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

yep afraid so - i expect to be very busy next week :-((((((((((((((

but make the right choices & ......................

gl

Monday bloodbath again looks like FTSE will open down over 100 points. Happy to be short today.



(c) Sky News 2011, 7:12, Monday 3 October 2011


Markets across Asia slumped overnight, after debt-ridden Greece warned it would miss its deficit targets.

Japan (NYSE: MCO - news) 's Nikkei 225 (Osaka: ^N225 - news) fell 2.3%, Hong Kong's Hang Seng (HKSE: ^HSI - news) fell 4.1% and Australia's S&P ASX slumped 2.2%.

The Euro also fell to its lowest level in more than eight months during early trading in Asia.

The reaction came after government draft budget figures from Greece showed the country would miss a deficit target set just months ago in a massive bailout package.

Greece's deficit for 2011-12 is now expected to reach 8.5% of its gross domestic product - down from 10.5% in 2010, but short of the 7.6% target.

Inspectors from the IMF (Berlin: MXG1.BE - news) , EU and European Central Bank are in Athens to decide whether Greece should get a key bailout instalment - cash the country needs to avoid going bankrupt next month.

Meanwhile, the German finance minister also ruled out a higher German contribution to the eurozone's rescue fund than approved by their parliament last week, adding to concerns across the world markets.

And new figures showed inflation had jumped to 3% in September in the 17 countries that use the euro - possibly ruling out an interest rate cut from the European Central Bank this week.

The inflation figure is the highest since October 2008.

FTSE set to open sharply lower as Greek default fears grow
StockMarketWire.com
PRE-OPEN REPORT: Headline shares are tipped to open with heavy losses, according to financial websites, as global markets tumble following reports Greece will miss debt reduction targets this year and next.

i guess a sharp rally both here and in us is a def possibility, but i think there'll be heavy selling into same ..... get the rhythm right (not like me who chickened out this morning!) and there'll be some good quick profits to be made in both directions

Bernard - would you disagree?

Law of averages dictate there will be a rise, but one rise does not make up for what world indices, and stocks have lost. Until greece defaults, and Europe sorts things out shorters will win hands down for the rest of this year imho.

exactly that

Italy and Spain next, and there is little money in the pot for them. I see FTSE ending 2011 around 3,900 Feel sorry for guys with just long positions.

Very long note out from Morgan Stanley on the macro front, but conclusion as follows:
"Our market view: no change to our cautious stance patience is a key virtue in a bear market. We believe the market has got a bit ahead of itself over the last week or so in terms of expectations for a credible solution to the euro-area debt crisis. As this optimism dissipates equities are likely to remain under pressure and we continue to caution against investors pre-emptively positioning for a positive outcome in this regard in bear markets equities become less of a discounting mechanism and patience becomes a key virtue for investors. We also maintain our view that equity valuation and sentiment are likely to overshoot on the downside in this cycle given the higher-than normal uncertainties that exist with regard to monetary and fiscal policy. At the sector level we remain overweight defensives (telecoms and healthcare) and underweight cyclicals (capital goods and consumer discretionary) and financials (banks)."

Morgan Stanley lol.

Don't tell me.........on a par with charts????? ;o)

Maybe they have a better crystal ball than others.

It could be worse just imagine if our government was led by Eddy Milliband lol. No hope for him ever becoming Prime Minister the tosspot is finished thank god.

Piece in the Evening Standard ,30 sept.
Our army of clairvoyant City analysts is proving to be as impeccably
briefed as ever.
On Monday,RBS scribblers advised their client to buy Man group at 227p,
a tip that followed Fridays advice by Singer Capital to wade in at 231p-
as well as the sage musing of number crunchers at Peel Hunt and Canacord,
who on sept 9 said buy at 216p.
Not that their views were particularly original as they followed Deutsche Bank's
nod a day earlier take the plunge at 229p, which merely mimicked the wisdom of
Numis Securities (add at 229p) Citigroup(buy at234p) and Morgan Stanley
(overweight at224p).
On wednesday, Man's shares crashes by 25% to 180p (which finally prompted a
couple of downgrades)
All involved are invited to defend themselves.
Silence will be treated as admission of guilt.

Very true. They have no more idea than us, led by their silly charts and forcasts. Those days are well gone, news drives stocks, and indices not moving average, flow, charts and all their nonsence.

As we near 14.30 and the USA open down goes the FTSE. Hang on and have your tin hat ready. Investors get out quick it's a bloodbath day today. Short is the way for me.

Is That it Bernard? When's the book out? :O)

Let's hear your take CC don't forget to read the charts before reply, or ask David Moynes lol.

Another nice few quid today for us shorters. Go on down the Dow.

Bernard - FWIW my take on the markets today same as you, regards brokers forecasts more of a hindrance than a help at times. It's your attitude towards charts that baffles me and your throw away line "Charts are Bollocks". Without looking at a chart how do you pick an entry point to buy or sell and then set a target? As regards technical analysis, attempting to learn it has helped me earn more money than otherwise. Simples. Who's David Moynes?

Charts are useless with the recent volatile markets

Looks like another big down day for the FTSE Tuesday

that's a bit of a sweeping statement and pretty dangerous .... that said, charts are not to be followed slavishly .... however, they are a very useful indicator if for no other reason than that a huge number of people and computer programmes are linked to them

4860 and 10700 are the key numbers to watch ..... if 10600 breaks then sell heavily

DOW at 10689 now what.

keep watching - bounced back to 10750