David Moenning's Daily State of the Markets: 11/22

Boring, But Effective

Good morning. Yesterday�s stock market can best be described as boring, but effective for anyone with long positions. The volume was light, there was no economic news, and the news flow was thin. But at the end of the day, the bulls managed to push the major indices higher for the sixth time in the last seven days.

Traditionally, stocks tend to meander higher on very light volume during the Thanksgiving week. So far at least, the market appears to be sticking to the script as traders are definitely doing less, but there is still some buying interest out there. And if you side with the bulls, it is encouraging to note that the day before and the day after Thanksgiving has been strong from an historical standpoint.

While the day was pretty dull overall, there were a couple items worthy of note. First, Google, which, along with Apple Computer, is now the poster child for new tech, continues to attract attention and surpassed the $500 mark for the first time. GOOG finished at $509.65.

The other interesting aspect of yesterday�s trading comes from the oil pits. Crude futures suddenly rebounded on word that a primary Alaskan pipeline had seen its capacity reduced due to inclement weather. Traders did some buying and oil wound up reversing course from the recent downtrend to finish higher by $1.37 to $60.17.

Looking ahead, we should be prepared for the fact that volume will slow to a trickle after lunch today as traders try to get an early start on Holiday travel. And although the NYSE is open for a short session on Friday (the NYSE closes at 1:00 pm), unless there is significant news, we probably shouldn�t expect much in the way of important movements.

Turning to today�s session, the overseas markets are abuzz with M&A activity. Asian markets are leading the way with strong gains, which, in the early going appears to be spilling over our markets.

On the economic front, we�ll get a report on consumer sentiment from the University of Michigan, which could cause a stir in front of the year�s most important shopping day on Friday.

Running through the rest of the pre-game indicators, the major overseas markets are a mostly higher. Gold futures are up this morning and are quoted at $630.50 right now. Crude futures are moving a little lower this morning, with the latest quote showing the December contract off $0.24 to $59.93. Interest rates are holding steady once again so far with the 2-year currently quoted at 4.77% while the 10-yr is trading with a yield of 4.58% right now. And finally, with about an hour before the bell, stock futures in the U.S. are looking a little higher. The Dow futures are currently ahead of fair value by about 17 points, the S&Ps are up about 2 points, and the NASDAQ looks to be about 2 points ahead of fair value at the moment.

Stocks �In Play� This Morning:

Dell (DELL) � Reported $0.30 vs. $0.24, Upgraded at Bear Stearns, Needham, Target raised at Friedman Billings Ramsey

Brocade (BRCD) � Reported $0.14 vs. $0.12, Upgraded at Needham

Motorola (MOT) � Mentioned positively at BofA

Advanced Medical Optics (EYE) � Downgraded at Citigroup, Merrill Lynch

Goldcorp (GG) � Upgraded at Canaccord Adams

Triad Hospitals (TRI) � Mentioned as an LBO candidate at Deutsche Bank

Sears Holdings (SHLD) � Mentioned positively at Deutsche Bank

Freeport McMoRan (FCX) � Upgraded at Friedman

Gold Fields (GFI) � Upgraded at HSBC

Air Products (APD) � Upgraded at JP Morgan

Network Appliance (NTAP) � Upgraded at Raymond James

Payless Shoesource (PSS) � Upgraded at Susquehanna

Deere & Co. (DE) � Upgraded at Wachovia

SAIC Inc. (SAI) � BofA begins coverage with Neutral rating, Stock initiated by 6 other firms this morning

Apple Computer (AAPL) � Mentioned positively at Piper

Long positions in stocks mentioned: BSC, JPM, MER, SHLD

** For More of David Moenning�s Market Analysis, Stock Portfolios, and Trading Ideas, visit: www.TopGunsTrading.com

The opinions and forecasts expressed are those of David Moenning, President of Heritage Capital Management and Co-Founder of TopGunsTrading.com and may not actually come to pass. Mr. Moenning�s opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security or Heritage Capital program. No part of this material is intended as an investment recommendation. Neither the information nor any opinion expressed constitutes a solicitation to purchase or sell securities or any of HCM�s programs. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that investment objectives outlined will actually come to pass. Investors should consult an Investment Professional before investing in any investment program. Neither Mr. Moenning or Heritage Capital Management nor any of their employees shall have any liability for any loss sustained by anyone who has relied on the information contained herein. Mr. Moenning and employees of HCM may at times have positions in the securities referred to and may make purchases or sales of these securities while this publication is in circulation. The analysis contained is based on both technical and fundamental research. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

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