Option Investor
Play Updates

Stocks Dip but Not Enough

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BULLISH Play Updates

Best Buy Co. Inc. - BBY - close: 23.75 change: -0.53 stop: 19.90

Tuesday produced another failed rally near BBY's 50-dma. Tomorrow might be our opportunity. We don't see any changes from our previous comments. We are suggesting readers buy the stock on a dip in the $22.00-20.00 one with a stop loss at $19.90. If triggered we're listing two targets. Our first target is $24.90. Our second target is $27.00. However, don't get too focused on the second target. BBY is due to report earnings on December 16th and we do not want to hold over the report!

Picked on December xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          12/16/08 (confirmed)    
Average Daily Volume:      10.3 million     


Emergent BioSolutions - EBS - close: 23.77 change: -0.61 stop: 19.45

Quick and nimble traders might want to try a very brief bearish trade on EBS. The stock has produced its second failed rally, topping formation in the last two weeks. Today's move even produced a bearish engulfing candlestick and a lower high. I am expecting a drop toward $22.00 very soon and probably a drop toward $20.00, which is where we can jump in for a bullish position. Our suggested entry point to buy the stock is the $20.50-20.00 zone.

If triggered we have two targets. Our first target is $22.50. Our second target is $24.50. FYI: The Point & Figure chart is bullish with a $35 target.

Picked on November xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          03/05/09 (unconfirmed)    
Average Daily Volume:       626 thousand    


Expedia Inc. - EXPE - close: 8.13 change: -0.40 stop: 7.59

After an impressive two-day bounce EXPE hit some profit taking. We don't see any changes from our previous comments. We are not suggesting new bullish positions at this time. The stock has already exceeded our first target. Our second target is $9.75. More aggressive traders may want to aim higher.

Picked on December 02 at $ 7.50 *triggered       
Change since picked:     + 0.63   			
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       4.7 million     


Fluor Corp. - FLR - close: 48.74 change: -2.22 stop: 42.49

FLR managed to rally to $53.24 before paring its gains and closing with a 4.3% decline. We still expect shares to fill the gap from Monday. We are suggesting readers buy a dip into the $46.00-44.00 zone with a stop loss at $42.49. If triggered we have two targets. Our first target is $49.95. Our second target is $53.85.

Picked on December xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       6.1 million     


Hasbro Inc. - HAS - close: 28.07 change: -0.54 stop: 26.25

HAS held up reasonably well today with a 1.8% loss. I would expect a dip toward $27.50 or maybe $27.00. Wait for a bounce before jumping in. We have two targets. Our short-term target is $29.90. Our multi-week target is $32.25.

Picked on December 06 at $28.31 /gap higher entry
Change since picked:     - 0.24 /originally listed at $27.84
Earnings Date          02/09/09 (unconfirmed)    
Average Daily Volume:       2.6 million     


ProLogis - PLD - close: 6.39 change: -0.50 stop: 3.85

Volatile shares of PLD gave back a fourth of yesterday's impressive gains. We don't see any changes from our prior comments. Our suggested entry point to buy PLD is the $4.40-4.00 zone. We'll try and limit our risk with a stop loss at $3.85. If triggered we have two (newly adjusted) targets. Our first target is $5.75. Our second target is $7.45. FYI: The Point & Figure chart has turned bullish with a $10 target. I have to label this an aggressive play because the stock can make some huge percentage moves throughout the day.

Picked on December xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:      10.9 million     


RadioShack - RSH - close: 10.93 change: -0.30 stop: 9.49

We don't see any changes from our Monday night comments. We are suggesting readers buy a dip in the $10.25-10.00 zone with a stop loss at $9.49. More conservative traders may want to use a stop loss close to the $10.00 mark. If triggered we are listing two targets. Our first target is $11.25. Our second target is $12.75.

Picked on December xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       4.3 million     


Raytheon - RTN - close: 51.31 change: +0.38 stop: 46.65

RTN continued to show relative strength and managed to hold on to some gains today. We would still wait for a dip either near $50.00 or possibly $49.00 before initiating new positions. Our target is unchanged at $54.50. The P&F chart is bullish with a $61 target.

Picked on December 06 at $50.48 /gap higher entry
Change since picked:     + 0.83 /originally listed at $49.55
Earnings Date          01/29/09 (unconfirmed)    
Average Daily Volume:       4.4 million     


BEARISH Play Updates

*We currently do not have any bearish play updates*


CLOSED BULLISH PLAYS

Electronic Arts - ERTS - close: 19.35 change: -2.52 stop: 18.75

Hmmmm... do you think the news leaked? The S&P 500 index lost 2.3% and the NASDAQ composite lost 1.5% today. Yet shares of ERTS plunged 11.5%. However, the news that ERTS had issued an earnings warning for 2009 didn't hit the wires until after 4:00 p.m. today after the market was closed. It sure looks like someone knew something before the rest of us did.

Our suggested entry point was to buy a dip in the $20.25-19.50 zone. Well, today's pull back was enough to open our position. Now it looks like we'll be stopped out tomorrow. The earnings warning news has ERTS trading around $17.50-17.25 in after hours. If we're lucky ERTS might bounce from its November lows around $16.65 but I wouldn't hold my breath. The stock will probably hit new lows before the year is out.

chart:
ERTS

Picked on December 09 at $20.25 *triggered       
Change since picked:     - 0.90   			
Earnings Date          01/29/09 (unconfirmed)    
Average Daily Volume:       8.3 million     


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