A few thoughts (because it's not every day you send a new manuscript out on submission):
1) It is tremendously satisfying to send a new book out the very same week I got the big reject. Note to self: ALWAYS have a new book ready.
2) This book, in many ways, is a direct response to the failure of my first one to sell. I consciously answered the criticisms that caused my first one to get rejected. Object lesson: Listen to what experienced editors and readers tell you. And then USE IT.
3) Can an author shop two books at once? I don't actually know. But I trust my agent. He'll handle it.
4) We are definitely going to submit this book to the same editor who just passed on the first one. She has invited it, and we've worked to establish a good relationship with her. She knows what to expect. Just like Dad always said: NEVER burn bridges.
5) To keep myself distracted and moving, I'm starting tonight in earnest on the next big project, the one I've been kicking around for a few years. Because I'd rather write than medicate.