Schaeffer's Daily Market Blog Features Vertex Pharmaceuticals, Apple Computer, General Dynamics, Star Surgical, and Sketchers USA.

CINCINNATI -- Among the stocks featured in the February 23 edition of Schaeffer's Market Blog are Vertex Pharmaceuticals (NASDAQ:VRTX), Apple Computer (NASDAQ:AAPL), General Dynamics (NYSE:GD), Star Surgical (NASDAQ:STAA) and Sketchers USA (NYSE:SKX). 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=PROB12M&PAGE=1 .

Schaeffer's Market Blog for Thursday, February 23, 2006:

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 .

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2:52 PM Skechers Sprints Higher

Skechers USA (NYSE:SKX) has shot nearly eight percent higher this afternoon and is trading at levels not seen since June 2002. The company banked a fourth-quarter profit of $5.9 million, or 14 cents per share, compared to its year-ago profit of $2.1 million, a nickel per share. Revenue during the three-month period jumped 8.2 percent to $223.5 million. The performance was in line with the average estimate of analysts. The firm also forecast earnings of 29 to 34 cents per share for the first quarter on sales of $270 million to $280 million. The Street estimate is for a profit of 29 cents per share.

Technically speaking, the shares have rallied along the steadfast support of their 10-day and 20-day moving averages since late November.

2:44 PM STAAR Surgical Setting Up Nicely

STAAR Surgical (NASDAQ:STAA) is one stock on my screen that's setting up pretty good as a bullish play. I wrote an observation on it last month. STAA gapped higher on December 23 due to an FDA approval to use its Myopic Visian ICL implant for use in the correction of myopia in adults. The 7.50 level did not hold as support as I expected. However, the stock has now consolidated gently into potential support near the 6.50-7.00 area. This is also the approximate site of its 50-day and 80-day moving averages. With short interest on the rise and the stock carving out a nice consolidation, the next step on the way to higher prices is to get back above the 7.50 area. If that happens, the stock might be worth a flyer.

2:41 PM General Dynamics Announces Acquisition Plans

General Dynamics (NYSE:GD) announced today plans to acquire SNC Technologies, a subsidiary of SNC-Lavalin Group, for $275 million. SNC Tech supplies ammunition and related products to armed forces and law enforcement agencies worldwide. GD believes the deal will close in the second quarter and will immediately add to its results. The transaction is subject to clearance by the Canadian government. SNC Tech had revenue of $293 million in 2005 and earnings before interest, taxes, depreciation and amortization of $39.5 million.

GD is up 0.85 percent this afternoon, backing off from an annual high of $123.25, which it reached at the start of trading. The shares briefly broke above former resistance at the 122 level. The stock has consolidated between 113 and 120 since July.

2:35 PM One Billionth Song Downloaded on iTunes

Apple Computer (NASDAQ:AAPL) announced today that one billion songs have been downloaded from its iTunes music store since its launch less than three years ago. According to the company, Coldplay's "Speed of Sound" was the billionth song to be downloaded. The shares are up more than one percent this afternoon as the broad market continues to languish in the red. The equity recently popped above former resistance at their 10-day and 20-day moving averages following a decline of more than 27 percent from its January high of $86.40. From a longer-term perspective, AAPL is holding above support at its 20-week moving average, but is still facing resistance at its 10-week trendline.

1:58 PM Puts Active on Vertex Pharmaceuticals

Put options are active on Vertex Pharmaceuticals (NASDAQ:VRTX) today despite the stock's strong price action. The shares are up almost seven percent today, and are at a new 52-week high. Why the put options? Traders may be trying to predict a pullback in the shares after such a strong run higher. This practice can be dangerous, however, as this type of activity can many times foreshadow further upside potential. Put volume today is nearly eight times VRTX's average!

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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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 .