Blimey, I like a bit of life in the markets but these past few mornings have had me nipping down the chemist for extra beta-blockers. Despite going into this morning’s sell off with a £4 short position in FTSE I’m currently sitting on a £490 loss, which feels as comfortable as a bad case of haemorrhoids.

The morning had started well enough; the early indication on FTSE made yesterday’s sell spread bets look good. I sold a few more ahead of the open, then all hell was let loose with the market dropping over 200 points in the first few minutes.

I closed part of the short position as the market steadied then reasoned that it was stable enough to pop next door and have a quick shave. Now, I’m not one of these types that needs a shave again before lunch and another after tea; it doesn’t take me long to wipe off any stray hairs and sandpaper the chin. But by the time I’d returned to my desk the FTSE was nearly 200 points higher! Of course it’s my own fault, I should have used stops like I normally do, but I felt bearish enough to want to keep the short position, at least until the US open. If we get a US rate cut before that I’ll take the hit and close out, otherwise I’ll grin and bare it.

Food For Thought
I’m not saying that the market will have any respect for technicals during the current climate, but whilst we’re surrounded by headless chickens with a herd mentality this chart might be worth a quick glance:

The chart is showing that the ‘rule of thumb’ used by chartists suggested a fall to around 11,600 once the neckline had been broken. Well, we’re there now, so where next?

Finally, Kevin Keegan’s recent signing suggests he’s looking to introduce some Ronaldo-type flair into the team.

Happy Trading, and just be careful out there!

PS: The Fed did cut rates, I took my losses on the chin, then the market fell again. Where’s that cat?