Well, they finally got him. The U.S. Air Force dropped two 500-pound bombs on the home of Abu Musab al-Zarqawi, the terrorist believed to be responsible for the beheadings of two Americans. While this news is being celebrated by consumers of oil, the knee jerk reaction will probably be temporary.
The stock market is entering the attractive buy zone that we have been pointing out for the past few days. Investors looking for an attractive entry point in oil, gold, and commodities should considered doing so now.
Even with al-Zarqawi dead, the news does not change the demand issues of China and India, nor does it change the issues surrounding inflation.
Overnight, the European Central Bank (ECB) raised its lending rates by 25 basis points, sending the foreign markets down sharply. While some believe this morningç—´ reaction in stock markets around the globe is the beginning of a new bear market, we are holding out for one more rally before the bear digs in his claws later this summer. Throwing in the towel right now would be way too obvious.
