From history's greatest Dow (DIA) point decline . . . to history's greatest single-day point rally, these moves almost conform to Newton's Laws of Motion. In reality I think everyone expected something from the Fed (not yet but forthcoming), and it was in-the-mix since the 'statement' issued by the Fed Friday; and follow-up by every major central banker globally. 

On top of that you had Dr. Fauci, who I respect a lot and 'says' he wasn't censored, who wrote in JAMA today that 'maybe' media is overestimating the risks of serious outcomes (like fatalities) from COVID-19. Really?  

For sure I understand his hand-holding society, which was in panic mode, with somewhat of a 'hopefully and maybe' editorial. However, the CDC, and his position as head of Allergies and Infectious Diseases, unlike the Fed or the White House, is there to confront 'preparing for the worst while hoping for the best', not the other way around.  

It's not 'his' fault, but other doctors say we're already at 'mitigation' not still in the 'containment' phase, and that's terribly troubling. Especially given the paucity of test kits available, which are finally arriving at a rapid pace. As they have not been able to 'detect' or test (defective test kits recalled for all practical purposes and now proper ones being distributed) how can we say that the corona-virus is going to be much milder? We can say things to calm the public, and they are. But most companies are curtailing lots of activities and that's suggesting more than just believing its containment. I think Dr. Fauci meant to calm the 'percentage' of fatalities, not cases, and that may have been misunderstood by some media interpretations. 

Even Stanford epidemiologists are warning this is 'mitigation', and nobody wants to talk about what kind of flu a leading cardiologist at the Cleveland Clinic died from over the weekend. So I'm hopeful that things will be mild, and believe Dr. Fauci needs to clarify his JAMA comment (New England Journal of Medicine); while personally I'm leaning to this as understated, unfortunately at this time; regardless of any combined effort by The White House, the Fed, the Officials commenting, or other hand-holding actions, as instead the virus may be circulating more widely without detection.  

I understand trying to stop economic frigidity, hoarding of supplies, and a panic that is restricting or restraining travel, but we need medical reports to be accurate and as transparent as possible, not feel-good stories.   

 (Priced before Monday's run you can see high-level support levels.)

The 'novel' rebound - was sort of 'in-the-mix' the way futures soared at the end on Friday, before anyone knew Mayor Pete would leave the race, enhancing Biden's prospects most believe. I point this out because some pundits on Monday suggest that the market rebounded due to politics not the virus. Actually it was just an oversold rally from where it needed to be and sustainability has far more to do with the virus than it does politics.  

However, you could get another lift at midweek,'if' Bernie doesn't do well on Super Tuesday, but again this is the market's view. However any fast outbreak (and eventually that's likely) in any American city changes how everything is perceived regardless. Same with any Fed intervention.

There's a broad expectation for the Fed to cut rates at the March meeting but again, while that could assist a bounce, it's really not going to change anything; and wouldn't even if we weren't dealing with the coronavirus. If you noticed I didn't call it WuFlu, that indicates how serious it really is. But in the interest of calm, and realizing that's little most of us can do aside a dose of common sense in activities, I'll revert mostly to calling it WuFlu so you know I'm not trying to exacerbate concern (we all have degrees, and I still have a doctor friend who insists it's no big deal... but I don't rely on his diagnosis, maybe that's a good thing... just kidding.. he reads this). 

Speaking of politics: as Amy Klobuchar drops-out and endorses Biden, it is possible that the rebound gets a second wind, as for Wall Street, this is an 'anybody but Bernie' backdrop. And of course the market will soar a lot, eventually, as soon as some drug is proven effective and again when there is a vaccine... months from now at best; barring the Israeli vaccine being successful at an early date (that would be fantastic, so we'll see). 

 (Typo correction: big-pharma not big-dharma of course.)  

In sum: central bankers can mitigate financial risks, but cannot boost the backdrop enough to offset the economic uncertainties WuFlu has and will be contributing too. In a sense 'global economics' will be in survival mode as they already are in China, Japan, Taiwan, South Korea and more.