It was a quiet day for much of the market but the banking sector rebounded sharply.


BULLISH Play Updates

Analogic Corp. - ALOG - close: 40.51 change: +0.32 stop: 38.99

Traders bought the dip in ALOG near $39.00. This intraday bounce looks like a new bullish entry point to buy the stock. Our first target to take profits is at $44.90. I'd aim higher but ALOG is due to report earnings on December 9th and we don't want to hold over the report. FYI: The P&F chart is bullish with a $54 target.

Entry on  November 25 at $41.51 
Change since picked:     - 1.00   			
Earnings Date          12/09/09 (confirmed)    
Average Daily Volume:      41.5 thousand
Listed on  November 24, 2009    


Best Buy Inc. - BBY - close: 42.83 change: -0.00 stop: 39.85

BBY management had some positive comments on store traffic over the weekend. Shares of BBY rallied this morning but eventually gave it all back to close unchanged on the session. I remain bullish on BBY but I'm not suggesting new positions at this time. Our first target is $46.00. Our second target is $49.80. Our time frame is several weeks.

Entry on  November 10 at $42.20
Change since picked:     + 0.63   			
Earnings Date          12/15/09 (unconfirmed)    
Average Daily Volume:       5.1 million 
Listed on  November 09, 2009    


Bank of Hawaii - BOH - close: 45.70 change: +0.86 stop: 43.90

Banking stocks were some of the strongest performers on Monday. Investors must have felt that the Dubai World problem would be contained. Add to that some positive comments from Goldman Sachs on the financials and the sector rebounded sharply. BOH only gained 1.9%, which is actually a little under performance compared to the banking indices. I'd still wait for a new move over $46.00 before launching new positions.

Our first target to take profits is at $49.85. FYI: The Point & Figure chart is bullish with a $59 target.

Entry on  November 18 at $46.20 
Change since picked:     - 0.50   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Johnson & Johnson - JNJ - close: 62.84 change: -0.05 stop: 59.90

Monday proved to be a quiet session for JNJ. The stock traded sideways in an 80-cent range. I don't see any changes from my prior comments. I'd be tempted to buy a bounce from $61.00. Keep positions small. The $65.00 level might offer some resistance but our target first target is $67.50.

Entry on  November 23 at $63.05
Change since picked:     - 0.21   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  November 21, 2009    


Potlatch Corp. - PCH - close: 29.44 change: +0.90 stop: 27.95

The rally in PCH really began to pick up speed late this afternoon. Shares ended the session up 3.1%. I would prefer to see a new breakout over $30.00 before launching new positions.

Our first target to take profits is at $33.60. We will cautiously set a secondary target at $35.75. FYI: The Point & Figure chart is bullish with a $56 target.

Entry on  November 16 at $30.30
Change since picked:     - 0.86   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Southern Copper Corp. - PCU - close: 34.84 change: +0.22 stop: 33.80

There was no follow through in the dollar's rally from Friday and commodities managed a bounce on Monday. PCU traded sideways in a narrow range but closed the day up 0.65. I'm not suggesting new positions at this time.

Our first target is $39.50. Our second target is $41.50. Our plan called for small positions (25% to 50% your normal size).

Entry on  November 04 at $33.80
Change since picked:     + 1.04   			
Earnings Date          10/22/09 (confirmed)    
Average Daily Volume:       3.5 million 
Listed on  November 03, 2009    


Renolds American - RAI - close: 49.96 change: -1.36 stop: 49.49

RAI unexpectedly sold off on Monday. The stock posted a 2.6% decline. I suspect RAI was weak because PM was selling off (-3.8%) but I could not find any news to explain why either stock was falling today. Shares of RAI have pulled back toward the $50.00 level, which should be support. The fractional close under $50.00 is somewhat bearish. If there is any follow through lower it wouldn't take much to stop us out at $49.49. Given the unexpected pull back I'm not suggesting new positions at this time. Our target is $54.50. Our time frame is several weeks!

Entry on  November 14 at $50.32 
Change since picked:     - 0.36   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Symantec - SYMC - close: 17.75 change: +0.06 stop: 17.24

There is no change from my prior comments on SYMC. We're still waiting on a breakout higher with a trigger to open positions at $18.20.

If triggered our first target to take profits is at $19.90. The $20.00 level will probably act as round-number resistance. Our second target, with a much longer time frame, is $21.75. Currently the Point & Figure chart is bullish with a $23 target.

Entry on  November xx at $xx.xx <-- TRIGGER @ 18.20
Change since picked:     + 0.00   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:      11.8 million 
Listed on  November 16, 2009    


Travelers Companies - TRV - close: 52.39 change: +0.74 stop: 49.75

TRV traded sideways all day until shares suddenly began to climb in the last hour of trading. Look for a move over $52.70 or $53.00 to launch new positions. Our target is $57.40.

Entry on  November 27 at $51.94 /gap down entry point 
Change since picked:     + 0.45   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  November 07, 2009    


Warner Chilcott - WCRX - close: 24.58 change: +0.11 stop: 22.49

WCRX made another new 52-week high this morning but failed to hit our trigger. I'm suggesting readers use a trigger at $24.65 to open small bullish positions. If triggered our first target is $27.40. We'll consider a second target closer to $29.50 if the market cooperates.

Entry on  November xx at $xx.xx <-- TRIGGER @ 24.65 (use small positions)
Change since picked:     + 0.00   			
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  November 28, 2009    


Wyndham Worldwide - WYN - close: 18.57 change: +0.01 stop: 17.20

It looks like WYN still thought it was the weekend. The stock barely moved and closed almost unchanged on the session. I'm not suggesting new positions at this time.

Our first target is $21.00. FYI: The point & figure chart is bullish with a $27 target. Our time frame is several weeks. The plan was to use small positions (1/2 a position).

Entry on  November 10 at $18.88 (1/2 position) /gap open higher
Change since picked:     - 0.31   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       3.5 million 
Listed on  November 10, 2009    


BEARISH Play Updates

Activision-Blizzard - ATVI - close: 11.39 change: -0.19 stop: 12.01

ATVI under performed the market with a 1.6% decline. I'm suggesting a trigger to launch small bearish trades at $11.15. More conservative traders could wait for a drop under $11.00 first. If triggered our first target is $10.05. Our second target is $9.25. Our time frame is several weeks. FYI: The Point & Figure chart is currently forecasting a $7.50 target.

Entry on  November xx at $xx.xx <-- TRIGGER @ 11.19
Change since picked:     + 0.00   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009    


Bank of New York - BK - close: 26.64 change: +0.34 stop: 27.16

Fears began to fade over the Dubai World crisis and financial stocks rallied on Monday. BK gained 1.29%. At this time we're still waiting for a breakdown.

I'm suggesting a trigger to open bearish positions at $25.49. More cautious trader could wait for a drop under $25.00 since it might be round-number support.

If the newsletter is triggered at $25.49 our first target is $22.25. Our second target is $20.50. Our time frame is several weeks.

Entry on  November xx at $xx.xx <-- TRIGGER @ 25.49
Change since picked:     + 0.00   			
Earnings Date          01/20/10 (unconfirmed)    
Average Daily Volume:      11.4 million 
Listed on  November 21, 2009    


Liberty Global - LBTYA - close: 19.29 change: -0.49 stop: 21.26

LBTYA sank to another new relative low. Shares hit $18.75 midday and closed with a 2.4% decline. Our first target is $18.20. Our second target is $16.20. Our time frame is several weeks.

Entry on  November 24 at $19.85
Change since picked:     - 0.56   			
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       2.5 million 
Listed on  November 21, 2009    


Lam Research - LRCX - close: 33.99 change: -0.50 stop: 36.26

LRCX under performed the NASDAQ and the SOX semiconductor index with a 1.4% decline on Monday. I don't see any changes from my weekend comments. I'm suggesting small bearish positions now. More conservative traders may want to wait for a breakdown under $32.00 and its 100-dma first. Keep in mind that we're setting our first target to take profits at $30.25. Our second target at $28.25 (or the simple 200-dma).

Shares of LRCX appear to have formed a bearish head-and-shoulders pattern but where the neckline falls is a matter of opinion. Traders should also note that this is a higher-risk trade. The most recent data listed short interest at more than 14% of the 126 million-share float. That is above average short interest and raises our risk of a short squeeze.

Entry on  November 28 at $34.49 (small positions)
Change since picked:     - 0.50   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  November 28, 2009    


Metlife Inc. - MET - close: 34.19 change: +0.91 stop: 36.05

MET spent most of the day in a 60-cent range. That changed late in the session when word hit that Dubai had announced some sort of restructuring for a portion of its debt. This launched a rally in financials and MET shot higher. If there is another explanation for the late day rally in MET I don't know what it is.

There is potential support at the 200-dma near $31.00 but I'm suggesting we target a drop to $30.25. More aggressive traders could aim lower.

Entry on  November 21 at $34.39 /gap higher entry
                           /originally listed at $33.90
Change since picked:     - 0.20   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:       7.2 million 
Listed on  November 21, 2009    


CLOSED BULLISH PLAYS

ENERSYS - ENS - close: 22.76 change: -0.16 stop: 22.40

ENS under performed on Monday morning with a spike down toward $22.00. That was enough to stop us out at $22.40. Technically the larger trend is still up and the intraday bounce makes today's session look like another higher low. More nimble traders may want to reconsider bullish positions if ENS sees any follow through higher.

chart:

Entry on  November 16 at $24.20
Change since picked:     - 1.80 <-- stopped @ 22.40 (-7.4%)
Earnings Date          02/10/10 (unconfirmed)    
Average Daily Volume:       530 thousand
Listed on  November 14, 2009