Trading Uk Shares

[Dr Mike]

Hi

Just this week I've started checking out the theory of watching a small parcel of stocks within the same sector on intraday charts.

The theory is that by watching say 6 stocks with high beta's and volumes one can establish the "market keader". The one stock that tends to move first and is then followed by the others.

One then takes a position in one of the major followers based on the movement of the "leader".

For UK stocks I'm looking at the banking sector and wondered if anyone else had looked at or tried this strategy

 

[Fluke]

Dr Mike.
Im following the banking sector,have not tried your system but would be very interested to know how it works and results of your study. I follow the main ones BARC.RBOS.LLOY.HSBC.HBOS.
Will you keep me posted on this thnks.

 

[Morris]

Yup.

 

[Dr Mike]

Hi

Watching the banking sector for the last couple of days. It seems that it subdivides itself into mini sectors. The "traditional" banks look the most promising from a "sheep following" point of view.

I attach a pic of the last two days, its a bit bleared due to reduction but from top to bottom BARC,LLOY,RBS,HBOS,

I've drawn the line where they all drop together. It looks to me as if HBOS just leads the others at this point.

I haven't the feeds to watch these on a decent chart during the day (although I was surprised to find that the free ADVN chart microscope was still working) But now that Mytrack can be used to feed MEDVED I might. (Unless the clearer movement and lower spreads of the US persuade me to decamp)

PS I was surprised (innocent that I am) to see the MMs widening the spreads on the banks whenever support/resistance levels were approached. I thought it was only the spreadbetters that did this.

HTH