Yesterday's market action was positive.
The Nasdaq Composite dropped 0.4% on above average volume. This behaviour would normally indicate that institutional investors were selling; however the Nasdaq did bullishly reverse off its intraday lows and closed the day in the upper half of its trading range.
It was a positive sign to see institutional investors supporting the Nasdaq as it hit 2800. This area has been offering good support since mid May.
It was also constructive to see the S&P 600 finding support at its 200 day moving average. This is an area were the big players tend to buy or add to their previous positions. These are more signs to say we may have found a bottom.
India and global materials outperformed. Russia underperformed.
Leading stocks action was mixed.
Please note past performance should not be used as a guide to future performance, which is not guaranteed. Investing in the Funds should be considered a long-term investment. The value of the investment can go down as well as up and there is no guarantee that you will get back the amount you originally invested.
ISACO was established in 2001 by brothers Stephen and Paul Sutherland and is the first financially regulated firm to offer adventurous ISA and SIPP investors a unique personal investment service that shares on a daily basis our star-performing investor’s thoughts, personal insights and investment decisions.
Clients enjoy being informed throughout the year what ‘best of breed’ funds our premier investor currently owns, when he’s buying and when he’s moving into the safe harbour of cash – helping clients enjoy more control, manage their portfolio more effectively and benefit from the potential of outstanding long-term returns.
For more information about ISACO and our Investment Guidance Service, please read our free brochure.
If you have any questions or thoughts on the points covered in this post, please leave a comment below or connect with us @ISACO_ on Twitter.