Stocks in Chipper Mood

Dick Arms, technician and contributor to RealMoney.com, TheStreet.com's investing-ideas site, calls the market "disturbing" right now. Arms, who is creator of the Arms Index, which compares advancing to declining stocks to advancing and declining volume, says he is flat Thursday -- meaning he's out of all stock investments.

Arms says he is wary of weak advancing volume in the march to new highs Thursday, and his index reveals "extremely overbought" conditions. Arms notes also that the reading on the CBOE Volatility Index, while up 2.9% Thursday, remains near the low end of its 52-week range at 12.78. It surged to a reading over 19 on March 5, when fears were at their peak.

A correction may be at hand, but the underlying global liquidity story remains intact. Even the persistently falling dollar can help keep the liquidity spigot open, given the global monetary policy landscape, says Michael Darda, chief economist at MKM Partners. As the dollar falls, foreign central banks tend to prevent too much appreciation in their own currencies, so they don't get too tight, he says.

And, technical indications aside, earnings are beating estimates, and that's keeping the market happy. Thursday's news brought a mixed bag of reactions despite a majority of above-estimate reports.

eBay(EBAY Quote) beat estimates and raised its guidance, but slipped 3.7% Thursday. Nokia(NOK Quote) reported earnings that met expectations, and its shares surged 3.3%.