Regardless how you view today's action,  we think it's a step toward the right direction.  Follow through is 'key'  this week.  Yes,  we still have some quite volatile intraday action (700+ range) to speak of and the end of day score wasn't so inspiring, especially with the Nasdaq.    But, we did have 2 reasons to sell-off,  so even if the close wasn't that inspiring,  it wasn't that bad at all considering,.."we all know to well these interventions have led to sell- offs.  Run today,  sell -off tomorrow is a high possibility now considering the magnitude of the move into the news.."    However, overall, the financial sector had another firming day.   The stability in the financial sector will drive away fear action.     The fear action we refer to is the type of action we saw from last week.    When most people act in an irrational way,  there's no point trying to make any sense out of their actions.    One positive is Monday and today, we did not get the "forced selling" late in the day from insiders/ hedgies/ mutual fund redemptions due to margin etc, as we've been seeing all of last week.

What we want to see in the coming days is for the market to really calm down from the historical week we just had.    Assuming we just averted the worst point of this crisis,  we should move on and focus more on the damage that may be caused by this crisis.    Of course, we are referring to the coming change of economy.     Tonight, we have INTC CSX DNA and morning brings JPM, KO to report earnings and we may finally get a glimpse of how market reacts to earnings this 'fear recession" quarter.   Keep in mind,  many if not all of the companies have already come down in valuation, so in spite of the lowered guidance/ reports, the actual stock may not move that negatively or may even go up.     This will be the key that we, the DJIM traders, will be looking for!

Right now, this game is fair to everyone.   No company or sector has an edge in this kind of environment and whoever gets favoured by the market will be chased by a lot of people.    We simply have to be there in the early start and not to miss a major sector move.