Likelihood Increases for a Rapid Rally

NEW YORK (Real Money) --

"The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell."

-- Sir John Templeton

This morning, under the pressure of another weak Chinese economic release, continued unsettling European economic and debt theatres and this morning's very weak jobs report, markets around the world are under pressure.

The accompanying build-up in fear and flight to safety have resulted in a continued crushing of commodities and in all-time low yields in German bunds and U.S. Treasuries. Indeed, the yield on the 10-year U.S. Treasury note is far less than half the yield experienced in the 2008-2009 Great Recession and is well below the yield experienced in the Great Depression of the 1920s.

Ironically (though painful), these current conditions (and, importantly, the increased pressure and sense of urgency placed on policymakers particularly in light of this morning's data) are precisely the setting in which a rip-your-face-apart rally -- that is, a one- to two-day rally in which the S&P 500 climbs 30 to 50 points and Treasury yields rise by 30 or more basis points -- appears.

Am I being a Pollyanna, especially in light of the message of the markets?

Perhaps -- indeed, the last half of May was a contrarian's nightmare.

But, last night on "Mad Money," Jim "El Capitan" Cramer expanded (and got me thinking) on the sometimes failure of the markets to deliver the accurate message to the markets.