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New Plays

Semicondutors, Entertainment, & Movies

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NEW BULLISH Plays

Applied Materials - AMAT - close: 9.72 change: -0.43 stop: 10.51

Why We Like It:
The SOX semiconductor index rolled over hard today and looks ready to break support at the 200 level. Meanwhile AMAT is already leading the group down with a bearish breakdown under psychological support at the $10.00 mark. AMAT has already broken the bullish trend of higher lows and the MACD is nearing a new sell signal.

We are suggesting bearish positions now or on a failed rally near $10.00. We'll start the play with a stop loss at $10.51. More conservative traders may want to try and play with a stop near $10.25 instead. Our first target is $9.05. Our second target is $8.25.

Annotated chart:
AMAT

Picked on December 23 at $ 9.72 
Change since picked:     + 0.00   			
Earnings Date          02/10/09 (unconfirmed)    
Average Daily Volume:      19.8 million     


Walt Disney Co. - DIS - close: 21.85 change: -0.08 stop: 23.05

Why We Like It:
The oversold bounce in DIS that began back in November has failed. There was a blow-off top in early December that produced a new P&F chart buy signal but since then the stock has delivered a series of lower highs. More recently the stock has broken its supporting trendline. The MACD has produced a new sell signal. We are suggesting short positions now.

Our first target is $20.10. Our secondary target is $19.05.

Annotated chart:
DIS

Picked on December 23 at $21.85 
Change since picked:     + 0.00   			
Earnings Date          02/03/09 (unconfirmed)    
Average Daily Volume:      17.9 million     


DreamWorks Animation - DWA - close: 23.18 change: -0.41 stop: 24.35

Why We Like It:
DWA's oversold bounce from its November lows has failed at its long-term trendline of resistance that happens to be near its 50-dma. The bearish reversal three days ago also took the form of a temporary bullish breakout, now a bull trap pattern, when DWA broke past resistance at $25.00. DWA has already warned that the economic slowdown was taking a toll on its DVD sales. Today's intraday action showed a failed rally at the $24.00 level. We're suggesting bearish positions now with a stop loss at $24.35. More conservative traders may want to wait for more confirmation with a breakdown under $23.00 as your entry point. We are setting two targets. Our first target is $21.00. Our second target is $19.25.

Annotated chart:
DWA

Picked on December 23 at $23.18 
Change since picked:     + 0.00   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       902 thousand    


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