Weekly Market Commentary:

Stocks had a lackluster time during the Thanksgiving shortened trading week last week and growing sentiment towards a correction has certainly corralled the bulls this morning. The Dow Jones Industrials lost 62 points to close the week at 12280, while the S&P 500 was flat for the week closing again at 1401. The Nasdaq Composite posted a 14 point gain on the week to close at 2460.

The OTC market has risen four out of the past five weeks, and the Russell 2000 added 4 points on the week to finish at 792. The small cap index is up 18% this year and with Wall Street flush with liquidity, it's no wonder stocks have remained resilient. Quite as expected, U. S. stocks opened lower this morning as most of the major financial press has been pounding the “irrational exuberance” table.

The main concern for U.S. investors right now has been the pummeling taken by good old greenbacks. The dollar continues to weaken in international trading markets. This is a severe threat to the “already concerned about too much inflation” Federal Reserve Board. While third quarter profits came in about 6.2% better than anticipated, it remains to be seen how much more upside can be milked from this bull run.

Real estate got a shot in the arm last week when Blackstone Group announced it was spending $20 billion to take Equity Office Partners (NYSE: EOP) private. That move challenges the conventional wisdom that the cost of office space might wither along with the rest of the economy. Global merger transactions recently topped $3.5 trillion, the largest in financial history.

This week, attention will be focused on durable goods orders, consumer confidence, and existing home sales tomorrow, while Wednesday new home sales, and GDP (gross domestic product) are reported. Thursday, the spotlight will focus on jobless claims and the National Association of Purchasing Managers report from Chicago.

Stay tuned!