Pros Say: Another Dark Dip — Then Stock Paradise

Tuesday: Condemnation is in the air. New York Attorney General Andrew Cuomo has subpoenaed former Merrill Lynch CEO John Thain over Merrill bonuses. CNBC reported that the Treasury pressured Citigroup not to take delivery of a private jet. Pension under-funding seems to be the newest corporate worry as President Obama met with GOP leaders to hammer out the stimulus package. Experts told CNBC that market angst is just a Q4 hangover — and after another gloomy dip, stocks will look fine.

Marked Bumping Along Bottom Now — But Ready for Recovery

The current dismal market environment is largely a reflection of a disastrous fourth quarter, according to Robert Pavlik of Banyan Partners. He said he foresees waves of optimism followed by pessimism — and then a stock-friendly atmosphere.

• Stock Picks for The '3,000-Point' Rally

Robert Brusca of Fact and Opinion Economics said stocks often make their biggest gains when earnings reports are at their worst, the base has been laid for recovery, and when recovery comes, it will be very clear.

The 'New Normal' is Here, Cooking on All Burners

Cronus Futures Management's Kevin Ferry called Monday's market an example of "the new normal": less volatility and more stability, indicating a rebirth of confidence. Federal Reserve policymakers will discuss new tools when they meet Tuesday. It's hard to be extremely negative, he said, with that much monetary and fiscal policy at work.

• Read The CNBC Stock Blog

What's in Store? Liquidation, Bankruptcy & Credit Problems

Retailers in higher-end fields like jewelry and electronics are in the worst shape, according to Jacen Dinoff of KCP Advisory Group. Many jewelry firms are discussing re-financing or liquidation, after drops of 30 to 70 percent in holiday business. Howard Davidowitz of Davidowitz & Associates said many jewelry firms are in liquidation or on life support, department stores and apparel manufacturers are underwater — and the worst is yet to come.

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