morning talk

Markets have moved higher on the heels of a better then expected report from the Philly Fed. Disaster at -25/-35 was expected on the factory index but only a lousy -17.4 was reported.

The DJIA +112, NAZ +19 and the SPX +11.5. RUT better with a 1.3% gain and MID's worse at a .4% advance.

Strongest sectors- banks (bullish words from Bove), airlines, homnies, retail, brokers and real estate while metals, ags and oils (way off the lows) lag.

Key stocks- 30/40 GREEN- leaders- V UA MER C GE MS BAC DECK NYX - losers BIDU GOOG MTW ICE IBB BG CELG MO;

NYSE- 633 net winners;

NAZ- 525 net winners;

NDX- 70 GREEN;

OEX- 72 GREEN;

VIX- down 10% in front of the long weekend;

TRIN .67;

Up volume about 2X Down;

Here we go again as SPX tries to attack 1315 yet again- and with all the brokers/banks/xchanges nicely green a successful move is probably in the cards.

Another Positive Divergence on the NH-NL list from Monday- The SPX traded down to the 1250 level and the NH-NL number hit about -1,200 according to the WSJ stats. Back on January 22, the prior SPX low at the 1270 area, the NH-NL hit almost -2,000. Just another feather for the bulls.

Finally, a nice column from Jordan Kahn at realmoney.com and why he is bullish; Crossing Wallstreet with a pretty clear picture of recent volatility; the Quant with more bull; and more Commodity stuff from BESPOKE.