12:50pm (EST) 

The market got a lift this morning on some good news out of the manufacturing and housing sector as the Dow is up 81 points to 9,793. 

The Institute for Supply Management (ISM) said the manufacturing industry grew at the fastest pace in October since April 2006.  The ISM manufacturing index number came in at 55.7, which was much better than the Wall Street’s estimates of 53.  It was the third month in a row the index came in above 50, which indicates growth…

The National Association of Realtors said pending home sales increased for the eighth straight month in September.  The Street was looking for a level of 103.8 but got 110.1.  It was the highest reading since December 2006…

The bulls also got the hat trick when the Commerce Department said construction spending increased 0.8% in September, matching the gain in August.  Most economists had been expecting a decline of up to 0.3%.

There are quite a few stocks we are following today but we wanted to get the word out concerning our Research In Motion (RIMM, $55.42, down $3.32) trade.  On Friday we had this to say (quotes are from Friday 1pm update):

“It looks like the smartphone trade is getting long in the tooth for the bulls who have been riding that gravy train.  Apple (APPL, $190.54, down $5.81), Palm (PALM, $12.29, down $1.12) and Research in Motion (RIMM, $58.69, down $2.67) are getting hammered today and we are paying particular close attention to RIMM.  It looks like a double nickel stock price is on the horizon.” (END) 

On Friday, we profiled a trade in the Members Area for our current subscribers on RIMM and today it has easily doubled.  For those of you in it, you can sell half now, and raise the stop to $2.00 to protect over a 100% return.  The put options we profiled were at $1.00 on Friday and are currently trading at $2.80, up $1.65.  Folks, that is a return of 180%!

Hopefully, everybody enjoyed the chart we showed with the trade this morning.  It clearly shows this big breakdown we were expecting…