THEME: CAPITULATION
Igor Greenwald of Smartmoney:

In the short term, it's probably a lot more relevant that what is now shaping up as an economically robust fourth quarter will lead into another the massive dose of fiscal stimulus set to kick in next spring in the form of rebates making good on the tax cuts passed this year.

This GenXer was quite cynical. He never announced he was buying when he was buying, but now he is happy to tell you he made money.
Any bears left???

Corporate earnings are improving -- and to some extent, so is their quality, says Charles L. "Chuck" Hill, director of research for Thomson Financial's First Call, who sees a sustainable, gradual recovery, despite the earning surge in the second half of 2003.

Ole Chuck Hill has been talking out of both sides of his mouth. Very quick to be cynical about earnings, but always ending his comments with a bullish bent.
Notice the keyword is "sustainable." Those who use it are capitulating.


THEME: CHINA/COMMODITIES
Note:
Lind-Waldock is offering a Cantonese/Mandarin service. There must be tremendous demand amongst Chinese speculators in commodities.

WSJ:

Rumors of China curtailing its corn-export program due to lower production in 2003 as well as a means of rebuilding stocks bolstered corn to five-month highs in the two prior weeks. The possibility of China exiting the export scene rattled world markets, sending CBOT corn futures bounding higher on the prospects of a possible return of Asian business to the U.S. market, analysts said.

During this stretch, large speculative commodity funds amassed sizable positions in the market. According to some analysts, that buying wasn't based on the market's fundamental characteristics, as 2003 corn production is projected at record levels.

"The market overdid it to the upside, and even if China cuts back on its export activity, that would only provide a gain of a couple hundred million bushels in use," said Bill Nelson, associate vice president with A.G. Edwards and Sons in St. Louis, Mo.

Then again.....

Base metal prices resumed their upwards move on Tuesday following Monday's retreat. Investment funds returned to the market with vigour, pushing nickel prices to a fresh 14-year high and copper to a new six-year high.

"Monday's lower prices proved irresistible to the funds and the Chinese, who came back into the market as buyers at the lower numbers," said Alan Williamson, metals analyst at HSBC.