Market

Key events:         UK – GDP (MoM) (Dec) UK – GDP (YoY) (Q4) UK – GDP (QoQ) (Q4)   UK – Manufacturing Production (MoM) (Dec) UK – Monthly GDP 3M/3M Change (Dec) Eurozone – EU Leaders Summit      Canada – Employment Change (Jan) Yesterday the FTSE 100 continued to show positive momentum and made a new record high. The level of 8,000 is still acting as a magnet for investor sentiment, and the market seems to just want to go higher.

Finding beneficial strategies in the stock market is not easy. One of the proven ways is to look for stock market anomalies. A stock market anomaly is a rate of return or investment strategy that seems to disprove the efficient market hypothesis. Today, most investors agree that markets are quite efficient, even if they do not believe in a pure form of market efficiency. But the belief that markets are not completely efficient has led many professionals to look for new market advantages and disadvantages.

Most traders and experienced investors use technical analysis tools – indicators – in their work on the stock market. What are their differences, what are they for, and which indicator is better to use?   What are Indicators, and Why Do We Need Them? Technical analysis is based on Charles Dow's postulate that "the price discounts everything", including expectations of future events. Accordingly, it is enough to find an appropriate mathematical algorithm for price data processing to predict the behavior of securities quotes.