The White Knight.

Wall Street had a bit of comfort when news of a white knight galloped in to offer a rescue plan to bond insurers.Bond insurers write policies that promise to cover payments to bondholders if the entity that issued the bonds defaults. Reinsurance provides a second level of insurance on those bonds.

Billionaire investor Warren Buffett,the white knight offered to help out troubled bond insurers.

His Berkshire Hathaway Inc. holding company has offered a second level of insurance on up to $800 billion in municipal bonds.

The reinsurance offer is for bond insurers Ambac Financial Group Inc., MBIA Inc. and Financial Guaranty Insurance Co., known as FGIC.

A deal which would only back municipal bonds, and not the risky and complicated financial instruments that many see as more likely to have problems.

Troubled bond insurer Ambac Financial Group said it has rejected extra guarantees on municipal bonds offered by billionaire investor Warren Buffett -- and it may not be the first to have done so.

Tracking the Dow on Tuesday,12/02/08

A news driven market helped wall street to register a positive day but towards the half-hour before the closing bell were three long bearish black candlestick noticeable.The trading day ended with a bullish shooting star within the bearish body.Risks aversion is still in the limelight.

The inverted hammer has it closing at 3/4 of the long shadow of Wednesday candlestick.Looks like it's going to blow the light-off and the market will be in darkness again unless we are going to hear any new knight riders to inject news to steer the market.

Meantime,volatility is the name of the game.