GOOGLICIOUS

I admit that I was nervous about Google (GOOG) going into the conf call. I had sold most of my shares much higher, and then recently added back to the positions around $450. So when I saw that the company beat earnings estimates by a whopping 32 cents, I breathed a big sigh of relief.

The fact that the stock is rocketing $80 higher today, or +18%, is just proof of how low expectations had gotten for the company. That is a huge move for a company with as big a market cap as GOOG.

While GOOG was certain to get the juices flowing on the Nazz today, the strong earnings reports this morning from Honeywell (HON) and Catepillar (CAT) are really helping things. Those stocks are also reacting very nicely.

And let's not leave out Citi (C). While they did report more losses, they were less than many investors feared, and as a result the stock is surging +6.8% and lifting the financial sector big time. The brokers are up across the board, and actually are the leading sector so far.

I also want to bring to your attention two very positive developments that I have been commenting on lately. The first is the action in the Yen. The Yen ETF (FXY) is finally breaking below its 50-day average for the first time this year. This is extremely positive.

The other is the volatility index (VIX). This one recently broke below its 200-day average, and today is moving below the key psychological 20 level. This also should provide a positive backdrop for stocks.

long CAT, GOOG