Stocks have been closed since early Tuesday when terrorists took a step that will forever change world history. All investors are now wondering what will happen when stocks open for trading on Monday.
Bearish sentiment is still pervasive.
Widespread negative attitudes usually precede or are closely correlated with important lows. Now that August is over significant buying could develop until seasonal tops are made in early October to be followed by an October low and a potentially stunning year end rally. The events of September 11th can only serve to flush out the final weak longs. And such a purge is necessary if lows are to be made. The 28 month cycle lows in the Dow Industrials have been tested many times and have, so far, passed the tests.