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

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

looks scary for me and i am sorely tempted to sell out but have sold half only at break even
however i did plan the trade so have decided to trade the balance through to completion.
fortunately it is within my budgeted and money management limitations.
wont be happy if i have to take a loss however. but sometimes we just
have to.we cant be right every time. ill catch it one day.-)
regards and good luck
jkd

Still holding on to my FTSE short from 6345, aimimg for 6250,dropped my SL to 6300 for a guaranteed profit

I'm done and out

thats a tight stop loss b
but good luck
regards
jkd
ps as i wrote but now hit ?

another crossed post
please ignore mine.
ta
regards
jkd

Dow
4hr fibonacci support at 13882 sh.
regards
jkd

it would be nice for me if price could break down through this level.
but it also wouldnt suprise me if it made low and rallied from here
lets wait and see.
regards
jkd