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

Take a look at the FTSE 10 year chart below, and compare the last bear market to where we are today. Unfortunately I cant over write the bear channel onto this basic graph.

First the last bear market started at the second highest peak in October 2000, and bottomed in February 2003 = 2 years 9 months.

If you draw a bear channel using lower lows and lower highs, you will see that recovery would only be confirmed in November 2003 with a break of the higher bear channel at 4200.

This bear market started at the second highest peak in November 2007, and we are 10 Month's into this one.

If you were to draw a bear channel from this peak, I believe that to confirm a positive breakout of the upper trend line today would require the FTSE to first pass the 6000 level, which would confirm the end of this bear market.

I don't think we will see the lows of the early 2000 bear market, but I feel we still have further to go. I'm planning for a bottom either at the end of this year, or very earlier next year, in the mid 4500s. I can't back this timeframe or figure up with certainty, it's just my opinion. DYOR etc.............

surprised you lot are bothering , CERN are going to destroy the Universe at 8am in the morning!

Wana bet -):

Mr. Denninger isn't too keen on commercial property at the moment Spitfire...
http://market-ticker.denninger.net/

"CERN are going to destroy the Universe at 8am in the morning"

Should make a lively start to trading then.....

Strawbs

looks like some of you guys jumped the gun last night. Like Cynic banked about half of the fall yesterday and sat back waiting for further direction. Having said that the market is setting itself up for a great shorting opportunity so will just sit on my hands a little longer and then its candy from a baby

CNBC have just reported that someone is taking a stake in Lehman's and the FTSE is now only opening 20 points down with the US futures soaring.

BE careful out there cause these are wicked markets!

set stop loss on final half of Dow o'night which was hit, but left even that part with a nice profit of 100 pts too ...... FTSE short open and showing about 40 pt loss at mo

dow futures up 120. getting back into shorting territoty. Will watch the open with interest. Can't see the Lehmans announcement of 12.30 BST helping any

everything all over the place at the moment ..... impossible to tell likely direction even for next 15 minutes!

I'm very disappointed.....

Surely the world was supposed to end by now.....

Strawbs.

it has .... you are now in Purgatory!

now we are 30 minutes into trading, hopefully things should settle, sidelined at moment but waiting for a short entry on FTSE.

might be worth watching Dow indicators before doing so ...... i believe 11300 is an alleged important level and, having dumped straight through that during trading yesterday, it is currently hovering just above that level.

btw, if of interest, keep an eye on AZM .... about to post there now

I have target entry below 5360 if we get there, will take a look at AZM thanks.

News -

An Organization of Petroleum Exporting Countries statement issued at the conclusion of its meeting in Vienna said it will roll back daily output to 28.8 million barrels, down from about 29.67 million a day previously.

May effect sentiment ?

Purgatory.....yeah, a good name for work.....

Strawbs.

Falcothou

Thanks for the link, thats cheered me up no end.

I'm sure he has a point, I will padlock the drink cupboard and medicine cabinet, just to be safe.

Which builders are you thinking of taking a sledgehammer to Spitfire?

Cynic - AZM - short of the rumour that someone might buy them here is no sensible reason to buy these. Change of CFO and CEO in August, Loss making with practically nil revenue. I don't question much of what you say but im scratching my head on this one. I hope your right but Ill sit on my hands on this one

puzzled myself, but traffic was 6x norm yesterday and sp is holding up well today - haven't checked volume yet as a bit early ..... i have only a very modest position so can't lose my shirt


have just looked ..... volume already 2x daily norm