The bull case is that while there might be a double dip, stocks are already pricing a lot in. It is unlikely that we will see the type of forced selling that we saw during the last bear market as the major players are no longer leveraged. There are many low price to free cash flow companies that can buy back stock or buy other companies. At the same time investors and hedge funds have low equity allocations. The question becomes where will the selling come from?
I believe the economy will get much worse over the course of the Summer. That is enough to keep me away from the long side for anything more than a trade. But the bull case has merit and I don't think the short side is a slam dunk either. A few weeks ago I said the best course of action for most investors is to stand aside this Summer and if the market falls apart to come back in the Fall and pick up the pieces. I wish I would have followed my own advice. Sitting on ones hands is the most important and hardest things to do in investing.