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Weekly Report
The weekly report is published on Fridays to all newsletter subscribers. The report comprises of three articles which will provide you with our analysis of the markets. The report also includes three trade recommendations picked by our Research Team. This report is available for free to non-Blue Index clients, all you need to do is create a Member account in order to receive this report directly to your inbox every week.
Will the recent turbulence return?
On the one hand it was been a good week for the bulls in terms of the resurgence of bids (Burren Energy, Scottish & Newcastle for instance – see below), suggesting the credit crunch may not have been as bad as feared. Given the amount of recent press reports about sovereign funds, which have exploded in recent years, looking to find homes for their growing cash, some must certainly be headed into equities.
Is the recent strength coming to an end?
You can’t ignore an uptrend and we have seen the FTSE 100 index advance for a third week, with the return of bid activity despite the well-aired credit crunch. Over in the US, the economic news has been mixed but not perhaps as bad as some had feared, with value investors nibbling away at core blue chips, and hungrily buying up the major tech stocks, which are on a roll.
Another strong week for the financials
You wouldn’t have thought there was a problem in the credit markets given how strong the bank sector has been this week, and for the first time in a while we have seen some impressive breakouts after the recent bout of underperformance.
Stronger financials push the market higher
It’s not been often this year that we could say that the financial sector has led the markets, but this week there was a distinct change in sentiment after recent traumas.
The bulls at loggerheads with the bears
Regular readers of this review will know our current strategy is to look to short high beta stocks against the background of the developing credit crisis. Against that we have focused our long side positions on defensive stocks, which we believe have in many cases been unfairly dragged down with the market.
