It has to be said that in recent weeks I have inadvertently managed to keep myself out of trouble over the weekend by delivering investor presentations discussing the psychology of trading and the link between politics and the financial markets.
Clearly, if you are a technical analyst it should be the case that one can just focus on what is there on the screen rather than the newswires. This, of course, is one of the best plus points in terms of using price action rather than fundamentals to base your investment approach on.
Unfortunately, the people most famous for being successful investors tend to be on the fundamental side, be they Warren Buffett or Neil Woodford, rather than those obsessing over whether the 200-day moving average will hold on a penny stock.
However, the case for the defence on technical analysis has come through over the past year with the Brexit and Trump victories. Here even the most seasoned of fundamental experts have been caught on the hop.
Footsie undulations
In contrast, it was perhaps rather easier to pinpoint price action turning points ahead of and in the aftermath of these surprise events to base investment decisions on. Indeed, put rather simply, the dip for the FTSE 100 in the wake of the referendum vote towards the 6,000 zone was a decent example of the market finding new support at old resistance.
The situation now with the FTSE 100 breaking through 7,500 temporarily this week is that we appear to be on track for a target later this year towards the 8,000 level. Hopefully, some of this blue chips joy will trickle down to the small caps who have already had a strong start to 2017.
Speaking of small-caps, the highlights this week were varied. For instance, cybersecurity specialist Falanx (LON:FLX) saw its shares surge, building on the recovery in the stock seen since September. I have a lot of time for founder John Blamire's company, and am encouraged it finally seems to be getting the backing of the market.
For some reason, I have taken it upon myself to give Mr Blamire a gentle ribbing regarding as to whether he is wearing a beard or not whenever we meet – not perhaps a very wise thing to do with a former army officer who has served in Northern Ireland, Iraq and The Falklands.
But at least it looks as though the cyber battle is one he is now winning.
Sound and Echo
Also in focus and threatening to punch higher is the new venture of Sound Energy's (LON:SOU) conquering hero, James Parsons. For me there is a sharp breakout on tap if Echo Energy (LON:ECHO) stock can clear the top of a triangle formation at 0.5p. This could see a push to 0.8p in a just a few weeks given how long they have been consolidating between 0.35p and 0.5p of late.
Finally, I refer to another man in the market I know well, Andy Morrison, chairman of Spinnaker Opportunities (LON:SOP). I thought he did a sterling job in making the case for the cash shell's approach on the occasion of its main board listing this week and accompanying interview.
In these situations it is all about the management, and in this case Mr Morrison clearly has solid backing in the boardroom.
@ZaksTradersCafe