Option Investor
Play Updates

Growing Cautious with New Stop Losses

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BULLISH Play Updates

Hansen Natural - HANS - close: 33.90 change: +0.22 stop: 30.49 *new*

Target achieved. HANS finally hit the $34.00 mark with Friday's intraday high of $34.06. The stock continues to look bullish with a trend of higher lows. Our first target to take profits was at $33.90. Our secondary target is $36.00. We are going to inch up our stop loss to $30.49. More conservative traders may want to use a stop closer to the 10-dma near $31.90 instead. We are not suggesting new positions at this time.

Annotated chart:
HANS

Picked on December 16 at $30.25 *triggered       
Change since picked:     + 3.65   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       1.8 million     


Hasbro Inc. - HAS - close: 29.04 change: -0.09 stop: 28.31 *new*

I am still concerned that the upward momentum in HAS is quickly fading. The stock has been trading sideways for almost two weeks now. We are raising the stop loss to breakeven at $28.31. If you want to take a swing at HAS then wait for another dip back toward the rising 10-dma near $28.60 as your entry point. Otherwise I'm not suggesting new bullish positions. We have two targets but I'm adjusting the second target. Our first target is $29.90. Our secondary target is $31.50. We will try to keep the secondary target under the falling 100-dma, which is currently around $31.75.

Annotated chart:
HAS

Picked on December 06 at $28.31 /gap higher entry
Change since picked:     + 0.73 /originally listed at $27.84
Earnings Date          02/09/09 (unconfirmed)    
Average Daily Volume:       2.6 million     


Henry Schein - HSIC - close: 35.38 change: -0.15 stop: 34.75 *new*

HSIC dipped again but the stock is testing the bottom edge of its narrow, rising channel. Thus this pull back should be a new entry point to buy the stock. More aggressive traders may want to leave their stop loss under $34.00 while conservative traders could inch theirs up toward $35.00. We are adjusting the stop to $34.75. We are also adjusting the target to $37.95. FYI: A move over $37.00 would produce a new P&F chart buy signal.

Annotated chart:
HSIC

Picked on December 18 at $35.21 
Change since picked:     + 0.17   			
Earnings Date          02/25/09 (unconfirmed)    
Average Daily Volume:       1.2 million     


RadioShack - RSH - close: 11.75 change: -0.20 stop: 11.15

Upward momentum in RSH is also fading. We are not suggesting new bullish positions. Currently our stop loss is at breakeven but more conservative traders may want to up their stop toward $11.40 or just exit completely right here. If we do get stopped out keep RSH on your watch list as another bounce from $10.00 could be a new bullish entry point. RSH has already hit our first target. Our second target is $13.75.

Annotated chart:
RSH

Picked on December 13 at $11.15 
Change since picked:     + 0.60   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       4.3 million     


Total System Services - TSS - close: 14.11 change: +0.11 stop: 13.49

The consolidation in TSS is coiling tighter and tighter. An upside breakout looks imminent. 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.

Annotated chart:
TSS

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: 9.69 change: -0.14 stop: 10.26 *new*

AMAT continues to march lower with an orderly trend of lower highs and lower lows. The stock lost 1.4% on Friday and the MACD indicator on its daily chart has produced a new sell signal. We are adjusting the stop loss to $10.26.

We have two targets. 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:     - 0.03   			
Earnings Date          02/10/09 (unconfirmed)    
Average Daily Volume:      19.8 million     


Walt Disney Co. - DIS - close: 22.18 change: +0.19 stop: 23.05

Shares of DIS are still trying to bounce but they're not getting very far. We don't see any changes from our previous comments. This is still an opportunity to open bearish positions on DIS. Technical indicators have turned bearish and DISH has broken its bullish trend of higher lows.

We have two targets. 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:     + 0.33   			
Earnings Date          02/03/09 (unconfirmed)    
Average Daily Volume:      17.9 million     


DreamWorks Animation - DWA - close: 23.61 change: +0.46 stop: 24.35

Hmmm... DWA showed some relative strength on Friday. I wouldn't worry about it until shares traded above the $23.75-23.85 zone. That's when I would turn defensive and consider lowering my stop. Right now we're leaving the stop at $24.35. Look for a failed rally near $23.80 as a new entry point for bearish positions. We have 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:     + 0.49   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       902 thousand    


CLOSED BULLISH PLAYS

Shaw Group Inc. - SGR - close: 18.93 change: -0.47 stop: 17.95

We are suggesting an early exit on SGR. The company is a leader in the construction business and could benefit from Obama's infrastructure plan but short-term the stock's momentum is fading too fast. We are cutting our losses now. The $18.00 level still looks like short-term support so more aggressive traders may want to let it ride. We will be watching this stock for another entry point.

chart:
SGR

Picked on December 16 at $19.54 /gap down entry
Change since picked:     - 0.61 /originally listed at $19.74
Earnings Date          01/07/09 (unconfirmed)    
Average Daily Volume:       3.6 million     


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