Here's how I started last night's post: "We have entered the realm of silly season, where bad is good and good is great, until it isn't anymore. As I mentioned in today's earlier post "It's in the way that you use it", the market's reaction to the news makes all the difference. This is not about real worth, it never was. This is about perceptions and attitudes and right now, they seem to be in a forgiving and optimistic mood." Further proof of that? Citigroup (C) fell short of earnings expectations by $.07 per share, not good. They also wrote down another 12 Billion dollars, bad! However, in the spirit of "all just getting along and moving forward" and "putting this ugly mess behind us", C shares are indicated to open UP 8% HIGHER this am! GOOG however, did come in with a strong report and those shares are indicated in pre-market, up 18%! Caterpillar (CAT) and Honeywell (HON) also beat the street. The market feels that the worst of the financial crisis is over and that it was not as bad as feared. Also Thompson Financial's estimates for first quarter profits shows an expected 14.1% decline. BUT, when you take financials out of the pot and leave the other nine sectors to stew on their own, you get an expected profit growth for 1st quarter of 6.4%! It's not trailblazing, bull market good, but not as bad as it seems either. On this basis, the market is ready to rumble this am. Lets see where the bulls take us and keep an eye on the Fed (no scheduled speakers today)-they seem a bit somber of late. Maybe they will want to cork this bottle the same way they kept the market from falling totally apart the last 3 months.