Schaeffer's Daily Market Blog Features Apple Computer, Saks, Bon-Ton, Kellogg, Orckit Communications.

CINCINNATI -- Among the stocks featured in the October 31 edition of Schaeffer's Market Blog are Apple Computer (NASDAQ:AAPL), Saks (NYSE:SKS), Bon-Ton (NASDAQ:BONT), Kellogg (NYSE:K), Orckit Communications (NASDAQ:ORCT). 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 Monday, October 31, 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 .

1:25 PM Saks To Sell Northern Department Store Group

Shares of Saks (NYSE:SKS) are trading higher today on the news that the company will sell its Northern Department Store Group to Bon-Ton (NASDAQ:BONT). BONT will acquire the department store from SKS for $1.1 billion in cash and will also assume the $85 million in liabilities for Northern Department Store Group.

Technically speaking, the stock has been trending lower since late August. SKS has shed more than 27 percent since hitting a high of $24.64 in early August. Today's news has sent the equity seven percent higher to $17.88. A look at its weekly chart shows that SKS now faces overhead resistance at its declining 10-unit weekly moving average.

12:33 PM Kellogg Falls on Disappointing Earnings Guidance

Cereal giant Kellogg (NYSE:K) is trading down nearly six percent after reported third-quarter earnings this morning. The company recorded a profit of 66 cents per share, two cents better than analysts' expectations. Revenue was $2.62 billion which was above the $2.58 billion consensus estimate. It also raised its full-year 2005 earnings guidance to $2.32 to $2.34 from the previous range of $2.30 to $2.33. Then why is the stock down? Well, for starters coming into today, analysts expected K to have full-year profit of $2.37. Cost pressures also made margins lower than hoped for. The stock has now declined to the 43.50, the site of former support and resistance over the past few months. Sentiment was mixed coming into the report. The Schaeffer's put/call open interest ratio (SOIR) is higher than 77 percent of all those taken in the past year. However, short-interest fell 28 percent last month to a three-year low.

12:33 PM Apple Computer Resurrects the Video Star

Apple Computer (NASDAQ:AAPL) is back in the headlines today, announcing that more than one million videos have been sold from its iTunes music store since their debut on October 12. Among the top downloads are music videos from Michael Jackson, Fatboy Slim and Kanye West; Pixar's "For the Birds" and "Boundin'"; and episodes of ABC's "Lost" and "Desperate Housewives" television shows. Chief Executive Steve Jobs said "Selling one million videos in less than 20 days strongly suggests there is a market for legal video downloads ... Our next challenge is to broaden our content offerings, so that customers can enjoy watching more videos on their computers and new iPods."

On the news, the stock has rallied more than five percent and is once again challenging resistance in the 57 area. The security has been on quite the run during the past several weeks, gaining more than 58 percent along its 10-week and 20-week moving averages since the beginning of July. Despite this solid technical performance, there is ample pessimism levied against the security, resulting in a Schaeffer's Equity Scorecard rating of 7.0 out of 10. In the options pits, AAPL's Schaeffer's put/call open interest ratio (SOIR) of 0.97 ranks above 96 percent of those taken during the past year. The shares have even bested peak call open interest at the 55 level, with little in the way of overhead options-related resistance to hinder the shares. Wall Street also has room for improvement, as 10 of the 22 covering analyst still rate the stock a "hold" or worse. With positive developments seeming to arrive from AAPL on a weekly basis amid this pessimistic backdrop, the stock could have quite some way to run before sentiment finally levels out.

11:11 AM Orckit Communications Tops Earnings, Guides Higher

According to Yahoo! Finance, Orckit Communications (NASDAQ:ORCT) and its subsidiaries engage in the design, development, manufacture, and marketing of telecom equipment that enables transmission of broadband services. This morning before the market open, ORCT reported third-quarter earnings of 30 cents per share, seven cents better than analyst expectations. Company revenues increased more than 1,100-percent year-over-year to $25.4 million, ahead of the consensus estimate of $24 million. ORCT also guided its earnings for the fourth quarter and the full year higher.

Technically speaking, ORCT has been trending lower since mid-July. This morning's positive earnings result, however, has sent the shares more than 28 percent higher to $20.50.

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 .