The market adjustments are almost complete for stocks not directly affected by the debt repricing crisis. Everything was taken down together last week and this week will be the reversal of the markets, such as commodities, that have little to do with the debt pricing issues. Commodities are driven by global demand and paid for in hard currencies, not debt instruments for the most part. The global economy is not going to slowdown and wait for a bunch of guys to agree on new debt pricing scemes. Reasonable deals will get done and when they do the market will quickly make a move to the upside, again, for the markets not involved in the debt repricing crisis, which really is not a crisis anyway. The one caveat I claim is that markets will oscillate due to the emmotional components of the markets but the fundammental downside is limited at this time.
The real question is how much of the local sub-prime problem is going to roll over into international demand for commodity products. Granted we are going to see pcu bounce around until stablility establishes itself. Heck, we might see a p/e of 8 or 7 going forward .......... damn brake out the shovel if it does ......... the funny money market & their loans definitely has an effect on companys who borrow ... however, if you look around a lot of the commodity companys are paying for expansion and growth through their own cash flow ....... time is on PCU side!
If PCU holds Fridays lows I'll will be buying again otherwise let the clowns have their day.
Me thinks you beat the 'up-tick' by a day. I'll go with bloomberg's assessment that Monday will be another down day based upon what they are seeing overseas. Even so, I am anticipating another 50-cent drop, and have just placed my order for Monday fo another 200 shares @ 108.60