Monday 8 July 2013

Sploosh!!

I took the plunge after all. The FTSE is sitting comfortably above the resistance line, and the Bank of England has signaled that interest rates are unlikely to fall any time soon. This suggests that QE will continue. Since interest rates are controlled by keeping the price of bonds high, this means more bond purchases by the BOE hence more QE.

I'm using different charts because I have downgraded my Sharescope subscription to end of day. I am using IG Index advanced charts which have few peculiarities. They follow futures prices through the night, hence the rather strange July 7th candle. During opening hours prices shown are normally the same as the real index. Anyway the charts do the job with the advantage that they are integrated with futures prices so give an a clue about where the market is likely to open.


So I have dived in buying the following shares: THT AML WIN CLDN III BDEV KLR

I have used several of the unisearches that I identified as good ones. I am currently in the process of refining my understanding of how well they work, whether they have a seasonal bias, whether they are better for buying short or longer term etc. No easy task. Oh how I wish I had the simulator.

As for the US, I await a clearer signal while keeping in mind that the end of QE is on the cards.

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