Reasons to remain positive on FTSE 100

FTSE for the week (FTSE:UKX)

An unexpected call to assist with a pre-demolition survey was to provide one of the more enjoyable holiday weekends ever experienced. An absurd qualification, forgotten for years, taken to give assistance to a chum, was to provide an all expenses fun weekend in the north of Scotland.

A journey involving multiple ferries, ridiculous alcohol quantities, finished with the pair of us driving off-road to a long-closed business housed in a massive shed far beyond the back of beyond.

The funny thing is, despite the size of the building, it was essentially just one big room requiring being measured, photographed, and the building method and materials described.

After just three hours, we were finally ready to head back to what passes for civilisation (if holidaying in Scotland, do it May/June for best weather by the way).

What does a booze-fuelled weekend on a remote Scottish island have to do with the markets?

Being asked to assist this project (probably being thought of as a friendly native guide) was interesting when regaled with details of their workload. And this is important, perhaps very important, as their workload is always a pretty reasonable quantifier of the economy.

After all, if companies are knocking stuff down to build new stuff, even in an incredibly remote situation such as this, it bodes well for the UK economy. It was telling back in 2006 this company experienced a drop-off in work due to regeneration slowing down well before the crash became a "thing".

And so, having enjoyed a day to recover from a hangover, it's still worth pondering this company that remains overwhelmed with work - it allows us to remain positive about the FTSE 100 for the future.

From the point at which the market closed on 26 May, it appears growth now bettering 7,555 should now continue to 7,570 points with secondary, if bettered, at 7,630 points.

There appears some sort of bunching of potentials around the 7,630-7,650 point with the result we suspect some flatulence can be expected if this level is actually achieved.

Only with market closure above 7,644 does our software allow us to now mention a longer term 7,765 as a point where some serious turbulence can be expected.

The immediate uptrend since April requires the FTSE below 7,443 to suggest the pace of ascent has eased.

As a result, this shall make a sensible place for a stop-loss if believing in the big picture ambition of 7,765 points. But we'll concede it is a blooming wide position.

If below 7,443 points, it appears weakness toward 7,357 enters the picture with secondary, if broken, at a less visually likely 7,222 points.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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