Obama Shifts And Says Willing To Consider Extending Bush Tax Cuts

Dude, where's my selloff?? That's the first thing I thought when I saw the market rallying this morning. That is why it always makes more sense to listen to what the market is telling you, and not let your opinions get in the way of making money.

Although I was looking for a "sell the news" reaction to the Elections and FOMC announcement, I didn't make a big bet on it. I raised a little cash to take advantage of a pullback, but I held on to our positions in leading stocks. So today we are still in good shape, even as I will have to wait a little longer for that pullback.

The market is up nicely on the heels of the announcement that the Fed will buy $600 billion in Treasury securities until mid-2011. The S&P 500 has rallied right up to its April highs this morning, while the Nazz has broken to new highs for the year.

Additionally, news just came out that Obama is now willing to consider extending the Bush tax cuts for all income levels. This is a big shift, and would be a big positive for investors and the market. Stocks picked up steam on the news, and now the big question will be can we hold on to these outsized early gains into the close. Still a lot of time left before the closing bell.

The dollar is lower on the quantitative easing news, falling to new 11-month lows. But we know lately that dollar weakness is bullish for stocks. Commodities are also rallying to new 2-year highs, with oil prices up to $86.30 and gold higher to $1377.

Asian markets were higher across the board overnight; the 10-year yield is falling to 2.46%; and the VIX is near its recent lows, down -6.75% to 18.25.