Morning Look

Morning News of Note:

• Year End Strategy: Heard on the Street... Now Showing, Again: 'Get Shorty' Year-End Tactic Involves Buying Shorted Stocks, Squeezing Holders, Thus Spurring Even More Gains IT MAY BE TIME for another installment of "Get Shorty" on Wall Street. As the market enters the year's final weeks, some traders are focused on a short-term strategy: snapping up shares of companies that are big targets of short-sellers. At first glance, the strategy may not make such sense. Short sellers bet against stocks by borrowing shares and selling them. (Full Story) WSJ
• EBAY: Getting an Oil Change Off eBay Auction Site's Push Into Auto Services Is Early Step In Battle for Local Listings EBay is aiming to take over the phone book's customary role as the first place people turn to find local services from housecleaners to accountants. While eBay Inc.'s focus for now is on auto services like oil changes and brake jobs, its goal may be to connect consumers with local businesses of all kinds. (Full Story) WSJ
• AAPL: thinksecret.com reports Apple is planning to release its first entry-level iBook laptops with Intel processors next January at Macworld Expo in San Francisco.
• GILD: Gilead Sciences-GILD Tamiflu royalties should average 20-22%-Outperform@TWPT The firm's analysis points to an $11.5B opportunity for the drug. TWPT has raised GILD's estimates on higher royalty assumptions.
• MDT: Medtronic-MDT shares will be weak today on slowing ICD market growth-SP@CIBC The firm thinks many investors got in the stock before the quarter in anticipation for an upside.

Market Comments: The market is trading higher in early trading. Of course, I don't like it when markets rally too early in the day, as too often it results in late day weakness. MDT reported okay earnings last night, but not good enough to top lofty expectations. SBUX reports after the close. I tend to think the stock will get a similar reaction.

Retailers and energy are bouncing for a second day, while chip stocks are under pressure. Utilities are also getting a boost from the big drop in bond yields yesterday.

I took profits on my recent GILD and GOOG positions, just to lock in some nice short-term gains. I expect to get back into both stocks at some point in the future.

long MDT