Schaeffer's Upon Further Review Highlights the Following Stocks: Ceradyne, M-Systems Flash Disk Pioneers, Nasdaq Stock Market, and Wal-Mart Stores.

CINCINNATI -- Today's "Upon Further Review" from Schaeffer's Investment Research focuses on Ceradyne (NASDAQ:CRDN), M-Systems Flash Disk Pioneers (NASDAQ:FLSH), Nasdaq Stock Market (NASDAQ:NDAQ), and Wal-Mart Stores (NYSE:WMT). "Upon Further Review" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Upon Further Review" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Upon Further Review:

Ceradyne: Ceradyne (NASDAQ:CRDN) announced that it has received a five-year, $611.7 million contract to provide enhanced side ballistic inserts to the U.S. Army. The mix of light trading volume due to the holiday-shortened session and the positive news has helped to launch the shares sharply higher this morning. Furthermore, the equity could enjoy a size boost from short covering should the bears begin to feel the pinch from CRDN's rally. In June, the number of CRDN shares jumped by almost 14 percent to six million. This accumulation of bearish bets not only accounts for nearly 24 percent of the security's float, but it is also 5.8 times the stock's average daily trading volume. An unwinding of these positions could fuel a nice rally in the shares.

M-Systems Flash Disk Pioneers: M-Systems Flash Disk Pioneers (NASDAQ:FLSH) revealed that it would restate its financial reports for 2001 to 2005 and revise its report for first-quarter 2006. In addition, the Securities and Exchange Commission (SEC) is conducting an informal inquiry into the company's grants and exercise of stock options and has requested related information. FLSH is not the first company to confess that the SEC is looking into the company's stock-options grants, and I doubt that it will be the last. Technically speaking, the shares seem to be forming an interesting trading range, bound by former gaps. Today's low matches the equity's low from April 5, when it gapped sharply higher on strong earnings expectations. Furthermore, its June lows sit at resistance the stock encountered prior to its April 5 gap higher. Meanwhile, potential resistance lies overhead in the 31-32 range, the site of former support/resistance for the shares. In other words, until the shares find themselves blessed or cursed with major news, FLSH could be locked between support at 27 and resistance at 32 for a little while.

Click the following link to see a Daily Chart of FLSH since March 2006: http://www.schaeffersresearch.com/wire?ID=16354

Nasdaq Stock Market: The shares of the Nasdaq Stock Market (NASDAQ:NDAQ) have run into some technical troubles. The equity is hitting some staunch resistance at the 30 level. While this strike is the site of peak call open interest across the front three months of options, total open interest isn't heavy enough to really hinder the shares. However, technically speaking, round-number levels frequently become stumbling blocks for an equity. Furthermore, the stock's 10-week moving average is descending into the region to add another layer of potential resistance. NDAQ has not finished a week above this trendline since mid-April. A rejection at this level could send the shares down for another test of support at their ascending 20-month moving average at the 26 level.

Click the following link to see a Weekly Chart of NDAQ since November 2005 with 10-Week Moving Average: http://www.schaeffersresearch.com/wire?ID=16354

Wal-Mart Stores: Retailing leviathan Wal-Mart Stores (NYSE:WMT) is having a bad day, as the security has retreated roughly 1.6 percent. On Saturday, the firm estimated that it will post a 1.2-percent gain in same-store sales for June, hitting the low end of its earlier forecast. Since late April, the equity has formed a series of higher lows, which could be what is happening today. However, my main concern comes in the form of the stock's declining 20-month moving average. The stock managed to edge above this resistance level during the past two months, but the shares are back below this trendline today. What's more, this moving average has ushered the security lower since June 2004. Investors may want to keep a close watch on this long-term resistance level as it attempts to break the stock's burgeoning uptrend.

Click the following link to see a Monthly Chart of WMT since August 2003 with 20-Month Moving Average: http://www.schaeffersresearch.com/wire?ID=16354

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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.