Indexes gain 11%

What a day at Wall Street. Indexes gain over 7%, while DJIA gains 11%. It is the largest point and percentage gain on this index ever. For a lot of people, it is a good news, especially after last black Friday and whole previous week.

But 13th of October doesn’t look so well on other stock markets. Russian RTS and MICEX lost 6,34% and 4,85% respectively.

As you may know I live in Poland and I invest on Polish stock market – GPW. Widest index WIG gained today only 1,65%.

Is it time to buy?

Of course the answer is not simple and depends on your investing strategy. I mainly use technical analysis as an investing tool. One of the most important rules says that I should follow trend. There is no doubt that we are still in downtrend.

S&P500 with SMA – 5, - 30, - 100 days.

All moving averages are headed south indicating downtrend. This is more than enough to avoid investing some serious money. I will wait.

Dynamic and chaotic changes on indexes also don’t encourage me to trade right now. Looks like market and investors are not decided where to go and the take nervous actions. I prefer to avoid investing until situation is clearer for me.

I hope I don’t have to add that current financial crisis doesn’t help. It has no matter if it is really crisis or not, recession or not, does it touch only U.S. or also other countries. Either way that doesn’t have positive influence on the market.

Therefore, currently I stay away from the market. It is also a kind of position you can, and sometimes should, take.

What about you?