Schaeffer's Daily Market Blog Features Mercury Interactive, Marvell Technology Group, AskJeeves, Ford Motor, and Merrill Lynch.

CINCINNATI -- Among the stocks featured in the May 20 edition of Schaeffer's Market Blog are Mercury Interactive (NASDAQ:MERQ), Marvell Technology Group (NASDAQ:MRVL), AskJeeves (NASDAQ:ASKJ), Ford Motor (NYSE:F), and Merrill Lynch (NYSE:MER). 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=PROB1M&PAGE=1.

Schaeffer's Market Blog for Friday, May 20, 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.

9:55 AM Marvell Technology Beats Expectations

Semiconductor manufacturer Marvell Technology Group (NASDAQ:MRVL) announced first-quarter earnings last night, with the final line being for 27 cents per share on a non-GAAP basis. Analysts were expecting the company to earn 25 cents per share. In yesterday's trading, both the puts and calls were more active than usual. On the put side, there were 15,414 contracts that changed hands, which is 8.3 times the stock's average daily put volume. On the call side, 12,745 contracts changed hands, which is 4.6 times greater than usual. The short-interest ratio is at 3.08, which is no-man's land, neither bullish nor bearish. Analysts were a relatively upbeat bunch with 13 "buys", four "holds", and only one "sell" rating.

10:27 AM Mercury Interactive Upgraded by UBS 

Software provider Mercury Interactive (NASDAQ:MERQ) was upgraded from "neutral" to "buy" by UBS this morning. MERQ seems to have found its footing at the 41 level after slipping from the 48 level throughout April. The stock consolidated between 41 and 42 before breaking higher this week. Prior to the upgrade this morning, there were 13 "buys," nine "holds," and zero "sell" recommendations. Option traders were leaning toward the bullish camp, as the Schaeffer's put/call open interest ratio (SOIR) is at 0.88 in the 10th percentile. The short-interest ratio is at 3.40, which is a non-committal level.

11:00 AM Jeeves Goes Shopping

Ask Jeeves (NASDAQ:ASKJ) acquired Excite in March 2004. Today we learned that ASKJ has bought Excite Italia. For web surfers, this means that Ask Jeeves' Excite portal will now provide access to a variety of western European Excites, including the U.K., France, and Germany. ASKJ has had a good week, rising in this sudden bull run to challenge long-term resistance at the 30 level.

Sentiment from the options crowd toward ASKJ is interesting. The Schaeffer's put/call open interest ratio (SOIR) for the stock stands at 0.62, which is in the 44th percentile, near the middle of its range over the past year, indicating complacency. But remember that options expire today, so the picture is likely to shift come Monday morning. The equity's short-interest ratio is just 1.13 days to cover, meaning that short sellers will be able to cover their positions easily if the need arises, eliminating the possibility of short-covering support. You can read this as complacency, yet 12.24 percent of the stock is shorted right now. That's on the high side, and indicates a degree of pessimism.

What do the brokers think? I see seven "hold" ratings, a "buy," and four "strong buy" ratings. There are no "sells" at all. So, we have complacency, pessimism, and optimism here, equaling very mixed sentiment.

12:24 PM Ford Motor

Fitch Ratings cut its credit rating on Ford Motor (NYSE:F) yesterday to BBB from BBB+, citing impact of sales declines, competition, and higher commodity prices. Interestingly, it claims a further downgrade to junk is unlikely in 2005. This is good news for F, which is struggling to get back to the 10 level. The intraday chart shows 9.95 is the key support level this morning, and F is clinging on despite the Dow drop of almost 50 points at last check.

1:50 PM May Options Expiring

Today May options will expire and the market seems to be happy with little net movement. Although most of the major indices are lower, there aren't many big movers. Most stocks aren't going to give up any quick profits to traders trying to take advantage of last minute volatility. Brokerage stocks Merrill Lynch (NYSE:MER) and Morgan Stanley (MWD) look happy attempting to pin themselves at the 55 strike and 50 strike levels, respectively.

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.

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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.