...indicator. Regular readers will know that I have been following a simple market timing indicator for UK indices in recent months based on a simple trailing moving average based system. With the volatility of the market in recent months this has demonstrated the danger of being whipsawed by a system like this with several sell and buy signals in short succession.
However, with the strong showing from UK indices in February and all the hype as the FTSE 100 finally surpassed its closing high from 1999 you'll not be surprised to hear that these indicators are now all showing as bullish / invested.
The mainstream indices like FTSE, 350 and the All share are all around 3% above their moving average, while the stronger performing Mid 250 is 5% above and the small cap index which has struggled in the last 12 months is now 1.7% above its moving average.
So for what it is worth these indicators are saying you should be invested but I guess it remains to be seen if 1.6% total return from the All Share in February can be sustained and built on in March or if the old highs around here will act as a break on progress as the reporting season gets into full swing and the General Election in the UK approaches.
Nevertheless as markets are often said to climb a wall of worries it will probably continue to pay to ignore market levels in the main as valuations, in the UK at least, remain reasonable and focus on finding attractive individual stocks. So keep checking back here and I'll see if I can help you with that challenge.