Last week was the worst week of the year on Wall Street. This week is lighter on the economic data, but still earnings-heavy as investors look to hear from retailers.
DON'T MISS: Stocks Higher, Week Ahead, Buffett, Seagen-Pfizer And Union Pacific - Five Things To Know
But there's no arguing that the overall momentum has shifted, bearish investors suffered through January--when the markets were rallying--only to come out on top last week.
Real Money contributor James DePorre wrote about the market action and what he's watching this week on Real Money.
"The market just suffered its worst week of the year, but the key issue now is whether the bears can build on their negative momentum," DePorre wrote on Monday morning.
"After a very strong run to start the year, there was a shift in two key issues. The first was that poor positioning and a short squeeze driving the action finally started to relent. There was record short covering at the January highs, and the fear of missing out that was sucking in cash finally ended," he continued.
And then there's Warren Buffett. The billionaire, in his annual shareholder letter, reiterated his belief in America.
"I have yet to see a time when it made sense to make a long-term bet against America. And I doubt very much that any reader of this letter will have a different experience in the future," Buffett wrote in the letter. "We count on the American Tailwind and, though it has been becalmed from time to time, its propelling force has always returned."
Berkshire Hathaway revealed that it has 75% of its fair value investments concentrated in five stocks which include Apple, Bank of America, Coca-Cola, and Chevron.
