[isatrader]

Attached is the updated UK major index charts - FTSE 100, FTSE 250 and the FTSE AIM All share charts.

The FTSE 100 pulled back from the top of it's Stage 3 range once more this week although it's still above it's rising 10 and 30 week MAs. The FTSE 250 however, closed back below the 30 week MA again this week and looks to be developing further into Stage 3. While the FTSE AIM All-share index closed below the May swing low and the 30 week MA turned down and so it's now moved into early Stage 4A.

So it's clear that the major weakness is in the micro caps, and the small caps look to be weakening as well, while the large caps are still holding up near their highs.

           


UK Advance Decline chart

   

[shaunattwood]

I reread chapter 8 last night, and I'm trying to get up to speed on the AD line signals. What's your interpretation of the FTSE AD line and what do the blue and red lines mean below the main graph?

[isatrader]

I reread chapter 8 last night, and I'm trying to get up to speed on the AD line signals. What's your interpretation of the FTSE AD line and what do the blue and red lines mean below the main graph?

Hi Shaun, the advance decline chart I showed for the UK market above shows the same data in three different ways.

1. The top part of the chart is the Cumulative Advance Decline Line.

2. The middle indicator in red is the Momentum Index which Stan explains on page 284 of the book. But is simply the 200 day moving average of the daily advances minus the declines and is used for long term signals when it crosses the zero line.

3. The bottom indicator in blue is the 10 Day Advance Decline Oscillator, and is basically a much faster version of the Momentum Index as it only uses the 10 day moving average of the daily advances minus the declines, and so gives a short term oscillator which highlights when the market is short term overbought or oversold, or in neutral territory as it is currently.

I hope that helps.

[isatrader]

For the UK watchlist form Monday's scans - VLS.L, CSSG.L, HYR.L (see monthly chart attached to understand why I've included it)

               


And for the short watchlist - BWNG.L, SGP.L, SMP.L, IRV.L, RTN.L

                   

[isatrader]

A few for the UK short watchlist from Tuesdays scans - RSW.L, HOME.L, DTY.L, DPLM.L

               

[isatrader]

For the UK watchlist from Wednesdays scans - VP.L, EDR.L, BGBL.L

           


And for the short watchlist - CWD.L

   

[shaunattwood]

volume on SN suggests it may be the next USA tax-dodge takeover target

[pcabc]

volume on SN suggests it may be the next USA tax-dodge takeover target

Annoyingly I sold it when it dipped recently as I assumed it was a failing breakout. Based on the available information it appeared to be so I can't get upset.