What if ?
1) Obama’s economic plan is a big success, right out of the bag ?
2) What if change gets the whole world turned around on a dime ?
3) A few trillion dollars really makes a difference ?
3) What if November 21st th was the bottom ?
The point is, no one is planning on a quick turn around, even me. The most bullish analyst is looking for a bounce and then another crash. Yesterday I said I looked for the economy to bottom out in 2011. But as a contrarian, I am worried, 2010 to 2011 are becoming a little too popular as to when things are going to bottom out and then to start to get better, even Ford and GM said yesterday that they are looking at 2011.
The point is, it is easy being bearish here, we all know a bad employment report will come out Friday but as an investor it may be time to keep your eyes wide open to all the possibilities. An unprecedented turnaround initiative is being put together and something will give the market signal that it is starting. Keep in mind that a doubling of the low on the S&P would be 1480, and in the thirties depression those kind of things happened.
As to the market now, in spite of this mornings opening knee jerk selling, we are impressed with yesterdays action and as we have said before the fireworks starts when we close above 900 on the S&P. Real buyers will start there.
8:10 AM CST