But wait - I thought the Conservative Media told us the stimulus hadn't worked?!

Two reports confirm economy is improving

INDICATOR: March new home sales up 26.9 percent

New home sales surged in March and that was a real surprise. With so many foreclosed homes on the market, it was assumed that builders would have problems moving the product.

But in the scheme of trends, this is another indication that economic conditions are firming and investors should feel good.

INDICATOR: March durable goods orders

Durable goods orders are the key to the economy. If these costly products are in demand, it can only follow that the economy is moving forward. That seems to be happening.

Another very positive sign was the non-defense, non-aircraft capital goods number, which represents business capital spending. This jumped for the second consecutive month.

MARKETS AND FED POLICY IMPLICATIONS: Forget the headline number, this was a very good report. We are seeing growing demand for big-ticket items and it is broad based. Firms are investing and inventories are rising, and that can only bode well for future growth.

Right now, the economy looks pretty good.