Schaeffer's Daily Market Blog Features TiVo, General Motors, Novellus Systems, Inspire Pharmaceuticals, and the Oil Service HOLDRS Trust.

CINCINNATI -- Among the stocks featured in the November 30 edition of Schaeffer's Market Blog are TiVo (NASDAQ:TIVO), General Motors (NYSE:GM), Novellus Systems (NASDAQ:NVLS), Inspire Pharmaceuticals (NASDAQ:ISPH), and the Oil Service HOLDRS Trust (AMEX:OIH). Schaeffer's Market Blog is just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB11M&PAGE=1 .

Schaeffer's Market Blog for Wednesday, November 30, 2005:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 .

1:40 PM Is General Motors Set to Shift into Overdrive?

General Motors (NYSE:GM) and many other carmakers have come under pressure today, as the group is slated to post their November U.S. sales results tomorrow. The reason for the pullback is that many on the Street are expecting another lackluster month of sales despite second-half promotions and easing gasoline prices. So far today, GM has shed approximately three percent. However, I see some promise for the shares. The stock is quickly approaching long-term support at the 22 level - a region that GM has not closed below on a daily basis since 1992.

Lending to my optimistic view of GM is the blatant pessimistic sentiment levied against the shares. The stock's Schaeffer's put/call open interest ratio (SOIR) of 2.01 indicates that puts more than double calls in the front three months of options. Furthermore, this ratio ranks above 73 percent of those taken during the past year. Elsewhere, GM's short-interest ratio rests at 5.42 days to cover, while the 66 million shorted shares account for more than 14 percent of the stock's total float. Combine this with 13 "hold" or worse ratings out of 16 total covering analysts and you have a considerable number of investors expecting the worst. Should GM impress or merely meet expectations tomorrow, we could see a nice pop from the shares.

2:02 PM TiVo Forecasts Better-Than-Expected Fourth Quarter

The original set-top DVR distributor TiVo (NASDAQ:TIVO) has recovered much of its nearly 10-percent decline from Tuesday. Sparking this rise in the shares is the company's announcement that its fourth-quarter revenue would fall short of expectations. Furthermore, TIVO also said it expects fewer gross subscriptions added to its rolls in the quarter compared with last year. However, despite the seemingly bad news, TIVO's projected fourth-quarter loss is slightly better than the Street's vision.

Technically speaking, TIVO is at the beginning of a fledgling rally along its 10-day and 20-day moving averages. The stock regained its 20-day in today's session, and is still struggling to reclaim its 10-day as I write. On the sentiment front, TIVO scores a 7.0 out of 10 on our Schaeffer's Equity Scorecard, due in large part to some rather extremely pessimistic indicators. For instance, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.42 ranks above 81 percent of those taken during the past year. What's more, TIVO short interest accounts for nearly 23 percent of the stock's total float and would take more than 10 days to cover. Not to mention that 12 of the 14 covering analysts rate the shares a "hold" or worse. In conclusion, the fuel is there, and if TIVO can post the numbers, watch out.

3:28 PM Novellus on a Collision Course 

Novellus Systems (NASDAQ:NVLS) dropped quickly on bad news, only to rally back later in the session. Early this morning, NVLS lowered the top end of its fourth-quarter revenue forecast. In its mid-quarter update, the company forecasted sales between $305 and $315 million, compared with its prior forecast of $305 to $322 million. Analysts are currently expecting sales of $316 million. But NVLS maintained its earnings guidance of 15 to 20 cents per share, excluding charges. Traders have decided to focus on the earnings figures, as NVLS was last up more than three percent as the shares continue to ride their rising 10-day and 20-day moving averages higher. However, NVLS's 20-week, 10-month, and 20-month trendlines are quickly descending into the area and could pose a significant problem for the shares. Furthermore, the 25 area is home to a 50-percent retracement of NVLS's August high and its October low.

Sentiment toward NVLS is a bit of a mixed bag. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.38 ranks below 89 percent of all those taken during the past year. However, short interest increased by 10 percent during November and now accounts for more than 10 percent of the stock's total float. But it would still take less than two days for investors to cover this collection of bearish bets at NVLS's average daily trading volume, creating a bit of doubt as to the strength of any potential short-covering rally or support. Finally, NVLS receives five "buys," 12 "holds," and four "sells." If the security's technical uptrend had a bit more conviction, I would feel comfortable with this configuration. As it stands, however, these "holds" could just as easily become "sells" that could send NVLS sinking lower.

3:32 PM Sector Talk

What a day for oil stocks. They started off higher and got a little jump after the inventory report at 10:30 a.m., but by early afternoon began to sell-off to the lows of the session. Then at exactly 2:00 p.m. someone turned on the buying, as the OIH (AMEX:OIH) surged and is now up 2.50 percent on the day. On the flipside, metals are getting hit as gold is seeing some profit taking in front of $500 an ounce with the PHLX Gold & Silver Index (XAU) down 2.50 percent. But the one sector that I must say looks the best is steel - as numerous names technically look ripe for more gains over the coming months.

3:44 PM FDA Could Encourage Inspire Pharmaceuticals Higher

According to Hoover's, Inspire Pharmaceuticals (NASDAQ:ISPH) targets treatments for various respiratory and ocular diseases caused by malfunctioning P2 receptors, which regulate the body's mucosal hydration. The stock has rallied more than 17 percent so far today after Piper Jaffray stated that it expects the FDA to approve ISPH's diquafosol medication on Thursday. According to the covering analyst, "Our clinical contacts continue to confirm that diquafosol's ability to clear the central region of the cornea is clinically meaningful and believe that Inspire has sufficient data to make this claim." Additionally, Piper noted that "Should the FDA grant approval of diquafosol, we would expect Inspire's shares to trade at or near our $16 price target."

The stock has had its technical problems, declining under its 10-week and 20-week moving averages, but sentiment is geared for a nice rally should the FDA follow through. ISPH's Schaeffer's put/call open interest ratio of 0.41 ranks above 84 percent of those taken during the past year, and short interest would take more than seven days to cover. On the analyst front, three of the five covering brokerage firm's rate ISPH a "hold." Any additional coverage or upgrades on an approval tomorrow could send ISPH skipping even higher. Keep your eyes peeled for this one.

The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 .

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Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method .