Schaeffer's Daily Market Blog Features Micron Technology, Merck, Oil Services HOLDRS Trust, and Denbury Resources.

CINCINNATI -- Among the stocks featured in the April 11th edition of Schaeffer's Market Blog are Micron Technology (NYSE:MU), Merck (NYSE:MRK), Oil Services HOLDRS Trust (AMEX:OIH), and Denbury Resources (NYSE:DNR). 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 Tuesday, April 11, 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 .

9:58 AM Micron Technology Higher on Earnings Report

After the close last night, Micron Technology (NYSE:MU) banked a second-quarter profit of $193.2 million, or 27 cents per share, beating its year-ago profit by a dime. Sales for the quarter tumbled six percent to $1.225 billion. Meanwhile, the Street had predicted a profit of six cents per share on sales of $1.345 billion.

Technically speaking, the shares are up more than two percent this morning. The equity gapped higher on the open, popping above the 16 level. However, the security has since pulled back toward support at its 10-day moving average. From a longer-term perspective, the chip company has been in an uptrend along its ascending 20-week trendline since July.

11:54 AM Merck to Appeal Ruling

Merck (NYSE:MRK) has pulled back 0.64 percent this morning after announcing that it will appeal a New Jersey jury's verdict awarding one of the state's residents $9 million in punitive damages, as well as last week's split verdict for a compensatory damages award, regarding its recalled Vioxx painkiller. The pharmaceutical firm reported that it will appeal those portions of the verdict that found the company violated the state consumer statute with respect to both plaintiffs. MRK is currently examining various bases for appeal.

From a technical perspective, the stock is pulling back to potential support at its 20-week moving average, a trendline it has not finished a week below since the beginning of November. In options trading, speculators currently have low expectations for the blue-chip company. The security's Schaeffer's put/call open interest ratio (SOIR) checks in at 1.05 and is higher than 94 percent of all those taken during the past 52 weeks.

12:00 PM High Gas Prices Here to Stay

The Energy Information Administration announced this morning that retail gasoline prices are expected to rise 25 cents, or 13.7 percent, this summer to average $2.62 per gallon. Meanwhile, retail diesel prices are expected to average $2.62 per gallon, an 8.6-percent increase compared to the previous summer. The group stated that gas prices are likely to be pressured by higher crude oil prices and the phase out of the leading gasoline additive methyl tertiary butyl ether, known as MTBE.

Don't forget that yesterday I reported that the Energy Department stated that retail gasoline prices spiked 9.6 cents last week to an average of $2.73 per gallon - its highest price in six months. The average price of regular gasoline was up 9.5 cents to $2.68 a gallon. It looks like higher prices for the summer driving season have already started to kick in.

2:22 PM Decline in OIH Sparks Call Activity

Call volume on Oil Service HOLDRS Trust (AMEX:OIH) is running a more than two times average, which suggests that traders are favoring an optimistic view of the sector. This isn't all that surprising given the recent strength in OIH shares, but such a rush of call volume on today's pullback seems like traders were waiting for a decline to get in. This type of activity can be viewed with potentially bearish consequences. We'll have to wait and see what tomorrow's inventories report holds.

2:39 PM Denbury Resources Gains as Other Energy Names Sell Off

Adding to John's last post about the energy sector, the Oil Service HOLDRS Trust (AMEX:OIH) is down 1.65 percent even though crude oil is going to close up just a few pennies. One name from the energy sector that I've liked and we even have calls in our PowerFlex Service is Denbury Resources (NYSE:DNR). The stock is bucking the sell-off and is currently up more than three percent on great volume to a new all-time high. This company has great fundamentals and is technically sound. The fact that the shares continue to gain while the sector is weak could be a very bullish sign.

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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 .