THE REAL MOST ACTIVE Stocks Surge More Than 2%, But Trade Lags.(MAKING MONEY)

Byline: CRAIG SHAW

Stocks kicked off the fourth quarter with major gains Wednesday, although volume trailed in lower. The Dow industrials climbed 2.1% and the S&P 500 2.2%, their biggest one-day advances since June. The small-cap S&P 600 rallied 2.5%.

Leading home builders peppered the market with breakouts after largely resisting last week's sell-off. The Building-Residential/Commercial group surged 5.5%, tops among IBD's 197 industries, as the Commerce Department reported construction spending rose in August.

D.R. Horton launched out of a 16-week base, rising 2.46 to 35.16 on 2 1/2 times normal turnover. The Texas-based single-family home builder marked an all-time high. Annual profit has grown every year since at least 1994, with 36% and 11% gains seen the next two fiscal years.

M.D.C. Holdings cleared an equally long pattern on the heaviest trade in two months, vaulting 4.60 to 58.60. The Colorado builder saw revenue growth accelerate the last four quarters from flat to 12% to 14% to 25% to 35%. Its Accumulation/Distribution Rating is a hearty B+.

Russian telecoms continued to defy the market correction. Mobile TeleSystems jumped ...