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UK Daily Hotline 
8 April 2014             By S Gale, Analyst
    
    
    
    
    
    
    
    
UK Index Summary
 CloseVolume1 day ChangeP&F TrendStop
FTSE 100 6622.84861.6m-72.71-1.1% Bull 22 Oct 2013 6450.00
FTSE 250 16262.8239.0m-170.83-1.0% Bull 1 Apr 2014 15950.00
FTSE SmallCap Index 4503.7968.4m-19.55-0.4% Bull 12 Jan 2012 4425.00
FTSE All Share 3566.711,169.0m-38.17-1.1% Bear 12 Mar 2014 3680.00
Closing prices through Mon Apr 7, 2014
The FTSE slides mid-range on poor global economic performance and data
The UK markets started the week with a slide as poor performance across the global markets and unimpressive data weighed on investors over the weekend. The World Bank cut its forecast for Chinese growth to 7.6% from 7.7%, citing the bumpy start to the year with weak economic data, but expects recent reforms to provide a boost to longer term growth. UK consumer spending slumped to a new 14-month low in March as wages failed to keep pace with the cost of living. In Europe, things looked up as German industrial production narrowly beat forecasts in February with an increase of 0.4%, ahead of the estimated 0.3%, and the previous month's figure revised to 0.7%, also beating the year-on-year expectations by 0.1% at 4.8%.
 
The FTSE 100 encountered mid-range resistance at 6,700 to develop a potential top formation.
 
The FTSE 250 also failed to extend its rally above the 16,500 level, forming a potential top formation.

Stock Action

We highlight Trinity Mirror as a buy as it becomes oversold into its uptrend. We target 235 and place our stop at 168.
 
We show Hargreaves Lansdown as it develops price and relative tops on a new VAD low.
 
We note Centrica as it forms price and relative bases on strong VAD; other defensive utility stocks such as SSE rose during the index's fall yesterday.
Portfolio Update

We note our short position in Marks and Spencer as it extended its downward reassertion from its bearish flag formation as Thursday's trading update is expected to underwhelm, with a 1% decline in sales in its clothing division and its food division flat for the first 3 months.
 
We raise our stop on Smith and Nephew to 899 as it continues to test its 50-day MA.
Chart of the day: Taylor Wimpey

We open a short position in Taylor Wimpey as it develops short term price and relative top formations on bearish VAD. This followed a report from the HomeOwner's Alliance which raised concerns over the rapid rise in house prices across the UK, seeing it as a “very serious issue”. We target 96 and place our stop at 122.

Portfolio
UK Equity Trading (long/short) Longs
Date Stock Code Type Open Price Current Price % P&L Stop Comment
17 Oct 2013 Vodafone Group PLCVOD Long 229.3 217.6 -5.10%213
28 Nov 2013 Aviva PLCAV/ Long 432.7 491.3 +13.54%420
3 Dec 2013 Smith & Nephew PLCSN/ Long 828.5 910.5 +9.90%899
4 Feb 2014 Prudential PLCPRU Long 1242 1318.5 +6.16%1170
6 Feb 2014 BritvicBVIC Long 713.5 727 +1.89%675
6 Feb 2014 Great Portland Estates PLCGPOR Long 608 637 +4.77%580
7 Feb 2014 Rio Tinto PLCRIO Long 3407 3343.5 -1.86%3100
10 Feb 2014 National Grid PLCNG/ Long 800.5 817 +2.06%770
11 Feb 2014 Firstgroup PLCFGP Long 136.8 130.4 -4.68%131.5
17 Feb 2014 Mitchells & Butlers PLCMAB Long 473.6 453.5 -4.24%435
26 Feb 2014 Imperial Tobacco Group PLCIMT Long 2446 2400 -1.88%2350
6 Mar 2014 Aberdeen Asset Management PLCADN Long 390.1 437.2 +12.07%410
26 Mar 2014 Ocado Group PLCOCDO Long 449.2 422 -6.06%415
26 Mar 2014 Shire PLCSHP Long 3055 2906 -4.88%2890
26 Mar 2014 Homeserve PLCHSV Long 315.2 316 +0.25%295
2 Apr 2014 Easyjet PLCEZJ Long 1780 1796 +0.90%1540
2 Apr 2014 Jupiter Fund Management PLCJUP Long 425 423.1 -0.45%370
7 Apr 2014 Trinity Mirror PLCTNI Long 185.5 185.5 0.00%168
UK Equity Trading (long/short) Shorts
Date Stock Code Type Open Price Current Price % P&L Stop Comment
8 Jan 2014 Diageo PLCDGE Short 1938.5 1855.5 +4.28%1910
18 Feb 2014 Intercontinental Hotels GroupIHG Short 1981 1908 +3.69%2060
25 Feb 2014 Lonmin PLCLMI Short 297.3 286.5 +3.63%310
25 Feb 2014 Anglo American PLCAAL Short 1500.5 1554 -3.57%1600
27 Feb 2014 Experian Group LtdEXPN Short 1098 1064 +3.10%1150
28 Feb 2014 Carnival PLCCCL Short 2463 2350 +4.59%2650
5 Mar 2014 Meggitt PLCMGGT Short 486.6 471 +3.21%515
6 Mar 2014 Marks & Spencer Group PLCMKS Short 496.8 452.9 +8.84%480
11 Mar 2014 Royal Bank of Scotland Group PLCRBS Short 310.2 312 -0.58%335
12 Mar 2014 De La Rue PLCDLAR Short 806 821 -1.86%835
13 Mar 2014 Mondi PLCMNDI Short 1068 1047 +1.97%1135
24 Mar 2014 Afren PlcAFR Short 145 139.3 +3.93%153
24 Mar 2014 Chemring Group PlcCHG Short 262 256.5 +2.10%290
25 Mar 2014 British Sky Broadcasting PLCBSY Short 927.5 896.5 +3.34%955
27 Mar 2014 TelecityTCY Short 689.5 682 +1.09%740
3 Apr 2014 Catlin Group LtdCGL Short 510 508.5 +0.29%570
3 Apr 2014 Tamar European Industrial FundTEIF Short 33.5 34.5 -2.99%38.5
7 Apr 2014 Taylor Wimpey PLCTW/ Short 113.6 113.6 0.00%122
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