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

Views?

My view is, from what I've been reading, that we'll see a pull back to around 6000 in the short term; and then possibly, depending on how the economy pans out over the course of the year, we may hit the 7000 target that some analysts suggest. I am not convinced that we will however - it is very much a case of keeping an eye on events.

Don't forget: that 7000 level was hit at the height of the dot.com bubble!

There was an interesting article in The Times on Saturday. Haven't time to type it all and don't subscribe to it online, but here's the link:

Peering into the crystal ball, he sees a sudden, violent change. Beware!

The article also mentioned something I have been reading elsewhere recently: "Shares sales by company directors, in the US at least, outnumber purchases by more than 9 to 1."

MADRID (MarketWatch) -- Goldman Sachs has grown cautious on global equities in the near term, cutting its recommendation to neutral from overweight over a three-month basis. They said the equity market needs time to digest recent gains and the potential for a strong rally from here is likely to be limited as U.S. equities are already trading above their estimates of current fair value and European equities only have upside to fair value. "While we have strong conviction in our longer-term view we are more uncertain about the near term. Asset prices have moved a long way and are now very close to our 3-months targets leaving unusually low cross-asset dispersion in our 3-month return expectations," said Goldman in a note that published Feb. 8.

DP of IC today:
"All good things must come to an end. And there is a decent chance that the tremendous advance in the FTSE and in the Euro of recent weeks has come to an end, at least for the time being. The selling of the last couple of sessions has had some clear conviction behind it, especially in the single currency. However, I am not about to head for the hills straight away. I aim never to join a trend until it has been properly established, and the jury remains out on the possible new downtrend in these assets.

For now, then, I still reckon we could see a bullish turnaround, and am on guard to buy FTSE and EURGBP.

The FTSE has found a decent floor just above its 21-day EMA (6220). Dips to this line are classed as mild bull-market retreats in my book. The last one was around New Year, after which the tearaway rally began. So far the comeback off the lows has been a bit feeble. But I continue to target 6362 in the near-term."

DP of IC today:
"There’s a distinct air of near-term bearishness about. Some 78% of IG Index clients are currently short of the FTSE 100 index, for example. After such a strong rally, they probably have a reasonable expectation that the index should give up some of its gains, if only in advance of renewed upside. I do not share their desire to be short at this moment, however. While the UK market has softened in recent days, the fashion in which it has done so has been unthreatening. This is the hallmark of a counter-trend move. Put simply, the FTSE and also the DAX are merely laying the groundwork for the next leg of their bull markets. I happen to see it coming sooner rather than later."

9:30am

GBP CPI y/y 2.7% consensus 2.7% previous 2.7%

GBP PPI Input m/m 1.3% consensus 0.9% previous 0.0%

GBP RPI y/y 3.3% consensus 3.2% previous 3.1%

GBP Core CPI y/y 2.3% consensus 2.4% previous 2.4%

GBP HPI y/y 3.3% consensus 2.1% previous 2.2%

GBP PPI Output m/m 0.2% consensus 0.2% previous -0.1%

Short FTSE @6317.5

DOW futures now in slight positive territory (from -28 this morning), so not sure about your FTSE short!

I went long on BARC at the open - only fair I give some back :-)

US Redbook retail sales positive, DOW to test 14000....

FTSE shorts in play also.

Mario @2:30pm

German WPI m/m 0.3% consensus 0.4% previous 0.0%

So much for my ideas of the FTSE falling further before it climbs back up. I'd gone short yesterday at 6315 thinking I'd got a good deal... And on top of that, I got whacked with some 'Short FTSE Dividend' fee - having only been in that short position for a matter of hours :( I've not had such a bad day in ages!

CHF PPI m/m -0.1% consensus 0.2% previous 0.1%

Mistress T - you clearly need some of my comfort food; rotten luck

Thanks Cynic - certainly need some comfort. Anyway, I'm getting over it and will live to see another day

perhaps i should turn out a spotted dick for you!

with cream???