This skeptical article notes that Palm Inc. (PALM: sentiment, chart, options) -- once a trailblazer in the smartphone field -- has recently lost ground to bigger rivals such as Apple (AAPL), Research In Motion Limited (RIMM), and Nokia (NOK). "While no one expected Palm's sales would rival the sales of iPhones or BlackBerrys -- and they have not -- developers have not rushed to write applications for the phone as they have for the iPhone and Android phones," says the author. As a result, the article explains, this David among Goliaths "could well find itself struggling as the perpetual also-ran."

However, Palm CEO Jon Rubinstein is given the opportunity to defend his company. He argues that he's not intimidated by rivals such as the Motorola (MOT) Droid, which is dependent upon software provided by Google (GOOG). "The companies that will deliver the best products are the ones that integrate the whole experience -- the hardware, the software and the services -- and aren't getting one piece from here and one piece from there and trying to bolt it all together," he asserts. Rubinstein is also optimistic about the prospects for Palm's new, low-priced Pixi, which he claims is in "the sweet spot of the market" as more and more users make the transition from traditional mobile phones to smartphones.

It seems that investors are just as skeptical of PALM's prospects as The New York Times, since the equity has backpedaled sharply from its recently tapped annual high of $18.09. The shares are now trading south of $12, and they're fighting a losing battle against resistance from their 10-day and 20-day moving averages. In fact, the equity's formerly supportive 10-week and 20-week trendlines recently completed a bearish cross, which could be a harbinger of additional downside to come.

However, it doesn't seem as though PALM is vulnerable to a large-scale unwinding of optimism, since the Times article more or less sums up the prevailing attitude toward the Pre parent. Short interest ticked up by 3.5% during the most recent reporting period, and these bearish bets now account for a lofty 38.3% of the security's float (or 5.2 times PALM's average daily trading volume). In other words, there's no shortage of traders betting against this smartphone upstart.

Analysts are also firmly entrenched in the bearish camp, with Zacks reporting 16 "hold" or "sell" ratings, compared to just four "buy" or better recommendations. With so much pessimism levied against the stock, it seems safe to assume that many of the concerns raised in this article have already been priced into PALM shares. While the equity's current price plunge suggests that it's too soon to try and bet against the herd, the swelling bearish chorus on Wall Street could indicate that the shares are very close to finding a floor.

This BusinessWeek article highlights the problems facing videogame console makers like Nintendo, Microsoft (MSFT), and Sony Corp. (SNE), particularly ahead of the holiday shopping season. Due to the sedated consumer response to independently published games, console makers are now starting to rely on more creative ways to entice customers, like issuing price cuts and "souped-up consoles." Plus, thanks to escalating competition from new gaming platforms like Apple Inc.'s (AAPL) iPod Touch, the columnist opines that Sony and its peers are now at a crossroads.

As such, the author advises the major console makers to act sooner rather than later. Though "creating hits is costly, especially for console makers that have already cut prices on their devices," he argues that the sector bigwigs can't afford to ignore the "dearth of hit games." After all, in the words of Jack Tretton, chief executive of Sony Computer Entertainment America, "This industry requires risk and constant innovation."

Despite the aforementioned concerns with Sony's console business, as well as the fact that its TV business is in its sixth straight year of losses, the Street has high hopes for SNE. In fact, three of the five ranking analysts deem the stock worthy of a "buy" or better rating, according to Zacks. What's more, the average 12-month price target on the equity stands at $31.92, Thomson Reuters reports, representing a 3.5% premium to the stock's annual high of $30.82, and a 19% premium to SNE's current share price.

In similar fashion, though SNE has underperformed the broader S&P 500 Index (SPX) by 7% during the past 40 trading sessions, option traders have grown increasingly optimistic toward the stock. During the past couple of weeks on the International Securities Exchange (ISE), speculators have bought to open more than twice as many SNE calls as puts. Furthermore, the stock's 10-day put/call volume ratio of 2.03 stands only 15 percentage points shy of an annual bullish peak.

On that same note, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.12 ranks in the 36th percentile when compared to similar readings taken during the past year. In other words, near-term option traders have been more bullishly biased toward SNE only 36% of the time during the past 52 weeks.

Should SNE's fundamental and technical troubles continue, the optimists could toss out the rose-colored glasses. An unwinding of bullish sentiment in the options pits, or a wave of downgrades and/or price-target reductions, could exacerbate SNE's status as a broad-market laggard.

This Barron's article on home improvement giant Lowe's Companies (LOW: sentiment, chart, options) takes an optimistic look at the shares. The company Monday posted third-quarter earnings that were largely in line with expectations, despite the fact that they were down 30% from the year-ago period. In addition, same-store sales retreated for the 13th consecutive quarter. However, Chief Executive Robert Niblock said Lowe's is "beginning to see signs of improved performance in some of the hardest-hit housing markets including California, Florida and areas of the desert Southwest."

Looking ahead, the retailer doesn't anticipate a repeat of last year's dismal holiday season, as management noted that discounting and promotion should not be as intense as 2008. Furthermore, LOW is seeing a slight uptick in interest in seasonal items, while it has ordered more modest inventory to avoid slashing prices on large amounts of merchandise.

Among analysts, Rochdale Securities analyst Jaison Blair notes that Lowe's "is poised to generate earnings per share beats and expense leverage as the cycle turns." Furthermore, Wall Street Strategies analyst Brian Sozzi anticipates year-over-year EPS appreciation of around 11% next year.

Technically speaking, the shares of LOW are massively underperforming the broad market. The stock has tacked on only 1.5% since the beginning of the year, while the S&P 500 Index (SPX) has gained more than 22%. Since reaching a February 2007 peak, the security has ground lower under its 10-month and 20-month moving averages. The equity is now consolidating under resistance in the 22-23 region.

Meanwhile, we're beginning to see signs of optimism among speculators. The International Securities Exchange (ISE) has seen an increase in call trading. During the past 10 trading sessions, more than three calls have been purchased to open for every one put purchased to open. This ratio of calls to puts is higher than two-thirds of the readings taken during the past year. An unwinding of this optimism in the face of the stock's lackluster performance could increase the selling pressure on the shares/

In addition, we find that Wall Street is smitten with the shares. According to Zacks, 15 of the 19 analysts following LOW rate it a "buy" or better. Any downgrades from this group could spell trouble for the shares.

This even-handed assessment of Caterpillar (CAT: sentiment, chart, options) offers two opinions on the stock -- one bullish, and one bearish. In the skeptics' corner, Barry Bannister of Stifel Nicolaus warns that CAT "won't give you additional earnings growth," since demand for the company's machines is peaking in the energy sector. Additionally, he expects demand for machines used in construction will remain weak through the end of 2010, resulting in a "U" shaped recovery rather than a "V" shaped rebound for the shares. Bannister is also concerned with CAT's new focus on emerging markets and light equipment, which he expects could have a negative effect on margins.

Playing devils' advocate is Jeff Windau of Edward Jones, who argues the bullish case for CAT. He believes a concentration on emerging markets could be a boon for the company, observing that "Caterpillar is the best positioned to take advantage of the global infrastructure build-out" among machinery companies. Windau also asserts that CAT's strong dealer network and newly expanded integrated services business offer the firm distinct advantages as it attempts to weather the challenging market conditions.

While both analysts offer compelling points, a contrarian review of CAT suggests that the stock has room to run higher. The equity is riding high along support at its 10-week moving average, which hasn't been breached on a weekly closing basis since mid-July. The shares were rejected at the $60 level in late October, but CAT is now poised to take out this looming resistance, thanks to the rising support of its 10-day and 20-day moving averages.

Despite its impressive performance on the charts, sentiment is notably negative toward the machinery and equipment titan. CAT's Schaeffer's put/call open interest ratio (SOIR) currently weighs in at 3.35, with puts more than tripling calls among options set to expire within three months. This SOIR is hovering just one percentage point from an annual pessimistic peak. Plus, a respectable 5.4% of the equity's float has been sold short, suggesting that there's a healthy supply of sideline cash that could unwind to fuel additional gains.

Overall, the combination of positive price action and heavy skepticism sets the stage for CAT to keep climbing higher. As the remaining bears gradually capitulate to the stock's uptrend, look for the shares to benefit from a fresh influx of buying pressure.

This optimistic Barron's article concedes that Garmin Ltd. (GRMN: sentiment, chart, options) has faced a slew of challenges on the charts lately, but makes the argument that the shares' current price "sets the bar too low." The GPS guru has shed roughly 22% since Google (GOOG) launched a battle for market share a couple of weeks ago, announcing its entry into the navigation market with the debut of turn-by-turn software for mobile phones. However, the columnist claims "the Google navigation threat looks overstated," and says the GRMN shares now appear "downright cheap" in the wake of their recent retreat.

Looking ahead, the author opines that the stock could be poised for a rebound as the company's fundamental follies fade. The piece cites tests of Verizon's (VZ) Droid smartphone by Barrons.com, which "suggest that a dedicated Garmin device is still the better choice for drivers seeking navigation help." The columnist concludes by encouraging GRMN investors to find comfort in the company's ability to hold off competition in recent years, predicting that "any success from Garmin could have shares charting a new course: due north."

The Barron's article notes that "A contrarian investor might be energized by the almost universal negativity for Garmin stock," with only three of 21 ranking analysts issuing "buy" or better ratings. However, many contrarians believe that Street-wide skepticism is only effective as potential buying power when juxtaposed with sound technical and fundamental backdrops – neither of which is obvious when analyzing GRMN.

Technically speaking, the stock has been a broad-market laggard lately, underperforming the S&P 500 Index (SPX) by 25% during just the past 20 sessions. The shares are now flirting with the $30 level, attempting to hold on to a foothold from their 32-week moving average, which played the part of support in early 2009. However, any rebound attempts could be squashed by GRMN's 10-week or 20-week trendlines, both of which supported the stock during the latter half of the year, and could now switch roles to act as resistance.

This article notes that Travelers Companies (TRV: sentiment, chart, options) pleasantly surprised Wall Street with its Oct. 22 earnings report, as its per-share profit of $1.61 blew past analysts' expectations for $1.30 per share. Additionally, TRV increased its quarterly dividend, making it a rare standout in the struggling insurance sector, and the company is also rewarding shareholders with substantial share-buyback programs. "Travelers has put itself in a position of relative strength after outperforming in 2008, giving it opportunities to steal profitable business," observed Morningstar analyst Drew Woodbury.

However, cautions the author, "That's not to say Travelers isn't feeling the effects of the recession." Due to an uncertain economic outlook, the insurance issue could struggle under the weight of anemic growth in premiums. Plus, earnings comparisons are likely to get tougher during the next few fiscal years, as the market environment stabilizes and more of TRV's peers get their bottom lines back in shape. "Travelers," concludes the author, "…may have the advantage for now in the fiercely competitive insurance industry, but it might be moving into some strong headwinds."

TRV is currently climbing higher on the charts, with the equity tagging a new 52-week high of $52.22 earlier in today's session. The stock is enjoying support from its 10-week and 20-week moving averages, but the shares will have to prove their mettle in the mid-50s. Since 2000, the equity's rally attempts have consistently been rejected by the $52-to-$56 neighborhood. If this region continues in its historical role as resistance, potential upside from TRV's current levels could be severely limited.

However, Wall Street is displaying a relatively healthy level of pessimism toward the Dow member. During the past 10 days, traders on the International Securities Exchange (ISE) have bought to open 1.28 puts for every call on TRV. This ratio ranks higher than 75% of comparable readings taken during the past 52 weeks, revealing that bearish bets have been more popular than usual in recent weeks.

Overall, the technical outlook for TRV seems just as uncertain as its fundamental outlook. The stock has performed respectably well and boasts multiple layers of support, but it should be facing some serious challenges during the near future. Traders might want to wait and see how the shares perform in the mid-50s before pulling the trigger on a Travelers trade.

While many tech-trendy Americans await anything iPhone with bated breath, Chinese consumers were rather indifferent to the latest smartphone's Far East debut. Data from The Press Association indicates that China Unicom (CHU: sentiment, chart, options), Apple Inc.'s (AAPL) partner in China, managed to unload a mere 5,000 iPhones during its launch over the weekend. In comparison, earlier iPhone rollouts have typically resulted in daily sales of about 20,000 handsets, the data estimates. However, this Motley Fool columnist isn't surprised.

For starters, the Fool points out that China Unicom's iPhone is facing staunch competition from "cheaper, Wi-Fi capable gray market models." Furthermore, "unlike AT&T (T) here in the U.S., China Unicom is partnering with and competing with Apple," since the CHU models come with an app store from each company. The only way China Unicom can buck the lethargic sales trends, opines the Fool, is with a Chinese government crackdown on gray market iPhones, or stepping up to "earn the 20% or so price premium it's demanding of buyers."

Considering China Unicom's partnership with tech phenom AAPL, it's no surprise that the Street has grown increasingly optimistic toward the shares of CHU. In fact, half of the six ranking analysts currently deem the stock worthy of a "strong buy" rating, according to Zacks. On that same note, Thomson Reuters pegs the consensus 12-month price target at $17.13 – rather lofty, considering CHU hasn't breached the $17 threshold since August 2008.

Meanwhile, during the past couple of weeks, speculators on the International Securities Exchange (ISE) have bought to open almost 10 times as many CHU calls than puts. The stock's 10-day call/put volume ratio of 9.90 ranks in the 68th annual percentile, implying that option traders on the ISE are more bullishly biased than usual toward the shares. What's more, the optimistic uprising has pressured the security's Schaeffer's put/call open interest ratio (SOIR) to 0.55, in the 30th annual percentile.

Technically speaking, it's difficult to justify the high expectations on the Street, as the shares of CHU have underperformed the broader S&P 500 Index (SPX) by 13% during the past 60 trading sessions. In fact, since early June, the stock has remained confined between support at its 50-week moving average and resistance from its descending 80-week trendline.

From a contrarian perspective, the widespread optimism among investors, juxtaposed with China Unicom's aforementioned fundamental follies and technical troubles, makes for a potential bearish argument. Should the overseas iPhone issues continue, extending CHU's status as a broad-market laggard, the bulls could abandon ship. A reversal in sentiment among option traders, or a round of downgrades and/or price-target cuts, could exacerbate the stock's recent challenges on the charts.

This Barron's article takes a bullish look at automaker Ford Motor Co. (F: sentiment, chart, options) following the company's stronger-than-expected earnings report. The firm is operating more effectively than it was a year ago, with more cash on the books and free cash flow for the first time since 2007. However, there are still some dark clouds overhead. The United Auto Workers union has rejected the company's proposal to cut wages, a development that hinders the company's return to profitability next year.

However, the firm expects to be "solidly profitable" in 2011, its press release stated, with positive operating cash flow, an improvement, it said, from a previous outlook of "break-even or better." Helping to boost the company's bottom line was that it kept producing new models right through the recession, giving it the freshest line-up of new cars while "cash for clunkers" was luring buyers to the lots. And the company implemented big production cuts early on, rather than incrementally, to meet the reduced sales outlook for North America. The article points out that the company has figured out how to make a profit even in a down market, something General Motors (GM) and Chrysler have yet to demonstrate, despite massive restructuring.

Technically speaking, it appears that the stock has earned this article's optimism. The equity has soared more than 220% since the beginning of the year, easily outpacing the broad market. In addition, the security has gained ground along the support of its 10-week and 20-week moving averages since March.

Meanwhile, not everyone has jumped on the stock's bandwagon. The Schaeffer's put/call open interest ratio comes in at 0.78, which is higher than two-thirds of the readings taken during the past year. Plus, the International Securities Exchange (ISE) has seen an uptick in put trading. The ISE 10-day put/call volume ratio is higher than 76% of all those taken during the past year, pointing to growing skepticism.

Wall Street is giving the stock a mixed review, at best. According to Zacks, the stock has earned three "strong buy" ratings, four "holds," and one "sell." Any upgrades from this group could add some lift to the shares.

Amazon.com Inc.'s (AMZN: sentiment, chart, options) recent post-earnings surge caught many investors off guard. In fact, with the shares now trading with a price-to-earnings (P/E) ratio in the 68 region, some traders are downright concerned. However, as author Mark Hulbert states in this recent article from MarketWatch, "we might not want to be too quick to dismiss Amazon.com's recent strength." For his reasoning, Hulbert cites the "so-called Nifty Fifty stocks from the early 1970s."

Per a recent study by Jeremy Siegel, finance professor at the Wharton School of the University of Pennsylvania, "a portfolio that bought all 50 stocks at the stock market's peak in December 1972, and held them for at least two decades, would eventually have taken the lead over the broad stock market." To be sure, Hulbert states that some of these results could have been impacted by impressive gains by Wal-Mart Stores (WMT), "whose gargantuan percentage gain since then (north of 10,000%) would skew the results particularly strongly in favor of the long-run performance of the Nifty Fifty."

He also emphasizes diversification in your portfolio, and notes that it took years for the Nifty Fifty to justify their elevated P/E ratios from the early 1970s. Still, Hulbert believes that "Amazon.com's new record high is a harbinger of good things to come many years down the road for those beleaguered investors who are still nursing the wounds they suffered earlier this decade from the bursting of the Internet bubble."

In the long run, Hulbert may eventually be proven correct in his bullish leanings toward AMZN, but there are some serious short-term concerns that must be considered before jumping on the bandwagon. While we tend not to focus on P/E ratios at Schaeffer's Research, let's take a moment to put AMZN's current ratio in perspective. The highest P/E ratio among the company's competitors, according to Google Finance, lies with Google Inc. (GOOG), which sports a ratio of 34.34.

Furthermore, Netflix Inc.'s (NFLX) P/E ratio arrives at 29.09, while Hasting Entertainment Inc.'s (HAST) ratio comes in at 22.78. Just so we're clear, AMZN's P/E ratio comes in at somewhere near twice the next highest reading from a related company, which, from a contrarian perspective, has to send up at least a few warning flags for potential investors.

Other warning flags can be seen in the stock's sentiment backdrop. Specifically, AMZN's Schaeffer's put/call open interest ratio (SOIR) of 1.00 ranks below 72% of all those taken during the past year, meaning that options traders have rarely been more bullish toward the shares. What's more, 12 of the 21 analysts following AMZN rate the shares a "buy" or better.

In fact, the only group that wasn't all warm and cozy in AMZN's pocket was the short-selling community. Currently, more than 5% of the stock's float is sold short, following a 9.5% plunge in short interest during the prior two weeks. In all likelihood, these bears were blasted out of their positions in the wake of the company's better-than-expected quarterly earnings report, creating a short-squeeze situation that contributed to AMZN's 26% post-report rally.

Going forward, at least from a short-term perspective, AMZN traders will want to keep a keen eye trained on the 118-118.50 region. The shares have begun to pull back following their earnings-induced euphoria, and a breach of the 118-118.50 region, which marks AMZN's earnings-gap close, could send the shares quickly down for a test of support near 111-110 -- the security's earnings-gap low on Oct. 23. Such a development would be especially true if short sellers begin to reestablish their bearish positions following the stock's recent peak.

This Motley Fool article argues the potential risks of investing in tobacco titan Philip Morris International (PM: sentiment, chart, options), highlighting the "demand-killing effects of cigarette taxes" and valuation concerns.

While Uncle Sam-imposed taxes tend to be associated with domestic tobacco names like PM parent Altria (MO), the author notes that higher international taxes are beginning to pose a threat to Philip Morris. Reflecting the ramifications of higher international taxes were the company's own third-quarter statistics, which attribute "nearly two-thirds" of its organic volume weakness to Spain, Pakistan, and Ukraine – all of which recently raised excise taxes. Furthermore, the columnist notes that Latin American volumes declined 3.8% in the third quarter, after Brazil upped its excise taxes by 20% earlier in the year.

In addition, the Fool warns that "valuation is the second reason that investors should consider going on the patch program." The shares of PM currently trade at a forward price-to-earnings ratio of 12.9, which is substantially higher than rival companies Altria, Reynolds American (RAI), and British American Tobacco (BTI). As such, the writer warns that persistent "tax- and recession-driven volume woes" could reduce PM's premium to domestic players.

Technically speaking, after riding its 10-week moving average higher during most of 2009, PM has recently retreated into the red. As such, the shares have surrendered their aforementioned perch atop their 10-week trendline for only the second time since mid-March, and are now flirting with the $47.40 level.

However, the equity's pullback could be contained by its 20-week moving average, which has descended into the $46.50 area. This trendline played the part of resistance during late 2008 and early 2009, and could now switch roles and act as support. Furthermore, the security could find a foothold in the $45.50-$46 neighborhood, which supported the stock from late July to mid-September.

Should the shares of PM rebound off these potential layers of support, there's plenty of pessimism levied against the stock left to unwind and spark additional buying pressure. In fact, the equity's Schaeffer's put/call open interest ratio (SOIR) currently stands at 1.06, only one percentage point shy of an annual bearish climax. In addition, short interest rose by 6.2% during the past month, with more than 28 million PM shares now sold short. At the stock's average daily trading volume, it would take nearly a week for all of these pessimistic positions to unwind, presenting a sufficient short-squeeze opportunity.