Stealth Stocks Daily Alert

Market Commentary: As expected, the Fed raised interest rates another 25 basis points to 4.25 percent but at the same time changed their wording in the statement enough to raise questions. Here is what the Fed wrote: "Despite elevated energy prices and hurricane-related disruptions, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, long as it remains so, the bulls have the upper hand. New highs are climbing above new lows for both the NYSE and the OTC, with the OTC the stronger of the two. Momentum is positive, with all of the indexes remaining above 50% and currently at the bottom of a short cycle. I think this is a sign of underlying strength. I think it is a positive that all the market could correct down to was its 20-day moving average. The trend is well above the 50 and 200-day moving averages and is now starting to turn up again. I think this bodes well for a Santa Claus rally. I have some concerns about the durability of this rally should the Fed continue to cut the money supply, but near term I think the market is setting up for another rally. Take additional exposure to the market but don’t plan on a long-time holding period. DAILY TRADING PORTFOLIO: 12/13/05 STOCK SYMBOL ACTION PCT ENTRY PRICE 12/13/05 PRICE Sell/Cover INDUSTRY BTU International BTUI Hold 10% $15.70 $13.40 $12.75 Electronic Plexus Corp PLXS Hold 10% $19.46 $22.05 $18.00 Electronic Peerless Systems PRLS Hold 10% $7.25 $9.10 $7.50 Computer Japan Equity Fund JEQ Hold 10% $9.63 $9.32 $8.00 ETF Harmony Gold Mining HMY Hold 10% $12.60 $12.99 $12.00 Mining Nomura Holdings Inc NMR Hold 10% $18.00 $18.58 $16.00 Financial Stellnet STEL Hold 10% $10.52 $10.58 $9.00 Software Investools, Inc IED BUY 10% $4.50 Business Svcs Money Market 20% NOTE: BUY and SELL recommendations are to be made on the open of the next trading day. You may need to place orders the night before the market opens. Be sure to use a STOP LOSS on your BUY order after you are filled. If on the open a new BUY opens lower than the recommended STOP LOSS, place a new STOP LOSS 2% below your BUY price. -------------------------------------------------------------------------------- Dennis Slothower’s Stealth Stocks is published by Eastman Communications, Inc. As a publisher of a financial newsletter of general and regular circulation, we cannot tender individual investment advice. Only a registered broker or investment advisor may advise you individually on the suitability and performance of your portfolio or specific investments. In making any investment decision, you will rely solely on your own review and examination of the facts and the records relating to such investments. Past performance of our recommendations is not an indication of future performance. 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The Integrity Premium

Kenneth Fisher (Buys Sells): The Integrity Premium Posted on 2005-12-13 "What would the S&P 500 be trading at if we had complete confidence in corporations' audited numbers? A lot higher than 1,300. Post-Enron, post-WorldCom, a pall of uncertainty envelops financial statements. There's what you might call the murkiness discount. You expect this kind of haircut in Shanghai or Rio, but we have it, too, right here in America. That isn't bad enough by itself to trigger a bear market. But this makes the stock market worth less than it otherwise would be." "Because the oligopoly isn't going away, you should focus on stocks that are good enough and cheap enough that you can be comfortable with them despite zero ability to believe in audited profit-and-loss and asset-and-liability accounts."Discuss this story http://www.gurufocus.com

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