20081027

The WIG Index has made lower low today:

However, we can spot impressive rally on the intraday chart:

During the session we have managed to cover the open gap, but the lower low gives us sell signal.

US market closed on red with quite big drop, however we still haven't made the lower low in most popular indexes (DJIA, S&P500) and the most wide ones (Russell 3000). The Brian Shannon video is available here.

Warren Buffett has written a letter to New York Times (here), where he's encouraging to invest into equities. This letter is widely commented (here, here, here and here).

As we are talking about big persons - Alan Greenspan, during his speech in Congress, has called present credit crisis as a "once-in-a-century credit tsunami" (here, here or here). Despite of his critics, Alan Greenspan's book - Age of Turbulence is worth reading (note the part about hedge funds as market regulation tools).

Also, a worth reading article on US bond market (here) from Brett Steenbarger. The enclosed image gives us a view into bond markets, however Brett has noticed an interesting thing - the bond insurance has become extremely expensive.

I'm going for three-weeks holidays in November, thus don't expect daily updates for this time.

Sources:
[http://www.nytimes.com/2008/10/17/opinion/17buffett.html]
[http://www.lewrockwell.com/decoster/decoster136.html]
[http://community.nytimes.com/article/comments/2008/10/17/opinion/17buffett.html]
[http://www.marketwatch.com/news/story/if-warren-buffett-feeling-greedy/story.aspx?guid={21A63C14-15FC-4C05-8D5C-ED202E2B44C3}]
[http://www.marketwatch.com/news/story/story.aspx?guid={FEE17EB8-1512-4BFF-8EB2-F948828297AE}]
[http://www.marketwatch.com/news/story/greenspan-says-credit-default-swaps-have/story.aspx?guid={5BE2099F-0D47-4A2D-B19D-57DEB9B41F96}]
[http://www.huffingtonpost.com/2008/09/14/greenspan-this-is-the-wor_n_126274.html]
[http://seekingalpha.com/article/102016-what-the-high-yield-corporate-bond-market-is-telling-us]
[http://dwagrosze.blogspot.com/2008/10/buffet-z-zakupami.html (via Google Language Tools)]