Schaeffer's Daily Market Blog Features: Energy Partners, Anadigics, Maguire Properties, KLA-Tencor, and Pfizer.

CINCINNATI -- Among the stocks featured in the August 28 edition of Schaeffer's Market Blog are Energy Partners (NYSE:EPL), Anadigics (NASDAQ:ANAD), Maguire Properties (NYSE:MPG), KLA-Tencor (NASDAQ:KLAC), and Pfizer (NYSE:PFE). 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. 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=PROB13M&PAGE=1 .

10:24 AM Energy Partners Leads the NYSE

Good morning. Despite fears of a weak start to the session, stocks are making gains. The Dow Jones Industrial Average (DJIA - 11,312.8) is up 0.25 percent, the S&P 500 Index (SPX - 1,297.59) has advanced 0.19 percent, and the Nasdaq Composite (COMP - 2,148.5) has gained 0.38 percent. The advance/decline ratio at the New York Stock Exchange (NYSE) comes in at 1.64, and at the Nasdaq it is 1.50. The biggest winner at the NYSE is Energy Partners (NYSE:EPL), up 16.8 percent at last check to $21.50. The company plans to merge with Stone Energy (SGY), and the two companies will each hold special stockholder meetings today.

10:43 AM Chocolate Chips

A report on Barron's suggests that some investors consider Anadigics (NASDAQ:ANAD) a "buy" at the moment. The company produces chips used in the "Chocolate" mobile phone made by L.G. Electronics, which is based in Seoul, South Korea. Excited investors hope ANAD will double in price in the coming year. The stock gapped higher on the open, and the daily chart looks very encouraging. However, a glance at the weekly chart shows that the advance was halted by the stock's 20-week moving average. At last check, ANAD was trading at $7.10, so look for a clear break above this level by the close, otherwise you might find yourself on the wrong side of the deal.

In June 2002, the stock slipped below the 10 level, and it has failed to touch 10 since then. In fact, resistance seems to reside at the nine level. The good news is that ANAD has climbed back above its ascending 10-month moving average, so it might be poised to challenge nine once again. Short interest fell six percent in August, but we still find that 10.8 percent of the float is sold short. This negative stance from equities enthusiasts offers up some potential fuel for a short-covering rally. According to Zacks, only eight brokerages rate the stock, awarding four cautious "holds" and four "strong buys."

11:06 AM Merrill Lynch Raises its Target on Maguire Properties

Merrill Lynch raised its price target on Maguire Properties (NYSE:MPG) this morning to $43 from $39 based on speculation the company could be a takeover target. According to Hoover's, MPG is a real estate investment trust (REIT) which develops and leases office and retail real estate in Southern California. Its holdings include more than 10 million square feet of space. The weekly chart of MPG suggests that buyers have encountered resistance at every two-dollar milestone from 26 onwards. Nevertheless, the stock has pushed consistently higher, and is now testing the 40 level. Support from MPG's 10-week moving average has more than doubled the stock's value since June 2003. The stock gapped higher on the open and, at last check, it stood at $40.07, up 6.8 percent.

1:48 PM KLA-Tencor Showing No Signs of Getting Off the Mat

KLA-Tencor (NASDAQ:KLAC) doesn't exactly have a nice-looking chart these days as the stock has been trending lower nearly all year. Nevertheless, options players are playing call options on the stock as if it was the hottest thing out there. Call volume today is running at 10 times put volume, and the Schaeffer's put/call open interest ratio (SOIR) on KLAC of 0.80 is lower than 73 percent of readings during the past year. This type of disconnect between sentiment and technicals is a sign that the current trend lower may continue into the foreseeable future.

1:53 PM Free Financial Podcasts

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2:41 PM Pfizer Options Trade Actively

Pfizer (NYSE:PFE) options are trading briskly in the pits today. The September 27.50 call (PFE IY) began the day with open interest of 81,394 contracts, and has seen volume of 14,826 contract change hands today. The September 30 call (PFE IF) started out the day with open interest of 14,515, and we have seen 15,104 contracts change hands, almost guaranteeing that open interest will change dramatically after all of today's activity is netted up. Remember that calls can sometime exert options-related resistance if they are present in sufficient quantities and if the strike price of the option is above the current price of the equity. So far, the intraday high and low for PFE stands at 27.10 and 27.65, respectively, so the 27.50 level is the battleground. In the great daily "Tug 'o War" on Wall Street, the bulls seem to be in control, as PFE is trading just pennies from its intraday high. Nevertheless, the bell has yet to ring, and a close below 27.50 might make the optimisms rethink their positions.

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.

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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 .