Schaeffer's Daily Market Blog Features: Circuit City, Best Buy, Atmel, UAL Corp., and Continental.

CINCINNATI -- Among the stocks featured in the December 13 edition of Schaeffer's Market Blog are Circuit City (NYSE:CC), Best Buy (NYSE:BBY), Atmel (NASDAQ:ATML), USL Corp. (NASDAQ:UAUA), and Continental (NYSE:CAL). Schaeffer's Market Blog is just one of the many free market commentaries written every day 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. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1.

Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/.

10:12 AM Circuit City and Best Buy Both Drop

Earlier today, I covered the better-than-expected retail sales numbers and the downgrades Prudential issued to Best Buy (NYSE:BBY) and Circuit City (NYSE:CC) amid concerns over flat-panel television sales. In fact, Bob Pisani on CNBC just noted that if flat-panel sales are weak now, when will they be strong (he may have been quoting Prudential, but I missed a potential attribution).

So, how have the electronics retailers reacted to this news? Honestly, better than I expected. Yesterday, CC dropped 5.45 percent, then Prudential issued its downgrade. In the first 45 minutes of trading, the stock is 0.34-percent lower. It seems that there may be some measure of support for the stock at the 23 level. Another loss like yesterday could put this potential support to the test. BBY dropped nearly five percent yesterday, and is following that loss up with a drop of nearly 1.5 percent in early trading. The stock may find some support at the round-number 50 level, as it acted as resistance in the past.

10:37 Atmel Benefits from Cutbacks

The first hour of trading has been good to semiconductor company Atmel (NASDAQ:ATML). Late Tuesday brought an announcement that the company would be reducing its non-manufacturing workforce by 300 people, or 10 percent, plus an estimated 1,000 more after sales of its European wafer-fabrication facilities. As a reaction to this news, ATML has been boosted nearly 13 percent up, finally breaking the resistance it had found at the 5.60 level over the past month. At last check, the stock was hovering around the 5.90 level.

1:12 PM United and Continental Enjoy Merger Reports

As noted in Jocelynn Drake's column this morning, reports have it that two major air carriers, UAL Corp. (NASDAQ: UAUA), parent of United Airlines, and Continental (NYSE: CAL) are in talks about a possible merger. This would create the largest US domestic carrier, with a market valuation of right around $9 billion. There is a danger, however, of the merger being blocked by Northwest Airlines (NWACQ), who could take advantage of the "golden share" it holds in CAL to block the deal.

Now, while the deal is by no means a lock, no one wants to be left out if it does in fact come to fruition. Both stocks are on a strong upswing. CAL has jumped almost five percent to stand at $44.90 per share, its highest point since August 2001, while UAUA is at an all-time high, up nearly five-and-a-half percent at the 45.55 level.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1.

Take advantage of the timely Schaeffer commentaries by signing up for 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=PROB13M&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.