Jim O'Neill of Goldman Sachs Minimizes Recession Risk

The influential Global Asset Management Chairman of Goldman Sachs, Jim O'Neill, does not foresee a double dip recession in the U.S.  Moreover, he does not see a hard landing for the Chinese economy which some, like hedge fund manager and noted China short-seller Jim Chanos, are calling for.  O'Neill's outlook would bode well for stock prices.

Byron Wien

Long-time Wall Street strategist Byron Wien, currently with the Blackstone Group, wrote on 10/3 that after all the negativity of recent weeks, the market was poised for a "positive move", particularly if Europe showed signs of taking serious steps to address its financial crisis.  This is looking like a good call from a wise veteran of The Street. 

More Technical Analysis

Mary Ann Bartels of Bank of America:  On 9/19, Bartels talked of a 50% probability  that the S&P would move into the 910-985 range.  On 9/25, she anticipated a range of 910-1020 into the first quarter of 2012.  However, longer term, Bartels feels that stocks are still the place to be.

Dennis Hynes of R.W. Pressprich has for months, most recently on 9/23 on Bloomberg, recommended selling into rallies.  He also sees gold resuming its uptrend.

Reviewing the Calls of Market Technicians

Louise Yamada, Technical Research Advisors, 9/20:  Ms. Yamada  was negative on stocks, but bullish on gold and silver.

Katie Stockton, MKM Partners, 8/16:  After bouncing off early August lows, S&P would hit ceiling at about 1220.  She recommended selling into rallies.  A good call.

Carter Werth, Oppenheimer, 9/2:  Market should hold above its early August low of 1100.  As of this moment, this call is being put to a severe test.

Eugene Peroni, Advisors Asset Management:  On 9/15 on CNBC, Peroni felt that the market was at a "pivotal moment" with the potential to move higher.  He particularly liked metals and materials, especially oil - ouch.  Back on CNBC on 9/29, Peroni looked for a break below the August lows, but he was constructive beyond that based on continued low interest rates and corporate earnings.

Barry Knapp Again

For the second time in two trading days, Barry Knapp of Barclays, appeared on Bloomberg during a major sell-off and reiterated his plus 1300 target for the S&P by year's end - a real profile in courage.

The VIX As A Positive Indicator

Jim Paulsen of Wells Capital Management and Jeffrey Kleintop of LPL Financial told Bloomberg that the rise of the VIX, the Chicago Board Options Exchange Volatility Index, above 40 is a positive for the market. For Paulsen, this measure currently indicates near panic and as such is a contrarian buy signal.

Warren Buffett vs ECRI

On 9/30, Warren Buffett and Lakshman Achuthan of the Economic Cycle Research Institute provided some yin and yang.

Lakshman asserted that a return to recession is "inescapable" and unemployment is accelerating upward. Most alarming, this will occur regardless of what transpires in Europe. According to Barron's, the ECRI has predicted the last three recessions with no false positives

  

Then there was Mr. Buffett saying he was confident we are not heading for a double dip and that he is buying stock aggressively. He said that the 70 or so companies that he owns are performing quite well and he expects that to continue.

  

We report, you decide.