Week in Review: Strategic Trading Insights and Market Opportunities in a Week of High Volatility

Good evening, everyone!

It’s great to gather here with all of you at the Diamond Ridge Financial Academy to share investment knowledge. Since it’s the weekend, let’s take some time tonight to review this week’s market trends and trading updates. I hope my insights will be helpful and I wish you all a pleasant evening.

This week, we focused on the concept of "trends", covering everything from economic development trends to investment trends driven by technological revolutions, price trend analysis and specific trading signals. The goal is to build a basic framework for analyzing investments.  

Economic development trends are the foundation for understanding the market. Currently, the Fourth Industrial Revolution is driving global economic transformation. Fields like digital economy, AI and new energy technologies are evolving rapidly, offering long-term growth opportunities for investors. For instance, AI is reshaping industries from finance to healthcare, signaling a major shift in future investment directions.  

We also explored the potential of technological revolutions in investment. Innovations like AI and generative AI are fueling industrial upgrades, enhancing productivity and creating new business models. Identifying these investment hotspots can help us seize opportunities during key industrial shifts.

From a technical analysis perspective, we learned how to interpret price trends. A trend reflects the market's underlying behavior, helping us identify the direction of price movements. By analyzing moving averages, such as downward, flat or upward trends, we can quickly spot price turning points and discover potential trading signals. For example, the 21-day moving average not only helps determine trend directions but also offers precise entry and exit points through pullback confirmations.  

Regarding specific trading strategies, we discussed identifying signals for trend breakouts and pullbacks. This approach combines technical analysis with current events to improve investment success rates. Whether capturing upward trends or finding trading opportunities in hot sectors, recognizing these critical points is essential.

The specific market situation, The UK stock market entered a correction this week, with the FTSE 100 index fluctuating below 8,400 points and ending slightly down by 0.14%.  

Here's how it performed during the week:

On Monday, gains in industrial metals, mining and oil & gas producers lifted the index.  

On Tuesday, losses in industrial transportation, fixed-line telecom and aerospace & defense sectors pulled it down.  

On Wednesday, mining, aerospace & defense and beverages helped the index rise.  

On Thursday, beverages, electricals and healthcare equipment & services provided support.  

On Friday, losses in mining, fixed-line telecom and industrial metals dragged the index lower.  

Looking at the ups and downs throughout the week, we can see that sector rotation was very clear this week. Sectors that went up a lot tended to pull back, while those that dropped a lot often rebounded.

Overall, the FTSE 100 showed very little movement this week, with a maximum swing of just 1.49%. This reflects widespread caution and a wait-and-see attitude in the market. Several factors contributed to this trend:  

First, the recent UK economic data was not encouraging. GDP in Oct dropped by 0.1% month on month, with manufacturing output declining, indicating economic pressure. These weak numbers increased worries about slowing economic growth, making investors more cautious with their strategies.  

Second, uncertainty around UK domestic policies played a big role. The autumn budget hinted at possible tax increases, which dampened market sentiment. Businesses expressed concerns about the cost pressures from tax changes, further slowing market activity. At the same time, investors are waiting for clearer signs of economic stimulus or policy adjustments, which has led to lower trading volumes.

In addition, global macroeconomic factors added external pressure to the UK stock market. Geopolitical tensions in the Middle East created uncertainty around energy supplies and rising global inflation risks further reduced market risk appetite. Meanwhile, with major central banks continuing to cut rates, the Bank of England's monetary policy direction remains unclear, making investors more hesitant about the future.  

Finally, with the year-end approaching, market liquidity is naturally declining as many investors reduce their positions to avoid potential holiday volatility. This seasonal factor has further narrowed the FTSE 100's movement.  

Overall, the FTSE 100's performance reflects not only the challenges facing the UK economy but also the cautious mindset of global markets under multiple uncertainties.

From the chart above, the FTSE 100 Index has a wide fluctuation range of 8060-8460 points. The current level is above the median and close to its historical high, which is one of the main reasons for the recent correction in the UK stock market.  

Technical analysis shows that the UK stock market has clear cyclical volatility. For example, in Feb last year, the FTSE 100 Index started to pull back and didn’t begin an upward trend until Jan this year, marking a correction cycle of about 11 months. If the next correction cycle is similar, the FTSE 100 Index is expected to focus on adjustments in the near term.  

In conclusion, overall investment opportunities in the UK stock market are decreasing. However, the continuous positive trend in AI development brings us quality trading opportunities.

For the US stock market, this week saw a pullback in US stocks. On a weekly basis, the Nasdaq Composite Index rose for the fourth straight week, while the Dow Jones Industrial Average and S&P 500 Index declined. This week, the S&P 500 fell 0.64%, the Dow Jones dropped 1.82% and the Nasdaq gained 0.73%.  

Specifically, this week’s US stock market showed clear divergence. The performance of the major indexes reflects structural adjustments. The S&P 500 and Dow Jones Industrial Average declined mainly due to the drag from cyclical industries and value stocks, which are more sensitive to economic growth and policy uncertainty. In contrast, the Nasdaq Composite’s rise was driven by strong tech stocks, especially in AI, cloud computing and semiconductors. Growth in the tech sector not only offset part of the overall market weakness but also kept the Nasdaq on an upward trend.

Looking at both the UK and US stock markets, it’s clear that recent corrections mainly focus on traditional industry assets. Meanwhile, the tech sector is bucking the trend with gains, which is why we strongly recommend embracing tech assets. Take Rolls-Royce, for example. Over the past decade, the company has transformed from traditional manufacturing to high-tech manufacturing, leading to rapid growth in aviation manufacturing in recent years. Following the AI tech revolution, Rolls-Royce has actively engaged in relevant R&D and product output, boosting its market influence.  

For this stock, we recently bought at around £5.3 on Nov 26 and took profit near £5.9. Now that Rolls-Royce is back near the 21-day moving average, it offers another buying opportunity. The suggested entry price is £5.65.

In comparison, the US stock market offers more options, especially in the tech sector. Although this week saw a significant pullback in tech stocks due to macro factors like US-China trade tensions, we still managed to capture quality trading opportunities amid the volatility.  

For example, Tesla, a leader in the new energy and autonomous driving fields, also has strong reserves in digital assets. On Dec 5, we suggested buying Tesla near $360. Later, driven by the core factors of the digital economy and AI, Tesla’s stock price kept climbing and hit a record high.  

As shown in the chart, we used a technical breakout pattern combined with a quantitative trading system to provide accurate trading strategies. This fully demonstrates the unique advantage of using tech to empower investment decisions. As of this Friday, Tesla's stock price reached $436.3, with a max increase of 21%. Even if you followed my instructions to take profit early, the return still exceeded 12%, ensuring stable gains.

This week, we once again recommend buying or adding to positions in Trump Media & Technology Group (DJT). Thanks to its strengths in digital communication and unique political-economic resources, DJT's stock has been performing strongly, consistently hitting recent highs. DJT benefits from the market's enthusiasm for specific sectors, along with short-term policy-driven news, showing a strong upward trend. We predict that before Trump assumes office on the 20th of next month, its price will approach the resistance level of $50. So, this stock is still worth buying right now.  

Apart from DJT, this week’s operations with TeraWulf (WULF) also delivered good returns. Although WULF has been more volatile, those who followed the real time short-term trades still made significant gains. Whether you're looking for swing trades or short-term opportunities, you can contact the assistant to get real time trading instructions and follow the upcoming profitable moves.  

These recent trades clearly show that even in a volatile market, combining in-depth fundamental analysis with advanced technical tools can still efficiently capture investment opportunities.

In the forex market, the GBP/USD pair has fallen as expected this week. In the first half of the week, the market continued the bullish sentiment from last week, with GBP/USD strengthening. The main reason for this was the market’s expectation that the Federal Reserve would cut interest rates in Dec, while the Bank of England hinted it would not cut rates this year, which supported the pound. However, the US PPI data released on Wednesday exceeded market expectations, slowing the pace of the Fed’s potential rate cuts next year, leading to a decline in GBP/USD.

Despite the numerous forex data releases and fluctuating market conditions this week, the trade direction and signals I provided have been very accurate. As shown in the chart, the technical analysis I shared on Monday closely matched the actual price movements.

Currently, GBP/USD has dropped to around $1.26 and I expect the pair to trade within the range of $1.255 to $1.269 next week, in a sideways pattern.

This week our gold market trading strategy was more precise. By setting aside complex political and economic factors and focusing solely on price trends and support and resistance levels, we were able to generate accurate trading signals.  

As shown in the chart, the first image is the technical analysis chart I shared with you on Monday and the actual price movement almost perfectly matched the chart. Through trend analysis, we confirmed that gold is currently in an upward trend. On Monday, a green candle engulfed a red one, signaling a breakout and gold prices surged significantly in the first half of the week.  

In the second half of the week, starting Thursday, the market entered a sharp decline. However, we made a precise prediction on Wednesday. As shown in the second chart, the predicted movement closely mirrored the actual price trend. By using the resistance level of a previous high, we accurately forecasted the gold price's rebound peak. After hitting the resistance level, gold began to pull back.  

These patterns, identified and analyzed by AI, provide more accurate and timely trading signals. This is the key advantage of a quantitative trading system.

In the crypto market, driven by the Fourth Industrial Revolution and the rapid development of the digital economy, digital assets are worth long-term investment. This Monday, BTC and other crypto saw a brief pullback, providing a buying opportunity at lower prices. For those who followed this week's trading strategy, buying BTC at $95K, they have already made over $8K in profit per coin. Eth also pulled back to $3.5K, giving us a great buying opportunity. Moving forward, you can continue to buy BTC, Eth, Dogecoin and other mainstream crypto.  

The fundamental reason we are long-term bullish on crypto is the favorable policies being adopted by governments worldwide. For example, the US and Russia are incorporating BTC into their national strategic reserves to enhance financial stability.

Especially with Donald Trump becoming the US President, he is actively promoting the development of crypto. Trump has already appointed David Sachs as the first White House crypto and AI director, marking a major step for the US in developing emerging technology policies. This position is designed to meet the growing national strategic demand for crypto and AI. His main focus will be guiding US policy, creating a clear legal framework for digital assets and strengthening America's leadership in next-generation technologies. Trump said on Truth Social that this appointment is a key step to keeping the US competitive in these areas. With David Sachs becoming the first "crypto czar," the US is set to reform its digital asset and AI policies, signaling the beginning of a new era for the tech and crypto industries. This suggests that before Trump's term ends, BTC, Dogecoin and other mainstream crypto will likely experience a significant rally.

In conclusion, this week's market performance and investment opportunities once again confirm the importance of the tech revolution and trend analysis. From the sector rotation in the UK stock market to the strong performance of the US tech sector and from the precise trading strategies in gold and crypto, we see that understanding market patterns and aligning with technological trends is key to wealth growth.  

Currently, the Fourth Industrial Revolution has brought rapid development in fields like digital economy, AI and new energy technologies. These technologies are not only driving up productivity but also injecting sustainable growth into global capital markets. Just like our operations with stocks like Tesla, Rolls-Royce and DJT, leveraging the tech revolution trend combined with market cycles can help capture trading opportunities more efficiently and achieve stable returns.

In a complex market environment, quantitative trading systems show their unique advantages. Through data analysis and trend forecasting, this system can break down market movements and quickly identify high-probability trading signals. From precise entry points in Tesla to predicting support and resistance in gold and to positioning at BTC’s low points, all of these trades are supported by the science of quantitative trading. Especially with the upcoming version 5.0 of the quantitative trading system, it will integrate more AI and big data analysis capabilities, providing stronger decision-making support for investors.  

To enable more investors to participate in tech-driven wealth growth, our financial academy will launch the internal test for the Quantitative Trading System 5.0 in Jan, along with free educational activities before that. This is not only to provide educational support but also to recruit like-minded partners to jointly promote the marketization of quantitative trading tools and fund products. By deeply explaining the techniques of quantitative trading and trend analysis methods, we hope to help more investors make precise decisions in future markets and seize opportunities.

That’s it for tonight’s share. I hope through today’s discussion, everyone can learn to summarize the secrets of profitable investing in real life. The future belongs to those who can understand the pulse of the tech revolution and accurately observe market trends. We look forward to working with more investors to start the new era of intelligent investing and achieve long-term wealth growth goals!  

For those looking to catch this revolutionary wealth opportunity, please prepare your investment accounts in advance, especially for mainstream accounts like stocks and crypto. Through these accounts, we can align with technological trends and build investment portfolios with stable growth potential by combining the advantages of different asset classes. If you have any questions about investing, feel free to reach out to me.  

From tonight's share, please think about:  

1. What are the risks and opportunities in the stock market going forward?  

2. What is the outlook for the cryptocurrency market? How should we operate?