Uncertainty

With the massive devastation in the South following the Hurricane, investors are looking at an uncertain economic environment. One thing Wall Street hates more than anything else, is uncertainty.

While the knee-jerk instinct on Monday was to hope and believe the devastation wouldn't be as bad as feared, the fact of the matter that unless everyone is lying and the pictures aren't providing an accurate view, the worst case scenario is underway. Ultimately, this disaster will take a toll on the economy, but it is not currently known to what extent. There lies the uncertainty.

We have news this morning that Bush has decided to tap the Strategic Petroleum Reserve, which is yet another sign of how tight supplies will likely remain in the foreseeable future. Meanwhile, economic reports on GDP and others due out today, are now considered old news, since the data reported does not reflect the reality we face in the aftermath of the hurricane's destruction.

Turning toward the market itself, we are currently in oversold territory and I'm starting to see a few buy signals. There is also a report out this morning that short-sellers are out in full force once again, which can provide fuel to an upside surprise in the near-term as the negativity about the market and fears over uncertainty continue to build.

In the end, I'm looking patiently for a tradeable rally. Unfortunately, I may have to be patient for longer than I currently expect and desire.