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

Discuss!

You remind me of my history teacher, Skinny - lol :)

Interesting to see the high in March at around 5950 - may be that's not such a bad level for my short, then - at least in the short term.

I suppose that if it breaks convincingly above that, then we will see continued upward movement.

Seems like 5950 could be a key resistance level??

Is that a triple top I see?

It is - but I was reading on a US website that a similar formation is currently on the S&P chart, and the analyst concerned (can't now recall who it was) didn't believe we would really continue upwards. It doesn't necessarily have to be the case - does it??

I thought a triple top or bottom, was a potential reversal sign?

There was a similar pattern in the 1st half of 2011 - It was discussed on this thread I believe.

Ah right - thanks Skinny. That makes a lot of sense to me!

I'll have a look back at 2011 as well

Have a look here starting at post 6011 - obviously the chart is current and of course it could all be wrong!

Bear in mind that latest polls suggest the LDP are heading for a comfortable victory on Sunday and the Japs are likely to be very quantitatively eased. That money's gonna be looking for a home....

Yep - as ever - interesting times!

Not overbought on RSI and MACD looks like there could be a wee bit more mileage left yet. WTFDIK, no position either way. :O)

Eerily consistent volume over the period :-)

Thanks guys :0)

Chris - look at the RSI back in 2011 @the 3rd top.

Approaching strong resistance 5990 if it gets that high, 5912 resistance currently still in play, still short from yesterday and looking to add to my position today at around 5945.

Thanks skinny, klal spot on so far 1st resistance 5939 not breached yet.

Chris - yes I saw that.

Caveat is I'm just making an observation.

:O) skinny, mine as always is what are those crazy yanks gonna do?

A bit late :- GBP 10-y Bond Auction 1.80|1.7 previous 1.82|1.9

CAD Trade Balance -0.2B consensus -1.2B previous -0.8B

USD Trade Balance -42.2b consensus -42.7B previous -41.5B

I just heard this analogy for the fiscal cliff - well it made me smile.