We just got a string on of good news.
1st - Germany approved the amendment to the EFSF. What is more important, imo, is that two countries (Finland and Germany) with strong critics of the amendment approved it with very wide margins. (Suggesting to avoid the noise, and watch action. This action says that the leaders will do everything in their power to prevent a collapse.)
2nd - Good economic data. Jobless claims were really really good, below 400k. And GDP was slightly better than expected.
Keep in mind, a credit freeze is now completely off the table. The big boys have to evaluate stocks based on economic conditions.
For example POT. Even though I sold it because of the collapse in commodities, does anyone now think POT will see a 10% growth rate next year? If not, why is it selling with a forward PE of 10?
The question for looking at stocks now becomes, 'will this stock see a negative eps growth to justify such a low multiple?'