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 suspect a low on ftse.today.
looking for a reasonable bounce from here.
if it takes out todays low and holds stock up and head for the mountains.
could be wrong of course.
just my opinion as always.
regards
jkd

BT
our posts crossed but it seems we are in agreement, although im not sure this is the final low.
best regards to you.
jkd

CNN experts(?) reckon the $700bn bail out package will not have any effect for another 2 weeks, so possibly further down to go until then.

In all fairness, the problems wont stop until the US housing market stabilises, however the market has become oversold on just about every indicator, and i also think when we start getting close to new year the market has to start looking towards 2010, add to that, the election and i think we have strong upside potential...

global rate cut just announced

We're in business guys, Market shot up last few minutes...

Lets see how pessamistic the markets really are......

Will they buy the rally or continue to sell it?

Strawbs.

DOW futures now +152. What a turnaround!

... and now down 160... now, where did i leave that noose...?!

FWIW I believe we're near (200-300 points) the bottom and this morning added SBRY @268p to the BT.A I bought last week @257p (ok I'm shy a few p on BT.A) Anyone looking 2-3 years out will benefit from purchases made @ these levels in blue chip co's, imo.
2517

I agree. Now is probably the time to start thinking about core holdings for the future. Utilities seem to have held up quite well, though unexciting. Div yield should be maintained, though OFWAT inspection coming out in 2009, I believe.

An extract from Mike Swanson...

Yesterday once again the stock market fell - this time going through the lows set on Monday. There is still no sign of a bottom. Despite Tuesday's drop the VIX only went up a point while the put/call ratio actually closed down - in other words despite the market drop a lot of players in the options market were trying to bet on a bottom. This is a bad sign, because at bottoms you see people buying puts in mass as insurance against further declines.

We also did not see the increase in volume that I'm looking for to spot a bottom. Again let's look back at the charts I showed you yesterday, because they are so critical

This is the market bottom that came after the September 11th Bin Laden attack. Notice how when the market bottomed volume picked up into the final bottom. That has not happened yet.


The same thing happened at the bear market of 2002. I consider the current market environment very similar to what happened during this bottom. The selling became intense and as you can see the market fell a lot over eight weeks. As the market reached a bottom it fell hard on huge volume for four days.

We have not seen selling like this yet in this market - but I think it is coming. It would have started today if the central banks hadn't cut, but now it will start in a few days or a few weeks - depending on how long this government created bounce can last. I basically am expecting several high volume 3-5% down days in the market to bring us a bottom or one huge crash type day to bring a bottom to the current market and until I see that I will not be convinced we have seen a real bottom.







Earlier this morning the DOW futures were down over 200 points on the back of huge sell-offs in Asia and Europe. The Japanese Nikkei fell 9.40% while the European indices were down 4-5%. Everyday it seems we get another bailout plan or government intervention. Today it is the UK government which announced a plan to invest taxpayers' money directly into the bank and a simultaneous 50 point rate cut from all of the world's major central banks.

The futures popped up into the green on this news, but I do not believe it will stop the decline. Once this bounce ends the market will simply go down again.. I consider it a joke. I remember when I was a kid being at someone's house and we all got the idea of flushing all of the toilets in the house at the same time to see what happened. We did it - and guess what - nothing special happened. This rate cut is not going to cure the woes in the economy or stop the bear market market in stocks.

I'll say it again - the bailout plan has done nothing to restore confidence just as every single announcement of government intervention or rate cut over the past year from the Fed and Treasury have not stopped the bear market, the economic slowdown, or the credit crunch.

The market is washing itself out and it can't be stopped. The Fed can only make the market go up for short periods of time. This bear market is going to continue until all of the traders, hedge fund managers, and weak hands sell. The only people that will be left will be the few strong investors who can stomach this drop and do not sell. Every potential seller is going to sell.

We are on the verge of a panic waterfall decline that will bring us a key bottom - possibly the bottom of this bear market if the market falls enough.

A shorter then

A self-fulfilling prophecy of course if he spreads it around enough.
I'm not aware anybody can call a bottom otherwise they'd be a millionaire and would be sitting on a beach and not writing articles trying to influence people.

Only IMO

Entirely in agreement with the sentiments of your post Ted, still think we haven't reached the bottom yet; the trick will be to judge when we have and start to buy. Having said that I do think there is already good value waiting out there. I'm going to hang on for while longer though.

Am fairly well stressed at mo, although, also, cos waiting for exchange on my sale and my buyers solicitor has decided to be an utter bitch!
But am gearing myself up to handle one more massive sell off and promising myself some hefty top ups just when every inch of me is screaming 'sell'... it will take nerves of steel i believe, and depending just how big the chisel actually is, i may lose a few digits... lol!

appears to be little trading on-line.

can't get any quotes for any shares atm.

not even for 200 HBOS =240+

BT
i meant with provisions not fork handles.
good luck
regards
jkd

tonight in NY will give a strong clue, though Dow all over the place, as was FTSE earlier ..... Dow currently +30 or thereabouts having been quite heavily off not more than an hour ago ...... keep watching.

imo, though i rarely have one(!!), the consensus will be positive (with which i concur) which should bring some stability and much needed relief ..... the initial result, assuming NY keeps its head, will be a strong showing in F/E o'night followed by a good day in London - i hope!

My guess. People will keep trying to pick the bottom, but unlike any recent market crash, this one will keep on going. Why? Because the worst financial crisis since the great depression demands an equally spectacular collapse. It also wouldn't surprise me, that after promising billions and billions in bailouts, governments actually struggle to raise the money......

Charts would suggest we're near support, so a bounce may be close at hand. I wont be buying. See you again at 3000.... ;-)

In my opinion.

Strawbs.

dow future currenty 9137, ouch Not much confidence there then. will it bounce tomorrow. Probably all over the place.
Having bought ore at the bargain of 20p yesterday only to see it lose 50% first thing, I will ted to stick with ted on this one.