Schaeffer's Street Chatter Highlights the Following Stocks: Target, Continental Airlines, Phelps Dodge, and Qwest Communications.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Target (NYSE:TGT), Continental Airlines (NYSE:CAL), Phelps Dodge (NYSE:PD), and Qwest Communications (NYSE:Q). "Street Chatter" is a report that analyzes newsworthy stocks that are generating a lot of attention on Internet message boards. "Street Chatter" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Street Chatter:

Target: Investor optimism can be a real spoiler when it comes to a company's earnings report. Early this morning, Target (NYSE:TGT) missed first-quarter expectations by a penny per share, and the stock is now down nearly four percent so far today. Heading into the report, call activity was extremely heavy at the equity's May and June 52.50 strikes. In fact, more than 1,200 and 2,100, respectively, of these bullishly oriented contracts were added to the out-of-the money May and June 52.50 strikes. It seems that these bullish speculators are licking their wounds today, as the company's earnings were an apparent disappointment. Furthermore, while the stock has held support at the 50 level, that hefty accumulation of calls at the 52.50 level could make it very difficult for TGT to bounce back from today's sell off.

Click the following link to see a May and June Open Interest Configuration Chart for TGT: http://www.schaeffersresearch.com/wire?ID=16013 .

Continental Airlines: It seems that the 28 level is proving quite supportive for Continental Airlines (NYSE:CAL) today. With crude prices in decline and CAL signing a five-year pact with Expedia, it appears that traders have chosen to defend this former resistance level. Since March, the 28 region had acted as a barrier to CAL advances; that is until the shares breached this region solidly on May 4. Potentially lending a hand in the area is CAL's 10-week moving average, which has helped lift the shares higher since October 2005..

Click the following link to see an Intraday chart of CAL for May 15, 2006: http://www.schaeffersresearch.com/wire?ID=16013 .

Phelps Dodge: Some heavy profit taking in the metals pits today is taking its toll, and Phelps Dodge (NYSE:PD) has attracted its own share of selling so far. The stock was recently rejected by the century mark, which also happens to be home to peak call open interest in the front three months of options. However, despite today's decline of more than five percent, PD is holding at round-number support in the 90 area. Helping buoy the shares today could be the peak put open interest for the front three months of options which has accumulated at the 90 strike. As frequent readers of SchaeffersResearch.com know, heavy put open interest can often provide options-related support for a security.

Qwest Communications: Qwest Communications (NYSE:Q) is back in the news today after announcing that it will acquire OnFiber Communications for $107 million. The shares haven't moved very much in reaction to the news. In fact, Q is currently pinned to the 6.45 level in intraday activity. The reason for this activity could be the stalwart support of its 20-week moving average, located just above the 6.40 region, and resistance at the 6.50 level. The latter of these two regions was a former support level for Q from March 14 through May 11. As mentioned above, former support levels can switch roles and provide resistance once breached.

Click the following link to see an Intraday chart of Q for May 15, 2006: http://www.schaeffersresearch.com/wire?ID=16013 .

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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 .