The WIG20 also moves inside a channel, but we are getting closer to "psychological" level of 2500:
It's again hard to tell if the market continues. Market is in downtrend, but it did not cross the low from Jun yet. What is interesting - indicators (RSI and CCI) are confirming the trend, but the volume does not.
Fibonacci retracement from Jun low to Jun high still calls this move just a correction (below 61.8%), but it can change in few sessions. Nevertheless, it's still not the best time to do anything on the market:
Time to Avoid the Stock Markets Altogether from EnzioClock - this paper goes straight to the point. It's hard not to agree, but it is also perfect time for observations.
There is no mystery - when wide market is going down, everything more or less tends to go down - we don't like fighting the trend. But some stocks are obviously stronger than others; maybe strong hands are involved, fund manager is stubborn or corporate is buying back - we don't know and probably we will never known.
Nevertheless, we can try to spot those stocks with Relative Strength indicator. As for US market it seems Health Care and Consumer Staples sectors are doing much better than the market in general (here). As for polish market, take a look at Telekomunikacja Polska S.A. (TPS) and check its relative strength here (polish, but just click on "Sila Relatywna" button to see proper chart). Its looks good and behaves much better than the wide market. Another strong bets are CEZ (CEZ) or PKOBP (PKO). The bear market will be eventually over someday. It seems to be a good idea to have a list of those "behaving" companies prepared then.
Sources:
[http://seekingalpha.com/article/91728-time-to-avoid-the-stock-markets-altogether]
[http://seekingalpha.com/article/91761-s-p-500-key-sector-relative-strength]
[http://www.czasnazysk.pl]
[http://www.czasnazysk.pl/kategoria/edukacja/lekcja-4_24 (via Google Language Tools)]
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