ENERGY AND TECHS CONTINUE TO LEAD MARKET HIGHER -- NASDAQ COMPOSITE CLEARS ITS 50-DAY AVERAGE -- YAHOO POWERS INTERNET SURGE -- -- TOP ETF GAINERS ARE INTERNET AND OIL SERVICE HOLDERS --GOLD JUMPS $10 AS MOST COMMODITIES RALLY WITH STOCKS

INTERNET HOLDERS JUMP NEAR 4%... Energy and technology led the market higher again today. In fact, the day's strongest ETF was the Internet Holders (HHH) which jumped 3.8%. Chart 1 shows the HHH jumping impressively over its 50-day moving average today. The other three charts show strong gains in the three biggest stocks in the HHH. Of the three, Amazon has the strongest chart pattern and jumped more than 4% (Chart 2). EBAY gained 2% and is trading back over both moving averages (Chart 3). Yahoo had the biggest percentage gain of the day (6.7%). Chart 4 shows, however, that Yahoo has the weakest trend of the three. Semiconductors also had a strong day (+2.5). Semiconductor Holders (SMH) gained +2.5% and helped push the Nasdaq Composite Index back above its 50-day moving average. [The Nasdaq 100 did that last week]. While energy was the day's strongest sector, Oil Service Holders came in second just behind the Internet on the ETF leader board.

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NASDAQ COMPOSITE BREAKS RESISTANCE ... The Nasdaq Composite Index gained 1.30% today (on rising volume) and came in second only to the Nasdaq 100's +1.6%. Chart 5 shows the Nasdaq Composite clearing its 50-day average and its early August peak at 2627. A lot of the credit goes to big tech leaders like Apple, Cisco, Intel, and Yahoo. The NYSE stocks did well, but not well enough to clear their 50-day averages. Chart 6 shows the NYSE Composite Index testing that line today. [The Dow closed right on its 50-day line, while the S&P 500 ended 2 points above its line]. Big board volume, however, was on the light side again. That may start to improve as we move further into September. Breadth was 3 to 1 positive on the big board and 2 to 1 on the Nasdaq.

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GOLD JUMPS $10 ... Commodity markets continue to rally right along with the stock market. While oil rose more than a dollar, gold rose nearly $10. Chart 7 shows the streetTrack Gold Trust Shares (GLD) nearing a test of its July peak. Most other commodities rose today as well.

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SHORT-TERM RATES JUMP ... Chart 8 shows the 3-month T-bill Rate jumping sharply again today. That seems to suggest that much of the panic buying of short-term government debt has run its course, and also suggests that investors are feeling better about things. Some of the money coming out of T-bills is probably moving back into the stock market. Bond holders, however, don't seem as anxious to sell their holdings. Chart 9 shows the 10-Year T-Note Yield bouncing a little today (as bond prices dipped). It needs to bounce a lot more, however, to suggest that traders are switching out of bonds and back into stocks.

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