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

Staying short on the DOW I think, breakout possible but I think more pressure on the downside IMHO......

cynic quite possibly thats why I covered with a June buy. Hopefully if it continues to bounce I can take more out of it before the next expected market leg down. Leaves me 4 months for something to happen and might be able to get in at a lower price. Given up trying to call the volitility so collar all my spreadbets. If im lucky i trade the extremes in different time periods. If not my losses are limited

explosive ..... very dangerous to short at the current level .... make sure you have a sensible stop in place

Cynic - Only a 3 rolling point bet, can't see it doing anything more than 300 points max. I'm bebating on just letting this run over the next few weeks. Not set a stop loss as of yet as am watching it also but will do later.

Need to start taking my own advice and trusting my research and instincts, yesterday stated i thought pound should strengthen against dollar, from 19500 to 19600 in a day, also showed Signalwatch to call 12300 as top of triangle (watching for a break out) boy has that happened this afternoon... I was too slow and still too scared of making another wrong call to act, may wait an hour to see if/how far it pulls back before making any decisions...:)

ironically - at the same time that explosive went short - I went long with a small bet - but have just bailed out now and gone short. Still learning.

edit - my short just got stopped out = perhaps I had too tight a stop and the momentum was still upwards ??

Bhunt - Good call, debating on placing another short at these levels but won't as if it goes against I'll end up with a margin call, the first rolling bet is easily covered but a second could be a disaster and maybe not worth the risk... Hope your all doing significantly better than I am today.... Can't win 'em all..!!

I think you are spot on Ted that markets have seen enough doom and gloom, and were looking for any positive bit of news to rally. Could rally tomorrow as well, but still expecting a larger correction soon. Will look closely for a good shorting time on the FTSE.

http://ap.google.com/article/ALeqM5iIKkCUkXfGX-D9oJ0KDZ4kcITQcwD8UORLKO0

More on the Buffett offer..

FTSE is at an interesting point .... 5900/5910 has proved pivotal in the past, and certainly tried briefly to nudge through that point ...... certainly would not short o'night but rather watch Dow.

if Dow holds current sort of levels through close, or even loses only a little bit of the current steam, then London could well open strong again, for F/E will follow US ..... hope that makes sense!

If it wasn't for the fact i love my sleeps, i would consider opening a long on the Hang Seng if the Dow closes strongly...

have just been shut out of my Dow long but at a decent profit .... will now watch and contemplate whether or not to dabble again either long or short

Ted .... you can easily open and trade a position in F/E now ... or at least you can in IG

Thanks Rich, yes i know, but just thought they would gain a lot more when their market opens playing catch up...?

so go long now, though it will already be well up .... personally i wouldn't, but you might like to try it as a dummy run

FTSE feels like it's gone to quickly to these level, it will hinge on DOW tonight, but would expect some correction tomorrow. Just checked 1 year chart on FTSE which shows resistance at 6067 (last lower high on 4th Feb) and support at 5600 from 22nd Jan. It's in a clear bear channel, unless it breaks through resistance at 6067. If it fails and reverses I believe this would give sell signal and a test of support at 5600.

Still have my bear head on, not inclined to be growing horns any time soon.

nimbleness and some luck required ..... don't really agree with your analysis, though think FTSE top is no higher than 6230 and bottom 5690

Just closed -190 points, that clears out 3/4 of last weeks profit made..... CAUTION springs to mind, Buffett get a hair cut... Very unpridictible times, was sure of a fall with General Motors results, oh well another day..

interesting you should do that though do not know the level ..... am currently contemplating shorting around 12430, not that i think there will be ahuge sell-off, but just that there may be a turn .... shall be happy if Dow finishes at say 12350 - i.e. well above the fairly critical 12300 mark

now short 12441 .... we shall see

Its been a day of looking at the charts thinking more about where to limit losses and if fallbacks are due at what prices.... Definatly more pot luck than anything at the moment.... Gonna play safe and wait for signs of topping out before shorting again, maybe concenrate on the FTSE and let Watt St steady into a trend more.... Good advice if I manage to follow it, I know what I'm like, if I think I've spotted a days or weeks trend....!!

Cynic I'd add another 100 pts to your 12350 as this push has got the market interested... Wouldn't be surprised if tomorrows news features Warren again, only 1 decine so far 2 still to go... Very funny today. The Buffett article I don't view positivley at all, if anything it highlights possibilities of losses, in other sectors of the American markets.

The chief executive of Berkshire Hathaway Inc told CNBC television that he had extended the offer to MBIA Inc, Ambac Financial Group Inc and FGIC Corp.
Buffett said he would charge premiums of 50 percent above what the bond insurers are receiving from issuers on the policies, which many analysts saw as a high price. There is a good chance that none of the bond insurers that received the offer will accept it, portfolio managers said.
From The Guardian.....

Doesn't make sense, Market rally on hot air offer, topped with the worst news ever from General Motors.... However its Warren Buffett and stupid he's not..