20080731

The WIG Index is touching the trendline from May, however I won't even try to forecast what will happen tomorrow. I have to admit I'm still bear, but very confused one right now:



If this is major trend reversal there will be many occasions and lot of time to join the uptrend, after it's truly confirmed. I like my money and I also remember the term: Bear Trap. Therefore I wait at least for Fibo 61.8% (which is not so far away anyway). Another strategy is Dow Jones approach, when we wait for correction and see if the next wave can take its high. Let's also take a look a monthly candlestick chart:



The WIG20 Index is looking even more impressive, however it's touching long-term (since the highest top in 2007) resistance. If this line is crossed and holds for at least couple of sessions, it will be very strong buy signal:



As for interesting stuff:
Federal Reserve is extending the emergency loans and also enables commercial banks to bid for cash loans that lasts 84 days (instead of standard 28 days). For more information please read here.
I don't have idea how to interpret that - nevertheless, nobody can tell, that FED is out of ammunition.

Sources:
[http://www.iht.com/articles/2008/07/30/business/30extend.php]
[http://online.wsj.com/article/SB121742140378196767.html?mod=djemITPE]
[http://www.investopedia.com/terms/b/beartrap.asp]