Yes, global events have influence, short term, particularly, to the extent that they impact flow of funds and basic economic activity. The Iraqi situation may have a minor impact on flow of funds, surely not on the economic situation (actually, artificially increases activity). Since I don't know how to factor these in, I simply "wring my hands" and watch for extreme sentiments which in the past have also indicated major bottom formations. Right now, these extremes have reached the like of 9/23/01, late June early July 02, late May 2000, late December 2000, April 2001 and October 2002, all good bottom (except the July 02, which after a very fast 10% advance, turned much too bullish and was thus negated). What worries me, is that such extremes indicate that while we should expect a strong advance, it could be the last before a major bear reestablishes itself. If we rise the first 150 or so Naz points from the bottom without sentiment indicators doing what they did in mid July 2002, then we may have a longer run.
