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Schaeffer's Daily Market Blog Features Rambus, Ford Motor, General Motors, Cisco Systems, and Western Digital.


CINCINNATI -- Among the stocks featured in the January 5 edition of Schaeffer's Market Blog are Rambus (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
:RMBS RMBS Residential Mortgage-Backed Securities
RMBS Rambus, Inc. (NASDAQ stock symbol)
RMBS Russian Mortgage-Backed Securities
), Ford Motor (NYSE NYSE

See: New York Stock Exchange
:F), General Motors (NYSE:GM), Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation).
Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006.
 (NASDAQ:CSCO CSCO Cisco Systems Incorporated (stock symbol)
CSCO Chief Supply Chain Officer
), and Western Digital (NYSE:WDC WDC Washington DC, USA
WDC Western Digital Corporation
WDC World Data Center
WDC Warwick District Council (UK)
WDC World Diamond Council
WDC Workforce Development Center
WDC Wisconsin Democracy Campaign
). 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 In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends.  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=PROB PROB Probable/Probably
PROB Problem
PROB People's Republic of Bangladesh
12M&PAGE=1 .

Schaeffer's Market Blog for Thursday, January 5, 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 .

4:10 PM Good Day for Ford and GM

Check out Ford Motor (NYSE:F) and General Motors (NYSE:GM) today. Both are looking good - as GM gained more than six percent and F tacked on four percent. In fact, F closed above its 50-day moving average for the first time since early August. Sure I'm not saying the bottom is in, but I must say that they both could be ripe for a rally at current levels.

3:32 PM Why Western Digital is One of Our Favorites for 2006

We've talked about Western Digital (NYSE:WDC) on our website during the last month or so. In fact, it's one of Bernie's bullish stock picks in his 2006 Market Forecast. The stock has enjoyed a significant run during the past two months, gaining 50 percent in that time. On December 21, competitor Seagate Technology (company) Seagate Technology - A major manufacturer of hard disk drives, founded in 1979 as "Shugart Technology" by Alan F. Shugart and Finis Conner. That name is on the original patents for the 5.25" hard disk drive.  (STX STX - Start Of Text ) offered to buy another disk drive company - Maxtor (MXO MxO Matrix Online (massively multiplayer online roleplayinggame)
MXO Miniature Crystal Oscillator
), for $1.9 billion. This was seen as a positive for the rest of the disk drive industry, including WDC. The deal will likely result in suppliers diversifying away from the new STX/MXO company to other disk drive companies like WDC. The stock jumped more than 18 percent that day to a 6-1/2-year high. Read the 2006 Market Forecast to learn more about Bernie's thoughts for the upcoming year and why WDC is one of his favorites.

2:02 PM Optimism Rising Fast Toward Cisco Systems

Call options on Cisco Systems (NASDAQ:CSCO) have been extremely popular during the past two trading sessions. This isn't all that surprising, given that the stock was up more than two percent yesterday. Optimism toward the issue could be getting a bit out of control, however. Call option volume has more than quintupled put volume both yesterday and today. The current Schaeffer put/call open interest ratio for CSCO of 0.38 is already lower than 91 percent of readings taken during the past year. I'd be cautious of a short-term top in the stock near $18.50.

12:54 PM Rambus Rises On Ruling

Rambus (NASDAQ:RMBS) is trading higher this morning by 19 percent after a federal judge ruled the company didn't destroy evidence in its patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
 with Hynix Semiconductor. (HXSCL) Since its low back in September, RMBS has rallied more than 100 percent approaching its 52-week high. RMBS is slated to release its earnings on January 16th. At that time investors will get a better feel how the latest developments will affect its earnings.

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 .

Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB12M&PAGE=1 .

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 .
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Publication:Business Wire
Geographic Code:1USA
Date:Jan 5, 2006
Words:764
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