The "sell" signals produced by the FT 30 Industrial Ordinary and the one for the Republic of Ireland in July certainly turned out to be the outriders to the pack. The fall in global indices in July/August caused another 11 of our indicators to change direction and produce "sell" signals in August.
Stockmarkets around the world suffered their worst one-day falls in four years and it took the intervention of the US Federal Reserve and other central banks to support the markets. But while all around the markets were losing their heads, Hong Kong's brave and appropriately named Hang Seng (it means 'ever growing') remained cool and even managed to attain an all-time high at the end of August. Its signal therefore remains on "hold".
Investors piled out of equities and turned to government securities and gilts and it isn't that surprising to note that our UK all-stocks gilts indicator turned in a buy signal - the last "buy" signal occurred exactly three years ago.
* Average index for the month of August 2007
† IC/Coppock Indicator
†† Unofficial signal
BUY/SELL = self explanatory; WAIT = you sold at the last sell signal and are now waiting for the next buy signal; HOLD = you bought at the last buy signal and are now awaiting the next sell signal.
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