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

.

I would start building a position in the DOW but I don't want to overstretch as the FTSE rally could well continue for another couple of weeks. 6100 is where I'll open and other short position.

it is inconceivable that any rally could run for a further 10+ days without some sort of correction, even if the long term indication remains north - i think it does; you disagree

I do cynic, but for me I also have a nice ISA equity portfolio 80% in the blue so am also looking at this as an oppertunity to hedge equity profits against any correction or fall.

I'm short again (by limit) @6076 now av @6054. I also have a limit in @6,136.

Monthly FTSE100 chart below, note the June 2007 downwards trend is showing a breakout. You'd also be right in thinking that the FTSE isn't clearly into overbought territory yet... So there is still upside potential which follows the shorter term trend here. As you'll no doubt be aware, trying to call the market high prior to a signalled-reversal often results in betting burnt so keep those stakes small if your going to short and build a position. On a positive note the FTSE has spent far more time well below 6000 than it has above it, so the probability of making money is on our side.... IMHO

Shortie - I'm vastly long and in excellent profit, I'm only building a short position in order to ensure that the market continues up and :-)

I'm just catching up, having had a lovely day out in Shrewsbury today; such a civilised town for a bit of shopping and some lunch!

Well, the FTSE certainly has continued up today! I really didn't think it would zoom so high so fast... I still keep thinking it will come crashing down. I'd made a small profit on my 6040 short a couple of days ago and then re-set it... Hmmm

Cynic: re my earlier post (10416), it was a report compiled by the charity Shelter.

And Shortie: yes, I also heard that (under)employment report your referred to.

Shopping!!!! I thought that was all done with over the Xmas period?

Lol - you're quite right; no serious shopping today: just an outing to meet up with friends. But you know what women are like - we always have to come home with a little something!

Toy you shouldn't expect any charity to say anything positive.

On the other hand though Hali, it's a worrying sign that the numbers are twice what they were a year previously.

And now for something that brought a smile to my face, from MarketWatch.com :)

'It had to happen.
Disgruntled opponents of the debt ceiling have dragged out the curious notion of using a loophole that allows the Treasury to mint platinum coins of any denomination.

In effect, outgoing Treasury Secretary Timothy Geithner is being urged to have a coin made with a denomination of $1 trillion, and to then deposit it with the Federal Reserve, thus eliminating the need for the periodic nasty fights over raising the debt ceiling.

Given the way Washington’s been spending lately, one wonders whether $1 trillion is really enough.

Still, the buzz on Twitter is building, and there’s a hashtag — #mintthecoin.'

Halifax HPI m/m 1.3% consensus 0.2% previous 1.0%

This extract from Dominic Picarda (a Chartered Market Technician and has co-ordinated the IC's trading coverage since 2006.)
"The rally in European equities is in good shape. The DAX and FTSE have both got off to a flyer in 2013. And I believe that both have the potential to continue this run. Unlike the US indices, I believe that the German and UK markets are genuinely cheap. As such, they are especially well placed to benefit from global economic recovery and from ongoing cheap money from the ECB and elsewhere.

On a very near-term view, the FTSE is both overbought on its daily and intraday charts, and this needs to resolve itself in order for the upside to continue. Any correction now does not need to be too dramatic. In fact, it may well be a mild one, as so often occurs when a market is in a strong uptrend."

CAD Ivey PMI 52.8 consensus 51.3 previous 47.5

I had thought this was a joke, but clearly it is being talked about quite seriously - see link below:

Krugman joins the $1-trillion-coin brigade

Which companies to benefit? Network Rail unveils £37.5bn investment plan

A £37.5bn plan to develop the UK's railway network over a five-year period has been announced by Network Rail.

The plan, covering the five years up to 2019, promises faster journeys, 170,000 more peak time commuter seats and improved reliability but depends on making savings and rising fares.

Consumer group Passenger Focus welcomed investment but said it was important to keep travel costs "under control".

Network Rail is responsible for Britain's railway infrastructure.

Online shopping bolsters Christmas sales

Strong growth in online shopping stopped retail sales falling in December, according to the British Retail Consortium (BRC).

Sales in December were up 1.5% compared with a year earlier, while like-for-like sales, which exclude new store openings, rose 0.3%.

Without a 17.8% jump in online non-food sales, total sales would have fallen.

German Trade Balance 14.6B consensus 15.4B previous 14.9B

Following on from post #10438
This extract from Dominic Picarda (a Chartered Market Technician and has co-ordinated the IC's trading coverage since 2006.)
"I have been calling for the European indices to sell off a little more in order to set up another really decent leg of upside. And that is now what is happening, with both the DAX and the FTSE having shed their previously-overbought intraday momentum readings. This is entirely healthy stuff, as no rally can simply proceed in a straight line for all that long. I don’t think it’ll be long before we are on the way back up, though. As soon as we get evidence of a decent intraday revival, I shall go long once more. Fresh bull-market highs await both indices."