Stronger-than-expected jobs data and positive overseas leads have combined to lift the S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) 1.3% in afternoon trade today.
The other salient factor is a lift in commodity prices that has seen the iron ore price jump to above US$65 a tonne as the commodity remains caught in an updraft since bottoming out last April. The iron ore miners have followed suit with Fortescue Metals Group Limited (ASX: FMG) up 5% and Rio Tinto Limited (ASX: RIO) adding 2.4%.
The price of iron ore moves in mysterious ways and its unpredictability means having a punt on the iron ore miners is a task best left to day traders and speculators.
Brent crude oil futures also continue to consolidate around the US$65 mark and this has helped oil producers like Santos Ltd (ASX: STO) and Senex Energy Ltd (ASX: SXY) lift 2.5% and 1% respectively in afternoon trade.
Oil prices look likely to remain range bound over the short term with 2015's highs and lows likely to act as the borders until the supply and demand dynamic is decisively adjusted. Investors with an eye to the long term may see value in some of the current opportunities.
However, there's no real need to take a risk on price taking resources businesses when there are stocks available to provide some nice exposure to strong overseas markets and a falling Australian dollar.
Two such business that come to mind are healthcare giant CSL Limited (ASX: CSL) which is flat in afternoon trade, or investment bank Macquarie Group Ltd (ASX: MQG) which is up around 1.8%. Both these businesses generate a substantial portion of earnings overseas and still trade on attractive valuations.
Other top performers from the smaller end of town include IT services business Hansen Technologies Limited (ASX: HSN) and fast-growing software business Technology One Limited (ASX: TNE). Hansen is up 5% today, while Technology One has lifted 2% and both these technology-focused small-caps have delivered some eye-watering returns for investors who recognised their potential before the market woke up to it.
Although, I'm not sure either have the attractive valuations or blue-sky potential in overseas markets that The Motley Fool's two top small-caps to buy now have.
And I'm not kidding either!
