Schaeffer's S&P 500 Index Hot Stocks Features Allegheny Energy, Novell, Advanced Micro Devices, EOG Resources, and Eastman Chemical.

CINCINNATI -- Among the stocks featured in the December 9 edition of Schaeffer's S&P 500 Index Hot Stocks are Allegheny Energy (NYSE:AYE), Novell (NASDAQ:NOVL), Advanced Micro Devices (NYSE:AMD), EOG Resources (NYSE:EOG), and Eastman Chemical (NYSE:EMN). Schaeffer's S&P 500 Index Hot Stocks 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. 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=PRSHS12M&PAGE=1 .

Schaeffer's S&P 500 Index Hot Stocks for Friday, December 9, 2005:

A daily feature available on SchaeffersResearch.com is the "SPX Hot Stocks" column. Each afternoon, we will provide a list of the day's top-20 performing stocks in the S&P 500 Index (SPX - 1,261.79) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

U.S. stocks are edging ahead on this final day of the week, and 71 percent of the S&P 500 components are gaining ground. At this point, the SPX has moved 0.47 percent higher on the day.

Going into the afternoon session, Allegheny Energy (NYSE:AYE) is logging strong gains. The stock made a double bottom in late October and mid-November, and it has been climbing ever since. Today it gapped clean through round-number resistance at the 30 level after Citigroup initiated the stock with a "buy" rating. Volume is high, and this stock looks like one to watch. The next key level is at 31.43, which held the stock back in early September and again in early October.

Software company Novell (NASDAQ:NOVL) is up today, although I don't see any news that accounts for the five-percent gain. After the bell on December 1, the company reported fourth-quarter earnings of seven cents per share, up from six cents per share last year, on a 6.3-percent rise in revenue. The stock rose sharply the following day, and it has been in an uptrend, albeit a rather laborious uptrend, ever since.

Advanced Micro Devices (NYSE:AMD) is up more than 4.5 percent so far today, and the only news I notice comes from Next Inning Technology Research, which commented that both Intel (INTC) and AMD seem set to "enjoy good growth in the coming years."

Turning to our tumbling trio of transgressors, EOG Resources (NYSE:EOG) is down today, returning to support at 76 after hitting an all-time high yesterday at 78.70. Natural gas futures are hitting all-time highs, helping to drive EOG.

Sunoco (SUN) is also consolidating on support of its ascending 10-day moving average after hitting an all-time high on Wednesday at 85.29. I notice that Merrill Lynch downgraded the stock yesterday to "neutral" from "buy" and Friedman, Billings and Ramsey shifted its 12-month price target on the stock down to $93 from $96.

And finally... J.P. Morgan downgraded Eastman Chemical (NYSE:EMN) to "neutral" from "overweight" early today, and the stock duly gapped down, although it staged an early recovery. A report on the Dow Jones Newswires quotes a J.P. Morgan analyst: "Petrochemical fundamentals are peaking ... we do not expect good near-term stock price appreciation as margins begin to contract."

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=14766 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=14755 .

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