Schaeffer's Street Chatter Highlights the Following Stocks: Walt Disney, Federated Department Stores, Cisco Systems, and Symantec.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Walt Disney (NYSE:DIS), Federated Department Stores (NYSE:FD), Cisco Systems (NASDAQ:CSCO), and Symantec (NASDAQ:SYMC). "Street Chatter" is a report that analyzes three 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:

Walt Disney: The shares of Walt Disney (NYSE:DIS) are facing the prospect of putting in a double top today at the 30 level. As I stated earlier in the week, the 30 region is the site of the equity's near-term high in February 2005 and is poised to potentially reject the shares. What's more, call open interest at this strike has continued to swell from when I last looked at it on Monday; growing from 10,520 contracts to more than 12,840. Furthermore, the June 30 call has open interest of roughly 5,000 contracts and the July 30 call has nearly 25,000 contracts, making this a formidable wall for the security to overcome. While an earnings surprise has helped to carry the shares to the 30 level, it apparently lacks the power to push DIS through this roadblock.

Click the following link to see an Intraday chart for DIS: http://www.schaeffersresearch.com/wire?ID=15979 .

Federated Department Stores: Ahead of its earnings report, Federated Department Stores (NYSE:FD) saw open interest at its May 80 call swell by more than 2,000 contracts to 6,350, indicating a potential increase in optimism ahead of the event. With same-store sales coming in flat, the shares gapped down to test support at their 20-day moving average and have successfully managed to rebound. However, the equity is still facing considerable options-related resistance at the 80 strike. Not only has this region capped the shares since the beginning of the month, but options player continue to pour into the May 80 call, with another 3,400 changing hands today.

Click the following link to see a Daily Chart of FD since January 2006 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=15979 .

Cisco Systems: Yesterday, I looked in on Cisco Systems (NASDAQ:CSCO) ahead of its earnings report and commented on the accumulation of calls at the 22.50 strike, which posed a problem for the security. While the shares rallied briefly in after-hours trading on their earnings report, the stock quickly rolled over following a disappointing conference call. The 22.50 level continues to hold as staunch resistance, helped by long-term resistance at the 22 level. In today's action, the May 22.50 call has traded more than 7,400 contracts while more than 17,500 contracts have changed hands at the June 22.50 call. Meanwhile, put activity is still lagging behind calls, with the May 20 put trading fewer than 6,200 contracts. It looks like the 22.50 region will continue to provide a staunch layer of resistance as the stock pulls back for a potential test of support at the 20 level.

Click the following link to see a Daily Chart of CSCO since October 2005: http://www.schaeffersresearch.com/wire?ID=15979 .

Symantec: The 17.50 level is proving to be somewhat sticky for Symantec (NASDAQ:SYMC) despite an earnings report that beat the estimate. The 17.50 strike is the home of peak May call open interest with more than 46,000 contracts in residence. Furthermore, another 10,500 contracts have changed hands today. While the equity plowed through the level in early trading, the security quickly ran out of steam and is drifting back toward 17.50. Until May options expire at the close of next week, SYMC may have trouble pulling away from the 17.50 level.

Click the following link to see an Intraday chart for SYMC: http://www.schaeffersresearch.com/wire?ID=15979 .

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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 .