20081008

The WIG Index stopped on 168% Fibo level from last swing. I think we can also say that target from descending triangle formation has been hit (I noticed target prices tend not to be fully reached):



Take a look at intraday chart:



We have made lower low again (sell signal), however we managed to close the open gap. The medium-term and long-term trends clearly remain in bear market. We don't fight the primary trend and stay on cash.

Today the coordinated 0.5% rate cut took place in central banks across the world. The European Central Bank and the Bank of England both took part in , which also included the U.S. Federal Reserve, the Bank of Canada, the Swiss National Bank and the Swedish Riksbank (here, here or here). People's Bank of China also trimmed its rates by 0.27% (here). The National Bank of Poland did not cut rates.

Maybe it's time to diversify also your international bank accounts (here or here)? Screenshot from Iceland's IceSave:



Also remember short-sell ban in US is going to be lifted tomorrow (unless last minute order will be issued).

Sources:
[http://online.wsj.com/article/SB122347219221615075.html?mod=djemITPA]
[http://www.marketwatch.com/news/story/text-decision-fed-other-central/story.aspx?guid={EFC611F4-25DD-4BA6-B260-BDFB6540A5D5}]
[http://www.forbes.com/home/2008/10/08/central-banks-update-markets-economy-cx_ll_1008markets13.html]
[http://www.forbes.com/topstories/feeds/ap/2008/10/08/ap5523603.html]
[http://www.marketwatch.com/news/story/iceland-takes-dramatic-steps-stabilize/story.aspx?guid={B4AA0766-A3A9-41F6-92CF-BBF0406F8147}]
[http://www.hm-treasury.gov.uk/press_101_08.htm]