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

FTSE will prob follow Dow, so that is where you need to watch, though FTSE is dominated by miners, oilies and financials

A long on the mining sector would have been a great move last month, TDW showing from 19500 and now currently 26250 points... wow!

CNBC interviewed Boon Pickens a few moments ago he said he has shorted oil and gas and forecasts oil to fall b$15 per barrel in the second quarter although he anticipates price recovery in the second half of the year.

I guess he must be nuts too...! I only talked about it...!

Apparently the US consumes 25% of global oil production but has only 5% of world population according to Boon Pickens. A slow down in the US economy will lead to a significant reduction in demand for oil.

Thanks rf. The reason I'm looking at spreadbets is because I'm reluctant to get landed with too much Cgt.

Dow failed both the 12500 and 12465 tests, so have shorted at 12421 ... stop pro tem at 15525 and limit 12275

talkinhg of shorts .... SOLA doing exactly what i hoped at last

Halifax - Remember though OPEC have reduced supply before to keep prices high, they have also refused to increase supply to reduce the cost of oil... Sure a slowdown in the US economy will reduce demand there but this reduction in demand is easily taken up by other third world countries increasing demand. Look at China and Japan usage and growth...

With spreadbets moneyplus you must be really sure that the one you're picking is going to come right, too many times my choices have failed to live up to expectations...but with cfd's..you can hang on a little longer (no expiry date) and many a time they come right in the end !

i wonder how much the price of oil is now as to say 12/18 months ago, in say SAR or AED .... bet that would throw it into true perspective as far as OPEC is concerned

Crude has just dropped 3 dollars! Will gold follow suit ?

gold:oil, 9:1 ratio remember.. Cynic thats a tough one comparing ZAR .etc to oil, you make. However a report very worth while reading.. 12300 support yet again tonight on the DOW, bet you had a field day on the FTSE ranges..

The higher crude goes the more the variations could intensify, just like a 1 stock !

Sorry explosive., but what is a 9:1 ratio?

Sorry explosive for some reason did not see your explanation, too much eye strain,must eat more carrots!

Falcothou no worries, 9:1 ratio simply is put is a historic relationship between gold and oil prices say gold is 900USD the oil would be around 100USD or there about... Check it out for yourself, a handy ratio to know I find and I tend to trade both in the same direction....

John, congrats on your patience, looks like you are to be rewarded, below 12300 again...

Big Ted, thankyou, I did however play the 30 minute game for some quick profits last night as the ranges were just too good to stay out of.... Anyway not one to brag, how you doing? Been reading posts and you seam to have some good ideas and some risky ones............ Cynic seams one to watch as even I didn't see up upwards rebound coming yesterday so made some money on his prediction when the move came.... I guess everyone can learn a trick or two, great thread this one I personally think and all for free as well..

wish i was clever too! .... seem to have got the rhythm right at the mo ..... have brought in my stops/limits to 12345/12265, but am too busy cooking tonight (you read correctly!) .... i see Dow has been as low as 12275 this evening, but confess have left my "cheat sheet" at the office, but from memory 12235/12250 are the first numbers to watch for a bounce

Thanks Cynic, so what you cooking then??.... Room for another...!!