It looks like a bottom is in for this correction. What kind of recovery we get is yet to be seen, but we would not be surprised to see a good one. Last week, we stuck our neck out and said that we were at or near a bottom and that seems to be the case. The market signaled a number of extreme readings while at the same time money flows into equities were positive. The market is smoking and expect fire soon.

The recovery will most likely be a process.

There are still a number of negatives to work through, but there are plenty of positives too. It is just a matter of which perspective investors choose to take. Our take is that the U.S. and even Europe are in better shape than popularly expected.

Stay steady, my friends.

The Lonely Bull