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 have no specific timescale or interest (per say) in cable. I just feel whilst it may be a "safe haven" for now, the US must surely be a basket case with all that debt once the immediate "crisis" abates. I figure we could see another year or so of uncertainty though.

Seperately. Given GDP figures are out in the US on Thursday, will the size (or maybe lack) of any Fed rate cut give some clue as to how good or bad the GDP figures are likely to be?

Strawbs.

doubt it ..... GDP numbers are historic and surely bound to be vile ..... Fed rate cut is an attempt to kick start the economy by giving Joe Public encouragement to go out spending a bit more and, if the banks (ever) get round to reducing their own lending rates, it will also be good for biz

Banks generally prefer to look after no 1 than reducing lending rates...
Congress was told that if they attempted to restrict the use of the funds you would veto the bill.

We the people, in our phone calls, letters and faxes both to you and to Congress, said that we disapproved - that Hank Paulson would abuse this power and the banks would abuse our (not your) money.

Paulson in fact did exactly that.

He gave out $125 billion of that money in the form of "equity injections" to these banks without requiring in the form of contact that:

They not pay out any of it in bonuses, dividends, or executive compensation.
That they not use it to acquire other companies.
That they agree to verifiable means of showing that they have used it to make loans into the economy.
The banks in fact are using the money for bonuses and acquisitions, and aren't making loans - exactly as we the people said would happen, and which your political appointee enabled through his explicit actions.

At least ftse hasn't gone mad today after dow increased nearly 10%, the markets are acting like a manic depressive now, which doesn't make it easy for trend traders.

I bet some banks are feeling sickened today after the incredible short squeeze of Volkswagen on Monday and Tuesday, after covering positions yesterday after huge gains, Volkswagen are down today over 40%. Sounds like some manipulation here.

not exactly ..... many big shorts in VW had to be covered in a hurry and insufficient stock around to do so ...... interestingly, one could not short VW either when it was +/-1000!

As from 3i site , well worth a watch, interesting prediction of $ being next carry trade
http://uk.youtube.com/watch?v=OUixPvfJHB8

Wall St is presently being run by folks from the lunatic asylum who call themselves "Hedge Fund Managers"

Btw guys - well, Falco ;) FOMC decision is at 18:15 GMT - the US don't change their clocks until 3 November.

It is surprising that Porsche didn't have to disclose their holdings once on the way to 75%.

Thanks chocolat forgot about that. Currently I'm sidelined but considering shorting cable and dow just in vicinity of 6.15pm, see if Oscar is right about the trendlines. Durable goods better than expected and drop in Libor is bullish otherwise. I expect a lot of traders will be out to sell the Fed decision but there's the chance of the market doing what you least expect! Called oil right today up $3.5. It is interesting how you often get a lag in say the dollar dropping and gold and oil rising in response. If dollar rises tonight and dow drops could expect a reversal in crude and possibly gold. I'm increasingly thinking that currencies lead the market though find them a nightmare to trade! Those with CFD accounts might want to take advantage of currency conversion today with pound stronger if they have losses! I have nice profits in sterling but deficits in dollars due to some foolhardy ventures into gold, oil and currencies!

Can't see much point in holding gold at the moment. With interest rates falling around the world and asset prices sliding, surely we're heading into a deflationary environment, rather than an inflationary one. I suppose you could argue gold is a form of security against the financial system melting down, but frankly if that happens we'll have bigger things to worry. I doubt a shiny gold bar in a vault somewhere will help much. Personally I think gold is the last commodity bubble still to burst.

Given the markets are bipolar at the moment, whatever's gone up today will probably fall and vice versa after the FOMC announcement. :-) Think the size of the cut may also influence market activity, as will tomorrows GDP figures.

Markets of all flavours are still very much a lottery though......

In my opinion.

Strawbs.

Going to plan so far get those stops in for insurance

WASHINGTON (Dow Jones)--The Federal Reserve on Wednesday slashed interest rates to four-year lows, capping a dramatic policy turn in October as the U.S. confronts a severe financial crisis and almost-certain recession.

Fed officials even left the door open to additional rate cuts to below levels not seen in a half-century, putting rates on the once-unthinkable path towards zero.

The Federal Open Market Committee voted unanimously to lower the target federal funds rate at which banks lend to each other by 0.5 percentage point to 1%, its lowest since between June 2003 and June 2004. That outcome was universally expected by Wall Street economists in a Dow Jones Newswires survey.

The Fed also reduced the discount rate charged for direct loans to banks by 0.5 percentage point to 1.25%.

"The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," the FOMC said, while the financial crisis "is likely to exert additional restraint on spending."

Though the fed funds rate was 1% as recently as 2004, few if any on Wall Street thought officials would revisit those levels again.

After all, the 2001 to 2003 easing campaign was seen by some, in hindsight, as an overreaction to the mild 2001 recession and overhyped deflation fears. Those cuts and the slow pace of tightening thereafter were criticized as the root cause of the ensuing U.S. housing bubble, the collapse of which is at the heart of the current economic storm.

But this time is different. Far from a mild downturn, the U.S. economy is poised to contract sharply. Economists expect third quarter gross domestic product figures, due for release Thursday, to show a 0.5% contraction, at an annual rate. The forecasting firm Macroeconomic Advisers expects an accelerated decline of 2.8% in the current quarter followed by another GDP dip in early 2009.

Meanwhile, the unemployment rate is expected to climb well above 7% in coming months from its current level of 6.1%. And inflation rates, though still quite elevated on an annual basis, should come down quickly in response to falling oil and gasoline prices.

"In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability," the Fed said.

As recently as the FOMC's last scheduled meeting, on Sept. 16, officials had warned that inflation remained a "significant" concern. But as the credit crunch claimed more victims and showed signs of spilling over to consumer and business spending, Fed officials on Oct. 8 - in an unprecedented joint rate cut with other major central banks including the European Central Bank and Bank of England - lowered official rates by 0.5 percentage points.

Those actions should promote growth over time, the Fed said, though "downside risks to growth remain."

Fed officials will monitor the economy and markets and "act as needed" to promote economic growth and price stability, the Fed said.

Also this month, the Fed announced a series of programs to help ailing short-term debt markets, particularly by easing corporations' access to loans they need to fund their daily operations. The market for those IOUs, or commercial paper, has suffered as money market funds - the largest group of investors in the market - remain spooked in wake of the collapse of Lehman Brothers. Some money funds had incurred significant losses from defaulted Lehman debt.

Under the Money Market Investment Funding Facility the Fed announced last week, the Fed will provide funding to help money market funds purchase certificates of deposits and commercial paper. And through its Commercial Paper Funding Facility, a complementary program that started Monday, companies such as American Express (AXP) and General Electric (GE) can sell their three-month commercial paper to the Fed.

The Fed has also extended loans to banking organizations to purchase asset-backed commercial paper, started paying interest on banks' required and excess reserve balances and boosted the size of its Term Auction Facility auctions - all in effort to encourage lending.

There are preliminary signs the Fed's backstop programs are working. A key lending rate, the London interbank offered rate, for instance, was lower Wednesday, extending a streak of consecutive daily declines over the past two weeks.

"The real story regarding the Federal Reserve is its various liquidity operations; the federal funds rate is second fiddle," said Miller Tabak bond strategist Tony Crescenzi in a research note before the FOMC decision.

Still, the fed funds rate remains a powerful tool given the new global nature of rate cuts. Until recently, the U.S. was largely alone in easing rates given that the root cause of the global downturn has been the bursting of the U.S. housing bubble.

And even if the Fed is entering the final phase of its 13-month fed funds easing cycle, other central banks may just be starting. China's central bank lowered rates Wednesday for the third time in two months, following an unexpected rate reduction on Monday by the Bank of Korea. Norway's central bank also lowered rates Wednesday.

The ECB and BOE are expected to cut interest rates further when those central banks meet next month.

Dow performing more or less as expected ..... may well hold at least some Dow shorts open overnight

that was a bit of a hairy scary evening, but made a modest profit on all Dow shorts and still have one lot open o'night.

Completely loopy sell off at close, yen strengthened against dollar late as well which may send the perhaps all important nikkei into another spin. Not keen leaving open overnight though !

indeed .... lost 450 points in last 15 minutes, from Dow's highest point in the evening to its lowest

Asia up big style looks not to be a 2 day rally, until gdp anyway

it's all nuts!

70 gap down at open on ftse but rio still in auction