Stock Action Becoming More Constructive

The market is higher again in early trading. The latest estimate for Q4 GDP came in above estimates at 3.1%, a solid showing.

Asian markets were higher across the board overnight, despite concerns about radiation leaks in Japan. And Europe was higher this morning even though S&P downgraded Portugal's debt rating to BBB.

The dollar is in positive territory, which could be limiting oil and gold. Oil prices are flat near $105.60, while gold prices are down a tad to $1436.

In corporate news, Oracle (ORCL) reported solid results and guidance, and its stock gapped higher. Ditto for Accenture (ACN). But RIMM is getting hit for 10% after giving mixed guidance.

The 10-year yield is flat at 3.40%; and the VIX is down another 4% to 17.22.

Trading comment: The S&P 500 and Nasdaq are now both back above their respective 50-day averages. This makes it likely the correction has run its course. Yesterday's rally was solid, even though it didn't come on heavy enough volume to qualify as a true follow through day. But plenty of stocks were on fire, with some names like LVS and MELI up more than 7% on higher volume but no news.

There are plenty of stocks breaking out, and you know that's where I look for leadership. Here is a partial list for readers to check out:

• SXCI, PNRA, CLR, DE, SRCL, CTSH, CEVA, IPGP, VRX, PCLN, OPEN, BIDU, CYMI, HMSY, ULTA, SFD

Have a good weekend.

long SXCI, DE, SRCL, CTSH, CEVA, VRX, PCLN