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

Have dipped in this morning, re-purchase of HAWK, set limit orders for NPE, POG and TAN

feeling rather braver today, i think i shall but back into GOOG when USA opens ..... hellish expensive, but very low spread ..... had them about a week ago, but closed out at about $692 at a small profit ..... closed last night about $670

in case you were thinking the goldman results were good:

Ben Stein, the actor, game-show host and economist, accused Goldman economists of "selling fear" and then shorting mortgage-backed securities. That resulted in gains that offset write-downs in the third quarter.
Fortune's Allan Sloan suggested that Goldman was well-aware that it was selling doomed MBSs because it was shorting those same securities at the same time. Sen. Christopher Dodd, D-Conn., has called for Goldman alumnus and Treasury Secretary Hank Paulson to answer complaints made by Stein and Sloan.

Can you trust advice given by Goldman Sucks?

charts on both sides of the pond still showing a very choppy pattern which the brave can interpret to suit.

personally, i had a very good day on the markets (a firm offer for RIO would have been the icing, though i think that will happen sooner or later), but very difficult to determine whether or not this is a short term rally, and therefore one sells into it, or if sentiment is indeed changing, whether warranted or not.

certainly BoE is making strong noises about inflation still being under control and therefore a further rate cut is still probable as oppposed to just possible.

US exports are now booming, and that can be no bad thing.

gold, oil and iron ore prices are still very robust, and the belief in further consolidation within the commodity companies remains as strong as ever.

on that basis, one is very tempted to say that the markets are indeed about to regain their poise and even upward impetus ....... but but but, the nagging doubts remain

You used to be indecisive, but now you are not so sure then? :o)

you're right! ...... however, the markets have sure been roaring today and am glad i am running no shorts ...... in fact, am almost more than fully invested, so if i am sufficiently disciplined, may top-slice a few stocks on Monday, but it will be difficult not to let greed prevail ...... mind you, selling my holding in GOOG would free up a large slab on its own!

other than Nasdaq which chose to be perverse, the charts finished the week with a much rosier hue ..... i accept that trade is thin, but far better to have traded more than a little positively than the reverse ..... Monday is a short day, but it hard to envisage FTSE finishing on a down note ..... Dow will open after that, and rather more tricky to call .... there are then just 2.5 trdaing days before the turn of the year, all of which are likely to quiet in the extreme.

for myself, i think i shall take the opportunity of this sharp rally to bank some profits and quite probably to clear out a bit of garbage ..... if i follow that line, then DOO will be a prime contender and i confess to being more than a little fed up with the inactivity of VML and TMC (already halved that holding), even though commodities are currently the right sector.

for those who do not already know, i trade in CFDs, so the logic and what should be the discipline are rather different from (not different to!) when one has invested real cash - i.e. not just a small %

interesting to note that ST talks of BoE cutting rates perhaps 4x during next year ..... that will assuredly boost stocks, even if the underlying reason is an attempt to avoid the economy falling into recession

not really the right thread for this, but as no proper info on MAM for US stocks, thought this would do


FIRST SOLAR
shame one can't do much sensible on MAM with US stocks ...... this really is a cracker and i recommened anyone who has an interest in this sector to have a very good look at this one, albeit that is a serious heavyweight - currently $272.00.

have not bought yet as was hoping for a couple of weak days for the stock, but just not happening pro tem


GOOGLE
even heavier than above, and needs no intro.
currently $700.00 and pretty volatile
good stock both for trading and long term

certainly did not expect to be threatening to break down through 13000 on Dow ..... US obviously badly spooked by bad manu figures and oil hitting and holding $100

I thought Manu won at the weekend!

at lex100's instigation, the following would be my 6 choices ahead of PET, of which lex is the champion

absolutely SCHE and PFC followed by ORE, CEY, TAN, BRR and alternates of EO., PVCS, CRA, and perhaps even VIY (almost no downside left!)

i could have picked out some heavyweights, but i know most of you don't like those.

===========

SCHE = Southern Cross Healthcare
first rate company in a good sector (healthcare), and less likely to be hit badly if the market goes sour.
sp can be a bit volatile and is certainly having trouble breaking and holding 600, but am sure that will happen.
see thread for charts et al.


PFC = Petrofac
one of the leaders in its field of oil-well services.
time and again the company comes up with new contracts and positive trading results.
as long as oil stays strong, which is likely for the foreseeable future, there will be plenty of demand for PFC's services.
in this scenario, many of the marginal wells will become economic once more and their (perhaps) elderly installations will require TLC from PFC.
plenty of charts on the thread.


ORE - Aricom
thread still shows the EPIC as TIO from which it changed about 3 months ago.
one of the Peter Hambro progeny which i have traded quite successfully in the past, but looking like a very good prospect with iron ore prices predicted to rise 35/50% in 2008.
has made a successful transition from AIM to full market listing.
downside is the inherent risk of being based in russia, but the company and sp should prosper in its own rights, and must surely be quite a tempting morsel for one of the mining giants.


CEY = Centamin
a dinky little gold producer based in egypt with decent proven reserves.
after a recent dip, chart is now showing good upward momentum again.
could arguably have picked POG instead, but that is too hefty for most of you.


TAN = Tanfield
a if not the leader in the field of electric delivery vans and other slightly more esoteric vehicles and the like, similarly powered - another good sector in which to invest.
sp has come well off its high of about 200, and now languishes around 130.
probably all got rather ahead of itself, but has consolidated at the current levels and there should be plenty of upside to come.


BRR - Braemore Resources
i am a recent convert to this stock.
sounds like a mining stock, but is not in the true sense of the word.
BRR has protected rights for the next 10 years for a patented and now proven - i.e. past the theoretical, blue sky and even preliminary trial stages - cheap and clean method of extracting the considerable and valuable mineral residues in the tailings.
it is always a good sign when these trials etc are completed to time and the management seems to understand the importance of keeping shareholders properly informed.
assuming timetable maintained, company should be truly profitable within 3 years.


EO. = Encore Oil
something of a blue sky E&P oily, though at least its licences etc are all based in UK waters - eliminates the risks inherent in places like iraq and fsu territories.
looks to have good institutional following, which is always a comfort, and 9 wells (partnerships) scheduled for drilling in 2008.
what chances of hitting commercial hydrocarbons? ...... still no better than 1 in 5, so certainly a risky play.


PVCS = PV Crystalox Solar
what a mouthful, but at least this is in "flavour of the month/year" sector
company has been around 25 years and is certainly a much safer bet that SOLA
rns 3rd Dec was extremely bullish, which may not yet be discounted in the share price.
figures prob due mid March but not yet announced


CRA = Corac
a bit of a tiddler, but a good secondary stock alongside its big brother PFC
company is pretty well advanced in developing a method of underground natural gas compression which will enhance flows and significantly extend the lifespan of wells
still a bit speculative, but if good news is forthcoming in 2008, then expect some significant upside


VIY = Vialogy
the joker in the pack
i do not really understand the product, but seemingly it is rocket science software of similar
VIY certainly has some impressive collaborators, but so far no confirmed orders
if VIY actually gets off the starting blocks, then it could be a very exciting stock indeed
have included the stock here on the basis of the above and that at only 5/6p there is not much downside!



and that completes my story!

Cynic no SER, your better than most in the sector stock. Cynic, DSGI getting slaughtered today even though profits of around 230m-240m for this year (admittedly down from 280m - 290m) and with a current capitalisation of 1.4B. OK divi will/should be cut, near term outlook grim, but PE around 6. I will be interested if you have a view on the sector. I don't hold DSGI atm.
2517

DSGI
big profit warning - what do you expect!
also it's a high street stock, which are particularly vulnerable and flakey for obvious reasons
don't touch!

SER
far too small for me, though as i have said, for a mini-minnow there are plenty worse bets


may get round to writing up my last 3/4 alternates in due course.
lex100 has not seen fit to disagree with my choices!

Cynic I saw the profits warning, thanks for your view which is a majority view atm, mine included, but there will come a time to buy selected stock in the sector. Re your picks, I hold BRR, I like TAN & PFC but don't know much about the other 3.
2517

wonder when the real news will sink in:

The nominal increase in new orders was more than double the 0.7% expected by economists surveyed by MarketWatch, but the gains were largely an illusion of inflation. See Economic Calendar.
The figures confirm a softening in the manufacturing sector despite large increases in exports.
Orders for durable goods were weaker than reported a week ago, falling 0.1% instead rising 0.1% gain as initially reported. Orders for nondurable goods surged 3% on higher oil prices. Read the full report.
Excluding the 15.9% rise in petroleum orders, new orders fell 0.2%.

Cynic ,definitely PFC it's the only holding i have at the moment in this delicate market.

OK guys ..... post 485 gives you 10 stocks to consider for 2008; that does not mean that if you buy them should hold on like grim death ..... if they perform well, then don't be afraid to bank some profits; if they disappoint, then bite the bullet

Posted 03-01-2008 at 14:31
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IDEAL next target 6490 as per chart below.

No guarantees of course.