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

stopped out my short on ftse I took out at begining of month, could be a bounce but i don't think it'll clear 4300, I expect it to test lows in the next month as the deteriation in economic data accelerates.
The bad news this week will really hit home hard on consumer confidence this month as it did in October, I expect Feb will be a truely dreadful month for any retail business, (unfortunately mine is vulnerable to this downturn in confidence) job losses will be counted in from after Xmas and those credit card bills will hit. All told bloody crap for the next 1/4, I am finding it hard to imagine a pick up in sentiment before the third 1/4 and am only really interested in going long when we hit 3200, probably around April at a complete guess. If I get it wrong great as far as the future of us all is concerned, if not even better.

I'm looking for somewhere around 2500 for the FTSE before I commit any significant funds on the long side. Seemed crazy when I mentioned it over a year ago, seems less crazy by the day. For now I'm avoiding the markets. No time to be risking capital with job security a concern.

Strawbs.

So where do you put your capital in the meantime? Saver's rates are poor, premium bonds a waste of time....etc etc

Only trading very short term now, sometimes only a few hours if price goes my way, and tight stops in place. It's not the way I like trading, but I feel only option in todays market.

Strawbs ....i don't believe you will ever commit .... sorry to say, but you strike me as being like the ex vet girl currently appearing on the traders prog on tv - assume you know what and whom i mean

Seem to be on the precipice, belayed up by IBM after hours, lots of altitude sickness and a desire to go down, Obama failed to turn up with the oxygen

spitfire ... other than inner compulsion, there is no need to trade at all!

No. Actually I don't. I've done pretty well out of stocks on two occasions in the last fifteen years, being invested for periods of around four years throughout the tech boom and the commodities boom. Rest assurred I'll be back when prices are right, but at the moment markets are a gamblers den and I'm not a gambler. If you have the time and spare capital to gamble then I dare say you can make money. I have neither, and prefer to be a patient if perhaps boring investor.

Strawbs.

cynic - which is why apart from a few trades I have mainly only traded indices for the last year.

Glad I stopped out, rebounded a bit today, Obama bounce or short positions being closed, either way bears have had a good run. Gold juniors in or about to be in production looking good to me now. CEY are going cheap as are HGM.

Gold to me looks like it is forming higher lows each time, if it fails to go below $800 in next month looks set for next phase up, government bonds are starting to lose their lustre as concerns over debt pile up, add in weakening currencies and the only way is up it would seem, unless deflation really is here to stay, but surely there will be alot of money flowing into the yellow metal soon.

The classic safe haven hasn't really taken off in dollar terms but for sterling holders it's been a beauty, sp's of juniors not reflected that this week.

As if things weren't difficult enough we will now have to sidestep co's likely to have rights issues, just a few I think may tap shareholders :- PRU, SL. KGF, GKN, RIO and TOMK aimo of course. Can anyone add possible candidates to my list.
2517

Are you sure about PRU? Broker upgraded it today to buy from hold. No mention of fund raising (though I know they are bidding for some of the AIG assets).

HC ---I don't know that any of my list will tap s/holders it's just my opinion.
2517

HC-------broker upgrade for PRU sp down 11%+.
2517

DOW 8000 level seems to be holding for the time being. Good for investors, perhaps not so good for the CFD/SB's.

Gone long Dax/ short FTSE only 110 between them when placed trade so hoping for divergence, need patience but probably need a good headless chicken rally or Porsche escapade to get the Dax into hyperspace it used to trade at a 1000 point premium!

interesting to note that Dow bounced off 7900 support and ultimately managed to hold quite comfortably above 8000

tomorrow could be interesting ..... papers have been full of doom and gloom for banks and retailers and uk economy in general ...... apparently 70% of trades with (scumbags) TDW last week was on the banks, with buyers outnumbering sellers 3:1 ..... i question whether that optimism will be well-founded .... i think not

The day traders must love it! Bit too risky for me though as an investment, as the future of the banks is still in question.
Wed is looking interesting with Int results from BSKYB & Vedanta, Trading statement from The Pru & a number of biggish Co's going ex-divi (including IG Gp).
Also US Unemployment Claims, US Crude Oil Inventories, US FOMC Statement, US Federal Funds Rate, all of which I expect to be worse than expected.
Sentiment is still negative, imo, but if you don't put your money in to equities (or similar), where do you put your cash? C & G B/Soc have just written to me & their best savings rate is 2.6% gross!!! Most accounts are sub 2%.

"with buyers outnumbering sellers 3:1"

Might that be fund managers selling large holdings and three times as many general punters buying them up.

In other words the professionals being pessimistic and the amateurs optimistic.

TP