Option Investor
Play Updates

Wandering Aimlessly on Light Volume

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Play Editor's Note: Action in stocks was muted on Wednesday as investors were focused on their coming Christmas holiday than trading. Volume was incredibly light and will remain light throughout the rest of 2008.


BULLISH Play Updates

Hansen Natural - HANS - close: 33.68 change: +0.67 stop: 29.95

HANS posted another strong gain and set a new six-month closing high. I continue to suggest that readers do some profit taking here with HANS up more than 11% from our entry price. I am adjusting our official target from $34.90 to $33.90. We'll adjust our more aggressive, secondary target to $36.00.

Picked on December 16 at $30.25 *triggered       
Change since picked:     + 3.43   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       1.8 million     


Hasbro Inc. - HAS - close: 29.13 change: +0.14 stop: 27.90

Shares of HAS have developed a pattern of strength in the morning that fades throughout the day. While the stock continues to slowly build on the bullish trend of higher lows we are not suggesting new positions at this time. We have two targets. Our short-term target is $29.90. Our secondary target is $32.25. FYI: A move over $30.00 would produce a brand new P&F chart buy signal.

Picked on December 06 at $28.31 /gap higher entry
Change since picked:     + 0.82 /originally listed at $27.84
Earnings Date          02/09/09 (unconfirmed)    
Average Daily Volume:       2.6 million     


Henry Schein - HSIC - close: 35.53 change: +0.02 stop: 33.95

HSIC retested its short-term trendline of higher lows, which means it should be ready for another bounce to another new relative high in the $36.50-37.00 zone. More cautious traders might want to consider a tighter stop loss near the $35.00 level. Our target is $39.00.

Picked on December 18 at $35.21 
Change since picked:     + 0.32   			
Earnings Date          02/25/09 (unconfirmed)    
Average Daily Volume:       1.2 million     


RadioShack - RSH - close: 11.95 change: -0.16 stop: 11.15 *new*

RSH tuned out on Wednesday and meandered sideways. The stock happened to glance off its simple 10-dma intraday. The short-term trend is still up but we're not suggesting new bullish positions at this time. We will adjust the stop loss to $11.15 (breakeven). RSH has already hit our first target. Our second target is $13.75.

Picked on December 13 at $11.15 
Change since picked:     + 0.80   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       4.3 million     


Shaw Group Inc. - SGR - close: 19.40 change: +0.02 stop: 17.95

Unfortunately, I don't see any changes from our previous comments on SGR. The stock continues to drift sideways with a one-week trend of lower highs. Momentum indicators are waning. Wait for a new move over $20.00 before considering bullish positions again. More conservative traders may want to raise their stops toward $18.50ish.

We have two targets. Our first target is $24.00. Our secondary target is $27.00 but we suggest readers take off most of their positions at $24.00.

Picked on December 16 at $19.54 /gap down entry
Change since picked:     - 0.14 /originally listed at $19.74
Earnings Date          01/07/09 (unconfirmed)    
Average Daily Volume:       3.6 million     


Total System Services - TSS - close: 14.00 change: +0.17 stop: 13.49

We are still waiting on a bullish breakout for TSS. We're suggesting a trigger to buy the stock at $14.40. More conservative traders may want to use a trigger above $14.50 instead.

We're listing two targets. Our first target is $15.95. Our second target is $17.45.

Picked on December xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          01/22/09 (unconfirmed)    
Average Daily Volume:       1.1 million   


BEARISH Play Updates

Applied Materials - AMAT - close: 9.83 change: +0.11 stop: 10.51

AMAT scored a minor bounce on Wednesday but we don't see any changes from our previous comments. We would still open short positions here or on a bounce closer to the $10 level. AMAT has already broken the bullish trend of higher lows and the MACD is nearing a new sell signal.

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.

Picked on December 23 at $ 9.72 
Change since picked:     + 0.11   			
Earnings Date          02/10/09 (unconfirmed)    
Average Daily Volume:      19.8 million     


Walt Disney Co. - DIS - close: 21.99 change: +0.14 stop: 23.05

The action in DIS today looks like another lower high. We don't see any changes from our previous comments and would open new shorts here. Our first target is $20.10. Our secondary target is $19.05.

Picked on December 23 at $21.85 
Change since picked:     + 0.14   			
Earnings Date          02/03/09 (unconfirmed)    
Average Daily Volume:      17.9 million     


DreamWorks Animation - DWA - close: 23.15 change: -0.03 stop: 24.35

DWA spiked toward $22.65 this morning before recovering. I suspect that DWA could rebound toward the $23.75-24.00 zone before moving lower. Use any such bounce as a new entry point for bearish positions. We have two targets. Our first target is $21.00. Our second target is $19.25.

Picked on December 23 at $23.18 
Change since picked:     + 0.03   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       902 thousand    


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