What Does It All Mean???

Wednesday there was a lot of water cooler talk around the Zacks offices trying to decipher what is happening in Europe and what it means for the markets going forward. Truly I could write a "War and Peace" manuscript with the volume of insights that flowed from that conversation.

In a nutshell, 2 people thought that the market blows up from here. 3 thought we go sideways for the next year. And 2 thought we press to new highs. That is a dead heat and certainly explains why the market is so tricky right now.

Here was my key takeaway. The US made a roadmap of how to solve these kinds of problems back in 2008/2009. Europe can follow that successful blueprint, but they need 17 countries to agree to the terms. And that is why it’s taking so long to come together.

Hopefully they gravitate in that direction, which would bode well for the US economy and stock market. If not, then watch out below.

If you are confident that you know the outcome, then place your bets now. However, it may be safest to wait for the market to show their hand first. Meaning that we are currently trading in a well-established range framed by the 200 day moving average on the upside [1267] and the October lows of 1100.

There is no shame in being balanced until that time and then jumping on the bandwagon when the breakout starts. (Because if you guess early, and guess wrong, it will be a lot more painful).

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

Today's Top Stories: Thursday- December 01, 2011

ZACKS RANK BUY STOCKS

• Aggressive Growth - VeriSign, Inc. (VRSN) Zacks Consensus Estimate rose another 2 cents in the past week and now sits at $1.33. Next year's average forecast is up 6 cents, to $1.69. This is projected growth of 54% and 28% respectively. Read More...
   
• Growth & Income - Sturm, Ruger & Co. (RGR) reported a 38% increase in the top line, to $80.5 million. By the time the money worked its way to the bottom line it was at a better-than-expected $0.57 per share, a 78% increase. Read More...
   
• Momentum - Foot Locker, Inc. (FL) Q3 earnings came in strong at 43 cents, 10% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 39% over the last four quarters. Read More...
   
• Value - Signet Jewelers Limited (SIG) once again blew by the Zacks Consensus Estimate. Earnings per share were 30 cents compared to the consensus of 20 cents. It was an increase of 328%. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

• Bull Of The Day: DENTSPLY International
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Linear Technology
  Full Zacks research report: Read More...
  
  
• Ahead of Wall Street
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• Zacks Industry Outlook: Steel Stock Review & Outlook - Nov. 2011
  According to the WSA, world crude steel production was 124 million metric tons in September 2011, up 9.7% year over year. Read More...
  
  
• Analyst Blog Highlights
• MasterCard Allies with Western Union
• NHS Deal for Computer Sciences
• Earning Scorecard: DISH Network
• Full Analyst Blog

INDUSTRY RANK : Tech Base Crumbling

The firms that form the base of the Tech pyramid, the makers of semiconductors and other electronic components look just awful on the Zacks Rank, which raises questions of how long the firms at the apex of the pyramid can stay up. Read More...

• Value Stock Picks-Nov. 30, 2011
• Surprise: Zacks Rank Factor #4
• Conglomerates & Export Opportunities

PeopleAndPicks.com:

Player "inthemoneystocks" not taking it personally. "most traders and investors will trade a particular stock several times and become comfortable with the equity... the problem... is that when they lose on a trade in the stock they feel that they must... Read More...

• Fed fuels commodity price spike @ CNNMoney.com
• Dow Rallies to Finish at Session High @ TheStreet.com
• Buying Frenzy: Central Bank Maneuver, Uplifting Data Propel Dow 490 Points Higher @ FOXBUSINESS.com
• Techs join broad rally, but Netflix slips @ MarketWatch.com

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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