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

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".

ADP Non-Farm Employment Change 192K consensus 164K previous 215K

USD Advance GDP q/q -0.1% consensus 1.1% previous 3.1%

USD Advance GDP Price Index q/q 0.6% consensus 1.5% previous 2.7%

WASHINGTON (MarketWatch) - Growth in the U.S. economy turned negative in the fourth quarter for the first time since the last recession, dragged down by a reversal in military spending, lower inventories and falling exports. The U.S. contracted by a 0.1% annual rate in the final three months of 2012, based on the first of three readings by the Commerce Department. Economists surveyed by MarketWatch had forecast a 1.0% increase. The advance report, however, relies on some estimates and is often subject to sharp revisions.

So far the market is heading down - but it may give the Fed more cause for continued QE - so we'll be heading back up again!

U.S. Stocks Advance as GDP Data Spur Fed Speculation

U.S. stocks rose, after benchmark indexes climbed to a five-year high, as an unexpected contraction in the economy spurred speculation the Federal Reserve will continue its stimulus efforts.

The Standard & Poor’s 500 Index rose 0.1 percent to 1,509.14 at 9:48 a.m. in New York. The Dow Jones Industrial Average gained 7.68 points, or 0.1 percent, to 13,962.10. Trading in S&P 500 (SPX) companies was in line with the 30-day average at this time of day.

“There’s been grinding positive bias coming from much of the data for a while now and earnings season,” Stephen Wood, who helps manage about $163 billion as chief market strategist for New York-based North America Russell Investments, said in a phone interview. “The markets have been pricing in a lot of positive news, potentially the fact that the Fed could continue to accommodate us as they’ve promised for a while.”

I reckon it's quite likely that we'll hear anything and everything "is already priced in". Perhaps we will, after all, now see some sort of a correction/pullback/call-it-what-you-like?

LOL! :0)

Latest from Dominic Picarda of IC:
"The bears finally got a modicum of relief yesterday as the DAX and FTSE came off their recent highs by a bit. I am not in the game of calling tops, though, and would be loath to declare the rally over quite yet. As I will explain in a video to be posted later today, extreme daily overboughtness in the FTSE – such as we have seen lately – is not a predictor of big corrections. And the peaks in the daily RSI above 80 do not usually mark the top of the market either.

Such selling as we have seen in FTSE and EURGBP has so far been pretty mild indeed. This is one more clue that the rally may have further to go. I am therefore on the lookout for buys here and a potential shorting entry in GBPUSD."

FTSE short closed and gone long @ 6298

CAD GDP m/m 0.3% consensus 0.2% previous 0.1%

CAD RMPI m/m -2.0% consensus 0.9% previous -1.9%

CAD IPPI m/m 0.0% consensus 0.1% previous -0.3%

USD Unemployment Claims 368K consensus 362K previous 330K

USD Core PCE Price Index m/m 0.0% consensus 0.1% previous 0.0%

USD Employment Cost Index q/q 0.5% consensus 0.6% previous 0.4%

USD Personal Spending m/m 0.2% consensus 0.4% previous 0.4%

USD Personal Income m/m 2.6% consensus 0.7% previous 0.6%

Dominic may well be right from an investors point of view.which i am.or he may not
i do like a dabble occasionally in the indices short term only. his views are of no use to my dabbles. so traders beware.
i am currently short the dow current price 13883 as i write rallying from a low of 13872
i usually get the dow wrong anyway but have to keep trying.
never know one day i might get on the right side of one of those moves.
current stop loss above yesterdays high of 13976.4 ( entry price 13936) may take some profit at just below break even.
good luck to all
regards
jkd

DP from IC is a chartist (s/better - CFD trader?), not an investor, which without causing offense, would seem fairly obvious from the posts I have made.
Perhaps if you usually get the DOW movement wrong, you might try following his advice! You never know............!!! ;o)

thanks H its certainly looking that way at the moment
current price 13934 as i write.
im still holding position at moment .not sure for how long though.)
i just may try a contrary.)
regards
jkd