It's been a fairly quiet time in the Attic of late. The FTSE is slowly edging further south. The breakout I discussed in late June has not materialised, but the market is now firmly heading south, albeit at a pretty pathetic rate.There are analysis companies out there that base indices on the frequency of key words being used in the financial press. As the recession gathered pace, so the frequency of the word 'recession' increased. And now, as the talk of recovery gains momentum, so it is likely that keywords associated to improved financial conditions increase in their frequency.
My analysis tonight shows only a handful of potential long plays, but interestingly enough the majority of these companies are financial in nature (investment trusts, special vehicles etc). This is the first time this year that my analysis has delivered such results. The health of Financial Institutions can be used as a barometer to measure the overall health of the economy (who would argue, that on the way toward the depth of recession that this was not the case). Perhaps we are seeing genuine signs of recovery?
The dilemma I face, is that technically the FTSE is in an established downtrend which although not a powerful move (Remember the summer months are traditionally pretty quiet in the financial markets) it's a downtrend non the less.
My bullish stocks today are;
- FSV (Fidelity Special Vehicle)
- IPF (International Personal Finance)
- JMG (JPM Emerging Markets)
- WTAN (Witan Investment Trusts)
All the above are showing bullish 3 day price action, oversold stochastics, and in most cases reducing momentum on a short squeeze.
