We want to go ahead and take some money off the table with two of our bullish candidates.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 47.92 change: +0.29 stop: 45.40

BOH produced an impressive breakout last week. Shares might retest prior resistance near $46.50 as new support and if it does we can use it as a new bullish entry point. However, I would keep positions small. The rest of the financials don't look so strong. BOH could struggle if the rest of the sector doesn't rally. Our first target is $49.85. Our second target is $53.50.

Annotated chart:

Entry on  November 18 at $46.20 
Change since picked:     + 1.72   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Broadcom - BRCM - close: 32.19 change: +0.65 stop: 28.75

The SOX semiconductor index set a new 52-week high on Thursday. The SOX looks a little overbought here up several days in a row. We should expect a pull back soon. Meanwhile shares of BRCM closed above the $32.00 level and also set new 2009 highs. I am raising our stop loss to $29.45. 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:     + 0.94   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  December 05, 2009    


CSX Corp. - CSX - close: 50.40 change: +0.45 stop: 47.40

CSX broke out past resistance to hit new 52-week highs on Thursday. Shares also hit our trigger to open bullish positions at $50.30. The trade is now open. Our first target is $54.90. We will plan to exit ahead of the mid January earnings report.

Annotated chart:

Entry on  December 24 at $50.30 
Change since picked:     + 0.10   			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       3.0 million 
Listed on  December 22, 2009    


Disney - DIS - close: 32.29 change: -0.14 stop: 29.99

DIS continues to struggle with short-term resistance near $32.50. I wouldn't be surprised to see a dip back toward $31.00, which readers could use as a new entry point. Our target is $34.75. 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:     + 0.59   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


EMCOR Group - EME - close: 27.69 change: +0.28 stop: 24.99

EME continues to push higher and closed at new 2009 highs. I would be patient here. If you're looking for a new entry point wait for a dip back toward $26.00, which should be support. The Point & Figure chart is bullish with a $42 target. I'm listing our first target at $29.85. Our time frame is several weeks.

Annotated chart:

Entry on  December 21 at $27.18 
Change since picked:     + 0.51   			
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       514 thousand
Listed on  December 21, 2009    


Home Depot - HD - close: 29.17 change: +0.17 stop: 27.40

Traders bought the dip near HD's 10-dma. I would use a pullback near $28.00 as our next entry point. Our first target is $30.60. Our second target is $32.45. 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:     + 0.35   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


Johnson & Johnson - JNJ - close: 64.70 change: +0.13 stop: 59.90

Shares of JNJ continue to drift sideways although if you look at the intraday chart it acts like it wants to move higher. I would still wait for a dip near $62.00 before considering new positions. 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:     + 1.65   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  November 21, 2009    


Kansas City Southern - KSU - close: 34.05 chg: -0.08 stop: 29.95

Take profits! I am suggesting that readers go ahead and take some money off the table now. Our first target was $34.90 and shares hit $34.57 intraday on Thursday. I'd rather go ahead and book gains now because KSU looks short-term overbought and due for a pull back. I am not suggesting new positions at this time. Our second target is $37.50. We'll plan to exit ahead of the late January earnings report.

Annotated chart:

Entry on  December 14 at $30.90 
Change since picked:     + 3.15
                          /take profits 12/26/09 @ 34.05 (+10.1%)
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       677 thousand
Listed on  December 14, 2009    


Potlatch Corp. - PCH - close: 32.31 change: +0.37 stop: 29.49

PCH has bounced back to its December highs. This could be an important test. If shares fail to breakout past this level near $32.50 we may want to exit early! I am 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:     + 2.01   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Renolds American - RAI - close: 53.63 change: +0.31 stop: 50.90

RAI continues to drift sideways. The pattern of higher lows gives the consolidation a bullish tone. 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:     + 3.31   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 23.66 change: -0.08 stop: 21.75

SBUX is consolidating sideways under new resistance near $23.80. The trend of higher lows suggest SBUX will breakout higher but it's not a guarantee. I'm not suggesting new bullish positions at this time. Our target to exit is $24.90.

Annotated chart:

Entry on  December 10 at $22.25
Change since picked:     + 1.41   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Seagate Technology - STX - close: 18.07 change: +0.12 stop: 15.99

The drift higher continues with STX floating above $18.00 a share. Look for a dip back toward $17.50-17.00 as a new 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.

Annotated chart:

Entry on  December 19 at $17.83 /gap open higher
Change since picked:     + 0.24  			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       8.2 million 
Listed on  December 19, 2009    


Texas Instruments - TXN - close: 25.83 change: +0.51 stop: 25.24 *new*

I asked to see strength in TXN and the stock delivered a 2.0% gain. Wait for a move over $26.00 before initiating new positions. I remain very wary here and we're upping our stop loss to $25.24. Our first target is $29.75.

Annotated chart:

Entry on  December 02 at $26.15
Change since picked:     - 0.32   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 58.12 change: +0.12 stop: 56.95

There is no change from my previous comments on UPS. The stock is stuck in a trading range. I am suggesting traders wait for a move over $60.00 before initiating new positions. Our target is $64.50.

Annotated chart:

Entry on  December 14 at $58.99 
Change since picked:     - 0.87   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 28.06 change: -0.16 stop: 25.45

Momentum in slowing and WCRX could be ready for a mini correction. Shares could easily see a retreat toward their 30-dma or 50-dma, a pull back to the 50-dma would stop us out. 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:     + 3.29   	
                         /1st target hit @ 27.40 (+10.6%)
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  November 28, 2009    


Williams Sonoma Inc. - WSM - close: 21.89 change: -0.20 stop: 20.95

There is no change from my prior comments. WSM is still trading under resistance at the $22.50 level. I'm suggesting a trigger to buy WSM at $22.60. If triggered our first target is $24.90. Our time frame is several weeks.

Annotated chart:

Entry on  December xx at $xx.xx <-- TRIGGER @ 22.60
Change since picked:     + 0.00   			
Earnings Date          03/24/10 (unconfirmed)    
Average Daily Volume:       2.2 million 
Listed on  December 21, 2009    


Wright Express Corp. - WXS - close: 32.60 change: +0.32 stop: 29.99

Last week WXS broke out over key resistance near $32.00 and hit our trigger to open bullish positions at $32.30. I would still consider new positions now. 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.

Annotated chart:

Entry on  December 21 at $32.30
Change since picked:     + 0.30   			
Earnings Date          02/10/10 (unconfirmed)    
Average Daily Volume:       209 thousand
Listed on  December 19, 2009    


Wyndham Worldwide - WYN - close: 20.83 change: -0.13 stop: 18.88

We're not seeing much progress in WYN. The stock has been drifting sideways for days now. I am not suggesting new positions at this time. If there is a dip look for round-number support at $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).

Annotated chart:

Entry on  November 10 at $18.88 (1/2 position) /gap open higher
Change since picked:     + 1.95
                          /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

Wells Fargo - WFC - close: 27.09 change: +0.24 stop: 27.55

The banking indices managed a 1% bounce on Thursday. WFC almost kept pace with a 0.89% gain. More conservative traders will want to strongly consider an early exit right here. Now that the major market indices have broken to new highs it will be easier for the banking stocks to rebound. I am not suggesting new bearish positions in WFC. 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:     + 1.34   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009    


CLOSED BULLISH PLAYS

HMS Holdings - HMSY - close: 49.73 change: +0.50 stop: 44.90

That's close enough for me. It's time to exit HMSY. Shares hit $49.73 at the closing bell on Thursday. Our target to exit was $49.75. I'm suggesting readers go ahead and exit early right here.

chart:

Entry on  December 05 at $45.72 
Change since picked:     + 4.01 <-- exit early @ 49.73 (+8.7%)
Earnings Date          02/18/10 (unconfirmed)    
Average Daily Volume:       192 thousand
Listed on  December 05, 2009    


CLOSED BEARISH PLAYS

Activision-Blizzard - ATVI - close: 11.44 change: +0.08 stop: 11.45

Shares of ATVI broke through their 50-dma and hit $11.47 at its best levels on Thursday. Our stop loss was hit at $11.45. This trade is closed but you might keep ATVI on your watch list. Shares still have a cloud of resistance in the $11.50-12.00 zone.

chart:

Entry on  December 04 at $11.15
Change since picked:     + 0.30 <-- stopped @ 11.45 (+2.6%)
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009