Most of our trading candidates rebounded from their intraday lows on Friday and we're updating a handful of stop losses.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 46.17 change: +0.49 stop: 44.99 *new*

I remain very concerned about the under performance in the financials over the last several weeks. I was prepared to drop BOH as a bullish candidate tonight but the stock is still performing better than its peers. I would not open new bullish positions at this time. More conservative traders may want to go ahead and exit early right now since BOH has been dead money the last few weeks. I am going to raise our stop loss to $44.99. If BOH sees another failed rally soon we'll exit early. Our first target is $49.85. Our second target is $53.50.

Annotated chart:

Entry on  November 18 at $46.20 
Change since picked:     - 0.03   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Broadcom - BRCM - close: 31.55 change: +0.39 stop: 28.75

Semiconductor stocks closed the week on an up note and BRCM rebounded from an intraday test of the $31.00 level. I remain bullish but readers may want to use a tighter stop loss. Our first BRCM target is $34.75. Our second target is $37.00. Our time frame is several weeks.

Annotated chart:

Entry on  December 07 at $31.25
Change since picked:     + 0.30   			
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: +0.00 stop: 27.49

This is a new entry point. I've been suggesting that readers look for a dip near $28.00 as a new entry and CALM hit $28.03 on Friday and bounced. More cautious traders can up their stops closer to $28.00. Our first target to take profits is at $30.95. Our target is somewhat aggressive since earnings are coming up in a few days. Odds of CALM actually hitting our target before the Dec. 28th report are growing slim but shares should be headed that direction.

Annotated chart:

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: 31.95 change: +0.02 stop: 29.99

The trend in DIS is up although shares might retest previous resistance as support near $31.00 before moving much higher. I would use a dip near $31.00 as a new bullish entry point. 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.

Annotated chart:

Entry on  December 12 at $31.70 
Change since picked:     + 0.25   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


GATX Corp. - GMT - close: 29.48 change: -0.23 stop: 28.49

Our relatively new play on GMT is not off to a very good start. Shares have reversed back toward $29.00. I would look for a bounce in the $29.00-28.50 zone as a new entry point or wait for a new relative high over $30.70 as an entry point.

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

Annotated chart:

Entry on  December 16 at $30.52 -use small positions-
Change since picked:     - 1.04   			
Earnings Date          01/21/10 (unconfirmed)    
Average Daily Volume:       314 thousand
Listed on  December 16, 2009    


Home Depot - HD - close: 28.65 change: -0.15 stop: 27.40

I was expecting a dip toward $28.00 but shares found some support in the $28.50-28.40 zone. We could launch new positions right here but if we're patient we might get a better entry near $28.00. 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.

Annotated chart:

Entry on  December 14 at $28.82 *gap higher entry  
Change since picked:     - 0.17   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


HMS Holdings - HMSY - close: 46.52 change: +0.23 stop: 43.90

HMSY gave us a new entry point on Friday with the dip and bounce near $46.00. 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.

Annotated chart:

Entry on  December 05 at $45.72 
Change since picked:     + 0.80   			
Earnings Date          02/18/10 (unconfirmed)    
Average Daily Volume:       192 thousand
Listed on  December 05, 2009    


Johnson & Johnson - JNJ - close: 64.37 change: -0.10 stop: 59.90

In the last 20 minutes of trading JNJ rocketed higher. The bounce was probably powered by index rebalancing. I'm not suggesting new positions at this time. Our target first target is $67.50.

Annotated chart:

Entry on  November 23 at $63.05
Change since picked:     + 1.32   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  November 21, 2009    


Kansas City Southern - KSU - close: 31.68 chg: +0.51 stop: 28.75 *new*

KSU continues to out perform its peers. The stock's intraday bounce from Thursday still looks like a new bullish entry point. Our first target is $34.90. I'm adding a second target at $37.50 but we'll still plan to exit ahead of the late January earnings report. Please note our new stop loss at $28.75.

Annotated chart:

Entry on  December 14 at $30.90 
Change since picked:     + 0.78   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       677 thousand
Listed on  December 14, 2009    


Potlatch Corp. - PCH - close: 31.36 change: +0.30 stop: 29.49

PCH bounced from its 21-dma (near 30.65) for the second day in a row. I remain cautious given Thursday's breakdown from its short-term 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.

Annotated chart:

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: 53.13 change: +0.32 stop: 50.90

The upward momentum in RAI is slowly down as the stock consolidates sideways. The trend is up but I'm not suggesting new bullish positions. Our target to exit is $54.90.

Annotated chart:

Entry on  November 14 at $50.32 
Change since picked:     + 2.81   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 23.68 change: +1.43 stop: 21.75 *new*

It looks like I wasn't the only one that thought SBUX's dip back toward $22.25 was an entry point. Shares seriously out performed the market with a 6.4% gain. Volume was almost three times the norm, which is bullish. The funny thing is that I can't find any news to account for the big rally. I am raising our stop loss to $21.75. Our first target is $24.90.

Annotated chart:

Entry on  December 10 at $22.25
Change since picked:     + 1.43   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Texas Instruments - TXN - close: 25.46 change: +0.38 stop: 24.40

We got the dip (and new entry point) at $25.00 this last week but I'm somewhat concerned by TXN's under performance relative to its peers. I am raising our stop loss to $24.85. While I would consider small bullish positions on Friday's bounce more conservative traders may want to wait for a new rise over $26.25 to open positions. Our first target is $29.75.

Annotated chart:

Entry on  December 02 at $26.15
Change since picked:     - 0.69   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 57.98 change: -0.25 stop: 56.95

The failed rally in UPS this past week is a problem. We can blame it on FDX's negative comments about future earnings. Or we could be facing a bull trap sort of pattern. The $57.00 level is short-term support and I would consider small bullish positions on a bounce near $57.00 we might be better off waiting for a new relative high over $60.00. Our target is $64.50.

Annotated chart:

Entry on  December 14 at $58.99 
Change since picked:     - 1.01   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 27.31 change: -0.01 stop: 24.77

WCRX continues to hold up reasonably well although shares could see more profit taking if the market turns lower. There is no change from my prior comments. 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.

Annotated chart:

Entry on  December 01 at $24.77 gap open entry point (small positions)
Change since picked:     + 2.54   	
                         /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: 20.89 change: +0.12 stop: 18.88

Trades are still buying the dip in WYN. I am tempted to raise our stop loss toward $19.75 but we'll keep it at $18.88 for now. I am not suggesting new bullish positions. 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).

Annotated chart:

Entry on  November 10 at $18.88 (1/2 position) /gap open higher
Change since picked:     + 2.01
                          /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: 11.06 change: +0.30 stop: 11.45

Be careful here. We need to take a more defensive posture with ATVI closing over short-term resistance at $11.00. The stock continues to have potential resistance near $11.30 but after two weeks of trading sideways the move higher on Friday is definitely short-term bullish. We can use a failed rally under $11.30 as a new entry point.

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.

Annotated chart:

Entry on  December 04 at $11.15
Change since picked:     - 0.09   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009    


Wells Fargo - WFC - close: 26.78 change: +0.71 stop: 27.55 *new*

The tone of trading in WFC has changed since the company announced it was repaying the TARP and raising money by selling billions in new stock. Traders have been buying the dip. WFC has now completed a 61.8% Fibonacci retracement from its December decline. I am lowering our stop loss down to $27.55. More conservative traders may want to adjust their stops toward the $27.25-27.05 zone instead. Aggressive traders could leave their stop above $28.00 since that means WFC would have to breakout past its 100-dma and 50-dma first.

I am not suggesting new bearish 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.

Annotated chart:

Entry on  December 10 at $25.75 (small positions)
Change since picked:     + 1.03   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009    


CLOSED BEARISH PLAYS

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

I have run out of patience for BK. The stock is going nowhere. I'd keep it on your watch list for a drop under $25.50 or a breakout over 28.50. This stock never hit our trigger to open bearish positions at $25.49.

chart:

Entry on  November xx at $xx.xx <-- TRIGGER @ 25.49
Change since picked:     + 0.00   			*never opened*
Earnings Date          01/20/10 (unconfirmed)    
Average Daily Volume:      11.4 million 
Listed on  November 21, 2009