Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Lowe's, Nasdaq Stock Market, Nike, and Yahoo!

CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on Lowe's (NYSE:LOW), Nasdaq Stock Market (NASDAQ:NDAQ), Nike (NYSE:NKE), and Yahoo! (NASDAQ:YHOO). "Behind the Headlines" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Behind the Headlines:

Lowe's: The earnings calendar is a little sparse this holiday week, but home-improvement retailer Lowe's (NYSE:LOW) stepped up this morning to help fill the void. The company's third-quarter results reached 46 cents per share, topping Street expectations by three cents on a 5.8-percent jump in revenue for the reporting period. The stock is reacting relatively well to this news, gaining more than one percent to peak its head above its 20-month moving average.

LOW has not managed a monthly close atop this long-term trendline since May. LOW is also now above significant put open interest at the out-of-the-money 27.50 and 30 strikes. In the December and January options series combined, these rank first and second, respectively, in terms of total put open interest. The 27.50 put is currently home to about 60,000 put contracts; the 30 strike has 57,000 open puts in residence. This hefty volume could act as a bastion of options-related support in the coming weeks. LOW is no stranger to pessimism on the part of options players; the stock's Schaeffer's put/call open interest ratio (SOIR) has been on the rise since July and now stands at an annual high of 1.18, suggesting an extreme in bearish sentiment from the speculative contingent.

Click the following link to see a monthly chart of LOW since May 2003 with 20-month moving average: http://www.schaeffersresearch.com/wire?ID=17764.

Nasdaq Stock Market: The Nasdaq Stock Market (NASDAQ:NDAQ) is bouncing back from rejection as well as can be expected after the London Stock Exchange was quick to turn down its $5.1 billion buyout offer. The shares, in an uptrend since late August, are shaking off this temporary setback and rallying more than three percent in afternoon trading (living well is the best revenge, after all). Some of the equity's recent strength may have been fueled by short sellers heading for the exits. After the last reporting period, 7.3 percent of the company's available float for public trading was sold short. If the bears decide to close out their positions by repurchasing the stock, additional buying power emerges.

Nike: Athletic apparel titan Nike (NYSE:NKE) is in the news today after deciding to stop orders from a Pakistani-based supplier of soccer balls due to "significant" labor violations. NKE shares, which have rallied about 26 percent during the past three months along their 10-day and 20-day moving averages, muscled forward to a new all-time high in today's trading. The shares have broken through nearly all overhead call open interest to speak of, clearing the path for additional upside.

Click the following link to see a daily chart of NKE since August 2006 with 10-day and 20-day moving averages: http://www.schaeffersresearch.com/wire?ID=17764.

Yahoo!: Yahoo! (NASDAQ:YHOO) continues to epitomize the overloved underperformer as it struggles with chart resistance. In the news, YHOO said it inked a partnership with 150 daily U.S. newspapers to deliver various advertising to U.S. consumers. YHOO opened higher on this news but is currently down a fraction. The stock remains stifled beneath its descending 20-week moving average, which resides near the 27 level. Just above this threshold is the 27.50 strike, home to hefty call open interest in the December series, with 55,000 open contracts, and the January series, where more than 112,000 27.50 calls reside. YHOO's Schaeffer's Equity Scorecard rating of 3.0 suggests that more downside could be ahead for the shares.

Click the following link to see a weekly chart of YHOO since November 2005 with 20-week moving average: http://www.schaeffersresearch.com/wire?ID=17764.

The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1.

About Schaeffer's Investment Research (www.SchaeffersResearch.com)

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.