A lot of our candidates are pulling back toward short-term support. Is this a new entry point or a bearish reversal?


BULLISH Play Updates

Bank of Hawaii - BOH - close: 45.68 change: -0.15 stop: 44.49

There is no change in BOH. The stock is consolidating sideways. More conservative traders may want to just exit early or raise their stops toward $45.00. 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:     - 0.52   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Broadcom - BRCM - close: 31.16 change: -0.57 stop: 28.75

BRCM is seeing some profit taking after hitting new highs yesterday. More conservative traders might want to consider stops closer to $30.00. 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:     - 0.09   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  December 05, 2009    


Cal-Maine Foods Inc. - CALM - close: 28.49 change: -0.19 stop: 27.49

There is no change from my prior comments. 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:     - 0.17   			
Earnings Date          12/28/09 (unconfirmed)    
Average Daily Volume:       125 thousand
Listed on  December 09, 2009    


Disney - DIS - close: 31.93 change: -0.50 stop: 29.99

DIS is holding up reasonably well. 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:     + 0.23   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


GATX Corp. - GMT - close: 29.71 change: -0.81 stop: 28.49

Our new, slightly aggressive trade on GMT is not off to a good start thanks to a widespread market decline. Shares lost 2.6%. Look for a bounce in the $29.00-28.50 zone as a new bullish entry point. More conservative traders may want to wait for a rise past $30.75 before initiating new positions.

Our target is $34.75 but that's pretty optimistic since we plan to exit ahead of the late January earnings report.

Entry on  December 16 at $30.52 -use small positions-
Change since picked:     - 0.81   			
Earnings Date          01/21/10 (unconfirmed)    
Average Daily Volume:       314 thousand
Listed on  December 16, 2009    


Home Depot - HD - close: 28.80 change: -0.16 stop: 27.40

HD is also holding up pretty well considering the widespread decline. 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:     - 0.02   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


HMS Holdings - HMSY - close: 46.29 change: -0.82 stop: 43.90

HMSY is pulling back toward prior resistance and what should be support near $46.00. 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:     + 0.57   			
Earnings Date          02/18/10 (unconfirmed)    
Average Daily Volume:       192 thousand
Listed on  December 05, 2009    


Johnson & Johnson - JNJ - close: 64.47 change: -0.33 stop: 59.90

JNJ is still trading sideways in the $64.00-65.50 zone. 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:     + 1.42   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  November 21, 2009    


Kansas City Southern - KSU - close: 31.17 chg: -0.45 stop: 28.20

Today's intraday bounce from $30.50 looks like a new bullish entry point but readers may want to hold out for a dip closer to $30.00. Our target is $34.90.

Entry on  December 14 at $30.90 
Change since picked:     + 0.27   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       677 thousand
Listed on  December 14, 2009    


Potlatch Corp. - PCH - close: 31.06 change: -0.53 stop: 29.49

The breakdown from its recent trading range is bearish but I'd still look for support near $30.00. 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:     + 0.76   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Renolds American - RAI - close: 52.81 change: -0.25 stop: 50.90

RAI has broken short-term support at the rising 10-dma. This is a bearish development but the larger trend is still bullish. 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:     + 2.49   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 22.25 change: -0.19 stop: 20.95

We're right back where we started at $22.25. I would use this dip or a dip closer to $22.00 as a new entry point. More cautious traders can wait to buy a bounce instead. More conservative traders might want to raise their stops toward $21.50. Our first target is $24.90.

Entry on  December 10 at $22.25
Change since picked:     + 0.00   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Texas Instruments - TXN - close: 25.08 change: -0.50 stop: 24.40

TXN is breaking down from its short-term trading range. Shares are now testing the $25.00 level and its 40-dma. This should be support. Use this dip or wait for a bounce as a new entry point. Our first target is $29.75.

Entry on  December 02 at $26.15
Change since picked:     - 1.07   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 58.23 change: -0.77 stop: 56.95

UPS has fallen back into its previous trading range. Shares should find support near $57.00. Readers can use a dip or a bounce near $57.00 as a new entry point. Our target is $64.50.

Entry on  December 14 at $58.99 
Change since picked:     - 0.76   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 27.32 change: -0.57 stop: 24.77

Yesterday's intraday pull back and today's decline look like a short-term top in WCRX. If you haven't taken profits yet I strongly suggest you do so now. More cautious investors may want to exit completely. 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:     + 2.55   	
                         /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: 20.77 change: -0.43 stop: 18.88

WYN ran into some profit taking after hitting new highs on Wednesday. More conservative traders may want to raise their stops toward $20.00. 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:     + 1.89
                          /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: 10.76 change: -0.14 stop: 11.45

ATVI retreats from short-term resistance near $11.00. Traders may want to use a breakdown under $10.60 as a new entry point but if you do I suggest 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:     - 0.39   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009    


Bank of New York - BK - close: 26.59 change: -0.27 stop: 27.16

BK is edging closer to short-term support near $26.50. If we don't see some follow through lower tomorrow I'll drop BK 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: 26.07 change: +0.23 stop: 28.01

Traders have been buying the dips in WFC but the stock is struggling with resistance and isn't making much progress. I'm not suggesting new positions at this time.

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:     + 0.32   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009