Detached from Reality

Upbeat retail anecdotes for December belie the fact of a global economy that is continuing to implode, nothwithstanding the surreal story du jour that the heated economies of China, Brazil et al. are pushing up commodity prices.  With respect to U.S. stocks, bullish sentiment is so freakishly extreme that we are obliged to enter 2011 with more than the usual amount of caution.