Sticking my neck out with this mkt call:
1) Unemployment numbers tomorrow will be bad.
2) Yom Kippur. Yikes.
3) Go long. Huh? Okay, selectively, go long. Not at the close necessarily; tomorrow may gap down. We may, in fact, set a new bottom early. But I don't care.
We're low enough for the mkt to shrug off bad news.
The dip is a shake out.
July earnings projections have been priced in and many are oversold, to permit an earnings run (remember them?)
The fears of a terrorist attack on Yom Kippur are unfounded. Precisely because of the fear, added precautions will be taken and they will not want to attack during this time.
We might though. And this could be viewed as a positive since the opening volley should look good.
Remember that tax loss season continues so the stronger stocks will be those near or above 1/1 prices (in fact, way above may not be great.... near (a little higher; a little lower than) is prolly the best buy. (I call these the '1/1 positives'.)
Friday is window dressing day. No matter what comes Thursday, a quick rebound is in order for the 1/1 positives.
Barring a catastrophic event of unimaginable proportions, I stand by my old assessment: Thursday, Friday, Monday, Tuesday.... therein lies the last bottom. We may retest over the next quarter, but I think the near term prognosis is...... TORO! |
