The Hammer

Wednesday Outlook: Commodities, Emerging Markets

P/e on the total market is misleading. There are great blue chips trading at near 10 times earnings. Sure most banks are a basketcase, but if you look around and disgard this trash things are very well priced even on reduced earnings.
Look even at some of the drillers like ne do or esv. most have enormous cash and you cut earnings in half still earn about 10 times earnings.

Also when the markets tank real quickly , I consider 20%+ drop in about 2 months a fast drop it usually inidicates the end of a move.
We are definately due for a huge rally and I believe it will be a major rally in a bear market too.
If one thinks gdp will act like it did in the early 1930's drop -43% then 5000 is probably a bottom, but if gdp can hold above -10% gdp contraction then we are near major support in the mid 6000's imo.