Editor's Note:

Tuesday ended up being a quiet day in the stock market. For the most part securities churned sideways in a very narrow range as investors hold their breath until year end. Odds are good the last two days of 2009 will be similar.


BULLISH Play Updates

Adobe Systems - ADBE - close: 37.21 change: +0.02 stop: 36.45

Today looked a lot like yesterday for ADBE. Shares slid sideways closing almost unchanged. I suspect that ADBE will breakout higher from this consolidation. I'm suggesting a trigger to buy ADBE at $37.75. If triggered our first target is $39.95. Our second, longer-term target is $42.25. FYI: The P&F chart is bullish with a $52 target.

Entry on  December xx at $xx.xx <-- TRIGGER @ 37.75
Change since picked:     + 0.00   			
Earnings Date          03/17/10 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  December 22, 2009    


Bank of Hawaii - BOH - close: 47.86 change: +0.28 stop: 45.90 *new*

BOH bucked the trend of weakness in banks and gained 0.5% but is still trading under new resistance near $48.00. Broken resistance near $46.50 should offer some support. I am adjusting our stop loss to $45.90. 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: 31.30 change: -0.32 stop: 29.45

BRCM dipped to the $31.00 level and bounced. Short-term technicals are turning bearish. I wouldn't be surprised to see a dip to $30.00. 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.

FYI: After the closing bell tonight BRCM announced it will pay $160 million in cash to settle a class action lawsuit over back-dating stock options. This settlement still requires a judge's approval and BRCM gets to avoid any sort of "guilty" plea.

Entry on  December 07 at $31.25
Change since picked:     + 0.05   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  December 05, 2009    


CSX Corp. - CSX - close: 49.16 change: -0.42 stop: 47.40

Railroad stocks were pulling back toward previous resistance today. Shares of CSX did not see any follow through on Monday's afternoon bounce. I would be very cautious here with the stock under $50.00. 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:     - 1.14   			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       3.0 million 
Listed on  December 22, 2009    


Disney - DIS - close: 32.38 change: +0.47 stop: 29.99

DIS rallied back to the top of its trading range and resistance near $32.50. 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:     + 0.68   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


EMCOR Group - EME - close: 27.47 change: -0.17 stop: 24.99

EME lost 0.6% and looks like it could dip back toward the $26.50-26.00 zone. I would use a pull back in that area as a new entry point for bullish 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:     + 0.29   			
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       514 thousand
Listed on  December 21, 2009    


Home Depot - HD - close: 29.27 change: +0.09 stop: 27.40

HD is still drifting sideways although shares are still building on the trend of higher lows. This would suggest that odds are stronger for a breakout higher. 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:     + 0.45   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


Johnson & Johnson - JNJ - close: 64.94 change: +0.00 stop: 59.90

JNJ briefly spiked over the $65.00 level but gave back all of its gains to close unchanged on the session. 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: 34.11 chg: +0.20 stop: 29.95

KSU displayed some relative strength but shares still look overbought and due for a dip. If you haven't taken any money off the table yet I suggest you do so now. 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:     + 3.21
                          /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: 32.67 change: -0.01 stop: 30.30 *new*

PCH failed at the $33.00 level and closed virtually unchanged for the day. I am raising our stop loss to $30.30. 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:     + 2.37   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Renolds American - RAI - close: 53.67 change: -0.14 stop: 51.45 *new*

The bullish consolidation in RAI continues to narrow. A breakout one way or the other should be imminent. The pattern favors a breakout higher. I am inching up our stop loss to $51.45. 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:     + 3.35   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 23.51 change: -0.30 stop: 21.75

Trading took a bearish turn for SBUX after the stock was downgraded to a "sell" this morning. Overall the 1.2% decline is pretty mild. 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: 30.11 change: -0.19 stop: 28.49

SON continues to drift sideways. There is no change from my weekend comments on SON. The stock is 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:     - 0.20   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:       343 thousand
Listed on  December 26, 2009    


Seagate Technology - STX - close: 17.81 change: -0.16 stop: 15.99

Traders bought the intraday dip near $17.50 and its 10-dma. Yesterday I suggested readers look for a dip in the $17.50-17.00 zone. We want to keep our positions 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:     - 0.02  			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       8.2 million 
Listed on  December 19, 2009    


Texas Instruments - TXN - close: 25.37 change: -0.12 stop: 25.24

The intraday action in TXN appears to be turning bearish. More conservative traders will want to exit now. I suspect that we'll be stopped out at $25.24 tomorrow. I'm not suggesting new positions. We were aiming for $29.75.

Entry on  December 02 at $26.15
Change since picked:     - 0.78   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


United Parcel Service - UPS - close: 58.55 change: +0.59 stop: 56.95

I couldn't find any news to account for UPS' relative strength on Tuesday but I'm not complaining. The stock remains in its 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:     - 0.44   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009    


Warner Chilcott - WCRX - close: 28.30 change: -0.13 stop: 25.75

Momentum appears to be slowing down for WCRX. More conservative traders may want to exit early right here. 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:     + 3.53   	
                         /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: 21.49 change: -0.22 stop: 20.95

There is no change from my prior comments on WSM. We're still waiting for a breakout. 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: 31.93 change: -0.37 stop: 29.99

WXS slipped to its 10-dma. The close under $32.00 is short-term bearish. Traders might want to wait for a new relative high over $32.65 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.

Entry on  December 21 at $32.30
Change since picked:     - 0.37   			
Earnings Date          02/10/10 (unconfirmed)    
Average Daily Volume:       209 thousand
Listed on  December 19, 2009    


Wyndham Worldwide - WYN - close: 20.58 change: +0.10 stop: 18.88

WYN managed a minor bounce but it looks like shares are slipping toward $20.00, which should be support. 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:     + 1.70
                          /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: 26.68 change: -0.07 stop: 27.55

Banking stocks continue to underperform the rest of the market. Yet 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:     + 0.93   			
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009