The Morning Morsel

Investors are the most bearish since February 2009, just before the market bottomed and the greatest short squeeze in market history began. The wall of worry is always there, it just morphs occasionally. Back then it was sub prime and a housing bubble that resulted in the greatest unwind and deleveraging since the Great Depression.

We’ve been living in Narnia the last sixteen months as we have enjoyed one of the greatest rallies in history. Now we have different reasons to lose sleep at night. Europe is still hanging on a string (Greece is going front page again, Spain will probably be next..again), there are still no jobs, the deficit is off the hook, porkulus was a joke, housing continues to crumble, Israel may attack Iran at any moment, tax cuts will expire.

If you are a contrarian, it’s your time to get silly long, if you are not a contrarian it may be your time to get very short. Place your bets.

HP just outbid DELL for 3Par and takeover mania continues this Monday morning. POT has been entertaining serious discussions with white knights about price and will probably end up higher before this one is all over.

Note: Coffee hits 12 years highs this morning.

Monday, August 23, 2010
10:00 Mexico June Retail Sales
10:30 Fed’s Hoenig Testifies at Congressional Hearing in Kansas. BoJ to speak with Japan Fin Min. EnerCom Incorporated Oil & Gas Conference. Trades Ex-dividend: RHI $0.13, HSY $0.32.
Before the Open: KNSY, SAFM, GASS, TUES. After the Close: FMCN.
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