As we write we are flirting with moving into a positive position, volumes for the most part still seem relatively low but there is also little sign of determined selling that saw on Wall Street last night.   The Market may be taking comfort from the increasingly active diplomatic efforts to find a solution to the Middle East crisis.

We had numbers from BSkyB this morning an whilst there were a number of negatives in the announcement the market has shrugged these off and the stock is now bang on our stop at 560p  Sadly it looks right to come out of these hopefully you will still belong Reuters to soften the blow.

Looking at todays signals we note the bull breakouts in both Kazakhmys & Xstrata.   Xstrata has announced that it has increased its stake in Canadian miner Falconbridge this has spurred on the stock and taken it through resistance at 2149p.  As we write they are trading at 2180p, there is some resistance at 2200p to overcome but through here there is nothing until 2400p.

Looking at our Point & Figure matrix we note that many other Miners are only few percent away from reversing their recent bear trends a portent perhaps for the future direction of the market.  We will of course be watching this bell weather sector very closely from here on in .

Fund manager Schroeder's had been on our list as a potential sell had it broken and stayed below key support at 940p in common peers such as Aberdeen & Old Mutual, they staged a forceful rally to move themselves out of the danger zone and out of the Bear trend .   All three of these stock have the potential to move higher from here but the current levels have been a barrier in recent weeks and we will need a similar performance to yesterday to move them on.

New Signals
UK P&F Breakouts: 27 Jul 2006

Code Name Signal Signal
Price
Price
Objective
Stoploss Latest
Close
ADN Aberdeen Asset Management PLC Bull 152.00 170.00 140.00 150.25
ASL Aberforth Smaller Companies Trust PLC Bull 640.00 750.00 590.00 642.50
AML Amlin PLC Bull 245.00 290.00 215.00 247.75
BP/ BP PLC Bull 650.00 770.00 580.00 648.50
BATS British American Tobacco PLC Bull 1440.00 1660.00 1320.00 1409.00
CS/ Corus Group PLC Bull 430.00 475.00 400.00 436.25
DGE Diageo PLC Bull 940.00 1040.00 880.00 937.00
INCH Inchcape PLC Bull 485.00 580.00 430.00 468.00
KAZ Kazakhmys PLC Bull 1220.00 1500.00 1120.00 1261.00
MFI MFI Furniture Group PLC Bull 92.00 104.00 87.00 92.00
NFDS Northern Foods PLC Bull 85.00 100.00 79.00 87.00
OML Old Mutual PLC Bull 160.00 192.00 148.00 164.00
RR/ Rolls-Royce Group PLC Bull 425.00 510.00 385.00 442.75
RBS Royal Bank of Scotland Group PLC Bull 1740.00 1900.00 1640.00 1735.00
SDR Schroders PLC Bull 950.00 1020.00 900.00 958.00
SDRC Schroders PLC Bull 900.00 990.00 840.00 903.00
SSL SSL International PLC Bull 300.00 355.00 265.00 298.75
WIN Wincanton Plc Bull 325.00 370.00 295.00 321.00
WLF Wolfson Microelectronics PLC Bull 430.00 520.00 380.00 430.50
XTA Xstrata PLC Bull 2150.00 2450.00 1920.00 2141.00
EMI EMI Group PLC Bear 255.00 180.00 315.00 261.00

P&F breakouts identify medium-term trend changes. "Bull" breakouts occur when a stock reverses its downtrend by posting a "higher high". "Bear" breakouts are the inverse.
We scan a "universe" of the FTSE 350 on a daily basis to identify these formations.
Key Day Reversals: 27 Jul 2006

Code Name Signal Latest
Close
Close % Change Volume
CCL Carnival PLC Peak 2139.00 -26.00 +2.4m

Key day reversals are technical signals formed by stocks posting an "outside day" of a higher high and a higher low. Sells occur on countertrend reversals from a bullish trend and buys occur on countertrend reversals from bearish trends. Signals are particularly powerful when occurring after a period of overextension.
MA Crossovers: 27 Jul 2006

Code Name Signal Latest
Close
Close % Change Volume
BDEV Barratt Developments PLC Golden 966.00 +16.00 +1.0m
BI/ Brambles Industries PLC Golden 442.75 +8.75 +2.6m
BTSM BSS Group PLC Golden 343.00 +4.00 +151,200
HTG Hunting Plc Golden 375.75 +3.75 +845,199
MSLH Marshalls PLC Golden 326.00 +8.00 +58,451
MLW Merrill Lynch World Mining Trust PLC Golden 405.75 +13.75 +304,283
MNR Minerva PLC Golden 274.50 +2.00 +118,871
RDW Redrow PLC Golden 498.75 +3.75 +446,290
REX Rexam PLC Golden 508.00 -2.25 +3.1m
SDY Speedy Hire PLC Golden 950.00 +42.00 +80,586
TMPL Temple Bar Investment Trust PLC Golden 787.00 +14.00 +70,241

Moving Average (MA) crossovers identify longer-term changes of trend. We scan for "Golden" (bullish) and "Dead" (bearish) signals occurring when an instrument's 20-day MA crosses its 50-day MA.
Volume Advances

Code Name Price % Change Volume Vol/Vol MA
SEG SCi Entertainment Group 421 -0.2% 2.0m 4.1x
SIA Soco International PLC 1375 +6.3% 689,247 3.5x
RGU Regus Group PLC 99 0.00% 16.2m 3.5x
BB/ Bradford & Bingley PLC 449 -3.0% 13.1m 3.5x
SPX Spirax-Sarco Engineering PLC 880 -0.2% 357,213 3.4x

Volume Advances scans for stocks exhibiting volumes over their 20-day moving average.
Index Summary

Index Close Volume 1 day Change P&F Trend Stop
FTSE 100 5929.5 1,583.6m +52.40 +0.9% Bull  30 Jun 2006 5650.00
FTSE 250 9362 581.9m +76.40 +0.8% Bear  18 Jul 2006 9550.00
Closing prices through Thu Jul 27, 2006

Data drawn from market close. Technical trend, date of initiation and stop based on 3-box Point & Figure chart methodology.

Market Breadth

Index % Bulls % 30wk
FTSE 100 75.49% +10.78 Bull Confirmed 26-Jul-06 76.47% +4.90 Bull Confirmed 19-Jul-06
FTSE 250 62.00% +3.20 Bull Confirmed 26-Jul-06 56.00% +4.80 Bull Confirmed 24-Jul-06

Investors Intelligence breadth statistics are based on the P&F "bullish%" and determines the degree of participation of the underlying stocks for any given index move.

Industry Breadth

Industry % Bulls Change Status Sig. date
Energy 58.33% +4.16 Bull Confirmed 3-Jul-06
Basic Materials 52.50% +10.00 Bear Correction 26-Jul-06
Industrials 55.91% n/c Bull Correction 17-Jul-06
Consumer Cyclical 50.64% +0.64 Bull Confirmed 26-Jul-06
Services 58.73% +0.79 Bull Confirmed 26-Jun-06
Staples 63.27% +4.09 Bull Confirmed 5-Jul-06
Health 44.68% +2.13 Bull Confirmed 5-Jul-06
Technology 35.37% n/c Bull Correction 14-Jul-06
Telecom 41.18% n/c Bull Correction 7-Jul-06
Financials 64.94% +4.55 Bull Confirmed 27-Jul-06
Utilities 93.75% n/c Bull Confirmed 7-Jul-06

Investors Intelligence breadth statistics are based on the P&F "bullish%" and determines the degree of participation of the underlying stocks in any industry group move. Industry Group bullish% provides an important measure of medium-term overbought/oversold conditions and a guide to sector rotation.
Top 5 Gains.

Code Name Price % Change Volume
SN/ Smith & Nephew PLC 462.75 +7.1% 29.4m
KAZ Kazakhmys PLC 1261 +6.4% 1.4m
SIA Soco International PLC 1375 +6.3% 689,247
SGE Sage Group PLC 230 +6.0% 25.9m
AQP Aquarius Platinum Ltd 925 +5.7% 765,082

Top 5 Losses.

Code Name Price % Change Volume
CPW Carphone Warehouse Group PLC 271.75 -4.8% 15.9m
AZN AstraZeneca 3209 -3.3% 18.5m
BB/ Bradford & Bingley PLC 449 -3.0% 13.1m
BVIC Britvic 208.25 -2.7% 1.6m
888 888 Holdings PLC 157 -2.5% 1.6m

 

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