Monday Close

S&P 500 1,150.57 +.77%
NASDAQ 2,079.12 +1.07%

Leading Sectors
HMO's +4.56%
Nanotechnology +3.29%
Gaming +2.53%

Lagging Sectors
I-Banks -.50%
Broadcasting -.60%
Homebuilders -1.73%

Other
Crude Oil 34.27 -.32%
Natural Gas 5.76 -.50%
Gold 416.80 +.12%
Base Metals 112.73 -1.78%
U.S. Dollar 89.22 +.80%
10-Yr. Long-Bond Yield 4.20% +1.52%
VIX 14.97 -4.28%
Put/Call .64 -3.03%
NYSE Arms .46 -8.00%

After-hours Movers
NCEN +6.83% after announcing its board voted to convert the company to a REIT.
ARRY +13.83% after announcing the commencement of a drug discovery collaboration with Takeda Chemical.
K +5.12% after boosting 1Q and 04 estimates.
BRKT -28.70% after cutting 1Q sales forecast.
OMCL -21.80% after cutting 1Q sales and earnings forecasts.
SFNT -11.57% after cutting 1Q and 04 forecast.

Recommendations
Goldman Sachs reiterated Outperform on GDT, VZ, SBC, FDC, LEA, Goldman says REITs have 10-15% more downside on interest rate risk. Cody Willard, of TheStreet.com, told CNBC he likes JNPR and AFCI the most in the telecom equipment sector.

After-hours News
U.S. stocks finished solidly higher on positive earnings reports and a very strong ISM Non-manufacturing report. Interest-rate sensitive groups remained under pressure as the yield on the 10-yr. T-note rose to 4.21%. After the close, the Financial Times said that internet criminals are accessing files stored on laptop computers through Wi-Fi networks. A magnitude 6.5 earthquake hit Islamabad, the capital of Pakistan, the AP reported. The U.S. dollar rose to a 4-month high vs. the euro as the major economies of Europe sputter and U.S. growth is set to rise in 04 at the fastest pace in over 20 years, Bloomberg reported. A recent study shows that 55% of the mercury emitted into the world's atmosphere comes from volcanoes and forest fires, 22% from Chinese power plants and less than 1% from U.S. power plants, reported CNBC.

BOTTOM LINE: The Portfolio had another good day today. I took profits in a couple of recent winners and added some new long positions in healthcare technology, leaving market exposure at 100% net long. One of the new additions to the Portfolio is eResearch Technology(ERES). I am keeping a $27.60 stop-loss on this position. I was surprised by the strength of the late-day rally today. I had anticipated the negative geopolitical news over the weekend, rising interest rates and profit-taking would lead to short-term weakness. This is a big positive for the bulls and shows the market's underlying strength. Good earnings reports and relatively little important economic data should allow stocks to rally modestly throughout the rest of this holiday-shortened week. The shorts are really taking a beating right now. Short-covering should keep any near-term sell-off in check.