Market Recap - FOMC Fuels Rally, Gold Surges

A nearly 1% rally for the S&P 500 has the index at the best level since late July 2011 and investor optimism is starting to override the fears in Europe. The move today has the index only 3% from a new 3-year high - hard to believe with all the black clouds hanging over the market. But as I have said many times in the past, there will always be black clouds, but not all of them will bring rain!

INTERESTING STORIES

• Apple ($AAPL) reports blockbuster earnings and rallies today on the news. The stock was up 6% to a new all-time high and is now the largest company in the US by market cap. And more amazing is that it could see another $150 on the upside before it is fairly valued.

• FOMC Meeting - Bernanke and his cohorts announced that interest rates will remain near historic lows into 2014 and that gave equities a boost. May are calling this the next round of quantitative easing or QE 2.5. Either way, low rates are good for corporations and stock valuations.

• Gold - Gold surged as the US Dollar fell after the FOMC news. More easing will lower the value of the Dollar and PowerShares US Dollar Index Bullish ETF ($UUP) fell by 0.45% today to the lowest level in over a month. This fall sent gold ($GLD) to the best level in over one month. {$GLD remains Penn Financial Groups largest holding.}

• New Highs - HOLDRS Biotech ETF ($BBH), Digital Realty Trust ($DLR), FEI Company ($FEIC), Pool Corp ($POOL), Weis Market ($WMK)