Hammerson (HMSO) is an interesting chart. They’re in retail shopping and have a portfolio of shopping centres, retail parks and that sort of thing in Europe. Now that looks very much like a bull flag there. Of course it looks like a bull flag because I’ve drawn one on. Contrary to the belief of many TA pundits, drawing it on doesn’t make it so; getting it right does. I’ve always thought bull flags are a bit airy-fairy. We’ll see.
Another interesting chart is for the FTSE 350 Sector Real Estate Investment Trusts. Just look at that classic congestion area. Basically the whole year it’s been going sideways. There do seem to be more and more shopping malls. I really don’t shop – I hate the pursuit. I mainly get stuff online. Of course I buy food and occasionally apparel. But people do frequent them in their droves it seems. Consumers consuming the pointless, for the most part. This is all part of a generally accepted lie that it’s good to spend, and in a country with absolutely no savings ethic that’s a dangerous attitude. Most likely the break will be above the congestion. Quite a strong MACD, it’s broken slightly higher than the last time. Ichimoku not much help here of course as we’re essentially sideways.
Another sector chart: the FTSE 350 Sector Software & Computer Services. That’s not an ATH but you do have to go back to 2001 to see this level. 2000 to the Tech Boom ATH. Poised to challenge the third time on this resistance. There’s also an intact upward trend. Higher lows underpin a good amount of confidence this will break up. The previous attempts on the level the MACD was all wrong and didn’t support a break upwards but right now it’s certainly supporting the move up.
How good and strong does the FTSE 350 Tobacco Sector look?! I’ll be writing about tobacco again soon. Suffice it to say that if we can make money off people killing themselves then their deaths won’t have been in vain. That’s right, isn’t it? Actually, I was on a tube train yesterday (a Bakerloo northbound arriving Piccadilly Circus at 19:46 carriage number 3536 if anyone from LUT is looking). The smoke must have been coming from the driver’s cab as the smell was strong and persistent, none of the few passengers in the carriage were smoking and I was sitting right next to the cab door. When I got off I noticed he had his window open which I would find a bit odd underground. Yes I’m grassing up a smoker. That’s irony for you.
Of course those being sectors then you’d have to pick a constituent that represents the move, or find a comparable ETF. But using sectors to create watchlists from the sector chart itself is a sound idea.