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UK Daily Hotline 
12 May 2015             
UK Index Summary
 CloseVolume1 day ChangeP&F TrendStop
FTSE 100 7029.851,428.8m-16.97-0.2% Bull 20 Jan 2015 6800.00
FTSE 250 17870.6405.1m-65.29-0.4% Bull 8 May 2015 17200.00
FTSE SmallCap Index 4720.12103.6m+24.77+0.5% Bull 2 Jan 2015 4200.00
FTSE All Share 3805.481,937.5m-8.97-0.2% Bear 7 May 2015 4040.00
Closing prices through Mon May 11, 2015

The UK markets open down

 

The FTSE 100 is currently trading beneath 7000 again.  Traders hesitate at the April ceiling, which is also the all-time high at 7122.74.  However, a sustained breach of support at the 200-day MA would be required to indicate more than brief resistance in that area.

The rally by the FTSE 250 has paused after hitting new heights on Friday.  Still, the market maintains short-term uptrend support at the 50-day MA.

Index Breadth
The FTSE 100 % P&F Bull Trend indicator has experienced a counter move from oversold this week.  The recovery has approached a possible barrier now from the sideways region around 60%. 
Sectors

 

The Banks sector found short-term uptrend support near both the 50 and 200-day MAs this week.  The index attempted to break over the broad trading band/base.

Similar action is noted in the Transport index, with the index pushing above the lateral area near 3000 leaving a large base.  In this case, though, the RSI is indicating an overbought condition.

In last week's issue, it was pointed out that the Computer & Software Services sector appeared to be reasserting the uptrend.  Since then, valuations have surged and the RSI is at an extremely overbought level.  This increases the risk of a correction before long.

The General Retailers sector encountered uptrend support at the 50-day MA once again.  The index has extended the advance into unchartered territory.

The Support Services index has similarly pushed up to record heights after confirming support at the sideways area near 6750. 

Stock Action

 

Faroe Petroleum's overbought rally found resistance at 90.75 in early April; penned in by the 200-day MA.  However, the drift is slowing.  Coincidentally, this is occurring near the shorter-term MA.  We watch to buy a clearance of the 90.75 barrier as this will signal the next leg of the recovery from the floor near 60.

Having developed support near 300, Ashmore Group has cleared sideways resistance near 320.  The large base should now support higher levels initially towards the 360-380 region.

Portfolio Update

 

Vodafone develops near-term uptrend support at the 50-day MA.  We remain long and up the stop to 212, keeping this just under the March low; and longer-term support at the 200-day MA.

The stop is also upped on the long held in QinetiQ, to 185.  The stock maintains the uptrend towards the September/October ceiling near 230.

The stoploss (7.17%) is hit on the short held in Ashmore Group.  The position is reversed with the stop on the new long trade placed at 270 (see above section for the chart).

A long is also opened in Barratt Developments (see Chart of the Day, below) with the stop inserted at 450.

Chart of the day: Barratt resumes advance

 

Barratt Developments has confirmed firm support in the 500 region by gapping upwards.  A multi-year high was achieved yesterday as the stock extends the uptrend.  The next really important chart resistance is at 859.02.  This is pinnacle reached in February 2007.

Portfolio
UK Equity Trading (long/short) Longs
Date Stock Code Type Open Price Current Price % P&L Target Stop
8 Jan 2015 Vodafone Group PLCVOD Long 225.75 234.75 +3.99%260 212
12 Jan 2015 G4S PLCGFS Long 275 294.5 +7.09%300 277
13 Jan 2015 QinetiQQQ/ Long 188.8 209.1 +10.75%230 185
28 Jan 2015 Greencore Group PLCGNC Long 300 345.4 +15.13%350 290
2 Feb 2015 ITV PLCITV Long 221.6 264.9 +19.54%250 224
4 Feb 2015 Inchcape PLCINCH Long 722 847.5 +17.38%800 800
5 Feb 2015 GlaxoSmithKline PLCGSK Long 1500.5 1477.5 -1.53%1700 1425
17 Feb 2015 Lloyds Banking Group PLCLLOY Long 77.03 86.6 +12.42%87 80
4 Mar 2015 Victrex PLCVCT Long 1886 1994 +5.73%2200 1800
11 Mar 2015 Whitbread PLCWTB Long 5200 5230 +0.58%6000 4960
11 Mar 2015 Halma PLCHLMA Long 695 733.5 +5.54%800 660
12 Mar 2015 Compass Group PLCCPG Long 1157 1178 +1.82%1300 1100
18 Mar 2015 Amec Foster Wheeler PLCAMFW Long 931 869.5 -6.61%1100 845
24 Mar 2015 Thomas Cook Group PLCTCG Long 146.1 153 +4.72%184 134
24 Mar 2015 Close Brothers Group PLCCBG Long 1622 1577 -2.77%1800 1500
27 Mar 2015 Intermediate Capital GroupICP Long 491 541.5 +10.29%600 500
31 Mar 2015 Serco Group PLCSRP Long 137.9 136.3 -1.16%166 125
31 Mar 2015 Senior PlcSNR Long 325.2 316.5 -2.68%400 300
8 Apr 2015 Burberry Group PLCBRBY Long 1743 1776 +1.89%2000 1650
14 Apr 2015 John Wood Group PLCWG/ Long 695.5 691.5 -0.58%800 650
23 Apr 2015 Standard Chartered PLCSTAN Long 1062 1048 -1.32%1200 1000
11 May 2015 Barratt Developments PLCBDEV Long 557 557 0.00% 450
11 May 2015 Ashmore Group PLCASHM Long 324.4 324.4 0.00% 270
UK Equity Trading (long/short) Shorts
Date Stock Code Type Open Price Current Price % P&L Target Stop
19 Feb 2015 Smiths Group PLCSMIN Short 1186 1145 +3.46%1050 1250
9 Mar 2015 Balfour Beatty PLCBBY Short 239.2 242.2 -1.25%200 253
25 Mar 2015 Booker Group PlcBOK Short 155.6 150.2 +3.47%129 165
31 Mar 2015 Meggitt PLCMGGT Short 548.5 522.5 +4.74%420 595
1 Apr 2015 Reed Elsevier PLCREL Short 1152 1085 +5.82%1050 1200
15 Apr 2015 Reed Elsevier PLCREL Short 1150 1085 +5.65%1050 1200
20 Apr 2015 Petrofac LtdPFC Short 912.5 852.5 +6.58%740 1000
21 Apr 2015 Tate & Lyle PLCTATE Short 642.5 603 +6.15%560 680
28 Apr 2015 Spectris PLCSXS Short 2190 2222 -1.46%1935 2330
1 May 2015 Tullett Prebon PLCTLPR Short 355 376.6 -6.08% 405
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