The Big 3: Bizarre, Vicious, and Sentimental

1. “Bizarre” Ain’t Good

2. Temporarily Vicious

3. Sentimental Rally Ahead

1.  Condo Rice dismissively says the Russian reaction to our signed missile deal with Poland was “bizarre”.   Uh, isn’t “bizarre” the worst case scenario when it comes to geopolitical actions?

2.  There’s a new less-global economy and society that we’ve entered into as we enter this worsening recession.  Trade was already going to be hurt by the economic downturn…the virtuous cycle of the last 25 years has indeed (as we’ve been telling you!) at least temporarily turned vicious.

3.  Sentiment is decidedly negative out there right now.  The market’s are oversold, they’ve been trashed and we keep hearing about the potential of more disaster.  I expect we’ll see the DJIA back above 12,000 before we see it below 11,000.  Though I do expect we’ll see the 10-handle sometime after that rally.