FTSE down DOW up again
FTSE down 50 because of "lacklustre" DOW (see previous post) and in reaction to weak US GDP figures - strangely however the US is up 14 - so that makes no sense, nevertheless that is what we are being told by the pundits on the TV. But US stocks reversed their decline after data showed consumer sentiment slipped less than forecast, strange that London didn't do likewise.
Mark Mobius (who does talk sense) of Templeton Asset Management was on Bloomberg he says there is not much risk of a recession - mainly due to the employment figures
Roger Nightingale - in addition to agreeing with Mark Mobius also said that in the battle between RBS and BARC for ABN Amro, that RBS will win because they've got more money, but interestingly he went on to say that BARC could become a takeover target itself, as one of the reasons it wanted to buy ABN Amro was to protect itself against a takeover. So BARC could be one to stock up on, as if they don't get ABN Amro (which seems quite plausible), teh share price should recover for the 2 reasons mentioned above, i.e. they will save themselves some money as some people think they are overpaying for ABN Amro and also they might be taken over themselves.
Some Trading Ideas from the US
An interesting idea I have just come across is that stocks that have closed down for 5 or more days in a row and are still above their 200-day m.a.. will show positive returns, on average, one day, two days and one week later. Statistics show that these stocks provide traders with a significant advantage.
Research shows buying stocks that have declined 3 or more days in a row gives you an advantage, plus if you increase this decline to 5, 6 or 7 days that advantage is increased. The same also holds true for the opposite, i.e. consecutive up days, - the stocks underperform the market the next week.
To see a full explanation with figures and charts have a look at this useful site TradingMarkets
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