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

the market seems to have convinced itself that a rate cut is coming, but though that means i have "missed" some extra profit, i am happy that my decision to close out my index positions and also take other money off the table was both correct and prudent.

come 12.30 or 13.00, it will be more apparent how the markets truly interpret BoE's decision, whatever it happens to be

if there is a cut i may just (perhaps very foolishly!) be enticed into buying back into RTN or DOM, on the basis that there will be a feel-good factor and an encouragement for peeps to start spending on luxuries etc (knee-jerk relief!)

if there isn't a cut I would obviously like to short the FTSE, the only chance I might have would be after the initial fall on any bounce back.

Must admit I would now be very surprised if BOE held rates, even with their heads stuck in the sand.

well there was and that and the fed decision next week may well be the last hoorah of the bull market for the medium term. I'd expect some profit taking in next 36hours, then a bullish run to fed and then downhill from there.

If I'm feeling brave I could put both a long and short position on FTSE with a 30 point stop/loss at 6540ish and run with the winning position after the BOE announcement. I wonder.......

rate cut by 0.25% so have opened new longs both Dow and FTSE

OECD recommended fed don't cut rates again, and hold for up to a year. Fed probably will though, but wouldn't be surprised if it was only 25 points and not the widely muted 50.

Whatever it is in the price now so I generally don't see much upside from here, but I am usually wrong!!!

long FTSE at 6502

closed long at 6472 ouch, I will now write 100 lines. Never go against the trend.

got shut out of FTSE long at 6475 while out for good lunch ..... serves me right but no big damage

Had a work out and good run to clear my head, and returned to write out some rules which I will stick on my computer when trading.

1. Never go against the trend.

2. Always use stop/loss, never move them when in a losing position.

3. Always stick to my trading plan, and make sure I have a good reason for the trade.

4. When in doubt do now't, there is always another day.

5. There is no rule 5.

6. See rule 1.

7. Always use trailing stop/loss.

Good luck

I think we could all use those rules, Spitfire!

ultimately another OK day being long Dow and FTSE, the lunchtime loss being obliterated and a modest profit to boot when positions shut out o'night

closed one short for profit, keeping one running for march.

gone short again today at current level with tight stop.

Agree should write down your rules spitfire. Might benefit from reading rule 1 today!!

FTSE or Dow?
certainly i find the current Indian Rope Trick bewildering, and am inclined to short Dow, but have yet to work out an entry point

ftse today hence rule 1, will wait until tues evening to short dow

sorry to see your FTSE short looking pretty painful

will wait another hour before taking any positions, (using rule 1) markets seem to want to move north, maybe things could change from Tuesday onwards.

Watching bloomberg this morning, it seemed most commentators are becoming more bullish on us economy.

are they nuts or just wearing rose-tinted specs?

the charts on page 1 are interesting and may guide your actions .... depends how you want to intrepret what you see there!

DOW futures currently -17, which is not drastic, but may indicate a bit of a friday afternoon sell off here.