSLA).  

3. Companies involved in crypto exchanges or mining, like Coinbase Global (CION) and TeraWulf (WULF).

Looking back at this week’s trades, we can see investing doesn’t have to be complicated. Whether it's stocks, forex, crypto or gold, as long as you follow the trend, profits come naturally. For instance, anyone investing in stocks or crypto tied to digital economy and AI trends this week made great returns.  

But for beginners or part-time investors, it’s tough to analyze the market and pinpoint signals for profitable trades due to limited time. To solve this, you can join Diamond Ridge Financial Academy!

By joining us, you can:

Follow the academy’s trading signals and enjoy high returns. We analyze trends and data to deliver precise signals, helping you seize investment opportunities.  

Learn and master quantitative trading systems for consistent profits.  Our AI-powered system captures market trends more accurately, giving you stable and steady gains.  

Diamond Ridge Financial Academy’s online course has already begun and we warmly invite you to join next month’s beta test of our Quantitative Trading System AI 5.0. You’ll experience the system’s advantages firsthand and even have the opportunity to invest in the tool or our company’s quantitative funds.

That’s all for tonight’s session!

If you have any questions about stocks, crypto, forex or other investments, feel free to reach out. Using our quantitative trading system and live market data, I’ll provide you with real-time guidance.  

For those without an investment account yet, please open one soon for stocks, crypto and other key assets to start diversifying your portfolio for more stable gains.  

In our next class, we’ll dive into how to use the 21-day moving average to better identify buy signals. Stay tuned!