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

Hi Ahoj - yes I did, and decided to go short again. It's not looking promising to me, after all :( I think the focus is on all the dreary earnings forecasts at present - and the better data (though not fantastic) from China is being sidelined by more negative news I reckon

I always loose when I am confused, resulting in overtrading. You went long in the morning at the top, now short at the bottom! Good luck

Hi Ahoj, my long was first thing this morning, so made a tiny profit as it hadn't moved very high. Now... well, clearly should have left it running.

FTSE100 is still bull trending, add to that the likely-hood Spain will request a banking bailout early next week causing Sterling to strengthen over the Euro.

Also Merkel on leaving last weeks summit stated the new ESM fund will not pick up the tab to pay for past problems should through any bailout up in the air and add to Euro weakness.

i think you're right about euro weakness ..... i'm delighted that i pay for our villa in the summer in that currency! ...... however, i understand currencies even less than shares so am not comfortable trading them

Well if I'm right next week should see a FTSE100 top followed by a fall back the week after, as Euro concerns start to weigh. Just a theory, I'll short the Euro but will stay away from the FTSE for now until a trend has been established.

According to Markus Huber, the head of German HNW Trading at ETX Capital:

"Overall short-term sentiment remains negative, further losses today would be considered especially damaging as many indices are near the lower band of the most recent trading range, if these major supports are being broken more losses in the next few days are likely with a change in the overall positive trend possible."

So your Markus Huber agrees then that we're likely to see a change in trend. Once the change in trend has been identified then maybe hop on the band wagon and go short. Alot sits with the weekend, could go either way and all eyes are on Spain for the elections.

Yes, I agree Shortie. I'm not going to do anything very much for now, having made a nice lot earlier in the week.

FTSE100 resistance @ 5915, any ideas for first support?

October PMIs suggest euro zone downturn deepening

LONDON | Wed Oct 24, 2012 9:55am BST

(Reuters) - Euro zone businesses in October suffered their worst month since the bloc emerged from its last recession more than three years ago, forcing them to cut more jobs to reduce costs, surveys showed on Wednesday.

The downturn that began in smaller periphery countries is now gripping Germany and France, dragging the euro zone as a whole deeper into the quagmire.

Markit's Composite Purchasing Managers' Index (PMI), which polls around 5,000 businesses across the 17-nation bloc and is viewed as a reliable growth indicator, fell to 45.8 this month from a September reading of 46.1.

It is the lowest reading since June 2009 and confounded consensus expectations in a Reuters poll for a rise to 46.4. The index has now been below the 50 mark that separates growth from contraction since February.

"It's very disappointing, it's a depressing scenario as things are getting worse," said Chris Williamson, chief economist at data collator Markit.

Shortie: in answer to your Q: probably around where we are now. Which is why I believe that if it breaks convincingly below it (5800), we'll be seeing a downturn - I may be wrong of course...

The focus for the DOW this afternoon will be on 'earnings from Boeing Co. and new-home-sales data'. If they're good, then perhpas Cynic will have a better day today?

it's AAPL where i really have too big a position .... keeping my fingers x-ed for tomorrow

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5675 is the danger point i was given, but that was 10 days ago and it may have moved a bit

AAPL no comment ;-)

promise i'll cuddle to comfort if i'm right :-)

Cuddle whom Cynic - do you have a big teddy bear?

USD Flash Manufacturing PMI 51.3 consensus 51.6 previous 51.1

RB results going down well - currently up 2 quid.

Draghi defends ECB bond-buy plan before German MPs

BERLIN | Wed Oct 24, 2012 1:33pm BST

Oct 24 (Reuters) - The European Central Bank's new bond-purchase programme will not lead to inflation or compromise the bank's independence, ECB President Mario Draghi told German lawmakers on Wednesday in a detailed defence of his signature policy plan.

In prepared remarks for delivery at the beginning of his meeting with the lawmakers, Draghi addressed point by point their concerns about the programme - dubbed Outright Monetary Transactions (OMT).

"OMTs will not lead to disguised financing of governments ... OMTs will not compromise the independence of the ECB," he said in a statement for delivery to the lawmakers.