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

They even sell them! :-)

Man U top of the Premier.

http://www.bloomberg.com/news/2011-09-26/ftse-100-set-for-biggest-rally-since-2000-technical-analysis.html

FTSE 100 Set for Biggest Rally Since 2000 After Drop: Technical Analysis

U.K. stocks may drop up to 15 percent before resuming a rally that could push the FTSE 100 Index (UKX) to the highest level since the end of the dot-com bubble in 2000, according to Collins Stewart Plc.

The advance from May 2009 until August 2011 was the end of the first five-stage climb in equities suggested by Elliott Wave theory, Richard Bayley, a technical analyst at Collins Stewart in London, wrote in a report to clients today. We are currently in the middle of a three-step decline, which will be followed by another five-part gain, he wrote.

You probably wont even begin to believe me until its half over, but the rally from May 2009 until August 2011 was the start of the biggest bull market since the dot-com bubble, Bayley wrote. We will have a fall before fully recovering to go on to new highs.

The start of the first five-part stage of the Elliot Wave move higher was marked by a long-term buy signal in the moving average convergence/divergence, or MACD, indicator in May 2009, according to the analyst. The MACD sell signal in August 2011 marked the end of the series.

The Elliott Wave is based on a theory developed by the accountant Ralph Nelson Elliott during the Great Depression and says that prices move in a pattern of five steps followed by three steps. It contends that trends dont move in straight lines and that they are prone to setbacks. In a five-wave move, waves number two and four are corrective.


Corrective Phase

We are currently part way through the corrective phase, Bayley wrote in the report. This implies a 15 percent fall, taking the FTSE 100 to circa 4,400.


The benchmark FTSE 100 dropped 5.6 percent last week to 5,066.81 and has slumped 13 percent since the Aug. 1 amid concern global economic growth is slowing and Europes debt crisis is spreading. The gauge slipped 0.5 percent to 5,043.3 at 3:18 p.m. in London today.

Collins Stewart calculates its MACD indicator using the difference between an indexs 12-month and 26-month moving averages and plots the data as a line graph to identify trends. A nine-month moving average of this line is also plotted, and when they converge it implies a reversal in the market trend.

In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.

What a load of old testicles. He may have got the first part right further 15% fall on the FTSE, but the rest is pure lol.

More chance of Shrek moving to Man City.

Did not think it would be long before a comment.

Equities Could Decline Further 35%, Strategist Says

Sounds a bit like a weather forecast.lol One of them is right.

They were the days - when he had his own hair. :-)

Hes got about as much as me.lol

I heard Beckham donated his pubic hair for Shrek's transplant.

Game on for 11000 Dow skinny? Naahhh Charts are Bollocks :O)

lol. Chris are you a chartist.

I know where my money is :-)

Not on CC predictions i hope skinny.

No - just those crazy yanks :-)

Strange how the FTSE futures rise after close.

Just tracking the DOW! - I'm off - there's a pint with my name on it.

No Bernard, still learning. Just figure trying to understand how charts work has helped me earn more money than closing my eyes and picking stocks with a pin or even worse listening to Bloomberg or CNBC :O)

skinny - I know who my money is on ....... Man City :O)

CC I have found a full proof formula for making money.

Bet against any of your predictions. lol.