It was a day marked by unseasonably nice Spring-like weather in Manhattan; very unusual for February.

Similarly, the markets continue to give off mixed signals.

There are some very interesting trends afoot.

Stocks closed in positive territory as initial jobless claims numbers came out in line with expectations.

But Treasury bonds caught a strong bid and the Treasury bond auction went surprisingly well.

Oil and gold prices continue to creep higher.

Corporate bond spreads continue to grind tighter.

Spreads for Yankee financial (foreign based banks issuing in USD) bonds, particularly European, have been tightening steadily since the LTRO (long-term refinancing operation).

Yet credit spreads for U.S. bank bonds have been lagging, partly due to the Moody's overhang (the credit rating agency warned about upcoming downgrades).

Weighing on financials you have the Moody's chatter, diminishing potential for revenue growth and Dodd Frank that is going to kick in.

Spreads for Morgan Stanley widened out some 15-20 basis points while spreads for other financials remained unchanged; it seems to be the name that most bond traders are concerned about in the financials space.

And the Euro hit a 2-month high against the U.S. dollar at 1.33.

The metaphor is not perfect but one cannot help but think of fattening up a goose before cooking it.

The Europeans are looking for more help from the IMF (International Monetary Fund) but considering that it's an election year in the U.S. that extra help will not be forthcoming.

German resistance to a European "firewall" remains strong raising questions about intentions.

May's French election results will impact the European situation further with candidates already talking about instituting capital repatriation controls among other tax and regulatory measures.

Ahead of this weekend's G-20 meeting the Chinese are looking to strengthen controls over capital flows in and out of the country.

The Prince of Monaco had his jaw broken in a nightclub brawl in Manhattan.

The veneer of civilization is much thinner than we realize and barbarism lurks beneath the surface.

That reality underlines the importance of a sustained economic recovery that will benefit the real economy, and not simply the markets.

As for Syria, there is chatter of extensive special operations troop activity along the Bedouin-inhabited porous borders with Jordan and Iraq.

The sledgehammer will fall; it is simply a matter of time.

University of Michigan consumer confidence numbers are out on Friday.