Oh Standard & Poor's, you've got to be kidding. Apparently the ratings agency is still giving Triple-A ratings to securities backed by subprime loans.

"S&P is poised to provide AAA grades to 59 percent of Springleaf Mortgage Loan Trust 2011-1, a set of bonds tied to $497 million lent to homeowners with below-average credit scores and almost no equity in their properties," the article says.

S&P seems to have forgotten that these mortgage-backed securities defaulted to the point that it nearly brought the world's financial system down. Of course, banks held too many of them, and had leveraged them too much, but S&P was complicit.

But, I guess when you're getting paid -- approximately $1.67 billion in bond rating fees last year -- anything goes.

The market rebounded in a strong way last week. Over the past three weeks, I cautioned against going short - it's not because I wasn't bearish or that I am super bullish. I had a long bias because the indices were oversold at strong historical levels of support.

While the indices did not sink lower. I really cannot say that the indices jumped higher until last week. And even now, although I expected another ride to 1197 there isn't much of a chance of a sustainable break out past that. The 1250 resistance will be a beast, and barring any stimulus plan or political intervention (as if those idiots could act fast) there really is not much of a reason for SPX to blast any higher.

The market soared higher yesterday. I can't say volume was great, but it did increase.

Financials were a big part of the rally, which was great to see because that sector has certainly slumped behind over the past three months.

The big banks popped yesterday after a better than expect ADP jobs number was announced.

JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC), Citi (NYSE: C) and Wells Fargo (NYSE: WFC) rallied 1.7% from that news. The ADP reported that in June 157,000 private jobs were added, which was ahead of the 70,000 widely expected and the 36,000 in May.

Payroll processing firm ADP reports that private employers cut jobs by 20,000 in February. That reading is in line with expectations. It also is more evidence that the rate of job losses is slowing, or stabilizing.    

That’s an important first step for getting actual job growth and putting the economy on a clear path to recovery. But there’s a long way to go before fewer job cuts turns into actual net hiring.