Santa Rally?

From Big Picture: A leading bear turns bullish

From Mish's Global economic Trend Analysis: Bullish Looking Charts: S&P, NASDAQ, BKX, GOLD

Jeff Saut: The Sound of the Santa Rally?

“First, until proven wrong, I continue to think October 10, 2008 represented the ‘capitulation low’ when of the 3,130 stocks that traded on the NYSE, a shocking 2,901 (or 93%) of them made new yearly lows. Subsequently, even though all of the indices we follow have registered lower prices since October 10th, none of those lower lows have been accompanied with anything close to the new yearly low ratio that occurred on October 10th!

"Second, while the S&P 500 (SPX) traveled below its 2002 ‘low,’ the DJIA did not, and that’s a huge downside non-confirmation. Third, I can find nowhere in history were the major averages have declined by 50% and there has not been a major ‘throwback rally’ even if the averages eventually went lower. And fourth, I’ve learned the hard way that it is extremely difficult to put stocks away to the downside during the ebullient month of December.”

From Mish:

Saut goes on to say that "stocks, in the aggregate, are cheap.” I disagree, but there are many who don't. Stocks are cheaper than they were, but that does not make them "cheap".

Earnings are low and headed lower still. It is a mistake to ignore what hugely rising unemployment is going to do to both demand and profits in 2009 and 2010. And it is an additional mistake to not factor in something for boomers scared half out of their minds headed into retirement.