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Chart of the Day - The AIM indices just broke out to new highs YTD
All the buzz on Twitter about everyone's portfolios doing so well this week made me look at the indices again. While the FTSE 100 and All Share languish, it's worth pointing out that the FTSE AIM 100 and All Share indices have both just made new highs. There's a pretty clear indicator that the market is in a 'risk on' phase. If you look at the RSI charts below - there's still room for them to rise before being overbought.
for the year.
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4 comments
@Herbie, well spotted thanks, , I run these weekly, index data in the above is fine but the sector data was from 2 October: updated below
Also a plot of Gen Retail names YTD (excluding £7DIG as it skews the dataset) , Pets at Home (LON:PETS), Kingfisher (LON:KGF), Dunelm (LON:DNLM) are probably on the "stay at home " post COVID trend (increased pet ownership and home improvement) while Halfords (LON:HFD) is boosted by the huge increase in cycles ( lower gym memberships and cycle to work/avoid mass trans). Conversely Marks and Spencer (LON:MKS), WH Smith (LON:SMWH) are down around 50% given their dependence on off-line and travel
Those numbers are YTD so Boohoo (LON:BOO) started Jan around 300p and is up 18% YTD though as you say, x2 since the Covid crash
AO World (LON:AO.) , Naked Wines (LON:WINE) and many of the other big winners are indeed online plays
Looking across the board, most of the indices are languishing outside of the US: none doing quite as well as the NASDAQ
AIM has been on a rip since the crash, it fell the hardest and bounced the most : that said, over half of the AIM All-Share are still in the red YTD . A few behemoths are doing a lot of flattering with ASOS (LON:ASC) (+56%) , Hutchison China MediTech (LON:HCM) (+25%), GlobalData (LON:DATA) (+20%) , Gamma Communications (LON:GAMA) (+23%), Keywords Studios (LON:KWS) (+44%) and ITM Power (LON:ITM) (+308%) : there is significant room for a broadening in this rally. Conversely, if the breadth continues to narrow then it can't make for stability especially if retail has played a significant role.
Should be an interesting Q4
Thanks for those figures. I think Burford Capital (LON:BUR) is out of date as now 748p. ASOS (LON:ASC) is key to the AIM recovery, since end of March it is nearly x5. Burford Capital (LON:BUR) and Boohoo (LON:BOO) are both up about 2x.
Retail is online.
As I believe the AIM 100 is a weighted index, much of that will be down to shares such as ASOS (LON:ASC), Boohoo (LON:BOO), Fevertree Drinks (LON:FEVR), GlobalData (LON:DATA), Gamma Communications (LON:GAMA), Burford Capital (LON:BUR) and Keywords Studios (LON:KWS).
If everyone is talking about doing well, that's probably the time to start selling. Quite a few clouds gathering now.