On The Dow Down... stocks bounce from lows...
JJC:    No, I mean, look, it's some market... If you were short though, the natural gas stocks because of the bear market, well God love you, you'd be crushed. This is a bear market that was concentrated in financials and homebuilders, and now it spilled over into industrials... But really it has been mauling safety, too, which is really a new trend.  Oil and gas and what we send to China does work. I was surprised, and I was pleasantly surprised, to see some of the drug stocks up today. That group has just been killed... True sign that we've finally it has been a recession. I've followed Genzyme Corp. (GENZ) and Gilead Sciences Inc. (GILD) and Celgene Corporation (CELG) in there because you can't follow the majors... because the majors don't have a portfolio that matters... But even Pfizer (PFE), lowly worm Pfizer, which has never been up, it seems in our lifetime, is up today. Which is quite, you know, talk about a "Stop Trading" event...

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On Procter & Gamble (PG), Consumer Stocks...
JJC:    PG laughingly came out the other day, he had this article... There was an article about how we're all too negative... Well, you know what, when your stocks go down every day you tend to get a little negative... But his stock is just selling off once again. Coca-Cola (KO) is 25 cents from a 52 week low... KO and PG are what you're supposed to be buying when we're going through a recession, which is what all the Terex (TEX)'s and all the Honeywell (HON) were saying this week. This is just a classic example of... It is just true bear market behavior, when nothing is working, except for a particular group... Gold is working, oil and gas is working. The golds are so out of control that I'm now ready to take some profits. (Do you buy PG and KO when no one else is at this time?) Yes, the answer is yes. Now, I was reading an excellent Warren Buffett article last night in the new Bloomberg magazine that came out in August... And, you know, He did not sell his KO when it was all the way up... And it has calmed down a tremendous amount. Some of this might be SunTrust (STI) selling their big holdings, but if I want to be like Buffett, which obviously, everybody wants to, or else they wouldn't be paying a gazillion to have lunch with him... How about buying it 20 points lower than it was.   KO seems right to me. You're going to have to take some commodity pressure... we know that sales aren't perfect... But if you have an 18 month horizon, I don't think KO is going to $30. I just don't. I mean maybe it goes to $46, $45... But you got to take a little 10% decline to get into a really high-quality stock that does very well, that has room to grow.

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On Metals...
JJC:    One of the things I like to do, despite what my myriad of critics say, is ring the register when I'm up a lot... And this Agnico-Eagle Mines Ltd. (AEM), I would come out and this is one of those names that if you were Erin, she'd say, Oh, God, Please Jim, don't recommend it again. I am not. It's up $3.81, and I'm a register ringer on AEM... I wanna take it off...  Yes... let's take profits off that one. That is a wild trader, it just went up 15 straight points. Not for me, I don't buy them up $15, I sell them up $15.

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On International Game Technology (IGT)...
JJC:   This is very funny, it is, it reads like the Goldman... You know, the Goldman cataclysm that they visited upon Citigroup (C) and General Motors (GM), that was one where it's like, you know, that was Poltergeist... you know they moved the headstones, but they didn't move the bodies. Those were two of the most horrible reports... This International Game Technology (IGT) report, where the analysts goes from buy to just hold... But in it she says why don't we go to underweight and I say, Yeah you should have because Indian gaming is off big, the product cycle is not working... Vegas is doing badly. Now, one of the things we've been learning here is that we'll hear that, and someone says well why didn't she pull it at $40?... Well you know what?... I don't give a darn. Why did something get on the conviction sell list at Goldman?... Because they're convinced that there is turn. The truth has no deadline on these things. She shouldn't say well hold it, why didn't they this or that. You just want to get out if you don't like a stock... I don't think you should sit there and say, well I missed it at $40, so I'll let it ride to $20... There's a very heart felt piece at Morgan Stanley, IGT, so that was really good.  What's happened is that the research has become very visceral. I've been speaking with some of the people that put these together, some of the equity, some of the big strategists... And, you know, these are people that have come to work and have been at work for many, many years. And I'm not going to say they're frightened, because that scares people. I am going to say that you know what, we really have to just explain why you recommend that you sell Citi here... We're just not going to cavalier and say we don't like it... We're going to detail it, and we're going to win you over. If you read the Citi an GM downgrades, and you weren't shaken to your core, then you really are, I think, immune to anything, or therefore, a value in a mutual fund. Legg Mason Inc. (LM), that must have split like four for one now. I'm waiting for, if I worked for LM right now I'd be like.... Hey you know like mmmmuuuuhhhhmmm...  I wouldn't even be able to articulate a full sentence.

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