Well so One day red, next day green as the market finally found some ticker! Calm overseas helped, together with good Trade figures, better retail numbers and business confidence plus the dollar rallying! Strange isn’t it the dollar which is supposed to help us when it is weak seems to help equities far more when it is stronger. Anyway a good solid day following a strong start and then pushing higher from there in the final countdown we had a low of 5075 and a high of 5130 before closing on its highs up 61 at 5131,bouncing nicely off the recent support around 5070.Banks led the charge as usual as the pessimism from yesterday’s court ruling evaporated and yield and recovery investors waded in. In other financials, insurers improved led by QBE Insurance Group Limited (A$10.97, +1.5%),#IAH# and Suncorp Group Limited (A$11.87, +0.4%) whilst Macquarie Group Limited (A$54.00, +1.7%) were in strong demand too. Good numbers from Woolworths Limited (A$34.72, +2.4%) also helped sentiment and miners benefitted from some bargain hunting despite the rise in the currency.

Big miners also had a good day with BHP Billiton Limited (A$35.57, +0.8%),RIO Tinto Limited (A$65.65, +1.6%) and Fortescue Metals Group Ltd (A$5.43, +2.5%) leading iron ore minnows Atlas Iron Limited (A$1.02, +5.2%),Arrium Limited (A$1.60, +6.0%) and Mount Gibson Iron Limited (A$1.04, +4.5%) higher. Energy stocks also had a day out at the seaside with Woodside Petroleum Limited (A$37.62, +1.8%),Beach Energy Limited (A$1.43, +2.9%),Santos Limited (A$13.40, +0.5%),Oil Search Limited (A$8.09, +0.2%) and Drillsearch Energy Limited (A$1.475, +1.7%) doing nicely. In the industrial sector Brambles Limited (A$8.80, +1.5%),Downer EDI Limited (A$4.89, +1.9%) and Leighton Holdings Limited (A$15.70, +1.5%) did well as did Monadelphous Group Limited (A$15.16, +2.0%).Telstra Corporation Limited (A$5.06, +0.6%) was also in demand today following recent weakness. The one red spot in big ones was Westfield Group (A$10.18, -0.6%) as continued scepticism on the merger with Westfield Retail Trust (A$3.03, +1.0%) continues.

Numbers today suggest that the economy is starting to improve and the RBA will be watching closely to see if this trend continues. Does seem that the easing cycle is over unless we get a “Black Swan” event.

The winners today included Country Road Limited (A$9.50, +26.7%),Virgin Australia Holdings Limited (A$0.34, +7.9%),Independence Group NL (A$3.63, +8.0%),Echo Entertainment Group Limited (A$2.32, +6.4%),Mount Gibson Iron Limited (A$1.04, +4.5%),Arrium Limited (A$1.60, +6.0%) and Magellan Financial Group Limited (A$11.24, +3.9%) while the laggards today included ERM Power Limited (A$2.40, -3.2%),Karoon Gas Australia Limited (A$2.88, -4.6%),Cover More Group Limited,Fairfax Media Limited (A$0.655, -3.0%),Qube Holdings Limited (A$1.985, -1.7%) and APN News & Media Limited (A$0.41, -5.7%). Volume was the new normal around $3.8bn with most concentrated in the Banks and BHP with WOW also in the top ten, whilst the dollar nudges 90 cents and Bitcons fell to $928 as Gold remained firm at $1256. Asian markets were firmer with the MSCI Asia Pacific Index adding 0.5 percent by 12:06 p.m. in Tokyo, Hong Kong’s Hang Seng Index snapped three-day losing streaks.

Stocks and Stories

Billabong International Limited (A$0.605, unch) updated the market with another strategic review. These guys are keeping the strategic review people in business and expensive cars and holidays. Think they should ask their target demographic what they think. Not consultants in suits!

Woolworths Limited (A$34.72, +2.4%) Good numbers today with ‘Aussie Animals” helping them lift group sales by 5.9 per cent to $16.16 billion in the three months ending December, almost double the rate of growth in the first quarter of 2014.Seems the core business of supermarkets and booze are doing very nicely indeed. Masters still expanding, still losing. Same-store sales growth exceeded analysts’ forecasts around 2.75 per cent and compared with growth of 2.5 per cent in the first quarter.

Virgin Australia Holdings Limited (A$0.34, +7.9%) reaffirmed its guidance for the year today following a query from the ASX. Still looking at losing $50m for the year but then they have rich parents!

Ford Australia will cut 300 jobs by June at its Geelong and Broadmeadows plants as it winds down production ahead of ceasing local manufacturing in 2016.

Good day today from Mayne Pharma Group Limited (A$0.79, +7.5%) with its trading update helping the shares push ahead, putting it within sight of its all-time high of 83.5 cents touched earlier in the year. Earlier today it flagged a December half net profit of between $8.2 and $8.4 million on revenue of $68 to $71 million.

Retail sales numbers for December +0.5 per cent as expected. But the bigger surprise is the trade balance data, with the balance soaring into a $468 million surplus and business confidence in the three months to December soared to the highest level in almost three years, as conditions improved but remain soft

Tomorrow’s News Today

Expect no change in the rates from either the ECB or the BOE on Thursday as they meet to cook the books.

Big US job numbers print on Friday so expect more toing and froing til then. The number will be crucial to the market.

Entertainment giant Walt Disney has reported record earnings for the last three months of 2013, boosted by higher revenues from its films business.Net income for the first quarter ending on December 28 beat analyst’s expectations and rose 33% to $1.84bn (£1.12bn) from a year earlier. Frozen and Thor did well. I remember a good joke about being Thor. Probably should keep it to myself!

Twitter got smashed after hours last night so expect that to weigh a little on US markets as the Tweeter goes a little ex growth! Is it just me or is it madness to value a company like Twitter at $37bn! They managed to lose $650m real dollars in 2013!Some way to go then! Sure the Emperor has a natty suit but really? Has the World gone truly mad! Facebook which was nothing ten years ago is worth $157bn!!!

And these guys are having a lend. Italy is threatening to sue S&P ratings agency for $254bn because they downgraded the country’s credit rating without taking a stock take of their cultural and historic assets. Italy’s auditor general, the Corte dei Conti, has also got Moodys and Fitch in their sights too! Go Italia! Greece would be out of the woods too.

Coke has bought 10% of the US Green Mountain group maker of a single cup coffee brewer for its planned cold drink machine. Bearing in mind that American make the world’s worse coffee ,looks like they are hoping that the new cold drink machine will be the winner for them. Taking on Scarlett and Sodastream as Coke in a capsule comes to a machine near you.

And the US regulator demands more info from banks on Forex fixing! These rates are not called fixes for no reason guys .Der!

Best song of all time is Nirvana Smells like Teen Spirit! Really. According to the UK’s NME. Let’s have a readers poll here !! Message me with your favorite sing ever!!

That is all