20080929

Today's session was really impressive. The WIG Index failed -4.18%:



The WIG20 Index failed even more -5.03%:



We have broken the resistance of 37300, which is pretty strong sell signal for short-term. We are still above the Sep low, but the short-term double tops pattern should be noted on both charts. Nevertheless, in such situation short-term forecasts are meaningless.

As for certain stocks, KGHM failed -11.69% as of today:



This weekend was a interesting one and there are few things are worth mentioning:

The largest savings and loan fund, Washington Mutual has serious problems now (here and here).

Citigroup takes the Operation of Wachovia (here).

The 700 billion USD rescue plan for US bank has been rejected today by House of Representatives (here). I won't even try to guess what impact on economy this action could have. Look here for article and a huge number of comments. There is also huge number of other sources and discussions in the Internet (here, here or here). Noteworthy is this article from Sep, 1999 with some of the nowadays dangers highlighted (thanks to UFO Forum). Lots of useful information and news can be found here.

Make sure you watch Brian Shannon analysis today (here). "It's better to be out of the market and wishing to be in, than be in the market and wishing to be out" - nothing is more true right now.

Sources:
[http://www.marketwatch.com/news/story/us-stocks-plunge-house-says/story.aspx?guid={7F45BE2A-0486-494E-B87C-76D9F2688338}]
[http://www.forbes.com/home/2008/09/29/wachovia-citigroup-financial-markets-equity-cx_cg_0929markets11.html]
[http://www.forbes.com/home/2008/09/28/bailout-financial-crisis-biz-wash-cx_bw_jz_0928agreement4.html]
[http://www.marketwatch.com/news/story/wells-fargo-wachovia-were-couple/story.aspx?guid={1865CC87-2BA3-4863-8F81-F3F9EED3261A}&dist=msr_4]
[http://bigpicture.typepad.com/comments/bailouts/index.html]
[http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=]
[http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/financial_meltdown;_ylt=Ak8s4k255lzwU9Y6KvAuHyKs0NUE]
[http://www.marketwatch.com/news/story/bailout-bill-unveiled-now-heads/story.aspx?guid={6209DA02-EC8E-4107-B78A-1B395F1A462E}]