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

Camelot - 12 Apr 2010 06:46 - 5016 of 5043 edit this post
"Time has surely come to consider shorting Dow"

why ? ; why now ?

you could have said that at anytime in the last year.

picking tops is a mugs game

picking bottoms gives you smelly fingers

to repeat for the umpteenth ..... no market can continue indefinitely in a straight line in either direction ...... there are a number of chart indicators that imply that a correction on dow is now well o'due

cynic, absolutely no disrespect - but what are these indicators you mention?

cynic ,BUT WHEN ??? thats my point ,you will be right at some point but if you shorted it this week you have already been stopped out ,,it's like playing roulette ..

klal ..... read and/or do your own f'ing research!

jimmy ..... no i am not stopped out, though i have set my own personal pain threshold; as for being like roulette, it's no different than going long or short of a stock

cynic, I could write a really offensive retort to your response but clearly you are not worthy of even that! What a waste of space!

cynic - klal does, and plenty of it! I read that as an innocent question asked out of curiosity.

Thanks cynic. It's apparent expecting civil behavior from some folks is pointless. What could have been an interesting discussion has turned into a slinging match. I think we're better off in the main Traders Thread.

off you go then, where perhaps someone else has more patience than i to explain some very basic facts about charts - which of course are only a tool anyway

Cynic - Surprised at you reacting like that towards klal, was a good question. At least have the good grace to admit that so far anyway your timing if nothing else has been suspect!

i'll accept that perhaps i was a bit and unusually snappy, so my apologies

however, you will find several previous posts of mine where i advise of apparent resistance or similar levels ..... mostly these are courtesy of my "chart guru" who is generally/often pretty accurate on these things ..... his logic, insofar as charts are ever logical, is based on something quite complex called GANN Theory

in this instance, 11000 should have provided the "tipping point" with 11100 as the suggested stop-loss ..... in fact, i only went modestly short at a little under 11100

while it is of course currently out of the money, the damage is more than bearable, not least because, almost de facto, other stocks are rising

in fact, i don't often back the indices, but certainly use them as an indicator with regards to whether to buy or take profits elsewhere

Thanks cynic understand your thinking now.

Looks like the Goldman Sachs new saga should make you a few bob now cynic :o)

That's stopped the relentless rise!

Fraud in a bank? Never!

my short not looking quite so silly now ..... that's always the prob when a market falls; it does it much quicker than on the rise

Is that a gentle sigh of relief I hear from the Cynic house?!!! ;o)

yes and no ..... it's only a modest position as it's easy to get over-ambitious, and of course tumbling dow = tumbling london ..... banked a couple of reasonable profits this afternoon on PMO and PCI, as much as a precaution as anything else - keeps the warchest topped up too

Goldman scandal is what has spooked the DOW period ....

true, but to be honest, dow has been looking for an excuse to drop for a little while ..... somehow it has defied gravity and a couple of sets of bad employment numbers

a fall of 3/400 points is far from impossible without remotely challenging the upward trend

on re-reading my archives ....

11000 is an obvious "round number" support, but in truth10780 is arguably the next meaningful point - that was the initial upward target

if that is reached and breached, then there's a further 200 point downside