Option Investor
Play Updates

New Stops and Entries

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Play Editor's Note: We are listing some new stops and marking new entries for some of our bullish candidates.


BULLISH Play Updates

Fluor Corp. - FLR - close: 48.19 change: -2.50 stop: 43.75 *new*

FLR has been on fire since investors started buying stocks of companies who should benefit from the Obama infrastructure deal. The stock finally saw a correction. The Friday morning weakness was strong enough to send FLR gapping lower. The stock opened at $46.84 and dipped toward round-number support at $45.00 before bouncing higher. Our suggested entry point to buy FLR was in the $46.00-44.00 zone. We're going to raise our stop loss from $42.49 to $43.75. More conservative traders may want to use a stop loss closer to $45.00 instead. We have two targets. Our first target is $49.95. Our second target is $53.85.

Annotated chart:
FLR

Picked on December 12 at $46.00 
Change since picked:     + 2.19   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       6.1 million     


Hasbro Inc. - HAS - close: 27.04 change: -0.33 stop: 26.25

HAS slipped toward the $26.50 level several times on Friday but each time traders bought the dip. The intraday lows on Friday just happened to be the 61% Fibonacci retracement of HAS' recent bounce from the $25.00 level. A bounce from here (or over $27.50) can be used as a new bullish entry point. More conservative traders might try inching up their stop loss toward $26.50. We have two targets. Our short-term target is $29.90. Our multi-week target is $32.25.

Annotated chart:
HAS

Picked on December 06 at $28.31 /gap higher entry
Change since picked:     - 1.27 /originally listed at $27.84
Earnings Date          02/09/09 (unconfirmed)    
Average Daily Volume:       2.6 million     


RadioShack - RSH - close: 11.15 change: +0.25 stop: 10.40*new*

RSH dipped to $10.45 on Friday morning and then quickly rebounded back above the $11 mark. We have been waiting for a dip toward round-number support near $10.00. It looks like that may not happen. Thus we're adjusting our entry point to account for the recent strength. We're not suggesting readers buy RSH here with a stop loss under Friday's low. We have two targets. Our first target is $12.45. Our second target is $13.75.

Annotated chart:
RSH

Picked on December 13 at $11.15 
Change since picked:     + 0.00   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       4.3 million     


Raytheon - RTN - close: 50.80 change: +0.57 stop: 48.45 *new*

Markets were weak on Friday morning and yet RTN only fell to $49.37 before bouncing back. The short-term trend remains up and RTN has now fill the gap from December 8th. We are upping our stop loss again, this time to $48.45. Friday's rebound looks like an entry point but more conservative traders may want to use a stop loss under Friday's low. Our target is unchanged at $54.50. The P&F chart is bullish with a $61 target.

Annotated chart:
RTN

Picked on December 06 at $50.48 /gap higher entry
Change since picked:     + 0.32 /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

Emergent BioSolutions - EBS - close: 24.11 change: +0.66 stop: 19.45

EBS missed our entry point again! Friday's morning weakness pulled EBS to a low of $21.00. Shares quickly bounced and rallied almost 15% off their lows. Our suggested entry point was to buy the stock at $20.50. This is the second time EBS dipped toward our entry point but rallied before it got there. We're dropping EBS as a bullish candidate but would keep it on your watch list. The stock has been out performing the market for months and will eventually offer a more attractive entry.

chart:
EBS

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    


ProLogis - PLD - close: 7.98 change: +2.38 stop: 3.99

PLD has run away from us again. This is the second time the stock has rallied more than 40% in just the last two weeks and we weren't in the play yet. Actually PLD dipped to $5.20 on Friday morning and then rallied more than 53% to set a new four-week closing high and produce a bullish engulfing candlestick. Our suggested entry point to buy PLD was the $5.00 mark.

More aggressive traders may want to jump in. The big volume behind Friday's rally is very bullish. We are not going to chase this move. You may want to keep PLD on your watch list but we're removing it from the newsletter as a bullish candidate.

chart:
PLD

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     


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