Holding the Gains

Just hold on loosely
And don't let go
If you cling too tightly
You're gonna lose control
--38 Special

After yesterday's historic day that saw the Dow down about 1800 pts and oil down 25%, chatter of monetary and fiscal bail outs (naturally) got loud. President Trump did not disappoint. In an evening press conference he sought to soothe market nerves with specters of tax roll backs and other stimuli.

Those positive presidential vibes, coupled with extremely oversold near term conditions, ignited big rallies overnight and we woke up to domestic futes gapping higher 3-4%.

Some of the initial bloom has come off the rose, however, as indexes are significantly off their highs. Purists might argue that a more bullish set-up would have been a whoosh lower pre-market to strike more fear into investors before a tradeable bottom was put in.

Now it seems imperative that bulls hold their gains here. If markets should happen to reverse lower intraday, then the bears will be surely be emboldened.