Schaeffer's Daily Market Blog Features: Procter & Gamble, Motorola, Nokia, Ryland Group, and Office Depot.CINCINNATI -- Among the stocks featured in the October 18 edition of Schaeffer's Market Blog are Procter & Gamble (NYSE NYSE See: New York Stock Exchange :PG), Motorola (NYSE:MOT), Nokia (NYSE:NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ), Ryland Group (NYSE:RYL), and Office Depot Office Depot (NYSE: ODP) is one of the world's leading suppliers of office products and services. The Company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, (NYSE:ODP ODP - Open Distributed Processing ). 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 In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. 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 A flash-based digital music player from Apple, introduced in 2005. Like larger iPod models, the nano has a color screen. Although the nano name suggests ultra-small "nanotechnology," the iPod shuffle is actually smaller. See iPod. . http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB PROB Probable/Probably PROB Problem PROB People's Republic of Bangladesh 13M&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/. 7:57 AM Free Financial Videos and Podcasts Good morning. We're busy building a new video studio here at Schaeffer's. Yesterday, we produced shows that featured Lear (LEA), Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. (MER mer Among the Cheremi and Udmurt peoples of Russia, a sacred grove where people of several villages gathered periodically to hold religious festivals and sacrifice animals to nature gods. ), Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box (HD), Lowe's Companies (LOW), and UnitedHealth Group UnitedHealth Group Incorporated NYSE: UNH is a managed health care company. It is the parent of United Healthcare, one of the largest health insurers in the U.S. It was created in 1977, as UnitedHealthCare Corporation (it renamed itself in 1998), but traces its origin to a (UNH Unh The symbol for the element unnilhexium. ). We also produce podcasts, 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. I just posted a new edition of our Trader's View podcast, an interview with trader John Stewart John Stewart may be:
You can find all these shows at http://www.schaeffersresearch.com/commentary/podcasts/. You'll see podcasts in the left-hand column and videos in the right-hand column. 10:35 AM SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways Soars for Procter & Gamble A put/call open interest ratio is simply the ratio of total put open interest to total call open interest. We compute Schaeffer's put/call open interest ratio (SOIR) based on open interest in the front three months only. These near-term options tend to attract a more speculative crowd, the sentiment of which is more useful for shorter-term trading. One of the filters available in our Schaeffer's Plus is the Daily SOIR Changes filter, which lists the stocks that have seen the largest percentage jump in their SOIR overnight. In the table on the blog On The Blog is a British radio comedy series that was first broadcast in May/June 2007 on BBC Radio 2. It starred Andy Taylor as the nerdish wargaming blogger Andrew Glasgow who was the central character of the series. I have listed the top 10 stocks that saw the largest increase in their SOIRs. From the list, I was caught by the significant jump in Procter & Gamble's (NYSE:PG) SOIR from 1.45 to 3.39. This reading is now just one percent away from tagging a new annual high. In trading on Tuesday, open interest at the equity's October 60 call plunged from 30,822 contracts to roughly 3,100 contracts. The stock's October 55 call also saw some positions liquidated, as open interest dropped from 9,300 contracts to 186 contracts. Keep in mind that October options are set to expire after the market close on Friday. At last check, PG was up 0.9 percent at $62.50. 11:27 AM A Kick in the Pants from Motorola If I've learned one thing during the past couple months, it's that I should stop trying to pick a direction on Motorola (NYSE:MOT) shares. On August 3, I wrote bearishly on the security, expecting it to continue its decline. However, MOT rallied following my article. Furthermore, I recently wrote bullishly on the shares heading into last night's earnings report. Well, the stock is down nearly six percent at last check, as earnings matched expectations, but revenue came up short. Additionally, MOT guided fourth-quarter revenue below Wall Street expectations. I had a bit of an inkling that MOT would suffer today on a less-than-spectacular report, judging from the lack of short-covering support (it's short-interest ratio short-interest ratio A ratio that is used for market analysis and is calculated by dividing short interest by average daily volume. Technicians use the short-interest ratio as a tool to determine market direction. of 2.86 is pathetic), and the bullish attention from analyst (21 of the 24 covering rate the shares a "buy"). But the security has not been downgraded on the news, only reiterated with a "buy" at Needham. In the future, maybe I'll stick to straddling strad·dle v. strad·dled, strad·dling, strad·dles v.tr. 1. a. To stand or sit with a leg on each side of; bestride: straddle a horse. b. or strangling the shares, and not kicking myself after the fact. I guess I should also reiterate a long-standing rule of mine and take it to heart: the market can remain irrational longer than you can stay solvent. 12:40 PM Nokia Knocked on Motorola Market Share While Motorola's (MOT) earnings report has obviously impacted its shares today, there was a bit of information in that report that has shares of rival Nokia (NYSE:NOK) on the ropes as well. MOT reported that it controlled about 22.4 percent of the global handset market at the end of the third quarter, up 0.3 percentage points from the prior reporting period. For reference, the company held about 13 percent of this market just a few years ago. With MOT continuing to make headway in foreign and emerging markets, it is increasing the pressure on NOK. As a result, many investors have picked up on this increase in MOT's market share, sending NOK lower by nearly one percent as a result. Technically, the stock continues to struggle with support/resistance in the 20 area. This region has long been a sticking point for the equity, and now happens to be home to NOK's 10-week and 20-week trendlines. Sentiment is also unfavorable for the security, as the stock's short-interest ratio arrives at a paltry 1.5 days to cover, and 14 of the 19 covering analysts rate the shares a "buy" or better. With NOK dropping more than 15 percent since April, MOT's gains in market share could continue to place pressure on the equity. 1:17 PM Ryland Ahead of Earnings Homebuilder Ryland Group (NYSE:RYL) reports earnings after the close today, and investors seem a bit scared to hold the stock ahead of the announcement. Shares are off more than two percent, versus a decline of less than half a percent for the ISE Ise (ē`sā), city (1990 pop. 104,164), Mie prefecture, S Honshu, Japan, on Ise Bay. It is one of the foremost religious centers of Shinto, the site of the shrines of Ise. Homebuilders Index (RUF Noun 1. RUF - a terrorist group formed in the 1980s in Sierra Leone; seeks to overthrow the government and gain control of the diamond producing regions; responsible for attacks on civilians and children, widespread torture and murder and using children to commit ). Poor price action ahead of an earnings report can potentially be an indication that the post-earnings reaction could be positive, especially when pessimism is as widespread as it is toward RYL. 1:51 PM Calls Active on Office Depot Office Depot (NYSE:ODP) is the focus of some heavy call trading this afternoon. The stock has seen more than 8,700 contracts cross the tape on its November 45 call. Open interest for this back-month option sits at 3,226 contracts, indicating that most of today's volume is likely to translate into new position. Moving in for a closer look, two blocks of 3,000 contracts crossed the tape at roughly 10:57 a.m. Eastern time at an ask price of 0.65. In the news today, the company announced third-quarter earnings of $133.3 million, or 47 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with a loss of $47.9 million, or 15 cents per share, in the same period a year ago. Excluding items, earnings would have come in at 49 cents per share, beating the Street estimate by a nickel. Credit Suisse reiterated its "outperform" rating on ODP, Lehman Brothers reiterated its "equal-weight" rating, and Piper Jaffray reiterated its "market perform" rating. 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. |
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