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

Well just as well my FTSE short didn't go through as I never expected such a surge!
The market must believe that things are getting rosy or maybe they bought a lorry load of rose tinted specs!
With today's movement I can honestly say I haven't a clue in working out whether the FTSE will continue up or crash down. I think I'll stay clear for now.
TT

From what I can gather, 'there is nowhere else for the funds to go' when compared with alternatives like bonds:

From Marketwatch.com:
'For many investing pros and their clients, the current environment—a seemingly improving economy and an unusually risky bond market—has forced them to rethink what has long been an Investing 101 strategy. Because bond yields remain at historic lows—the 10-year Treasury pays 1.84%, which is less than inflation’s current 2% rate—many worry any pickup in interest rates could send bond prices plummeting (bond prices and interest rates move in opposite directions). As a result, they are keeping their stockholdings at an elevated allocation.'

watch the volume.

But it still feels massively overbought too quickly - any way I survived that surge to 3350(just) - lets hope it drops now (being entirely selfish)

Another little snippet, this one from Reuters:
'Fund managers said that while there was the possibility that equities would level off after such hefty gains, they deemed a significant near-term sell-off as unlikely.

"You will get to the point where that squeeze higher will have absorbed all of the cash that was destined to go into equities and it’s at that point markets will be vulnerable – but I don’t think we’re there yet," said Andrew Cole, a fund manager at Baring Asset Management, which has 32.4 billion pounds ($50.9 billion) of assets under management.'

common sense suggests this is traders trying to "create" volatility how much collusion is involved remains to be investigated.

I shall await the results of that Halifax :) - I doubt we'll ever get to the bottom of it!

But I did read somewhere that the markets could be encouraged upwards in order to create a nice shorting position - which surely can't be too far away??

Market totally ignoring fundamentals, data from the EU and USA is poor, UK in recession. Analysts lowering expectations to ridiculous levels so results can at least mee,t but even so, some very big recent misses, the latest of which is Amazon tonight.

Even if the US data mises tomorrow I expect the markets to continue their rise. This won't stop until the main players are ready for it to stop and we won't see it coming. There will be an inflexion point which won't be caused by corporation misses or data so therefore it will be unexpected. By us mere mortals anyway.

The result of all this money printing will be inflation and then hyper-inflation, then we can all look forward to the vicious cycle of rising costs, rising interest rates, rising poverty etc, etc.

Not a comforting thought.

.

Sounds incestuous - Exclusive - JPMorgan bet against itself in "Whale" trade

NEW YORK | Wed Jan 30, 2013 2:01am GMT

(Reuters) - There is a new twist in the London Whale trading scandal that cost JPMorgan Chase $6.2 billion (3.9 billion pounds) in trading losses last year. Some of the firm's own traders bet against the very derivatives positions placed by its chief investment officer, said three people familiar with the matter.

The U.S. Senate Permanent Committee on Investigations, which launched an inquiry into the trading loss last fall, is looking into the how different divisions of the bank wound up on opposite sides of the same trade, said one of the people familiar with the matter.

Should we be surprised by that Skinny?? Time was when we would have been... it's a disgrace. I must be getting old!

There are two catalysts in the next couple of sessions that could impact the market:

1. The update from the Fed. FOMC Statement due to start at 19:15 UK time. “The Fed will maintain a steady foot on the gas pedal,” said Julia Coronado, chief economist for North America at BNP Paribas.

2. US jobs data on Friday. Non-Farm Employment Change due at 13:30 UK time (forecast 168K vs 155K previous month – NB: I have also seen a forecast of 156K).

Hmm, looks this rally will keep on running

Right,having been stopped out at 6350, we will try 1 more short at 6345 with a sl of 6355

May 2008 peak at 6376 will be the next test, if it corrects from here we cold see a sharp fall back to MA support at 6079 prior to a continued bull run... Toe in the water again at 6348, couldn't resist....

Among the companies with shares expected to actively trade in Wednesday's session are Amazon.com Inc. (AMZN), Chesapeake Energy Corp. (CHK) and Isis Pharmaceuticals Inc. (ISIS). Amazon.com posted a 45% drop in earnings in the fourth quarter, but some other measures of the online retailer's profitability came as a positive surprise. The company said revenue rose 22% in its crucial holiday selling season, as more consumers turn to its sites for speedy shipping and lower prices on many items. Operating income rose 56% and gross margin widened. Shares were up 8.9% to $283.50 after hours. Chesapeake Energy said its co-founder and chief executive, Aubrey McClendon, will step down April 1, bowing out after a lengthy battle with investors and a revamped board that sought to rein in the trailblazing executive. Suares jumped 9.1% to $20.69 after hours. The U.S. Food and Drug Administration on Tuesday approved a drug called Kynamro that will be marketed by marketed by Sanofi's (SNY, SNY.FR) Genzyme unit to treat rare disease that causes very high cholesterol. The drug is also known by its generic name, mipomersen, and was developed by Isis Pharmaceuticals, which saw shares rise 8.3% to $14.49 after hours. Ace Ltd.'s (ACE) fourth-quarter earnings rose 4.1% as an increase in realized gains boosted the insurer's bottom-line results, though it saw an increase in catastrophe losses as a result of Hurricane Sandy. Shares slipped 4.5% to $81.11 after hours as the company projected 2013 earnings below analyst expectations. Dolby Laboratories Inc.'s (DLB) fiscal first-quarter earnings fell 30% as the audio company's operating margin came under pressure. But the company's Class A shares rose 4% after hours Tuesday to $33.02 as the company's results beat expectations. Key Tronic Corp.'s (KTCC) fiscal second-quarter profit rose 13% as sales continued to increase, but the manufacturer said a customer's lower demand has slowed revenue growth. Shares fell 16% to $10.04 in after-hours trading. Parexel International Corp.'s (PRXL) fiscal second-quarter earnings rose 65% on higher sales and the drug and biotechnology services company raised its full-year guidance. Shares rose 3.1% to $34.90 in after-hours trading as results beat the company's expectations. Ryland Group Inc.'s (RYL) fourth-quarter profit soared as the home building and mortgage-finance company saw new orders and improved housing margins boost revenue. Shares rose 3.4% to $42.70 after hours as results easily beat expectations. Flash memory-chip maker Spansion Inc. (CODE) swung to a fourth-quarter profit as margins sharply improved, however the company offered downbeat guidance for the current quarter. Shares slipped 9% to $11.99 after hours as the latest period's results missed analyst expectations and as the company said it could post an adjusted loss in the first quarter, while Wall Street was modeling for a profit. Unisys Corp.'s (UIS) fourth-quarter income fell 13% as the information technology company recorded heavy pension-related charges, though core earnings improved. The results easily beat analysts' expectations, and shares jumped 11% in after-hours trading to $21.08. Ventrus Biosciences Inc. (VTUS) said it is offering to sell common stock, but didn't provide further details about the offering. The pharmaceutical company that focuses on developing drugs for anal disorders had about 12.9 million shares outstanding as of Nov. 9. Shares declined 8.8% to $2.99 after hours. Watchlist: Arthur J. Gallagher & Co.'s (AJG) fourth-quarter earnings fell 17% as the insurance broker and consulting firm reported higher operating expenses and charges for restructuring and other items. Boston Properties Inc.'s (BXP) fourth-quarter profit fell 36% as the office landlord's expenses rose, masking higher rental revenue. Broadcom Corp.'s (BRCM) fourth-quarter profit edged down 1.2% on one-time charges, masking the chip maker's increasing revenue. Buckeye Technologies Inc. (BKI) swung to a fiscal second-quarter profit as an insurance benefit boosted the company's results, though earnings were weaker than expected. Freescale Semiconductor Ltd.'s (FSL) fourth-quarter loss widened as the chip maker recorded sales declines across several markets, including automotives. However, for the current quarter, Freescale projected sales above analyst estimates. Intuit Inc. (INTU) said a federal court has denied tax-preparation company H&R Block Inc.'s (HRB) effort to pull two of the financial software provider's TurboTax television advertisements, which H&R Block claimed were misleading. Jones Lang LaSalle Inc.'s (JLL) fourth-quarter earnings rose 26% amid broad revenue growth and lower restructuring- and integration-related charges as well as other items. Keryx Biopharmaceuticals Inc. (KERX) is offering $55 million in shares and plans to use net proceeds to build inventory and conduct commercial activities related to Zerenex and for other general corporate purposes. According to FactSet, the company has a market capitalization of $436 million. NewLink Genetics Corp. (NLNK) intends to publicly offer an undisclosed amount of shares, the proceeds of which would go to general corporate purposes. The biopharmaceutical company had about 20.9 million shares outstanding as of Sept. 30. Qiagen NV (QGEN, QIA.XE) swung to a fourth-quarter profit as the medical-testing technologies provider benefited from lower integration and other operating costs, along with higher sales. Robert Half International Inc.'s (RHI) fourth-quarter earnings rose 39% as the temporary-staffing company continued to post broad revenue growth. Vertex Pharmaceuticals Inc. (VRTX) swung to a fourth-quarter loss as revenues from its hepatitis C drug Incivek slumped on lower demand. Websense Inc.'s (WBSN) fourth-quarter earnings fell 63% as the security technology vendor's operating expenses increased, and sales declined slightly. The company's guidance for the current quarter missed analyst expectations.

By Laura Clarke Spot gold edged higher Wednesday in Europe, as market participants expected the United States to signal it's sticking with current economic stimulus measures to allow more time to meet a recently set target for reducing unemployment. At 1050 GMT, spot gold was up 0.2% at $1,666.20 a troy ounce, while silver was up 0.1% on the day at $31.425/oz. Gold is likely to trade in a tight range as investors wait for the U.S. Federal Open Market Committee's January policy statement due later in the day, analysts said. The FOMC is expected to stick with stimulus measures including asset purchases and monetary easing, which are deemed positive for gold in its perceived role as a hedge against liquidity-induced currency weakness and inflation. "No one expects to see a major change, but investors will be curious to assess the degree of apprehension [as reflected by dissenting votes] when it comes to setting a time at which part of the Fed's asset-buying program will be rolled back," said INTL FCStone analyst Ed Meir. Gold has recently met robust resistance near the psychological $1,700/oz level. Should the Fed announce a new round of quantitative easing, some analysts said it may overtake this resistance level. The yellow metal had snapped a four-day losing streak Tuesday amid currency influences and better sentiment that triggered short-covering. As the dollar has recently declined against the euro, this makes dollar-denominated precious metals comparatively more appealing to euro holders. Investors will also be eyeing ADP employment data at 1315 GMT and fourth-quarter U.S. gross domestic product data at 1330 GMT for further clues as to the longevity of Fed asset purchases. Better-than-expected GDP data could strengthen the dollar, damping precious metals, but selling would be limited ahead of the Fed announcement, said Mr. Meir. Deutsche Bank analysts said Wednesday that overall, "sentiment within the gold market remains very poor, with a broad-based skepticism regarding the ability of the metal to rally over the near-term." While the economic data in the U.S. and China improves, assets considered more risky than gold are reflecting this confidence, Deutsche Bank said. Platinum and palladium rose Wednesday, but gains were capped after Anglo American Platinum, the world's largest platinum producer, said it would place on hold plans to cut up to 14,000 jobs in South Africa. At 1050 GMT, platinum was trading 0.2% higher at $1,680.25/oz, while palladium was 0.6% higher at $753.75/oz.

From Marketwatch.com:
"There is an optimism in the market which has not been reflected in either corporate earnings or macroeconomic growth numbers," Wouter Sturkenboom, strategist at Russell Investments, said.

'That potentially misplaced optimism was reflected in 14-day relative strength indicators (RSI), which for most major European markets are now in "overbought" territory.'

Well, at least someone seems to be seeing some sense (apart from me that is, lol!)

The Honey Badger Market Grinds Higher

On another note, I watched the TV news last night for the first time in ages. I found it amazing that the (overpaid) economics editor doing a report on recent equity market strength was at a total loss to come up with a reason for markets hitting fresh highs. I felt like booking her a flight to Tokyo so she could take a look at Shinzo's giant printing press.

"As for the plunge in the Yen, well the one nation that shut down all of its nukes, and now has to import its energy with a collapsing currency already has felt the 3% inflation in gas prices in 2 months as reported previously. Once this number hits 10% in a few more weeks, we doubt there will be much enthusiasm left for Abe's masterplan."

More 'off piste".