The market loved what it heard on Monday from the Treasury with the Dow posting triple digit gains.
But it wasn't just stocks that were higher -- bond yields came down, the dollar was lower (which helps exports) and commodity prices were going higher. “Folks this is what it typically looks like when the market senses a recovery is in the offing,” says CNBC’s Bill Griffeth on CNBC's Closing Bell.
“We’re still going to have job losses and companies will still report lower earnings but the market is starting to look past that now," he adds.
What’s the best way to play the comeback?
“I’m digging this rally and I’m riding it,” replies Jeff Macke. "I don’t believe in triple bottoms or triple tops. When we broke above 805 on the S&P, a point of resistance, it was time to get long."
Macke suggests looking at Goldman and best of breed banks as well as Mosaic and Potash and any stock that benefits from the weak dollar.
However Macke does have a word of caution. “If the S&P 500 closes below 800 get out -- but until that happens I’d be long stocks.”
“I think if you’re already long there’s limited upside coming,” counters Joe Terranova. “The S&P could gravitate to 900 but at that point I think you have to be a seller. I think the S&P could roll back and perhaps test 740.”
“If you have a long-term horizon, I’d continue to allocate money into the market,” says Najarian. Dollar cost average your way in and "don't try and time this whole thing out."