Our WYN play hits our target today. We're updating a couple of stops and closing one trade.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 46.06 change: -0.21 stop: 44.49 *new*

BOH continues to out perform its peers in the banking sector but I'm growing increasingly worried about the banking sector. I'm raising our stop loss to $44.49. We don't want to consider new positions until BOH trades above $46.50 again. Our first target is $49.85. Our second target is $53.50.

Entry on  November 18 at $46.20 
Change since picked:     - 0.14   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Broadcom - BRCM - close: 30.35 change: -0.21 stop: 28.75

Lack of follow through on yesterday's bounce form support is worrisome. I didn't see much news regarding BRCM's analyst day today until after the market closed. The company raised their revenues forecast, which should give shares a boost tomorrow. Our first BRCM target is $34.75. Our second target is $37.00. Our time frame is several weeks.

Entry on  December 07 at $31.25
Change since picked:     - 0.90   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  December 05, 2009    


Cal-Maine Foods Inc. - CALM - close: 28.82 change: -0.21 stop: 27.49

Use a dip near $28.00 as a new bullish entry point. Our first target to take profits is at $30.95. Our target is somewhat aggressive since we only have two or three weeks before CALM reports earnings and we don't want to hold over the report.

Entry on  December 09 at $28.66 -small positions-
Change since picked:     + 0.16   			
Earnings Date          12/28/09 (unconfirmed)    
Average Daily Volume:       125 thousand
Listed on  December 09, 2009    


Disney - DIS - close: 32.18 change: +0.35 stop: 29.99

DIS closed at new 2009 highs again. I don't see any changes from my weekend comments.

Shares of DIS are testing a trendline of higher highs. Patient traders may want to wait for a dip back toward $31.00-30.50 before initiating positions. Our target is a little optimistic at $34.75 but we will plan to exit ahead of the February earnings report. FYI: The Point & Figure chart currently points to a $45 target.

Entry on  December 12 at $31.70 
Change since picked:     + 0.48   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


Home Depot - HD - close: 29.02 change: +0.15 stop: 27.40

Shares of HD also hit new relative highs today after traders bought the dip at $28.61 this morning. Our first target is $30.60. We'll plan to exit ahead of the February earnings report. FYI: The P&F chart is very bullish with a $44 target.

Entry on  December 14 at $28.82 *gap higher entry  
Change since picked:     + 0.20   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


HMS Holdings - HMSY - close: 47.40 change: +0.61 stop: 43.90

HMSY hit new all-time highs at $48.15 midday. There is no change from my prior comments. Our multi-week target is $49.75. FYI: The P&F chart is bullish with a $69 target.

Entry on  December 05 at $45.72 
Change since picked:     + 1.68   			
Earnings Date          02/18/10 (unconfirmed)    
Average Daily Volume:       192 thousand
Listed on  December 05, 2009    


Johnson & Johnson - JNJ - close: 64.74 change: -0.22 stop: 59.90

JNJ is still hovering around $65.00. I wonder if market makers will pin the stock to $65.00 for December option expiration. There is no change from my prior comments.

JNJ remains short-term overbought and due for a correction. Broken resistance in the $62.00-62.50 level should offer some support. I'm not suggesting new positions at this time. Our target first target is $67.50.

Entry on  November 23 at $63.05
Change since picked:     + 1.69   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  November 21, 2009    


Kansas City Southern - KSU - close: 31.62 chg: +0.72 stop: 28.20

The rally in KSU continues. The stock gained another 2.3% and out performed the broader market. Shares closed at new highs for the year. Our target is $34.90.

Entry on  December 14 at $30.90 
Change since picked:     + 0.72   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       677 thousand
Listed on  December 14, 2009    


Potlatch Corp. - PCH - close: 31.84 change: -0.33 stop: 29.49

PCH appears to be stuck in a new $31.00-32.50 trading range. Our first target to take profits is at $33.60. Our second target is $35.75. FYI: The Point & Figure chart is bullish with a $56 target.

Entry on  November 16 at $30.30
Change since picked:     + 1.54   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Renolds American - RAI - close: 53.11 change: -0.29 stop: 50.90

RAI suffered some minor profit taking. I don't see any changes from my prior comments. I'm not suggesting new positions at this time. Our target to exit is $54.90.

Entry on  November 14 at $50.32 
Change since picked:     + 2.79   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 22.73 change: -0.11 stop: 20.95

The $22.90 level was resistance several times today. I would wait for a dip back toward $22.00 as a new bullish entry point. More conservative traders might want to raise their stops. Our first target is $24.90.

Entry on  December 10 at $22.25
Change since picked:     + 0.48   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Travelers Companies - TRV - close: 50.41 change: -0.61 stop: 49.75

There is no change from my prior comments. We are looking for an exit, hopefully near $52.00. I am not suggesting new positions at this time. Our last upside target was $57.40.

Entry on  November 27 at $51.94 /gap down entry point 
Change since picked:     - 1.53   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  November 07, 2009    


Texas Instruments - TXN - close: 25.44 change: -0.54 stop: 24.40

TXN has pulled back to short-term technical support at its rising 30-dma. This can be used as a new entry point or readers can wait for a bounce. If the market weakness then look for support near $25.00 for TXN. Our first target is $29.75.

Entry on  December 02 at $26.15
Change since picked:     - 0.71   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 59.25 change: +0.26 stop: 56.95

UPS out performed the broader market with a 0.4% gain following yesterday's bullish breakout. I'd still consider new positions here. Readers may want to use small positions now and just add to it when UPS makes it past potential resistance at $60.00. Our target is $64.50.

Entry on  December 14 at $58.99 
Change since picked:     + 0.26   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 27.73 change: +0.33 stop: 24.77 *new*

WCRX has set another new high, this time at $27.99. I am raising our stop loss to $24.77. I am not suggesting new positions at this time. Our first target was $27.40. Our second target is $29.45.

Entry on  December 01 at $24.77 gap open entry point (small positions)
Change since picked:     + 2.96   	
                         /1st target hit @ 27.40 (+10.6%)
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  November 28, 2009    


Wyndham Worldwide - WYN - close: 20.61 change: -0.05 stop: 18.88 *new*

Target achieved. WYN hit $21.06 intraday. Our first target to take profits has been $21.00. I am raising our stop loss to $18.88. Our second and final target is $22.40. The plan was to use small positions (1/2 a position).

chart:

Entry on  November 10 at $18.88 (1/2 position) /gap open higher
Change since picked:     + 1.73
                          /1st target hit @ 21.00 (+11.2%)
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       3.5 million 
Listed on  November 10, 2009    


BEARISH Play Updates

Activision-Blizzard - ATVI - close: 10.79 change: -0.04 stop: 11.45

ATVI failed again under the $11.00 level. I remain bearish but if you're going to launch positions now you'll want to use a tighter stop loss.

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  December 04 at $11.15
Change since picked:     - 0.36   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009    


Bank of New York - BK - close: 26.61 change: -0.43 stop: 27.16

BK is starting to fade lower again. More aggressive traders may want to consider bearish positions now with a stop above the simple 200-dma. I'm suggesting we stick to our plan and wait for a new relative low. The trigger to open positions is at $25.49.

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    


Wells Fargo - WFC - close: 25.66 change: +0.17 stop: 28.01

Yesterday the big news was that Citigroup (C) was going to raise capital by selling stock and pay back the TARP funds. That left WFC as the last big bank that still owed the government TARP money. Well not to be outdone WFC announced this morning that they would sell stock (about 426 million shares) at $25.00 a share to raise billions to pay back the TARP funds.

Shares gapped open at $26.02 on the news but failed near their descending 10-dma. Long-term this is probably a healthy, bullish sign for the company and the stock (paying back TARP) but short-term the market didn't seem to care. The new shares should dilute current shareholders by almost 10% so we'll see what happens. More conservative traders may want to tighten their stops.

Our first bearish target for WFC is $23.10. Our second and final target is $21.00.

Entry on  December 10 at $25.75 (small positions)
Change since picked:     - 0.09   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009    



CLOSED BULLISH PLAYS

Financial SPDR - XLF - close: 14.24 change: -0.23 stop: 14.15

I am giving up on the banks and suggesting an early exit for our XLF trade. This sector has continued to under perform the rest of the market.

chart:

Entry on  December 03 at $14.85 
Change since picked:     - 0.61 <-- early exit @ 14.24 (-4.1%)
Earnings Date          --/--/-- (unconfirmed)    
Average Daily Volume:        82 million 
Listed on  December 02, 2009