Option Investor
Play Updates

Stocks Pop but is it Real?

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BULLISH Play Updates

Hansen Natural - HANS - close: 34.35 change: +1.17 stop: 31.90 *new*

HANS rallied from a test of its rising 10-dma and broke through resistance at the $34.00 level. Shares ended the session up 3.5%. We are raising the stop loss to $31.90.

We are not suggesting new bullish positions. HANS has already hit our first target and more conservative traders may want to exit completely. Our secondary target is $36.00.

Picked on December 16 at $30.25 *triggered       
Change since picked:     + 4.10   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       1.8 million     


Hecla Mining - HL - close: 2.70 change: -0.01 stop: 2.25 *new*

Hmm... silver miner HL under performed the market today. Of course shares significantly out performed yesterday so today looks like shares were just digesting its gains. The stock closed almost unchanged and managed to hold the $2.60 level more than once. I suspect that HL will offer us another entry point on a dip back toward what should be support around $2.40. I am raising the stop loss to $2.25. We have two targets. Our first target is $2.95. Our second target is $3.45.

Picked on December 27 at $ 2.65 /gap higher entry
Change since picked:     + 0.05 /originally listed @ 2.48
Earnings Date          02/19/09 (unconfirmed)    
Average Daily Volume:       6.1 million     


Liberty Global - LBTYA - close: 15.41 change: +0.72 stop: 13.45 *new*

Our new bullish play on LBTYA is off to a good start. Shares rallied almost 5% and closed at a new relative high. We're going to up the stop loss to $13.45. Our target is $17.40. The P&F chart is forecasting a $20 target.

Picked on December 29 at $14.50 *triggered       
Change since picked:     + 0.91   			
Earnings Date          02/23/09 (unconfirmed)    
Average Daily Volume:       3.2 million    


Mannatech Inc. - MTEX - close: 2.60 change: +0.05 stop: 2.34

MTEX is consolidating sideways but it's doing so with a bullish trend of higher lows. I suspect that the next move will be a breakout higher. Our first target is $2.95. Our secondary target is $3.25. Be sure to take some money off the table at our first target since the $3.00 mark and the 50-dma could be tough resistance to crack. I would consider this a higher-risk play because the stock does not have a lot of volume and shares are prone to some big intraday spikes.

Picked on December 27 at $ 2.60 
Change since picked:     - 0.00   			
Earnings Date          03/09/09 (unconfirmed)    
Average Daily Volume:        84 thousand    


RadioShack - RSH - close: 11.48 change: +0.12 stop: 11.15

RSH delivered a minor bounce today. I am still suggesting that readers either exit now entirely or plan to exit on a bounce near $11.70. Odds are pretty good that RSH will hit $11.70 tomorrow. If RSH breaks the $11.00 mark it may be time to think bearish positions.

RSH has already hit our first target. Our second target was $13.75.

Picked on December 13 at $11.15 
Change since picked:     + 0.33   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       4.3 million     


Total System Services - TSS - close: 13.94 change: +0.27 stop: 13.49

There are no changes from our previous comments. We're still waiting on a bullish breakout over resistance. I am suggesting a trigger to buy the stock at $14.40. That may not happen now and if TSS closes under $13.50 we may want to consider bearish strategies instead.

If TSS hits our trigger at $14.40 we will have 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: 10.15 change: +0.35 stop: 10.26

The SOX semiconductor index was one of the best performers today with a 4.6% gain. That's a pretty big move for a sector and the SOX managed to breakout over its 50-dma. The question is can we trust such a move on extremely light volume? The answer is probably not. AMAT hit $10.25 intraday and if stocks continue higher tomorrow we will probably be stopped out. Keep AMAT on your watch list as the stock has resistance at its descending 50-dma. A new decline under $9.90 could be used as another entry point for shorts.

We have two targets. Our first target is $9.05. Our second target is $8.25.

Picked on December 23 at $ 9.72 
Change since picked:     + 0.43   			
Earnings Date          02/10/09 (unconfirmed)    
Average Daily Volume:      19.8 million     


Walt Disney Co. - DIS - close: 22.48 change: +1.01 stop: 23.05

DIS experienced some short covering today with a 4.7% gain. You could argue that the stock may have built a bullish double bottom near $21.25 over the last several days. If the stock rallies past $23.00 I could see switching to short-term bullish positions. However, I suspect that today's gain is trap for the bulls. Currently I would watch for a failed rally near $23.00 as a new entry point for shorts.

We have two targets. Our first target is $20.10. Our secondary target is $19.05.

Picked on December 23 at $21.85 
Change since picked:     + 0.63   			
Earnings Date          02/03/09 (unconfirmed)    
Average Daily Volume:      17.9 million     


DreamWorks Animation - DWA - close: 24.23 change: +1.08 stop: 24.35

DWA is on the verge of stopping us out. The stock produced a very strong 4.6% bounce and closed above what should have been resistance at $24.00. If stocks continue higher tomorrow I would expect DWA to stop us out pretty early. Like most of the moves today I think this is a trap for the bulls. If we do get stopped out watch for DWA to find resistance again at $25.00 or it 50-dma. I am not suggesting new bearish positions at this time. 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:     + 1.05   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       902 thousand    


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