The rally won't wait

Stocks are climbing higher during Wednesday trading on a new government reports that February brought increases in demand for big-ticket manufactured goods and higher sales of new homes.

At 1:44 pm ET, the Russell 2000 (NYSE:IWM) is up 3.89, or 0.93%, at 420.67, while the Dow is up 0.40% at 7,690.63 and the S&P 500 is up 0.12% at 807.20.

Orders at U.S. factories for cars, airplanes, household appliances, furniture and other large goods rose 3.4% last month, much better than analysts' predictions of a drop of 2%.

New home sales rose 4.7% in February to a seasonally adjusted annual rate of 337,000. The month was still the worst on records dating to 1963, but economists were expecting February sales to fall to a pace of 300,000 units.

Small caps on the move today include ARYx Therapeutics (Nasdaq:ARYX), up over 20% ahead of fourth-quarter and year-end 2008 results scheduled to be released on Thursday at 8 am ET.

******Yesterday, I suggested that this rally was unlikely to retrace much ground and give buyers an attractive entry point. I went on to recommend a position in homebuilder Hovnanian Enterprises (NYSE:HOV).

Well, today stocks are pushing higher and Hovnanian is up 20% from yesterday’s closing price of $1.52.

Graham Corp. (AMEX:GHM) is pushing higher, too. It’s up 7% today and 13% since last Thursday’s recommendation.

If you bought either stock, I’d love to hear from you. Drop me . . .

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