We are getting a lot of deal cancellations. That's a sign. We like that. It makes sense. That makes things better. We figure that we've got a fear bottom of sorts and we like the action in



, which has been one of the real drags here. We love the fact that the bears floated bogus rumors this morning that


(MSFT) - Get Report

would preannounce bad earnings.

What a crock! But I sense a

battle of encirclement there, with the bulls getting the upper hand. And biotech, which is a swell tell of the day, has lifted.

We just sold a round of 5s and 10s (5000, 10,000) into the strength, but we did it without much enthusiasm because we like what we see.

Oh, and when I was off the desk I see we sold the



. Heavens! Oh well. Funny that

Gary B. Smith

comes out

this morning and likes it!

Random musings:

Hedge-fund lookout: Still don't know anyone in trouble. In fact, this little lift has given the Street the liquidity it needs. Remember, margin clerks are

sidelined. Not much happening there.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Microsoft. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at