20080806

Today was an interesting session. The WIG Index opened above the medium-term downtrend, but just below the low from Jan. The gap from end of Jan acted as support thought:



The WIG20 Index also looks interesting. The Jan low together with end o Jun gap seem to be pretty strong support now:



Next few sessions could be deciding. The good news are green close in US, nevertheless the serious problems in finance sector render this situation very confusing. From technical analysis point of view, the long-term trend is still down, however from medium-term perspective there is no longer downtrend.

It seems Jun has been good month for polish mutual funds. The funds investing in Warsaw Stock Exchange stocks performed much better (+0,79% on avg.), than their counterparts funds investing in foreign stocks (-4,96% on avg.). Of course, the poor performance of polish funds buying foreign stocks is mostly caused by very strong uptrend of polish zloty (PLNEUR). Currencies do really matter.

Nevertheless, the best results were produced by sustainable investment funds (+1,88% on avg.) and bonds funds (+1,47% on avg.) - that shows us, that we should not invest aggressively under current market circumstances. The short summarization can be found here.

Sources:
[http://pb.pl/images/files/2008/08/4104b172-9e0d-4002-8181-1344ecf44ff6.pdf]
[http://finance.yahoo.com/echarts?s=PLNEUR=X]