Getting back to inflation, it is important to note that the producer price Index does not reflect wage pressures – and that is where the inflation threat really lies.

It’s an earnings-driven market. The big question is whether the flow of earnings can rescue the market from the twin dreadnoughts of higher oil and interest rates.

It’s becoming a day-to-day struggle between bears and bulls. Once oil and yields move to highs, the bears take advantage. Those are the twin dreadnoughts of the market. But earnings news has been strong and has kept bulls on top.

It's becoming a day-to-day struggle between bears and bulls. Once oil and yields move to highs, the bears take advantage. Those are the twin dreadnoughts of the market. But earnings news has been strong and has kept bulls on top.

However, given that the volume yesterday was almost at the lowest level of the year, caution prevails. I can promise a decent opening but it's still a bell to bell story.

However, the history of the stock market is that everyone sells into the strength. So I'll be taking it one hour at a time. I'm in a show-me mood today.

I don't think the money managers are going to go rushing into stocks just simply because we got to Dow 10,000.

Cisco reports earnings tomorrow (Tuesday) and certainly that stock is at a price where there may be a split.

Clearly, the gulf between technology and the rest of the market was so wide it was impossible to sustain. And there had to be a correction somewhere and the correction is under way.

In technology, I think the semiconductors, semiconductor equipment makers, and the companies that sell you electronic gear look attractive.