The market bolted out of the gate today and never looked back. Last night, China reported a better-than-expected PMI number. Today, our ISM Index also showed better-than-expected manufacturing activity. As discussed in my Market Forecast this weekend, we paid extra attention to the mining sector. Our trade in CLF turned an overnight profit of +60% today. CLF jumped +6.14 %. WLT vaulted +7.09%. This morning, JOYG raised its 2010 forecast in its quarterly report and its stock added +6.4%. BUCY benefitted from that news and gained almost +8%!
AAPL revealed a smaller, cheaper version of Apple TV, in addition to new models of iPod. AAPL shares traded +3% higher today. As I mentioned last night, the battle in the Internet streaming video content is heating up; and, investors should really pay attention to the big players. AMZN rose +6.14% on the news that it will be offering Web TV service. NFLX went up over $136/share before closing at $134.92, up +7.48%. NFLX will be streaming movies on iPhones. GOOG also added +2.29%. Analysts have been talking down AKAM due to valuation. But, with all the attention on streaming videos, AKAM can break higher even without a buyout offer (although it is not to say that it’s not in the works). AKAM garnered +3.42%. We’re starting to feel the front ripples of the Mobile Entertainment Tsunami!! Also, pay attention to the internet/media/entertainment/mobile devices players in China!
The Dow was up +254.75 points; SPX added +30.96 points; Nasdaq gained +62.81 points:
SOXX (semiconductors) bounced back +3%. XME (metals and mining) added +4.05%. OIH (oil services) jumped +5.18% and USO (oil) rose +3.23%. XLE (energy) climbed +3.73%. XLF (financials) hopped +3.89%. FXI (Chinese ADRs) advanced +2.57%.
SPX
SPX added +30.96 points to close at 1080.29. It closed just under the 20-day MA. MACD turned up.
Nasdaq
Nasdaq jumped +62.81 points to close at 2176.84, above its 10-day MA. Its MACD also went higher.
Today’s jumped in the equity market could be significant. A drop in the ADP report was completely ignored. People focused on the increase in manufactoring activities, which could lead to more jobs. Tomorrow and Friday, we’ll get the latest jobless claims and unemployment rate reports. Any bad news could be already baked into the market. Although with today’s big jump, we may still see some profit-taking. If the market can get through this week staying close to SPX 1080, we may be establishing the bottom on the recent 3-week slide at SPX 1040, which is higher than the low in July at just below 1020.
Good night and HappyTrading! ™ 
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