Wednesday's session turned out to be a relatively lackluster session as investors sold the morning highs.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 45.83 change: -0.23 stop: 44.49

BOH is still consolidating sideways but shares are slowly building on their short-term bullish trend of higher lows. 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:     - 0.37   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Broadcom - BRCM - close: 31.73 change: +1.38 stop: 28.75

Semiconductor stocks displayed relative strength and the SOX hit new relative highs. Shares of BRCM joined the party with a 4.5% gain and a new 2009 high. It looks like a few analysts had some positive comments on BRCM following yesterday's analyst day. 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:     + 0.48   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  December 05, 2009    


Cal-Maine Foods Inc. - CALM - close: 28.68 change: -0.14 stop: 27.49

CALM may take some patience to play. Shares don't move that fast and we're seeing it consolidate sideways the last few days. The low today was $28.50. 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:     + 0.02   			
Earnings Date          12/28/09 (unconfirmed)    
Average Daily Volume:       125 thousand
Listed on  December 09, 2009    


Disney - DIS - close: 32.43 change: +0.25 stop: 29.99

DIS set another new 52-week high but spent most of the day trading sideways in a very narrow range near $32.50. 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:     + 0.73   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


Home Depot - HD - close: 28.96 change: -0.06 stop: 27.40

HD started the day strong but eventually trimmed its gains and fell into negative territory. A dip or a bounce near $28.00 could be used as a new entry point. 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:     + 0.14   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


HMS Holdings - HMSY - close: 47.11 change: -0.29 stop: 43.90

HMSY encountered a little bit of profit taking. Readers could use a dip or a bounce near $46.00 as a new bullish entry point. More conservative traders may want to inch up their stop loss. 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:     + 1.39   			
Earnings Date          02/18/10 (unconfirmed)    
Average Daily Volume:       192 thousand
Listed on  December 05, 2009    


Johnson & Johnson - JNJ - close: 64.80 change: +0.06 stop: 59.90

There is no change from my prior comments. JNJ is still drifting sideways near $65.00.

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:     + 1.75   			
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: -0.00 stop: 28.20

KSU spiked to a new high at $32.28 but eventually fell back and closed unchanged on the session. This might suggest shares are poised to retest broken resistance near $30.00. I would use a dip or a bounce near $30.00 as a new bullish entry point. 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: 31.59 change: -0.25 stop: 29.49

PCH is still stuck in the $31.00-32.50 trading range. I'm not suggesting new positions at this time. 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:     + 1.29   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Renolds American - RAI - close: 53.06 change: -0.05 stop: 50.90

RAI is still drifting sideways. There is no change from my previous 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:     + 2.74   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 22.44 change: -0.29 stop: 20.95

It looks like SBUX is seeing a small correction. Broken resistance should be new support near $22.00. Use a dip near $22.00 as a new 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:     + 0.19   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Texas Instruments - TXN - close: 25.58 change: +0.14 stop: 24.40

TXN is going nowhere right now. The stock has been stuck in a $25.40-26.20 trading range for five days in a row. While I'm still tempted to buy the stock on a dip near $25.00 more conservative traders may want to wait for a move over $26.20 before launching positions. If you do consider upping your stop loss. Our first target is $29.75.

Entry on  December 02 at $26.15
Change since picked:     - 0.57   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 59.00 change: -0.25 stop: 56.95

UPS may have broken out from its previous trading range but it's not making much progress. I'd still consider new positions here but 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:     + 0.01   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 27.89 change: +0.16 stop: 24.77

Another day, another new high for WCRX. This can't go on forever. I am not suggesting new positions at this time. Our first target has been hit at $27.40. Our second target is $29.45.

Entry on  December 01 at $24.77 gap open entry point (small positions)
Change since picked:     + 3.12   	
                         /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: 21.20 change: +0.59 stop: 18.88

WYN continues to rally and closed at new 2009 highs. Our first target has already been hit at $21.00. We're currently aiming for $22.40. 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:     + 2.32
                          /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: 10.90 change: +0.11 stop: 11.45

ATVI is drifting toward the top of its trading range and round-number resistance at $11.00. Readers may want to watch for a failed rally in the $11.25 zone before considering new positions.

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:     - 0.25   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009    


Bank of New York - BK - close: 26.86 change: +0.25 stop: 27.16

If we don't see BK close under $26.50 in the next couple of days I'm dropping it as a bearish candidate. The plan is to 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: 25.84 change: +0.18 stop: 28.01

Banking stocks rallied on short covering in foreign markets thanks to news that international regulators will give banks more time (a grace period) before requiring higher capital requirements. That strength didn't translate well for American banks. WFC did manage to out perform its peers with a 0.7% gain. I remain cautious around this secondary offering by WFC to raise money to pay back the TARP. Technically it's bearish since it dilutes shareholders but investor sentiment has been tough to figure on the banks lately.

We knew this was going to be an aggressive, higher-risk trade so the plan was to use smaller positions. 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

Travelers Companies - TRV - close: 49.70 change: -0.71 stop: 49.75

We've been cautious on TRV for days. It looks like some lackluster analyst comments are the culprit behind today's under performance. The stock dipped to $49.51 hitting our stop loss at $49.75 and closing the play.

chart:

Entry on  November 27 at $51.94 /gap down entry point 
Change since picked:     - 2.19<-- stopped @ 49.75 (-4.2%)
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  November 07, 2009