The major averages may have posted gains but they were mild and stocks bounced around with no real direction.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 47.58 change: -0.34 stop: 45.40

Banks ran into some profit taking on Monday and BOH gave up 0.7%. As I said over the weekend a dip back toward $46.50 could be used as a new bullish entry point. 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.

Entry on  November 18 at $46.20 
Change since picked:     + 1.38   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Broadcom - BRCM - close: 31.62 change: -0.57 stop: 29.45 *new*

The semiconductor stocks also hit some profit taking today and BRCM lost 1.7%. Traders did buy the dip at its 10-dma. I'm not suggesting new positions at this time. 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:     + 0.37   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  December 05, 2009    


CSX Corp. - CSX - close: 49.58 change: -0.82 stop: 47.40

Bearish comments about their 2010 forecast from BNI sent the railroad stocks lower. CSX lost 1.6%. Look for a bounce back above $50.00 as our next entry point. Our first target is $54.90. We will plan to exit ahead of the mid January earnings report.

Entry on  December 24 at $50.30 
Change since picked:     - 0.72   			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       3.0 million 
Listed on  December 22, 2009    


Disney - DIS - close: 31.91 change: -0.38 stop: 29.99

The rally in DIS is starting to look tired with shares still stuck in a sideways range. As I said over the weekend, it looks like DIS could dip back toward $31.00 before continuing higher. 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.

Entry on  December 12 at $31.70 
Change since picked:     + 0.21   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


EMCOR Group - EME - close: 27.64 change: -0.05 stop: 24.99

It was a very quiet day for EME. I would look for a dip near $26.00 before initiating new positions. 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.

Entry on  December 21 at $27.18 
Change since picked:     + 0.46   			
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       514 thousand
Listed on  December 21, 2009    


Home Depot - HD - close: 29.18 change: +0.01 stop: 27.40

It turned out to be a forgettable day for HD with the stock closing nearly unchanged on the session. Traders did end up buying the dip near $29.00 and its rising 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.

Entry on  December 14 at $28.82 *gap higher entry  
Change since picked:     + 0.36   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


Johnson & Johnson - JNJ - close: 64.94 change: +0.24 stop: 59.90

JNJ is still struggling with the $65.00 level but it almost looks like shares are trying to breakout higher from its recent sideways consolidation. 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:     + 1.89   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  November 21, 2009    


Kansas City Southern - KSU - close: 33.91 chg: -0.14 stop: 29.95

The BNI forecast also influenced shares of KSU but traders did buy the dip near $33.50. Shares of KSU still look overbought here. I would look for a deeper correction. 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.

Entry on  December 14 at $30.90 
Change since picked:     + 3.01
                          /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: 32.68 change: +0.37 stop: 29.49

The rally continues in shares of PCH. The stock broke through its December resistance with a 1.1% gain. 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.

Entry on  November 16 at $30.30
Change since picked:     + 2.38   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Renolds American - RAI - close: 53.81 change: +0.18 stop: 50.90

RAI is still inching higher but remains within the sideways consolidation for now. I'm not suggesting new bullish positions. Our target to exit is $54.90. More aggressive traders may want to aim for the $56.50-57.00 zone.

Entry on  November 14 at $50.32 
Change since picked:     + 3.49   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 23.81 change: +0.15 stop: 21.75

SBUX displayed some relative strength but has yet to break through the $24.00 level. I'm not suggesting new bullish positions at this time. Our target to exit is $24.90.

Entry on  December 10 at $22.25
Change since picked:     + 1.56   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Sonoco Products - SON - close: 30.30 change: -0.01 stop: 28.49

There is no change from my weekend comments on SON. The stock is still hovering over the $30.00 level. I would still consider new bullish positions right here. Our first target is $34.50. Our time frame is several weeks. FYI: The Point & Figure chart is bullish with a $42.50 target.

Entry on  December 26 at $30.31 
Change since picked:     - 0.01   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:       343 thousand
Listed on  December 26, 2009    


Seagate Technology - STX - close: 17.97 change: -0.10 stop: 15.99

STX hit new 52-week highs this morning but eventually pared those gains. 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.

Entry on  December 19 at $17.83 /gap open higher
Change since picked:     + 0.14  			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       8.2 million 
Listed on  December 19, 2009    


Texas Instruments - TXN - close: 25.49 change: -0.34 stop: 25.24

TXN failed to breakout past resistance at $26.00 but that's not surprising given the dip in the SOX today. The low today was $25.34. If there is any weakness tomorrow we'll probably get stopped out. Wait for a move over $26.00 before considering new positions. Our first target is $29.75.

Entry on  December 02 at $26.15
Change since picked:     - 0.66   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 57.96 change: -0.16 stop: 56.95

Sadly there is still no change in shares of 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.

Entry on  December 14 at $58.99 
Change since picked:     - 1.03   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 28.43 change: +0.37 stop: 25.75 *new*

WCRX rallied to new all-time highs (again). I am raising our stop loss to $25.75. 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:     + 3.66   	
                         /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: 21.71 change: -0.18 stop: 20.95

WSM is retreating toward its trendline of higher lows. Look for a bounce from this technical support soon. 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.

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: 32.30 change: -0.30 stop: 29.99

WXS erased last Thursday's gains but shares are still hovering above the $32.00 level. 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.

Entry on  December 21 at $32.30
Change since picked:     + 0.00   			
Earnings Date          02/10/10 (unconfirmed)    
Average Daily Volume:       209 thousand
Listed on  December 19, 2009    


Wyndham Worldwide - WYN - close: 20.48 change: -0.35 stop: 18.88

The relative weakness in WYN is a bit worrisome. More conservative traders may want to exit early right now or raise their stops toward $20.00. I am not suggesting new positions at this time. 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:     + 1.60
                          /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: 26.75 change: -0.34 stop: 27.55

The financials under performed the rest of the market but I am nervous the group could be coiling for a move higher. I am not suggesting new bearish positions in WFC 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:     + 1.00   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009