Securities More Often Reach Their Low Point When Some Danger Or Disaster Is Threatened, Than Upon The Actual Occurrence Of These Incidents

“Wall Street history shows that securities more often reach their low point when some danger or disaster is threatened, than upon the actual occurrence of these incidents, and the reason the low point is made just prior to, or at the time the event actually occurs, is: By that time every one who is subject to fear-of-what-will-happen, is sold out. When the thing does happen or is prevented, there is no more liquidation, and the price rallies on the short interest, or else on the investment demand created by the improved situation.” - Richard D. Wyckoff