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Market Pros: US Best Place to Invest?

All that talk about negative market momentum may have been a bit premature, at least relatively speaking.

The S&P pared looses into the close Monday with financials showing impressive gains as investors shrugged off concerns about Ireland, Spain, and Portugal amid signs of US strength.

"Investors look at the US market and they want to be invested," says Fast Money's Tim Seymour.

Fundamentals appear to be lining up well - for example earlier in the month new data showed that factory activity in the Mid-Atlantic region grew much more than expected.

And as Doug Kass of Seabreeze points out in his column, "the capacity utilization rate is well off its bottom, the ISM and ECRI's Weekly Indices are moving higher, personal income/spending growth is expanding, and jobless claims/labor market trends are improving."

Technicals appear equally bullish.

For the third time in less than a month, the S&P 500 bounced off its 50-day moving average of 1172 leading to chatter that the major market index had put in a triple bottom - and was ready to melt higher.

What's the takeway?

Instant Insights with the Fast Money traders

I look at Europe and ask myself if there's systemic risk, says Joe Terranova. In other words is Europe going to take US stocks down? I don't think it is.

On top of that-- this week we get data that could show fundamentals in the US have changed for the better, he adds. This week we get ISM, auto sales data, and a jobs report. The data from the US could be very bullish.

When compared to China and Europe, the US looks like the best place to invest, adds Brian Kelly. We have a stronger dollar and an accommodative Fed versus China tightening and uncertainty in Europe.

I really like the US too, says Karen Finerman. But I'd look at multi-nations such as Yum! or McDonald's . They give you the best of both worlds - domestic exposure as well as exposure to other markets.

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BLACK FRIDAY

After a strong Black Friday the traders are closely watching the action in online retailers with Amazon hitting new all time highs and online jeweler Blue Nile jumping sharply.

What’s the trade?

As far as I’m concerned people are really underestimating the power of e-commerce, says Joe Terranova. And I think a second derivative trade would be Akamai as well as FedEx .

Or look at Digital River, says Brian Kelly.

Don’t forget that Walmart is the number two online retailer, reminds Tim Seymour. They’re growing and they are trying to put scale to work with their acquisition in Africa.

I like Best Buy, Saks, Target and Walmart, says Karen Finerman.

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WEIRD ECONOMIC INDICATOR

If you’re looking for an unconventional indicator to size up the strength of holiday sales we may have found one.

David Rosenberg of Gluskin Scheff points out that there has been a 12% percent decline in the price of gift wrap with prices now at the lowest level since January 2009

That is a record decline for this crucial time of the year, he says.

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EURO COLLAPSE?

Investors are keeping a close eye on developments in Europe with the euro falling to more than two-month lows against the U.S. dollar.

Chatter on the Street is heating up about the future of the single currency with widely followed strategist Dennis Gartman telling us faced with "almost terminal problems" the euro could soon unravel.

Click here to go to Halftime—Dennis Gartman: 'Eventually, the Euro Breaks Apart'

To make matters all the more precarious it broke the 200-day for the first time since September. In turn, that hurt commodity prices and shares in the materials sector.

What should you be watching? How should you position now?

I’m keeping an eye on the action in the euro; it tends to respect the 200-day better than any currency, says Joe Terranova.

I find reaction to Europe way too hyperbolic, says Tim Seymour. What I see happening now is the euro/dollar relationship moving toward levels that are more sensible. There’s real economic strength here in the US.

I like the US market too, says Karen Finerman.

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OIL, GOLD, SILVER RISE DESPITEDOLLAR GAINS

Many investors found Monday’s action in commodities confusing to say the least with crude , copper and gold all posting gains despite the rise in the dollar.

The action in crude was particularly noteworthy - oil closed at its highest level in 2 weeks.

What does it mean?

There’s seasonality going on in the crude market, explains Joe Terranova. And domestically contago is coming out of the market.

For me the trade is long gold, says Brian Kelly. I think the fundamental story remains; there's tremendous investment demand out there.

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BANKS LEAD A RALLY BACK IN MARKET, BUT WHY?

Our own Pete Najarian has been on the Fast Money Twitter page all day bringing you his top ideas. And one question that seemed to come up time and again was related to banks.

Many of you asked why the strength in the financials today?

Find out what Pete Najarian has to say about the action. Watch the video above!




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Trader disclosure: On November 29, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL), (BX), (BAC), (NOK); Finerman owns (AAPL); Finerman and Finerman’s firm owns (BBY); Finerman owns (BAC); Finerman owns (BKS); Finerman and Finerman’s firm owns (BP); Finerman’s firm owns (CMVT); Finerman owns (KFT); Finerman and Finerman’s firm owns (JPM); Finerman’s firm owns (MCD); Finerman’s firm owns (WMT); Finerman and Finerman’s Firm owns (MSFT); Terranova Owns (UPL), (C), (PEP), (VRTS), (GS), (OXY), (OIH), (AXP), (FCX), (AAPL), (POT), (NKE), (MCD), (IBM); Weiss owns (FDX), (UPS), (BWC); Pete Najarian owns (PFE); Pete Najarian owns (BAC); Pete Najarian owns (MS)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (GLD)
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Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (BG)
Accounts Managed By Kanundrum Capital Own (JPM)
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (QCOM)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (AAPL)
Accounts Managed By Kanundrum Capital Own (DRIV)
Accounts Managed By Kanundrum Capital Own (DRYS)
Accounts Managed By Kanundrum Capital Own (ESM)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
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For Mike Khouw
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Cantor Fitzgerald makes a market in (NYT)

For Doug Kass
Seabreeze Partners Management Is Short (YUM)
Seabreeze Partners Management Is Short (RT)
Seabreeze Partners Management Is Short (GIS)
Seabreeze Partners Management Is Short (K)
Seabreeze Partners Management Is Short (KFT)

For Jordan Rohan
Stifel Nicolaus makes a market in (EBAY)
Stifel Nicolaus intends to seek compensation for investment banking services from (EBAY) in the next 3 months.

For John Stephenson
Stephenson And First Asset Investment Management Own (HES)
Stephenson And First Asset Investment Management Own (OXY)
Stephenson And First Asset Investment Management Own (BP)
Stephenson And First Asset Investment Management Own (HAL)
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