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

I went short on the FTSE at 6200 - still in the red - but hopeful that it will come back as the evening wears on.

Dow as usual volatile - up 110 at one stage - now just 40 +

Out at 6185 - will pay for a night out tonight

Have a good bank holiday all

I have just started work which keeps me away from a screen all day, set a sell order on FTSE @6200 last night, general consensus is that this is a just a bear rally, with earnings beginning to be stretched in the slowdown, how long can it keep going up? I'm looking longer term and expecting another down-leg soon...

Some beligerant insight into this Bear market
http://market-ticker.denninger.net/

Good link Falcothou........Very informative, just incase anyone feels too bullish with this rally, it would be worth reading.

I get the impression the FED will do just about anything to get the Pamplona feeling including being slightly economical with the truth!

http://www.iii.co.uk/articles/articledisplay.jsp?section=ShareTips&article_id=9915752&catEnforce=More&campaign=tips0001&link=tips0001_sellFTSE_259_197&cp_c=4fnjpm

I think it has been a bit rosy for a while now, and i feel the FTSE is well ahead of itself, always difficult to do the opposite of what your mind tells you, but its like when it was all doom and gloom, it never only goes one way, as it was oversold @5400, it is just as likely now overbought @6200...

Thanks for link Big T will be able to sleep this WE with the short still running!

Something for the weekend
http://www.financialsense.com/fsu/editorials/amerman/2008/0502.html

Careful Maggie - there is a bit of a feel good factor starting to come through with some commentators starting to say the banks & Building societies have bottomed. Watch what happens with the dow tomorrow - that will be a pretty good indicator. Me - I am too chicken to keep a position open at the moment as I feel it could go either way - am only playing short term trades and trend betting

Thanks Bhunt for advice will be watching carefully tomorrow Have actually considered taking a long and a short with the volitility at the moment both could work. But haven't got the balls to put my money where my mouth is yet! The short's open until June will let it run hoping to get out on evens or a small loss at some stage agree it's a bit hairy at the minute. Still doing bit of short term trades hoping to minimise the loss if it doesn't go my way!

We are on a knife edge at this time, there does seem to be optimism from press and some analylists that worst is over. For me I feel this is a suckers rally, but you can never be sure. So apart from one open short position against my long portfolio, I will just go with the trend on indices and close out before the close of play.

We may have a clearer picture towards the end of the week.

Good Luck............

Got to admit i quickly decided, after opening both CFD and SB accounts, that trading Indicies, currencies and even commodities wasn't really for me - I seem to be able to predict the markets with a fair amount of success when i hold no position, but actually its more to do with hindsight, i find it difficult to let winning positions run and far easier to let stops take me out for a loss.
I decided to open a short at 6200 and will probably let it run, if it goes against me i will probably double up at 6400, because for certain i dont think the market will just keep gaining, i will make money on any pull backs (and lets face it, there will be pull backs) to counter the loss on my current position.
On balance though, i feel we have got ahead of ourselves and a correction is due...

Inclined to agree B T hoping for some resistance at 6200 bu tmaybe it's wishful thinking.

Oil nearly hitting 120 again despite dollar strength!

Falcothou: according to Thomson Financial News the price of oil rose "amid investor jitters over further violence in Nigeria and potential escalation in tensions between Iran and the West."

The West would be in big trouble if Iran refused to supply it let alone go to war. Some people suggest that Bush's remit is to renumerate oil and defense sectors and he has done a fantastic job! I don't know what percentage of oil revenue goes into defense for your average gushing tinnpot state but judging by the sabre rattling in Chavez land and everywhere else quite a lot.

http://www.bloomberg.com/apps/news?pid=20601102&sid=aY8GpLUsUKMQ&refer=uk

managed to trade the dow yesterday to good effect.

Been looking at the FTSE today and it is looking toppy - tempted to short - any thoughts?