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

A 400 pt stop from here? Crikey, just short and buy back 400 points lower down.

Hope you are not paying this guy cynic, is he having a laugh? :O)

no i do not pay him, but over the years he has proved surprisingly good ...... it is a chart- based system (GANN) which in turn is linked to %ages ..... too complicated for my small brain

chuckles (and chris) - never forget that markets do not move in straight lines either up or down, though i agree the markets are very uncomfortable at the moment

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looking at harry's chart, i see 12900 is coincidentally(?) the 200 DMA, but i also note that all DMAs remain strongly pointing north

Yes, but I saw on the FT site today that the Eurozone is very likely to drag us down for the next 3-4 days. Of course the trend is up, but if I was a spreadbetter I would be tempted to be short FTSE & DOW up to the w/e. FTSE futures are currently in the red.

cash ftse is curently showing -14 and cash dow down a further 15

I'm not trading it, but interesting to see that in the current rally since July Dow has bounced after dipping close to, through or bang on 50DMA which is where it more or less is currently at. Not getting involved :O)

it's at about 13300 but rising

interesting - following on from chris's comment yesterday ...... today's cash dow trading low was 12971 and now a sharp bounce to 13366

cynic - Just an observation, I am no chartist. Kiss principle, trend is your friend till it isn't, support and resistance, 50 and 200DMA above and below exit and entry points. I haven't got a clue what those crazy yanks are going to do next :O)

you're absolutely right ..... the only thing about charts, is that there are lots of acolytes of same, so they are often self-fulfilling

history has shown that guru is consistently good with his GANN theory charting interpretation and even MRSI regularly predicts well though he seems to use the much more basic bollinger bands at least as a base

Italy's pays more at 3-year bond sale after Spanish cut

MILAN | Thu Oct 11, 2012 11:31am BST

(Reuters) - Italy paid more than last month to sell three-year bonds at auction on Thursday, with investors unnerved by a credit downgrade that pushed Spain to within a notch of a 'junk' rating.

Rome's borrowing costs rose to 2.86 percent from 2.75 percent at a similar sale in September, halting a four-month run of declining yields.

But demand was solid and the yields remained well below a peak of 5.3 percent in June, a month before European Central Bank head Mario Draghi engineered a drop in peripheral sovereign borrowing costs with a pledge to protect the euro.

"Markets are taking Standard and Poor's two-notch downgrade of Spain in their stride and continue to perceive the euro zone's problems as mostly country-specific, thus helping Italy differentiate itself from Spain," said Nicholas Spiro, director at Spiro Sovereign Strategy.

USD Trade Balance -44.2B consensus -44.1B previous -42.0B

USD Unemployment Claims 339k consensus 368K previous 367K

USD Import Prices m/m 1.1% consensus 0.7% previous 0.7%

i think we may see some rumbustious rocking and rolling in the aisles in usa this afternoon ...... could well be that the bears of both GOOG and AAPL find themselves squealing a bit

U.S. Appeals court reverses injunction against Samsung's Galaxy Nexus Smartphone in patent fight with Apple

how very dull of them!

Cynic: what's worse than finding a worm in your Apple?

Answer: half a worm... I hope you've taken your profits!

i'm afraid i'm sitting on a bit of a loss on dow at the moment, but nothing nasty
did you watch the prog on india last night? ..... very interesting and gives one a rather different perspective on many things

Sitting on a loss Cynic? I'm not surprised if you're using 400 point stops.

Shoot the guru :-)