AIG selling its Asian operations to Britain’s Prudential for $35.5 billion was the lion’s share of the $45 billion in M&A activity for Monday, but the fact that there were four deals made for a positive interpretation. In fact, the small deal interest gave the Russell 2000 quite a boost, up 2.2%, more than double the percent gain on the S & P. We talked about watching the leadership. Tech took its cue from SanDisk, up 12%, after the company boosted first quarter estimates. Meanwhile, the SIA reported January chip sales rose 0.3%. January is seasonally a downtick from year-end sales in December. The important point to make is that January 2010 was up 47.2% from January 2009. What this report did was bring to the surface what we have been saying we’ll see in April. First quarter comparisons to Q1 2009 should be a blowout. That theory got “backup” from yesterday’s economic data. Spending rose 0.5% in January. The ISM numbers were downticks in February, but they were all still well above 50. New Orders were 59.5 versus production at 58.4. That kept inventories below 50 at 47.3, so the “push-out” in the inventory rebuild cycle continues. The only good news on jobs in weeks, the employment component ticked up to 56.1 from 53.3. Yesterday got some very good news. Manufacturing is still doing well. Leadership is solid, with the SOX jumping 3.1%. Breadth was impressive. Volume is still light, but the bears might be looking down the road further than I gave them credit, seeing those good earnings on the horizon.