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

Hmmmm;

12 jun you were long and now youre short davai . I can't see anything in your waves to have changed your mind. Anyone got a pin?

Bank and Treasury look to boost bank lending

The Bank of England will launch two new stimulus packages in response to the worsening economic outlook, governor Sir Mervyn King has said.

Together with the government, it will provide billions of pounds of cheap credit to banks to lend to companies.

Banks will also have access to short-term money to deal with "exceptional market stresses". The chancellor said the measures would "inject confidence".

Britain fights euro zone threat with £100 billion credit boost

(Reuters) - The government and central bank will flood Britain's banking system with more than 100 billion pounds, seeking to pump credit through an economy struggling to escape recession under the "black cloud" of the euro zone crisis.

In his annual Mansion House policy speech to London financiers on Thursday, Bank of England Governor Mervyn King said the country would launch a scheme to provide cheap long-term funding to banks to encourage them to lend to businesses and consumers.

have the markets REALLY discounted already the exit of greece from the eurozone?

12780 dow is the initial resistance - so i am advised - but with w/e now upon us and also the greek elections, i may take a(nother) modest short during the day though the target has not been reached

chuckles - 14 Jun 2012 22:27 - 8386 of 8389

Let me be the first to admit the market is doing what it does best as i've had several conflicting signals in the last couple of days, as obvious by previous posts, however, the above chart is actually the same scenario as the 12th June chart, (just its the 1hr chart, not 4hr) and it appears to be an 'irregular' correction, instead of a straight forward zigzag...

I don't have any position as i stated yesterday that the target of 12848 was negated, (despite it looking right now), i've missed that trade, if it reverses shortly after that, i will be looking for a 5w down (but not to new lows).

besides, my 12th June showed long from 12459, what's wrong with that?!

bearing in mind the above, i have just banked an adequate profit on RBS

For certain the Nzd is going to break its 4hr supporting trendline, but the question is; when?!



We have already tagged the 200% fib of 'A', but with my thoughts that the Dow might head higher, we may see the 223.6%, possibly even the 261.8%, (although i doubt it).
Looking for a strong 4hr candle to break the trendline, to start the ball rolling. this should be in tandem with the index's, or may even give a slight heads up.

Anyway, all just speculation, but just trying to share the things that i'm looking out for. Out of all the posts recently, this would be a great trade if what i have highlighted above comes off.

I think, over the last three weeks the affect of external factors was serious on the movement of shares and reduced the value of analysis of the charts.

I think we should rely on your analaysis from now on, as everything is getting stable.

Keep posting Davai, I find it all very interesting if way beyond me!

"everything is getting stable." - Wish I was as confident!

FTSE100 just given up gains for the day... NY Fed data was pretty bad.

I've tried and tried to simplify the chart, but it doesn't really work! :(
In the last few days i've (tried to) show two different scenarios for the Dow.
The conflict i talked about is shown in the following chart.



The blue line shows a last LH being breached and a swing long scenario, this gives me a break of the flagline and a target of the blue line (as suggested is possible last night) at 12848/50. This would then look to be a top of an irregular 'B' wave as part of an ABC correction. This means once hit, we head back down in 5 waves for our 'C', this also means we wont see any fresh lows, so once completed, we are going up for weeks thereafter to fresh highs...

Here was the original;



so all i have done is changed it to an 'irregular' correction, (whereby the light blue 'b' goes above dark blue 'a')

The other (and imo more likely) scenario is the red line. This is where the recent high was the end of a 'C' wave (probable irregular 4th). As noted before all the Fib levels fitted perfectly. That would mean the drop on Monday was a fresh wave 1 and so we retrace in an ABC move back to a common Fib level for wave 2. Further, Monday's drop also took out a previous 'reflex' point, (at the red line, top chart, prev 50% fib), giving added confusion.

(The original chart);



so all we have done so far is print a slightly higher '2'...

We have currently rejected the 14.6% level, so the answer will be nigh. If we make a HH, then it negates the second scenario, (point 2 can not exceed point 1) and expect minimum 12848, but probable reverse shortly thereafter as per previous plan...

If it carries on up..... well, i don't have a plan for that one!

Davai is there a good 'idiots guide' anywhere for Elliott Wave that you know of?

sock it to 'em davai ..... keep confusing them (and me!) all with loadsa goobledegook and science lol

jonuk - best idiots guide is to throw your hands in the air and let someone else do the work and explain it to you ...... you can then follow or not as you choose :-)

I'm with you on that one cynic :-)

Yes that's one option! In the meantime this pic shows a bit more than I understood before!

Link to massive pic of elliot wave formations

Chillax davai, I love yr charts, but it's easier to label the waves after the move than it is before the move, which kinda means predicting each wave count is meaningless. Anyway you're posting stuff with entries, stops and targets with the reasons why which is more than can be said for the majority of share site posters. Credit

Next £/$ target = 15750 yup