Markets do not like Uncertainty...
posted on
Apr 25, 2008 10:04AM
This morning we experienced somewhat of a capitulation/washout event that took out many of those fearful investors who tend to panic on SP movement; this in effect could be taken as a sign of a bottom. We have retraced to the 200dma which occurrd a few months back in similar SP action without any news. In fact if you look at the past number of trading sessions you can see (always after the fact) that the market was pricing in some negative news. Well it is now out and the market has dealt with it. This is not to say that we will not continue to see some hangover effects, but now word is out and the reasons for why the assays were delayed is released. We will continue to ask when as we still require the results. It would be nice to have clarity on the specifics so we can stop any speculalation as to why and prevent all the possible explanations being thrown around, but the news is what it is. This may very well have been another wonderful buying opportunty to add to our current positons. I have not sold any shares and still continue to believe we have a wonder play that just exhibited a small hick up. And remember the market does not like uncertainty and sometimes uses it to its advanage.