Market Adds To Yesterday's Sizeable Gains

The market was down briefly this morning, but quickly came roaring back. This adds to yesterday's huge rally, the biggest in 5 years.

When the market roars back like this after a big day, it usually means there are still shorts trying to cover, as well as underinvested managers scrambling to put some money to work for fear of missing more upside.

The dollar is lower again this morning, which is helping gold move higher but interestingly it is not helping oil today. Oil is down near $107, and is likely due for a breather after the huge run it has enjoyed.

Catepillar (CAT) raised its long-term guidance , and the stock gapped higher this morning. In housing, the Freddie Mac (FRE) CEO said that the current housing market is the worst "in about 100 years".

Asian markets were up across the board overnight. The 10-year yield is down a touch to 3.55%. And the volatility index (VIX) is down another 4.8%, breaking below its 50-day average.