Schaeffer's Daily Market Blog Features Altera, Washington Post, Best Buy, PHAZAR, and eBay.

CINCINNATI -- Among the stocks featured in the June 1 edition of Schaeffer's Market Blog are Altera (NASDAQ:ALTR), Washington Post (NYSE:WPO), Best Buy (NYSE:BBY), PHAZAR (NASDAQ:ANTP), and eBay (NASDAQ:EBAY). Schaeffer's Market Blog 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. 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=PROB1M&PAGE=1 .

Schaeffer's Market Blog for Wednesday, June 1, 2005:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB3C&PAGE=1 .

9:52 AM Altera on Track for Second Quarter

Specialized semiconductor manufacturer Altera (NASDAQ:ALTR) offered up a mid-quarter update last evening and the company said it is on track to meet earnings estimates for the second quarter. The company expects revenue to be at the high end of its previous forecast of $275.4 to $278 million. Analysts are expecting the company to report revenue of $276 and earnings of 17 cents per share. Pessimism towards ALTR has been on the rise of late as the Schaeffer's put/call open interest ratio (SOIR) for the stock has been trending upward after hitting a low of 0.57 in late April. It currently stands at 1.10, which is higher than 80 percent of the readings for the past year. The short interest increased by 10 percent during the most recent reporting period, raising the short-interest ratio to 2.18.

10:27 AM Dollar Index Closes Above its 20-Month Moving Average

Yesterday the U.S. Dollar Index (DX/Y) was able to close above its 20-month moving average for the month of May, for the first time since April 2002. In early trading today the dollar has extended recent gains, tacking on another 28 cents, to bring the price to 88.04. This is the first time since last October that the index has eclipsed the 88 level. The dollar has continued to rise against the euro as political turmoil continues, with Holland expected to vote against the European Union constitution. Also weighing on the euro is an article in a German magazine reporting that officials have discussed a possible breakup of the European Monetary Union.

11:05 AM The Smoking Man

Deep Throat has finally been named, and The Washington Post newspaper, owned by the Washington Post (NYSE:WPO) company, has confirmed the story. There was a time when this kind of revelation would move the markets a long way, but the Dow Jones Industrial Average was up 0.88 percent at last check, and WPO stock stood at 841.1, up 1.34 percent. WPO does not have options so there is no SOIR for this stock. I notice that the 10-day and 20-day moving averages are making a bullish cross today and, with attention focused on WPO today, perhaps we can expect good things from WPO in the short term. The stock is enjoying support from both these trendlines today. Wall Street rates it with one "sell," a trio of "holds," two "buys" and one, rare "strong buy."

11:33 AM Best Buy Upgraded at Goldman Sachs

Surprise, surprise. Media darling Best Buy (NYSE:BBY) was upgraded this morning by Goldman Sachs. In 2004, BBY was named "Company of the Year" by Forbes. Financial analysts also view the shares in a positive light, as there were 12 "buy" ratings, six "hold" ratings and two "sell" ratings on BBY before this morning's upgrade. Although the stock has previously been adored by investors and analysts alike, option players have recently grown wary of BBY. In fact, there are currently 1.5 puts to every open call on BBY. The current Schaeffer's put/call open interest ratio (SOIR) for the stock is higher than 88 percent of all readings taken over the past year.

Things have recently firmed up for BBY. Although the stock was mired in a pronounced downtrend from late November through late April, the shares have recently popped above their short-term moving averages. This is a positive sign from a technical perspective. If options players continue to bet against the equity as its technical price action firms up, further gains could be in order.

12:52 PM More Strength From PHAZAR

PHAZAR (NASDAQ:ANTP) remains one of the strongest stocks in the market. The stock is up more than five percent again today as it reaches toward the 30-32 region. This area served as resistance in both February and April. In the last seven sessions the stock has gained more than 46 percent. Even so, sentiment is still strongly against the stock. Short interest dropped ever so slightly last month but remains a whopping 31 percent of the stock's float. Moreover, no analysts have coverage on the stock. More technical strength on this momentum name could beget more buying as those short the stock buy to cover their losses. This may be especially true if ANTP is able to leap over the aforementioned resistance level.

1:09 PM Starbucks Rallies on Positive Analyst Coverage

This morning, JMP Securities initiated coverage of Starbucks (SBUX) with an "outperform" rating. The firm stated that its positive view was based on SBUX's powerful brand leadership. Technically speaking, shares of SBUX have been in rally mode since bottoming at $45.40 on April 22. The stock has tacked on nearly 23 percent over this time period. A quick check on sentiment indicators reveals mixed emotions from investors. Financial analysts appear ambivalent, as there are currently six "buy" ratings, nine "hold" ratings and no "sell" ratings on SBUX. Options players, however, have a strong optimistic bias. There are currently 41,100 calls compared with 22,100 puts in near-term activity. The resultant Schaeffer's put/call open interest ratio (SOIR) of 0.54 is lower than 97 percent of all readings taken over the past year.

1:51 PM Google Not the Only Internet Stock Getting Attention

Internet companies eBay (NASDAQ:EBAY), Yahoo! (YHOO), and Amazon.com (AMZN) are all experiencing unusually heavy call option volume today, perhaps sparked by the strength in their younger internet cousin Google (GOOG) . YHOO is the only stock out of the three that has performed recently. Too much optimism could spell more trouble if these stocks are unable to keep up with the fast-growing Google.

The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB3C&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 .