Tracking the FTSE All Share Highs and Lows: Everything else is just in between

Friday, Oct 08 2010 by
Tracking the FTSE All Share Highs and Lows Everything else is just in between

In a week in which Warren Buffett said that “it’s quite clear that stocks are cheaper than bonds, I can't imagine anyone having bonds in their portfolio when they can own equities”, it’s little wonder that equities have continued their recent strength.

In spite of weakness today, the FTSE 100 was up by 1.2% on the week and the FTSE small cap index has continued on to further new highs. It appears that money has been rotating out of the defensive consumer stocks into cyclical base and precious metals, mining, engineering and alternative energyas investors have become more confident in a rebounding global economy.

One interesting way to track the pulse of the market by focusing on those stocks making new 12 month highs and new 12 month lows. The list of new highs is a constant source of new ideas as the only way for a company to become a ‘multi-bagger’ is by appearing on this list many times in succession.  By keeping one eye on this list each trading day, you can regularly find new names for further research.

But it’s not only the names on this list that are of use. The ratio of highs to lows can tell you much about the health of the market, as it is an indicator of the market’s ‘breadth’.  In recent weeks, the ratio has stood at 3 new highs to each new low which signals a broad participation of stocks in the current rally. Often a divergence suggests that a move in the index is unsupported by the overall market, and thus can be seen as an early warning sign of that the market is at a turning point.  Of course, any indicator taken in isolation cannot be trusted, but as another tool in the investor’s toolbox breadth indicators such as this are very useful.

New Highs

There have been over 100 new 12 month highs on the London market in this week’s trading. The main story has been the continued charge of the Gold price, which burst through the $1300/oz barrier and now looks to be breaking out to a new high in Sterling too. In times of financial distress and concern over fiat currency devaluation, many look to Gold as the oldest and most reliable currency around.  As a result, there has been much strength in London listed gold companies, with a number gold…

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way


As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>

Do you like this Post?
6 thumbs up
0 thumbs down
Share this post with friends

ITM Power Plc designs and manufactures integrated hydrogen energy solutions for energy storage and clean fuel production. The Company has a range of product platforms based on Proton Exchange Membrane (PEM) technology. The Company's product, HGas, is designed for Power-to-Gas applications. HGas accommodates fluctuating power profiles while generating hydrogen at pressures suitable for either direct injection into natural gas networks or through methanation processes without additional compression. The Company's product, HFuel, is a module applicable for refueling hydrogen-powered road vehicles and forklift trucks. HFuel generates hydrogen by electrolysis, compresses it, stores it and dispenses the gas on demand. The HPac system is a mid-ranged electrolyzer product that produces hydrogen gas at a rate of approximately five kilogram/day and a pressure of over 15 bar. HPac is a PEM electrolyzer. HPac produces hydrogen for a range of fuel cell and industrial applications. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as various communications services ranging from phone and broadband to managed networked information technology (IT) solutions and cyber security protection. The Company operates in four segments: Global Services, Enterprise, Consumer and Openreach. Its Global Services is engaged in providing managed networked IT services. Its Enterprise provides communications and IT services in the United Kingdom and the Republic of Ireland (RoI). The Consumer segment is a provider of fixed-voice and broadband services in the United Kingdom. Openreach provides services, such as copper and fiber connections between its exchanges, and homes and businesses. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

Aberdeen Asset Management PLC is a United Kingdom-based asset manager. The Company operates through asset management for reporting and control purposes. The Company is managed as a single asset management business, with multiple investment strategies of equities, fixed income and property, complemented by a solutions business, which provides multi asset, alternatives and quantitative investment capabilities. These strategies are managed across a range of products, distribution channels and geographic regions. The Company holds investments in seed capital investments, investments in certain Aberdeen-managed funds to hedge deferred fund awards and other investments. The Company operates in approximately 20 countries. Its operations span across Asia Pacific, Australia, the United Kingdom, the United States, the Middle East and Europe, among others. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

  Is LON:ITM fundamentally strong or weak? Find out More »

1 Comment on this Article show/hide all

Portfolio 8th Oct '10 1 of 1

ITM are really doing amazingly well; a constant stream of blue chip partners over the last six months like: Ford; DHL; Vestas; SSE and Scottish Water. This will be back above £1 very soon.

More Power to the ITM elbow.


| Link | Share

Please subscribe to submit a comment

About Stockopedia Features

Stockopedia Features

Stockopedia Features covers in-depth stories on strategies, companies and themes that are relevant to online investors. Investing is hard work. We don't try to over-simplify complex concepts - we prefer to try to help you navigate the detail.  more »

Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis