Art, with the near-flawless way your government has been handling this crisis, my impressions after today is quite bullish short-term for the markets. I see at least a 1000 points on the Dow, 10,000 before Christmas, and all of it patriotic. Be afraid, very afraid, because after the New Year the bear will continue to bring the S&P500 back to a more traditional valuation, probably after the non-existent "January Effect." As for your Telcom/Nasdaq stocks they look so badly beat up, anything goes – unpredictable…
Since the underlying economic fundamentals haven't changed I believe we'll continue to see bearish API data and a break below $20 a barrel. After seeing Bin-Laden give his speech on CNN, we'll see a renewed effort within OPEC for more production cuts. This will be the diplomatic way for the Middle East to give the U.S. the middle finger, while keeping the extremist on side. The cuts will, without a doubt, have no effect on crude prices simply because it leaves the impression of a large supply glut. My gut feeling is come Tuesday morning when the Canadian markets open, I wouldn't be surprised if I'm stopped-out of Husky Energy and a few of my golds.
FWIW -- This crystal ball reading I just gave you means diddly if there's another terrorist attack.
Regards
Frank P. |
