Schaeffer's Daily Market Blog Features the PHLX Oil Services Sector, QLogic, Alcoa, Google, and eBay.

CINCINNATI -- Among the stocks featured in the January 11 edition of Schaeffer's Market Blog are the PHLX Oil Services Sector (PHLX:OSX), QLogic (NASDAQ:QLGC), Alcoa (NYSE:AA), Google (NASDAQ:GOOG), and eBay (NASDAQ:EBAY). 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=PRMOU1M&PAGE=1.

Schaeffer's Market Blog for Tuesday, January 11, 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

9:58 AM Bearishness Toward Oil Service Sector Reaches New High

Based on the Schaeffer's put/call open interest ratio (SOIR) for the PHLX Oil Service Sector Index (PHLX:OSX), bearishness toward the oil service sector has reached a new high. The SOIR for the OSX jumped from 2.47 to 2.94 after puts were four times more active than usual yesterday. A total of 16,909 puts traded, with the most active being the January 125 strike. The OSX had rallied more than 50 percent in the past 14 months before suffering a pullback over the past two weeks. Despite the pullback, the index is still above its 20-month moving average, which has provided support on three separate occasions in the past year.

10:28 AM QLogic Raises Guidance

Earlier this morning, QLogic (NASDAQ:QLGC) raised its guidance. The company had forecasted revenue between $136-143 million, and now sees revenue between $148-150 million. As far as earnings per share, the old forecast was for 36 to 39 cents per share, but the company is now expecting a profit between 44 cents and 46 cents per share. The sentiment toward QLGC was fairly bullish with the exception of analyst ratings. There are currently seven "buy" ratings, 10 "hold" ratings, and one

"sell" rating on the stock. The Schaeffer's put/call open interest ratio (SOIR) is at 0.42 in the 79th percentile. Meanwhile, QLGC's short-interest ratio is at 1.61 after the number of shares sold short decreased by 29 percent during the most recent reporting period.

11:08 AM Options Trade Actively on Alcoa Ahead of Earnings

Last night after the market close, my colleague Mark Fightmaster wrote about Alcoa's (NYSE:AA) disappointing earnings result. The Dow component missed the Street's earnings forecast by two cents, including "special losses." Yesterday, options on AA traded briskly ahead of the earnings report, as call volume was 6.4 times heavier than average and put volume was 2.5 times heavier than average. More than 21,800 call contracts crossed the tape, with the most active being the January 32.50 strike (AA AZ). Investors traded more than 8,300 AA AZ contracts yesterday. On the put side, volume was 2.5 times heavier than average, with the most active contract being the January 30 strike (AA MF). A look at overall option activity on AA shows that option players have a neutral view of the equity. Option investors currently hold 116,300 calls compared to 68,200 puts in the near term. The resultant Schaeffer's put/call open interest ratio (SOIR) of 0.59 is just about in the middle of all readings taken over the past year. At last check, AA was trading 44 cents lower to $30.03 today.

11:25 AM RBC Capital Markets Initiates Google, eBay, and Yahoo! with "Outperform" Ratings

This morning before the market open, RBC Capital Markets initiated equity coverage of Google (NASDAQ:GOOG), eBay (NASDAQ:EBAY), and Yahoo! (YHOO) with "outperform" ratings. The firm also put price targets of $242, $130, and $42 on the equities, respectively. According to Briefing.com, RBC believes that investors should focus on the Internet industry leaders in 2005. The brokerage firms is expecting a secular shift toward online advertising, growth of the international Internet, rich media and integrated promotions driving branded advertising, and more accessible broadband connectivity driving growth in usage, incidence of search, and demand for rich media content. A look at the options front shows that investors have mixed feelings toward these companies. GOOG has a Schaeffer's put/call open interest ratio (SOIR) of 0.79, EBAY has a SOIR of 1.06, and YHOO has a SOIR of 1.04.

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.