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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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As we have seen for weeks now, a bear market gives us the most explosive rallies. You rarely see a 3, 5, or 7% rally in a trending bull market. So what did the action tell us? It tells us that we are still in a bear market. Does it mean we are exiting the bear? It's way too early to say, and it shouldn't be that easy. The Dow gained 1627-points or 7.73% as investors became more optimistic about the trend of the coronavirus stats.

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