Schaeffer's Daily Market Blog Features J.P. Morgan Chase, MicroStrategy, California Micro Devices, Adobe Systems, and Oregon Steel Mills.

CINCINNATI -- Among the stocks featured in the December 16 edition of Schaeffer's Market Blog are J.P. Morgan Chase (NYSE:JPM), MicroStrategy (NASDAQ:MSTR), California Micro Devices (NASDAQ:CAMD), Adobe Systems (NASDAQ:ADBE), and Oregon Steel Mills (NYSE:OS). 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=PROB12M&PAGE=1 .

Schaeffer's Market Blog for Friday, December 16, 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=PROB1C&PAGE=1 .

2:20 PM J.P. Morgan Call Option Activity

J.P. Morgan Chase (NYSE:JPM) is generating a lot of option volume today, as are many equities out there given that today is expiration Friday for the month of December. There is a large rollout that has taken place in JPM options, as a large liquidation of JPM December 35 calls was replaced by the purchasing of the JPM January 35 calls. The stock has been extremely strong of late, riding the wave of capital flowing into the financial sector. The $40 level could be potential resistance, however. Not only is a round number like $40 a psychological resistance level, but the 40 strike is also the site of peak call open interest for the month of January. A large amount of call open interest at a strike above the current stock price has the potential to act as artificial resistance. The stock also was resisted in the $40-45 range back in early 2004.

12:42 PM MicroStrategy Up on Analyst Action

To build on what has become something of a theme for me today, MicroStrategy (NASDAQ:MSTR) is also moving on analyst action. The stock was initiated this morning with a "neutral" rating at Bank of America. That's not the one that's causing the move though. Roth Capital raised its price target on MSTR to $100 from $85. That development has caused the stock to rally sharply. MSTR is currently up 4.3 percent at 80.91. Earlier in the session, it made a 4-1/2-year high of 82.35. Although MSTR's short interest fell 17 percent last month, it remains a large 28 percent of the stock's float.

11:27 AM California Micro Devices Lower on Guidance

According to Yahoo! Finance, California Micro Devices (NASDAQ:CAMD) engages in the design, development, and marketing of analog semiconductor products for applications in the mobile handset, personal computing, and digital consumer electronics markets. Last night after the market close, the company guided its third-quarter earnings and revenue outlook lower. CAMD now sees earnings of nine to 10 cents per share on revenue of $18.8-19.7 million. The consensus was calling for earnings of 10 cents per share on revenue of $19.5 million. This lowered earnings outlook has taken shares of CAMD more than 20 percent lower to $7.01 today.

10:51 AM Adobe Systems Tops Earnings

Last night after the market close, Adobe Systems (NASDAQ:ADBE) reported fourth-quarter earnings of 30 per share, topping analyst estimates by a penny. Company revenue increased 18.8-percent year-over-year to $510.4 million, ahead of the consensus estimate of $507 million. This morning, ADBE shares enjoyed positive comments from analyst Brean Murray. The firm raised its price target on ADBE from $38 to $44 following the positive earnings surprise. As its weekly price chart shows, ADBE is now trading well above its intermediate-term moving averages. At last check, ADBE had tacked on better than nine percent and was trading at $38.14.

10:41 AM Oregon Steel Mills Recovers After Brokerage Downgrade

Oregon Steel Mills (NYSE:OS) has staged an impressive intraday recovery following a brokerage downgrade. UBS cut its rating on OS to "neutral" from "buy" saying that while it anticipates strong market conditions in 2006, the stock's recent 12-percent rally makes it difficult to warrant a "buy" rating. My colleague Ryan Detrick noted that steel stocks have received numerous downgrades recently. OS opened 1.4 percent lower and was down more than two percent within 10 minutes of the opening bell. However, it's now up 1.5 percent to trade at 29.70. The stock's 20-day moving average has been key in supporting its trend during the past five months.

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=PROB1C&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. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB12M&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 .