rather than pick out individual stocks to trade, it can often be worthwhile to trade the indices themselves, especially in times of high volatility.

for those so inclined, i attach below charts for FTSE and FTSE 250, though one might equally be tempted to trade Dow or S&P, which is significantly broader in its coverage, or even NASDAQ

for ease of reading, i have attached 1 year and 3 month charts in each instance

Cynic: yes, that's a good point.

Hilary: agree, loads of factors out there, but in the immediate term (as in day-to-day trading) the markets, including European, are showing knee-jerk reactions any time a US politician mentions the fiscal cliff - just something to bear in mind for short-term trading

Hils - as ever :-)

EUR CPI Flash Estimate y/y 2.2% consensus 2.4% previous 2.5%

EUR Unemployment Rate 11.7% consensus 11.7% previous 11.6%

EUR Italian Prelim CPI m/m -0.2% consensus 0.0% previous 0.0%

Toya,

CBO says US has debt limit room until at least mid-Feb. So that's when the fiscal cliff solution will come. There were other things moving the market yesterday. Boehner's boner only had minimal effect.

are "we" too focused on europe and how its travails will affect the markets? ...... the european economies have been dire for the last 2/3 years ..... however, as i post regularly, economies in usa and far east are most assuredly picking up, and even india, which has certainly gone through some tough times of late (very weak rupee), is still forecasting growth of 5.3%

CAD GDP m/m 0.0% consensus 0.1% previous -0.1%

USD Core PCE Price Index m/m 0.1% consensus 0.2% previous 0.1%

USD Personal Spending m/m -0.2% consensus 0.1% previous 0.8%

USD Personal Income m/m 0.0% consensus 0.2% previous 0.4%

Thanks for for the pix Skinny!

it's a bit of "whore's drawers" today, but it being friday, it's not too surprising with so much mixed data and info floating about

so whats the prognosis for next week then boys and girls.,.
edit: I'll copy and paste it back at the end of the week and see who's savvy if more than one put in their penny worth.,.

You guys are far too technical for me. I am just following the long term trend line and moving my SL up gradually to protect what is becoming a significant profit - which I dont want to loose. Still long from 5790 with a SL of 5825

Bhunt: well done!

Something from Reuters (and this will sound very boring!), to answer BB's poser:
"We have a week with a lot of economic data, and obviously most of the economic data is going to reflect the effects of Sandy, and that might be a little bit negative for the market next week, but most of that is already expected – the main focus remains the fiscal cliff," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

'On Wednesday, the S&P 500 gained more than 20 points from its intraday low after House Speaker John Boehner said he was optimistic that a budget deal to avoid big spending cuts and tax hikes could be worked out. The next day, more pessimistic comments from Boehner, an Ohio Republican, briefly wiped out the day's gains in stocks.

"It’s unusual to end up with one variable in this industry, it’s unusual to have a single bullet that is the causal factor effect, and you are sitting here for the next maybe two weeks or more, on that kind of condition," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago. "And that is what is grabbing the markets."

So: as I've cautioned here before: listen to the US politicians for intraday trading!

I reckon the week ahead will be choppy.

Longer term though, one has to assume that a deal will be done of course - how could they not!?

Toya,

I'm sorry if I've confused you (or anybody else for that matter) if you think I've said that you should ignore the fiscal cliff.

What I'm trying to say is that the fiscal cliff does impact the market, but it isn't the largest single factor which has been moving the markets in recent times. However, reading down through the thread posts, it struck me that too much focus was being put on the fiscal cliff, whilst the largest single factor which has moved the markets recently (Japanese elections and Shinzo Abe talking about a financial nuclear bomb) was being almost totally ignored on the thread.

The other thing to bear in mind about reading press releases (like the one above) which quote US fund managers and traders is that most Americans think that the world stops when you reach the Pacific and Atlantic Oceans. If you ask them anything about Japan or Europe they won't have a clue what you're babbling on about.

Narrowing LDP lead points to Japan post-election confusion

TOKYO | Mon Dec 3, 2012 5:14am GMT

(Reuters) - Japan's opposition Liberal Democratic Party's lead has shrunk in the polls ahead of a December 16 election, suggesting the conservative party and its partner may need help to make up a majority and threatening more policy confusion for the world's third-biggest economy.

Former Prime Minister Shinzo Abe's LDP is expected to win the biggest number of seats in parliament's powerful lower house, putting Abe in pole position to form the next government, most likely with long-term LDP ally, the smaller New Komeito.

To explain a bit more, here's some relevant information.

Last week:

EURJPY +3.44% DAX +1.32%
GBPJPY +2.38% FTSE100 +0.82%
USDJPY +1.71% S&P500 +0.5%

Elections and Abe's rhetoric spurred the yen flight last week. Friday night's CoT report showed Yen shorts were at their highest in 5 years.

The bulk of those yen went into Europe, and the DAX was a major beneficiary after the Greeks were given a load of euros to blow at the start of the week. The least amount of yen went into US dollars because the fiscal cliff concerns were weighing. Consequently, the S%P was up but not as much as its European counterparts.

Easy innit? :)

A 'Glen' no less!

Obama taking tough stand on fiscal cliff talks

WASHINGTON: Political posturing by the White House and Republicans in Congress hit new heights over the weekend as the Obama administration laid out specifics of its plan for avoiding the looming “fiscal cliff” and the top Republican in Washington said he was “flabbergasted” by what he called a “nonsense” approach to solving the nation’s budget crisis.

President Barack Obama and congressional Republicans have until Dec. 31 to reach agreement on how to increase government revenue and cut spending to avoid big automatic tax increases on all Americans and massive cuts in government programs ranging from education to the military.

Adding to the negative consequences of a negotiated outcome is the coincidence of the end to two other programs at the same time — a reduction in the payroll tax that Americans pay into the federal Social Security pension program and extended government benefits to the long-term unemployed.

Economists say failure to find an accord could send the U.S. economy back into recession and cause a spike in already stubbornly high unemployment.

Thanks Hilary and Skinny :)

Moved my stop loss to 5850 - this is scary

5850 is arguably a bit HIGH for the stop loss as there should be decent support at 5820
shortie may give you a different reading

GBP Manufacturing PMI 49.1 consensus 48.1 previous 47.5