Schaeffer's "Behind the Headlines" Highlights the Following Stocks: AutoNation, CRA International, Johnson & Johnson, and Resources Connection.

CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on AutoNation (NYSE:AN), CRA International (NASDAQ:CRAI), Johnson & Johnson (NYSE:JNJ), and Resources Connection (NASDAQ:RECN). "Behind the Headlines" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Behind the Headlines:

AutoNation: AutoNation (NYSE:AN) received a boost this morning when Bear Stearns upgraded the firm from "peer perform" to "outperform." The brokerage firm cited lower financing costs and attractive valuation. Technically speaking, the shares have jumped more than two percent on the positive comments, pushing them through former resistance at the 20.80 level. What's more, the stock has skipped above its declining 20-week moving average, which it has logged only one weekly close above since mid-May. However, the stock's rally has been capped by resistance at its 10-month moving average. This trendline served as staunch support for AN from September 2004 through June 2006, and may now serve as a layer of key resistance against any further rally attempts.

Click the following link to see a Daily Chart of AN since June 2006: http://www.schaeffersresearch.com/wire?ID=17436 .

CRA International: Before the open, CRA International (NASDAQ:CRAI) posted third-quarter earnings of $8.7 million, or 71 cents per share, as revenue increased 15.7 percent to $107 million. Analysts had predicted a profit of 68 cents per share. The equity has jumped nearly five percent this afternoon, breaking through resistance at its 80-week moving average in the 48 area. However, the stock could have some trouble overcoming resistance at the 50 level. This region has served as both support and resistance in the past. A rejection here could send the shares back for another test of support at the 42 level.

Click the following link to see a Weekly Chart of CRAI since August 2004: http://www.schaeffersresearch.com/wire?ID=17436 .

Johnson & Johnson: I thought I would take the opportunity to check in on pharmaceutical giant Johnson & Johnson (NYSE:JNJ). The equity is in the process of bouncing off support at its ascending 10-week moving average, which it has finished only two weeks below since mid-May. However, the security is struggling to overcome the 65 level. This strike is the site of peak October call open interest with more than 36,600 contracts. This hefty accumulation of bullish bets could serve as a layer of options-related resistance during the near term. Should the shares break through support at their 10-week moving average, they could pull back to test support at their 20-week trendline in the 62.50 region.

Click the following link to see the Weekly Chart of JNJ since June 2005 with 10-Week Moving Average: http://www.schaeffersresearch.com/wire?ID=17436 .

Resources Connection: Elsewhere in earnings news, Resources Connection (NASDAQ:RECN) announced that it expects revenue for the second quarter will be about $175 million, compared with $158.1 million for the second quarter of 2006. Cheered by the news, investors have sent the shares higher by more than 13 percent. It appears that short covering may be fueling some of the equity's gains today. Roughly 10 percent of the stock's float has been sold short and it would take more than 15 days to buy back these bearish bets at the equity's average daily trading volume. An unwinding of these positions could fuel a significant rally in the shares. The stock has broken resistance at the 25 level, but is hitting some chart congestion at the 27.50 level.

Click the following link to see a Daily Chart of RECN since January 2006: http://www.schaeffersresearch.com/wire?ID=17436 .

The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1 1 .

About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method .