Stocks closed significantly higher at the close of today's trading session.  The dollar slumped, gold rose, and some better-than-expected earnings reports gave investors and traders alike a boost of confidence in the economy's health.   The Dow rose 75 points, or 0.7%, to close at 11,096, a new five-month high! The Dow did rise as much as134 points earlier today.  The S&P 500 rose 8 points, or 0.7%, to close at 1,178, while the Nasdaq gained 23 points, or 1%, to close at 2,441.  Both of these indexes reached new five-month highs.  The Volatility Index, actually rose today above 19.

The good mood prevailing in the market was a result of better-than-expected earnings reports from Intel, CSX, and JPMorgan. In addition, many traders and investors carrty the expectation that the Federal Reserve will step in to boost the ailing economy after release of the minutes from the central bank's September meeting.

Intel (INTC) did report strong Q3 results. They saw gains last quarter in emerging markets and big corportations.  Intel closed at $19.24 today.  CSX also reported a better-than-expected earnings due to rising demand for freight (could this be a sign of an economy on the mend?).  They closed up today almost 2.5 points at $59.66. Finally, JP Morgan (JPM) took a hit today even though they had better-than-expected earnings.  They had lower loan losses in their retail and credit card segments.  They closed down .56 at $39.84. 

Today's stock pick is:  Lululemon Athletica (LULU).  They operate about 124 athletic apparel stores in the U.S. and Canada.  They are looking to expand and are planning to open about 15 more stores in 2010-2011.  I was looking at this stock last week but felt that it was too overheated.  It closed at $45.59 today, but I think this stock is headed back to the $43-$44 range.  I think that would make a great entry/accumulation range and then hang on until the stock peaks again and tests the $48 range. 

As always, stay cautious.  I think this rally is getting a "little long in the tooth" so any new purchases deserve much scrutiny.  Check out Wall Street Survivor below -- it's free, fun and you can compete for cash prizes!

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