20081017

Big panic today. The WIG Index has made lower low:



Intraday chart shows us clearly breakout:



Obviously the double bottom formation (this post) has been negated and there is another sell signal (as we made lower low). Today's session was quite unusual, when we take a look at the other European stock markets:



Also, the US markets closed green. However, note potential symmetric triangle formations on S&P500 and DJIA charts:



Their targets are impressive, but remember the direction of breakout is something that really matters. In current situation the best we can do is just to observe them. Thomas N. Bulkowski in his Encyclopedia of Chart Patterns wrote two chapters describing this formation.

Fund managers are generally bearish (here), but Warren Buffett suggest buying (here). Hedge Funds seem to have problems (here).

Sources:
[http://www.cnbc.com/id/27230391]
[http://seekingalpha.com/article/100417-trimtabs-hedge-fund-redemption-cycle-just-beginning]
[http://seekingalpha.com/article/100421-fund-managers-increasingly-pessimistic-on-both-sides-of-the-atlantic]