Bulls Cheer Obama's Stimulus Talk; Dow Gains 3.5%

Hanlon said investors are willing to trade more aggressively into the market because it's been oversold -- moreover, they like how it's traded in the face of bad economic news. As to whether this indicates that the downside is priced in, he said maybe, maybe not. "We've seen a lot of bear market rallies over the past year, and I would guess that this is another," he said, and investors are inclined to buy dips and catch rallies in this environment.

Friday's dismal November jobs data may have upped the ante for pending economic stimulus plans. Congress late in the day submitted to the Bush administration a $15 billion auto bailout plan.

Under the proposed aid package for the nation's Big Three automakers -- Ford (F Quote), General Motors (GM Quote) and Chrysler -- the White House would appoint an overseer to monitor the restructuring of the auto industry. Ford soared 24.3% to $3.38, and General Motors gained 20.8% to $4.93.

"The dreadful U.S. jobs report for November reinforced Obama's mandate to act decisively, and all indications are that he will," Tony Crescenzi, chief bond market strategist for Miller Tabak, wrote on his RealMoney.com blog. "The employment news will also empower the Federal Reserve to move further into the realm of quantitative easing and to provide credit where it has become difficult to obtain, including in the mortgage and consumer loan areas, for example."

Goldman Sachs on Monday issued an analyst report saying that banks are "only halfway through a three-year credit cycle."