DNKN - watch your donuts!

Dunkin Donuts has been holding up very well in a weak market. This, like HOG, is one of those stocks that traders who prefer to play from the long side would want to keep an eye on. These types of stocks that outperform on a relative basis to either their peers, the broad market, or both are the ones to watch as the market stabilizes and moves higher because they are likely to lead to the upside.

For now DNKN is holding its 50day moving average very well. As long as this holds then buying dips, especially weak volume dips to this moving average, should work out well. The caveat is once the 50day is broken on a closing basis, and preferably on above average volume, then the downside target will be the $30 area which is both psychological and the 100day moving average support area.

So there are 2 ways to play this stock. From the long side for now...and from the short side once it breaks.