The WIG20 Index is below its Jul low:
Like yesterday, not much can be told about current situation from those charts. US market closed low, thus I think it will also be our direction tomorrow. The clue about future market can be growing volume, which tends to rise in market direction. Nevertheless, remember, that only the price really matters.
Brian Shannon in one of his analysis mentioned gold (this post). Some sources (i.e.: www.dwagrosze.blogspot.com (blog is polish, but you can easily use the Google Language Tools for translation, here) are suggesting to keep ca.10-15% of total capital in physical gold (which seems to be a good idea anyway) as it gives the portfolio owner something like a backup for a really bad times. The gold has become very volatile lately (chart thanks to ChartStation):
We shall note the lower-low & lower-high pattern on weekly chart. However, other signals are mixed: we clearly bounced from Fibo 38.2% and the retracement was very dynamic. Opening long position is risky and until we take out the last high (988) it's still sell signal. The 1000 USD seems to be psychological barrier as well.
Two last big investment banks: Goldman Sachs and Morgan Stanley are becoming bank holding companies. They will subject themselves to stricter federal oversight, but they will get access to the Federal Reserve's lending facilities (article here).
Some interesting post on short selling nowadays: US, UK, Australia, Russia, Germany, France and Belgium barred short sales last week. Hedge funds, which are usually driven by trend-following strategies, have lost valuable tool in many cases and will have to adjust their approach.
Sources:
[http://ftalphaville.ft.com/blog/2008/09/22/16196/short-selling-world-wide/]
[http://www.marketwatch.com/news/story/goldman-sachs-morgan-stanley-become/story.aspx?guid={CB72201A-A795-4C78-8F68-E64DAA26398D}]
[http://dwagrosze.blogspot.com (via Google Language Tools)]
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