Schaeffer's Daily Market Blog Features Reynolds American, LifeCell, Genentech, Amgen, and Carolina Group.

CINCINNATI -- Among the stocks featured in the June 9 edition of Schaeffer's Market Blog are Reynolds American (NYSE:RAI), LifeCell (NASDAQ:LIFC), Genentech (NYSE:DNA), Amgen (NASDAQ:AMGN), and Carolina Group (NYSE:CG). Schaeffer's Market Blog is just one of the many free market commentaries written every day 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 Friday, June 9, 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

9:12 AM Financial Podcasts

We issue about 25 podcasts each week. You can find the recordings at our Audio and Video Center at http://www.schaeffersresearch.com/commentary/podcasts/?click=home

2:00 PM Reynolds American Holds Up Well

Tobacco stock Reynolds American (NYSE:RAI) has held up well in the recent market downturn. And the stock's bouncing some today. It's up over one percent and has overtaken the 110 level. That area acted as resistance back in March and has provided some measure of support over the past couple of months. Since the S&P 500 Index (SPX) peaked on May 8, the index has lost 5.4 percent. Over the same period RAI has lost just 3.6 percent. In June, the SPX is down about 1.3 percent while RAI is actually a touch higher.

2:27 PM Biotech Could be Ready to Bounce

We had a pretty steep sell-off right after lunch, but now we're trying to climb back up to positive territory. Right now, the Dow Jones Industrial Average (DJIA) is down 36 points and the SPX is down four points. The one thing that I keep telling myself regarding yesterday is that everyone was calling it the bottom. Could it really be that obvious? I don't know, but its something to consider. Turning to what has my eyes - I'm starting to like biotech. The group is very oversold, but technically I'm seeing some encouraging signs. Right now the AMEX Biotech Index (BTK) is up 0.53 percent and it is trying to break above its 50-day moving average. Should it get above that trendline, I'd feel a lot more comfortable. Looking at some of the names in the group: LifeCell (NASDAQ:LIFC) is up 2.60 percent, Genentech (NYSE:DNA) is up over one percent and Amgen (NASDAQ:AMGN) is down 0.54 percent.

2:36 PM Another Strong Tobacco Stock - Carolina Group

Another stock in the tobacco sector that I like even more than Reynolds American is Carolina Group (NYSE:CG). This company, which is part of the conglomerate Loews (LTR), has been a strong performer. It recently bounced at the 46.50 area again, which is an important level that has acted as both resistance and support over the past five months. Like many tobacco stocks, CG has significant pessimism surrounding it. Short interest has nearly doubled in the past three months and stands at just over 2.7 million shares, near a four-year high. At an average daily stock volume of about 366,000 shares, its short-interest ratio is more than seven days to cover. If this stock can move above potential resistance at the 50 level, it could challenge its May all-time high of 53.32.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1

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