Schaeffer's Daily Market Blog Features QUALCOMM, OmniVision Technologies, Wal-Mart Stores, Fannie Mae, and Federated Department Stores.

CINCINNATI -- Among the stocks featured in the August 10 edition of Schaeffer's Market Blog are QUALCOMM (NASDAQ:QCOM), OmniVision Technologies (NASDAQ:OVTI), Wal-Mart Stores (NYSE:WMT), Fannie Mae (NYSE:FNM
FNM Free National Movement (Bahamas)
FNM Foot and Mouth ), and Federated Department Stores (NYSE:FD). 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 Wednesday, August 10, 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 .

11:14 AM Federated Announces Earnings

Federated Department Stores (NYSE:FD) banked a second-quarter profit of $148 million, or 84 cents per share, compared to its year-ago gain of $78 million, or 43 cents. Sales for the three-month period rose to $3.62 billion from $3.58 billion. Both the company's revenue and earnings-per-share results matched the Street forecast. The ultra-posh retailer announced same-store sales are expected to increase roughly three percent in both the third and fourth quarters. However, FD isn't issuing earnings forecasts until after it closes its acquisition of May Department Stores (MAY) . The merger is expected to close some time during the third quarter. At last check, FD was up 2.80 percent as it battles overhead resistance at its 10-day and 20-day moving averages.

12:24 PM Fannie Mae De-Listed?

Fannie Mae (NYSE:FNM) has backpedaled more than three percent this afternoon following news that the firm would miss a deadline for filing second-quarter results. In a filing to the Securities and Exchange Commission, the company said that it aims to restate billions of dollars of previously reported earnings by the second half of 2006. However, if the firm doesn't file its 2004 annual report by December 16, the New York Stock Exchange could begin the process of delisting the security. Both FNM and Freddie Mac (FRE) have come under scrutiny for accounting problems, with both the House and Senate approving legislation that would tighten regulation over the companies. FNM has steadily declined under resistance at its 10-day moving average since mid-July, breaching former support at the 58 level.

12:32 PM QUALCOMM Upgraded

QUALCOMM (NASDAQ:QCOM) has spiked more than three percent today after Morgan Stanley upgraded the shares from "underweight" to "equal weight." Analyst Louis Gerhardy believes that risks he saw in 2005 have already been played out, given the relative underperformance of the stock since October. Today's upgrade has lifted the security above resistance at its 10-day moving average, but the stock is still struggling with resistance at the round-number 40 level. This region has troubled the security since it gapped below 40 on January 20. Furthermore, the 40 strike is home to more than 24,500 calls in the August series, which could add yet a layer of options-related resistance.

1:31 PM Looking Toward Wal-Mart

With all of the attention on Cisco Systems (CSCO) over last night's earnings report, I almost forgot that Wal-Mart Stores (NYSE:WMT) is due to report second-quarter earnings tomorrow morning before the opening bell. The stock's performance has left something to be desired thus far in 2005 and, given the high level of optimism going into this report, I wouldn't have my hopes up on much upside from here. Call options were running at nearly 10 times the volume of put options yesterday, and today the bullish bets are outnumbering the bearish bets by a ratio of four to one.

2:12 PM OmniVision Technologies Sees Extreme Pessimism

I'm not sure if OmniVision Technologies (NASDAQ:OVTI) has bottomed yet, but the pessimism sure has reached peak-type levels. The stock has dropped more than 60 percent since late 2003, but it is up 2.5 percent today. Put volume has not backed off, however. Put volume on the equity has eclipsed 7,000 contracts, which is nearly six times the average put volume on the security. The Schaeffer put/call open interest ratio (SOIR) on the stock of 1.18 is already at a 52-week high. Short interest is quite high as well at more than 30 percent of the stock's float. Picking a bottom is always a tough task, but this one's a bit tempting.

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 .