Schaeffer's Daily Market Blog Features Progressive, Polaris Industries, Cardinal Health, Lam Research, and Xerox.

CINCINNATI -- Among the stocks featured in the October 13 edition of Schaeffer's Market Blog are Progressive (NYSE:PGR), Polaris Industries (NYSE:PII), Cardinal Health (NYSE:CAH), Lam Research (NASDAQ:LRCX), and Xerox (NYSE:XRX). 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 Thursday, October 13, 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 .

10:09 AM PGR Me ASAP!

Progressive (NYSE:PGR) was upgraded this morning by AG Edwards from "hold" to "buy." This upgrade comes on the heels of PGR's earnings that came in at $1.54 per share versus Wall Street estimate of $1.59 per share. The company's third-quarter net fell 21 percent due to Hurricanes Katrina and Rita.

The stock is bounding off its 20-day moving average upon this upgrade to new all-time highs.

10:29 AM Polaris Industries Cuts Outlook for 2005

According to Yahoo! Finance, Polaris Industries (NYSE:PII) engages in the design, engineering, manufacturing, and marketing of motorized products for recreation and utility use, including all terrain vehicles (ATV), snowmobiles, and motorcycles together with related replacement parts, garments, and accessories. This morning before the market open, PII reported third-quarter results that were in line with analyst estimates but guided its outlook for 2005 lower as a result of disappointing ATV shipments.

Technically speaking, the shares have been trending lower since April. PII is now trading below all major moving averages, a negative sign from a technical perspective. This morning's negative news has sent shares of PII another 3.5 percent lower to $44.40.

11:01 AM Cardinal Health Continues To Be Strong

Cardinal Health (NYSE:CAH) is the second-largest distributor of pharmaceuticals and other medical supplies and equipment in the US. It's also one of the stronger stocks in the market. CAH is trading up 0.9 percent at 62.80 in early trading. That's not far from its 52-week high of 64.50 made earlier this month. Since making a near-term low of 57.89 on August 26, the stock has risen 8.4 percent. The S&P 500 Index (SPX - 1178.33) has lost just over two percent over that same time. Analyst ratings are lukewarm, however. There are six "hold" ratings and two "strong sell" ratings out of 15 total ratings on CAH. Also, its short-interest ratio is 4.9 days.

11:24 AM Lam Research Tops Earnings Expectations

Last night after the market close, Lam Research (NASDAQ:LRCX) reported first-quarter earnings of 35 cents per share, five cents ahead of the Reuters consensus estimate. Company revenues declined 23.5 percent year-over-year to $320.9 million, versus the consensus estimate of $324.9 million. This positive news has sent the shares nearly eight percent higher. A check on its daily chart shows the stock is now trading at an area of prior resistance at the 32.50 level. Market players should keep a close eye to see if LRCX is able to break above this resistance level and push higher.

2:15 PM Xerox Trading At Key Support

Xerox (NYSE:XRX) is trading right above what seems to be rock solid support at 13.00 per share. This level has been acting as support for over a year, and has been particularly important over the past six months. Since the stock is near a support level, it makes some sense that people would be buying call options XRX. They expect a bounce, right? Well, the more people catch on to an area of obvious support, such as in this case, the more vulnerable that support becomes to a breach. That is precisely the situation with XRX in my opinion. There are already almost twice as many put options as there are call options outstanding on the stock, and today's call option volume is in excess of 10 times the average call volume for the equity.

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 .