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The new week started on the downside after last week's historic weekly gains. The losses were modest and the bulls made a decent comeback in the afternoon, pushing the indices off their morning lows of the day. The Dow lost 329-points and the S&P 500 dropped 1%, while the Nasdaq was up thanks to big gains in Amazon, Netflix and the semiconductors. Small caps and the Transports each lost over 2%.

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Stocks had another bullish day on Thursday after another weak initial jobless claims report, but also, right as that report was being released, the Fed announced more new programs aimed at lending out as much as $2.3 trillion to businesses and governments. Some of the indices went red by late afternoon, but another push higher into the close sealed another strong day and week, and the Dow added 286-points.

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Investors grew optimistic this week that the worst of the coronavirus is over and the Federal Reserve is saving the economy; the outcome was the greatest week of gains for stocks since 1974. Stocks gapped up early this week maybe off of optimism that the worst had been priced in, or maybe volatility had stocks swinging that way. Whatever the true cause the momentum did not retract. The bulls took over the short trading week and the fear of missing out syndrome turned stocks into a vacuum for cash. ...

Stocks bounced back yesterday and in another attempt to throw the most people off as possible, the indices gained back all of Tuesday morning's gains that it lost in Tuesday afternoon's sell-off. Every move it makes seem to be trying to throw one side or the other (bulls or bears) off the track. And it seems to be succeeding. The Dow gained 780-points and we saw gains of 2.5% to 4.5% depending on the index. Small caps led with a big gain of 4.6%.

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It was quite a wild ride yesterday on Wall Street with a giant opening bell rally failing almost immediately, regaining strength to test the early highs, then a fade into the afternoon trading with the indices closing at their lows. The Dow, up 937-points at the highs, closed down 26-points. That's quite a round trip for a day.

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