Schaeffer's Daily Market Blog Features: Microsoft, Intel, Yahoo!, Reynolds American, and Masco.

CINCINNATI -- Among the stocks featured in the September 20 edition of Schaeffer's Market Blog are Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), Yahoo! (NASDAQ:YHOO), Reynolds American (NYSE:RAI), and Masco (NYSE:MAS). 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. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1 .

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1:08 PM Microsoft, Intel, and Yahoo! Oh My!

Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), and Yahoo! (NASDAQ:YHOO) all appear to be attracting heavy call option volume amid today's rally. They all have been acting differently of late, but the implications for the three could be similar. MSFT has been on a tear, INTC's been treading water, and YHOO got slammed yesterday on a weaker-than-expected fundamental outlook. Options traders now seem to be optimistic toward all these big-cap techs, as all three have seen call option volume of more than three times put volume today. This activity could act to support the shares in the short term, but may hold them back from seeing extended gains from current levels.

3:03 PM Reynolds American Shares Up in Smoke

Reynolds American (NYSE:RAI) has dropped more than five percent today on the heels of a brokerage downgrade. Citigroup lowered its rating on the stock to "hold" from "buy," claiming troublesome issues with the company's supply chain that could negatively impact volume and earnings growth.

While the stock has taken a tumble today, it managed to catch support at the site of its 80-day moving average, which has not been breached on a closing basis since early June. The shares also continue to hover well above their 10-month moving average and remain in a solid long-term uptrend.

On the sentiment front, short interest is a force to be reckoned with, as it would take nearly 20 trading days to eradicate all of the shorted positions on RAI at the stock's average daily volume. What's more, RAI stands to benefit from heavy structural put support at the November 60 and 55 strikes, which could help fortify the shares in the event that the 80-day trendline fails to hold.

3:14 PM Homebuilding Stocks Take a Tumble

Masco (NYSE:MAS) , a manufacturer of home-improvement and building supplies, reduced its earnings forecast for the year earlier today. The firm said third-quarter sales would be flat, while fourth-quarter sales are expected to decline in the low- to mid-single digits. Earnings for the full fiscal year, excluding items, are expected to be in a range of $2.25 to $2.30 per share, lower than the firm's previous forecast of $2.40 to $2.50 per share. MAS officials chalked up the reduction to a continued slowdown in housing starts.

The stock has dropped more than two percent today on above-average volume and is back below resistance at its 10-week moving average. Homebuilding names are sliding in sympathy. Most notable is DR Horton (DHI) , which has logged a two-percent decline but remains above its newly ascending 10- and 20-day moving averages. Overall, the ISE Homebuilders Index (RUF) has dropped more than one percent today and is clinging toward its 20-week trendline. The index closed above this moving average last week for the first time since late January.

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=PROB13C&PAGE=1.

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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 .