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Schaeffer's Daily Market Blog Features: Genesis Microchip, ConocoPhillips, AMEX Oil Services HOLDRs Trust (OIH), Anheuser-Busch, and TiVo.

CINCINNATI -- Among the stocks featured in the July 26 edition of Schaeffer's Market Blog are Genesis Microchip (NASDAQ:GNSS), ConocoPhillips (NYSE:COP), AMEX Oil Services HOLDRs Trust (AMEX:OIH), Anheuser-Busch (NYSE:BUD), and TiVo (NASDAQ:TIVO). Schaeffer's Market Blog is just one of the many free market commentaries written every day at - 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. .

Schaeffer's Market Blog for Wednesday, July 26, 2006:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. .

8:00 AM Free Stock Picks in our Podcast Interviews

Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of observations, please visit

Yesterday, Jon Lewis interviewed Joe Sunderman, one of our most senior traders, who is looking at an interesting opportunity in Genesis Microchip (NASDAQ: GNSS).

1:54 PM ConocoPhillips Surprises the Street

Earlier today, ConocoPhillips (NYSE:COP) became the first of the big-oil companies to issue quarterly earnings results this season. The firm said it banked $3.09 per share for the three-month period, up from $2.21 per share in the previous year. Revenue rose as well, advancing to $47.1 billion from $41.8 billion last year. The average estimate on Wall Street sought per-share results of $2.81. Looking forward, COP says it expects production to be impacted in the third quarter as seasonal maintenance is conducted in Alaska, the U.K., and Venezuela. Firm CEO also admitted that COP is experiencing "pretty severe inflation and cost pressure," but remains committed to doling out $18 billion on capital projects this year.

In mid-afternoon activity, the security is higher by more than three percent, driven by this positive earnings surprise and rising crude prices, which have turned higher amid a surprising drop in gasoline supplies. The AMEX Oil Services HOLDRs Trust (AMEX:OIH) has posted gains as well, surging almost three percent to take on resistance at its 20-day moving average.

Today's advance lifted COP shares through a potential double-top at the 69 level; COP is now trading in territory not seen since late April. The equity's August 55 call (COP HK) is among the most-active options trading on the Pacific exchange. More than 6,000 contracts have changed hands on this deep-in-the-money option, which was previously home to just 2,990 options.

2:43 PM Defensive Names Lead the Pack

The market is putting on another afternoon bounce, as the Dow is all of a sudden up 50 points. Still, what has me concerned is that technology and transports are lagging, while tobacco and defensive names are leading. In fact, just a few minutes ago, beer giant Anheuser Busch (NYSE:BUD) reported earnings that beat the street and the shares are breaking out to new multi-year highs. That coupled with Reynolds American (RAI) reporting solid earnings this morning, it appears the world of beer and cigarettes are doing quite well. The problem here is that strength in these sectors is often a sign of a stock market that isn't healthy, but too much smoking and drinking will do that to you.

3:19 PM Recording Unusual Options Activity on TiVo

A prominent force in the digital video recording revolution, TiVo (NASDAQ:TIVO) has fallen on hard times of late amid increased competitive pressures. In today's trading, options players have taken a pronounced interest in the stock, swapping more than 11,000 contracts on the September 7.50 call (TUK IU). This out-of-the-money strike was home to just 244 contracts prior to today, indicating that most of today's volume should translate into new positions. This will likely have an effect on the security's Schaeffer's put/call open interest ratio (SOIR), which currently stands at 0.29, in the 17th annual percentile (in other words, lower than all but 17 percent of the past year's worth of readings).

Blocks of varying size have been crossing the tape throughout the session. Most notable are two blocks of 4,782 contracts each that changed hands at 12:50 p.m. The first block traded at the ask price of 0.30, while the second went off at the bid of 0.25. It is highly likely these are related in some manner, given the similarity in block size and timing.

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: .

Take advantage of the timely Schaeffer commentaries by signing up for 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. .

About Schaeffer's Investment Research (

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, , 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: .
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 26, 2006
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