Schaeffer's Street Chatter Highlights the Following Stocks: eBay, Monsanto, Research In Motion Limited, and Tribune.CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on eBay (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 :EBAY), Monsanto (NYSE NYSE See: New York Stock Exchange :MON), Research In Motion Limited (NASDAQ:RIMM (Rambus Inline Memory Module) See RDRAM. See also RIM. ), and Tribune (NYSE:TRB TRB Transportation Research Board TRB Technical Review Board TRB Teacher Registration Board TRB Test Review Board TRB Total Relationship Balance TRB Tap-Rack-Bang (shooting procedure) TRB Theodore Roosevelt Building ). "Street Chatter" is a report that analyzes newsworthy news·wor·thy adj. news·wor·thi·er, news·wor·thi·est Of sufficient interest or importance to the public to warrant reporting in the media. news 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. 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=PRSC PRSC Partido Reformista Social Cristiano (Spanish: Social Christian Reformist Party) PRSC Post-Removal Site Control PRSC Program Resources Steering Council 12M&PAGE=1 . Street Chatter: eBay: What has happened to the once beloved EBAY (NASDAQ:EBAY)? The shares have shed more than 23 percent since the beginning of 2006, pressured lower under the weight of their 10-day and 20-day moving averages. Even pacts with Yahoo!, Microsoft-takeover rumors, and upgrades have failed to pull the stock out of its current funk Funk , Casimir 1884-1967. Polish-born American biochemist whose research of deficiency diseases led to the discovery of vitamins, which he named in 1912. . The stock's recent rebound has been promptly stopped by resistance at its 10-week moving average. However, the shares may have found a modicum mod·i·cum n. pl. mod·i·cums or mod·i·ca A small, moderate, or token amount: "England still expects a modicum of eccentricity in its artists" Ian Jack. of support at the 32 level. This area is roughly home to the equity's 20-day moving average and the low the stock notched when it gapped higher on May 25. Also, it is interesting that more than 27,000 puts have accumulated at the 32.50 strike in the June and July series. These bearish Bearish Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value. bearish bets could supply the shares with some short-term support as the stock's 10-week trendline moves lower. Click the following link to see a Daily Chart of EBAY since January 2006 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=16118 . Monsanto: Shares of Monsanto (NYSE:MON) are bouncing off the bottom of a trading range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. that has kept the security trapped since mid-January. While a boost in earnings expectations has helped breathe new life in the stock, MON will be hard pressed to keep up its winning ways. Today's rally has carried the shares back into chart congestion The condition of a network when there is not enough bandwidth to support the current traffic load. congestion - When the offered load of a data communication path exceeds the capacity. in the 86-88 area. This region has marked a number of tops in the stock during the past several months and could mark yet another for the shares. Furthermore, this security isn't going to find any help from short sellers, who have almost abandoned this stock in search of more dour prospects. It looks like MON may remain range-bound for a while longer despite the positive fundamental development. Click the following link to see a Daily chart of MON since November 2005: http://www.schaeffersresearch.com/wire?ID=16118 . Research In Motion Limited: An upgrade and strength in the broad market have failed to pull Research in Motion Limited (NASDAQ:RIMM) significantly higher today. The equity continues to battle technical resistance at its declining 10-day and 20-day moving averages. In fact, RIMM has logged only one daily close above both of these short-term trendlines since April 6. It appears the shares are looking at a possible test of long-term support at the 60 level, which has helped to buoy the security on a number of occasions since March 2005. In addition, investor sentiment toward the beleaguered be·lea·guer tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers 1. To harass; beset: We are beleaguered by problems. 2. To surround with troops; besiege. stock is extremely bullish, increasing the likelihood that these optimists may begin to unload To remove a program from memory or take a tape or disk out of its drive. their long positions as the stock continues to underperform. Click the following link to see a Daily chart of RIMM since March 2006 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=16118 . Tribune: Yesterday, Tribune (NYSE:TRB) announced a share buyback and settled an SEC case, causing the shares to gap higher. Yet, what is catching my eye is the fact that the positive news and price action resulted in a sharp increase in puts at the July 30 strike. Open interest at this back-month option spiked from zero to nearly 4,500 contracts in one day. In addition, the jump brought the shares back above their declining 10-week and 20-week moving averages, which TRB has not closed a week above since mid-September. The stock added more than seven percent yesterday and is flat today, which is surprising as one might expect to see some selling today to lock in Tuesday's gains. This may be the start of a new uptrend uptrend A series of price increases in a security or in the general market. Some investors believe a security tends to take on a certain inertia; as a result, these investors search for stock in an uptrend, thinking that it will probably continue to move in for the shares. Click the following link to see a Weekly chart of TRB since August 2005 with 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=16118 . The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive 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=PRSC12M&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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