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I always like to use cultural icons on the show... ones that are cross-generational... that everyone can latch onto...

That's why I settled on something truly timeless... Snow White and the Seven Dwarfs!...

All of the opinions on the market remind me of the Seven Dwarfs...  which each represent a different group of investors, who have different views about the market, and different views about the economy...

These dwarfs don't whistle while they work, but they do get down and dirty, trying to get their message out... and convince others... in order to make things go their way...  

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Dopey represents the guys who genuinely believe that the fundamentals are sound... The Dopeys out there are the ones that truly think all is well...  These dopes will buy any stock that blows in their window.

Sleepy stands in for the guys who just woke up to the fact that we're in a recession.  The Fed belongs firmly in this camp, right?...  Sleepy represents the buyers who are behind and are only now liking recession stocks...

Doc, of course, is clearly Professor Bernanke...  intellectual and clueless, with faux rigor...  who can't see the forest through the trees...

Grumpy symbolizes the camp that believes nothing can save the economy...  The Grumpys are all-out bears who are the short sellers and naysayers who hate all stocks now...   These guys hate everything, including stocks...

Then, there's Happy!...  Yeah, Happy... The camp that believes everything will work out, because the Fed is now on the case...   Happy thinks the cuts will lead to mortgage refinances, re-fi madness, more money, fewer foreclosures, and the $600 iPod in every pocket...   Happy represents those people who think the Fed has come to the rescue...   

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These are the camps... and, whenever anyone says anything about stocks, you've got to consider... are they from the Grumpy camp, the Happy camp, the Sleepy camp, or the Dopey camp...  Or, obviously, are they adherents to Doc?...

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But there's more to this market than these groups fighting each other... There's also what they're fighting over...

They're fighting over Bashfuls...  These are consumers who won't come out and play... they won't spend on retail, restaurants or autos...

The Grumpys think the Bashfuls will stay home, but those in the Happy camp think they'll come out and spend... So, Happy and Grumpy are dueling over Bashfuls...

They're also arguing about the Sneezy's...  These are the guys who've been blown out...  They're too sick.  They're not working.  They lost their jobs on Friday, on that number...

If too many Sneezy's lose their jobs, then this camp (i.e., the Happys) gets destroyed...

And, finally, we have to ask ourselves...  Mirror, mirror on my wall... what's coming?...  The Wicked Witch... a long, cold recession?...

Or Snow White?...  A short recession and a recovery?...

My mirror says, Snow White.

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The Bottom Line!:     I'm betting with Happy!... I'm saying that Doc and Sleepy have woken up, and I think that these guys have led to what will ultimately be... this (Snow White)... and this (The Wicked Witch)... is a loser.   Consider buying industrials, financials and homebuilders in this market.

[See Jim's 2nd Opening Segment stock picks below... ]