20081014

After high open the WIG Index was undecided:



At intraday chart we can see the gap in the gap:



Higher low & higher high gives us buy signal in short-term. Let's see how Europe reacts tomorrow. Current rally is explained by G7 decisions (here), but I'm still confused - if we can't go much higher (DAX +14% Monday & Tuesday) when Europe and US markets are so bullish, what to expect when they fall? Many traders are wondering if this is a bottom - it's possible, but nothing has negated the bear market as for now and there are no buy signals in medium-term and long-term.

Still, a lot is going on and it's hard to keep up with all those news. The US Treasury will help certain (important to system) firms and institutions (here). Also, make sure you read about Iceland stock market crash (here) and direct purchase of US banks shares (here).

Sources:
[http://seekingalpha.com/article/99728-the-g7-put-vs-the-greenspan-put]
[http://www.marketwatch.com/news/story/treasury-says-developing-separate-approach/story.aspx?guid={C495BA3B-DE9E-4315-AFEA-C5F4CA7B8226}]
[http://www.forbes.com/home_europe/2008/10/14/tarp-paulson-banking-biz-beltway-cx_lm_bw_1014tarp3.html]
[http://www.forbes.com/home_europe/2008/10/14/iceland-trading-update-markets-equity-cx_po_1014markets10.html]