By Chris Bailey, Financial Orbit | Friday 5 June 2015
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
You have to be careful of trading rules because as soon as they become gospel they tend to not work. I have noticed however that when a stock is booted out of the FTSE-100 it often provides a buying opportunity. This is because in today’s panicky financial market world passive tracker vehicles, which mechanically buy or sell shares depending on inclusion (or not) in an index. Add in the impact of certain ‘clever’ fund managers attempting to anticipate this impact by selling before any such judgement and the quarterly index change period can throw up some opportunities.