Stocks, for the most part, are marching higher. Banks got a boost from a rising yield curve, which means higher profit margins.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 47.16 change: +0.99 stop: 44.99

After all this time it looks like our patience might get rewarded. Shares of BOH have broken out past resistance from a multi-week consolidation. I didn't see any company specific news behind the rally. Volume was a little light but I won't complain. Technically this does look like a new bullish entry point. Our first target is $49.85. Our second target is $53.50.

Entry on  November 18 at $46.20 
Change since picked:     + 0.96   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Broadcom - BRCM - close: 31.97 change: +0.42 stop: 28.75

The semiconductor sector extended their gains and BRCM closed at new 2009 highs. There is no change from my weekend comments. 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.

Entry on  December 07 at $31.25
Change since picked:     + 0.72   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  December 05, 2009    


Cal-Maine Foods Inc. - CALM - close: 28.60 change: +0.11 stop: 27.49

CALM spiked higher this morning but I couldn't find a catalyst to explain the volatility. I don't see any changes from my weekend comments. Friday's bounce from $28.00 looks like a new entry point but readers may want to see some follow through first before initiating positions.

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.

Entry on  December 09 at $28.66 -small positions-
Change since picked:     - 0.06   			
Earnings Date          12/28/09 (unconfirmed)    
Average Daily Volume:       125 thousand
Listed on  December 09, 2009    


Disney - DIS - close: 32.40 change: +0.45 stop: 29.99

The market wide rally and strength in the DJIA helped DISH gain 1.4% and close near its highs. 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:     + 0.70   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


GATX Corp. - GMT - close: 29.60 change: +0.12 stop: 28.49

The action in GMT was a little disappointing on Monday. Shares bounced around the $29.50-30.00 zone. If we don't see it trade back above $30.00 soon we'll probably drop it early. Readers may want to wait for a new rise over $30.70 to initiate bullish 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:     - 0.92   			
Earnings Date          01/21/10 (unconfirmed)    
Average Daily Volume:       314 thousand
Listed on  December 16, 2009    


Home Depot - HD - close: 28.96 change: +0.31 stop: 27.40

Retail-related stocks generally performed well in spite of the massive snow storm hitting large chunks of the country. I don't see any changes from my weekend comments. We could launch positions now or wait for a dip closer to $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.

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: 47.48 change: +0.96 stop: 43.90

HMSY continues to bounce from its recent test of $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.

Entry on  December 05 at $45.72 
Change since picked:     + 1.76   			
Earnings Date          02/18/10 (unconfirmed)    
Average Daily Volume:       192 thousand
Listed on  December 05, 2009    


Johnson & Johnson - JNJ - close: 64.33 change: -0.04 stop: 59.90

JNJ is still trading sideways but the general posture seems to be growing more bearish. I've been expecting a dip back toward $62.00. More conservative traders may want to adjust their stop loss higher. 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:     + 1.28   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  November 21, 2009    


Kansas City Southern - KSU - close: 32.65 chg: +0.97 stop: 28.75

The railroad index rallied toward the top of its trading range but it has yet to breakout. KSU on the other has already broken out and it extended its gains by another 3% today. Our first target is $34.90. Our second target is $37.50 but we'll still plan to exit ahead of the late January earnings report.

Entry on  December 14 at $30.90 
Change since picked:     + 1.75   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       677 thousand
Listed on  December 14, 2009    


Potlatch Corp. - PCH - close: 31.36 change: +0.00 stop: 29.49

PCH is bumping up against short-term resistance and the stock closed unchanged on the session. 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: 53.21 change: +0.08 stop: 50.90

RAI is still going nowhere as it consolidates sideways. I'm not suggesting new bullish positions. Our target to exit is $54.90.

Entry on  November 14 at $50.32 
Change since picked:     + 2.97   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 23.14 change: -0.54 stop: 21.75

SBUX gave back about a third of Friday's gains with a 2.2% decline. I am not suggesting new positions at this time. Our first target is $24.90.

Entry on  December 10 at $22.25
Change since picked:     + 0.89   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Seagate Technology - STX - close: 17.68 change: +0.22 stop: 15.99

STX set another new 52-week high. Unfortunately shares gapped open higher at $17.83 affecting our entry point. I'm suggesting we keep our initial position small. Our target is $19.75 as the $20.00 level will probably act as round-number, psychological resistance. We will plan to exit ahead of the mid January earnings report.

Entry on  December 19 at $17.83 /gap open higher
Change since picked:     - 0.15  			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       8.2 million 
Listed on  December 19, 2009    


Texas Instruments - TXN - close: 25.84 change: +0.38 stop: 24.85

Semiconductor stocks continue to rally and TXN could try and catch up. Shares gained 1.49% but remain under resistance near $26.00. Our first target is $29.75.

Entry on  December 02 at $26.15
Change since picked:     - 0.31   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 58.62 change: +0.64 stop: 56.95

This is one of the busiest days of the year for UPS and FDX with tens of millions of packages being processed for delivery this week ahead of Christmas. Unfortunately UPS is still stuck in its trading range. We might be better off waiting for a move over $60.00 to initiate bullish positions. Our target is $64.50.

Entry on  December 14 at $58.99 
Change since picked:     - 0.37   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 27.55 change: +0.24 stop: 24.77

WCRX is hovering near its highs. Shares are arguably overbought and due for a pull back but thus far the stock is holding up.

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:     + 2.78   	
                         /1st target hit @ 27.40 (+10.6%)
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  November 28, 2009    


Wright Express Corp. - WXS - close: 32.04 change: -0.02 stop: 29.99

We wanted to see a little bit more strength in WXS and we got it. Shares hit $32.48 intraday. Unfortunately the stock failed to hold these gains. It makes me wonder if we didn't put the trigger high enough. Our play was opened this morning when shares hit our trigger at $32.30. I'd probably wait for a move over $32.50 before initiating new positions. Our target is $35.90. Our time frame is several weeks probably the first of February. FYI: The Point & Figure chart is bullish with a $41 target.

chart:

Entry on  December 21 at $32.30
Change since picked:     - 0.26   			
Earnings Date          02/10/10 (unconfirmed)    
Average Daily Volume:       209 thousand
Listed on  December 19, 2009    


Wyndham Worldwide - WYN - close: 21.07 change: +0.18 stop: 18.88

WYN is still drifting higher and added 0.8% on Monday. 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).

Entry on  November 10 at $18.88 (1/2 position) /gap open higher
Change since picked:     + 2.19
                          /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: 10.98 change: -0.08 stop: 11.45

This could be the failed rally we've been talking about. Shares hit $11.15 intraday and reversed to close back under the $11.00 level. Traders could use this as a new entry point for bearish 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:     - 0.17   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009    


Wells Fargo - WFC - close: 27.34 change: +0.56 stop: 27.55

Seeing the yield curve between the 2-year notes and 10-year notes hit an all-time high of more than 281 basis points fueled some buying in the banks. This super-wide yield curve means the banks should be raking in the money on any lending that they do. Shares of WFC gained 2.0% and is very close to hitting our stop loss at $27.55. More conservative traders may want to exit early immediately.

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.

Entry on  December 10 at $25.75 (small positions)
Change since picked:     + 1.59   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009