Schaeffer's Daily Market Blog Features DaimlerChrysler, General Motors, AMR, U.S. Airways, and Apple Computer

Business Wire, June 22, 2006

CINCINNATI -- Among the stocks featured in the June 22 edition of Schaeffer's Market Blog are DaimlerChrysler (NYSE:DCX), General Motors (NYSE:GM), AMR (NYSE:AMR), U.S. Airways (NYSE:LCC), and Apple Computer (NASDAQ:AAPL). 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=PROB12M&PAGE=1 .

Schaeffer's Market Blog for Thursday, June 22, 2006:

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 .

11:43 AM Panic in Detroit?

The Wall Street Journal reports that DaimlerChrysler (NYSE:DCX) plans to launch a discount program to clear out inventories. You might remember that General Motors (NYSE:GM) and Ford Motor (F) offered employee discount programs last year. Interestingly, I notice that F, GM, Honda Motor (HMC), and Toyota Motor (TM) were all showing gains at last check, whereas DCX was 0.35 percent down on the day. Wall Street could be sending a message here.

2:44 PM Airlines Strong in Face of Weak Market and Negative News

It's a rather slow, dull day, with the Dow Jones Industrial Average (DJIA) down 76 points and the S&P 500 Index (SPX) down seven points, definitely not the action that the bulls would want to see. Looking at the sectors that I follow, only the Oil Service HOLDRs Trust (OIH) and AMEX Airlines Index (XAL) are higher, though the gains are small. The OIH is up 0.41 percent and the XAL is up just a penny. These are definitely not two groups which usually move together, but that's what's happening today. Looking at airlines, this is a group that I think could provide for some nice gains over the coming weeks and months. In fact, today a few companies from this group actually received notice from authorities in both the U.S. and U.K. over ticket prices. One would think this news would push the group much lower, but this isn't the case at all, with the XAL about even in a weak market. Right now, AMR (NYSE:AMR) is up 0.23 percent and U.S. Airways (NYSE:LCC) is up 0.84 percent.

3:01 PM You Know What They Say About Apples and Gravity

Options in Apple Computer (NASDAQ:AAPL) are trading briskly today. The largest front-month volume is at the July 60 call (QAA GL), and so far I've seen 8,887 contracts cross the tape. AAPL has been in a downtrend since May 8, slipping below the 60 level recently, so these calls are now overhead and have the potential to exert options-related resistance, which might impede any attempt at an early recovery. Moving out to the August series of options, there are walls of calls at the 60, 62.5, and 65 strikes. With little by way of short interest to prop the price up, and a Schaeffer's put/call open interest ratio (SOIR) that ranks lower than 81 percent of readings taken during the past year, AAPL does not look set to challenge its January all-time high any time soon. The stock breached its 10-month moving average last month, and might need to wait for the 20-month to move into the area to provide lift.

3:20 PM General Motors

On a day when most stocks are in the red, General Motors (GM) is one of a few that are higher. The stock is up 3.4 percent to $27.09, and has been in a constructive uptrend for more than 10 weeks. Today's advance has taken the stock to its highest point in nearly three weeks. Last week it was announced that Delphi (DPHIQ) reached buyout agreement with the United Auto Workers union and GM for hourly workers. That caused a nice rally in the stock. GM has performed very well since the market peak in early May. Since its May 5 close of 23.18, the stock is up almost 17 percent. Over that same time period, the Dow Jones Industrial Average (DJIA - 11,021.7) is down 4.8 percent.

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: 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 .