BULLISH Play Updates

Bank of Hawaii - BOH - close: 47.06 change: -0.00 stop: 46.25

BOH was something of an under performer today. The initial rally reversed and BOH was sinking to new two-week lows until a last hour bounce brought it back to unchanged. I am not suggesting new bullish positions at this time. Our target to exit is $49.85.

Entry on  November 18 at $46.20 
Change since picked:     + 0.86   			
Earnings Date          01/25/10 (unconfirmed)    
Average Daily Volume:       424 thousand
Listed on  November 17, 2009    


Disney - DIS - close: 32.07 change: -0.18 stop: 31.70

Monday was also a disappointing session for DIS. The early rally quickly reversed and shares have produced a bearish engulfing (reversal) pattern although the stock remains in its sideways trading range. I am not suggesting new positions at this time. The low today was $31.87, getting close to our stop loss. Our target is $34.75. We will plan to exit ahead of the February earnings report.

Entry on  December 12 at $31.70 
Change since picked:     + 0.37   			
Earnings Date          02/09/10 (unconfirmed)    
Average Daily Volume:      11.0 million 
Listed on  December 12, 2009    


EMCOR Group - EME - close: 27.88 change: +0.98 stop: 25.75

EME displayed some relative strength with a 3.6% gain but the stock remains under resistance near $28.00. No new positions at this time. 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:     + 0.70   			
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       514 thousand
Listed on  December 21, 2009    


Home Depot - HD - close: 28.67 change: -0.26 stop: 27.75

HD is another disappointment with shares slipping 0.89%. As I said earlier it looks like HD is headed for the $28.00 level before it finds any support. 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:     - 0.15   			
Earnings Date          02/23/10 (unconfirmed)    
Average Daily Volume:      15.7 million 
Listed on  December 12, 2009    


Potlatch Corp. - PCH - close: 32.14 change: +0.23 stop: 30.45

I am somewhat concerned by the lack of strength in PCH today. If we don't see further strength tomorrow I would strongly consider an early exit. Our first target to take profits is at $33.60. Our second target is $35.75. No new positions at this time.

Entry on  November 16 at $30.30
Change since picked:     + 1.81   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       503 thousand
Listed on  November 11, 2009    


Renolds American - RAI - close: 53.24 change: +0.27 stop: 51.45

RAI managed a 0.5% gain but remain in its sideways consolidation. I am not suggesting new positions at this time. Our target to exit is $54.90. More aggressive traders may want to aim for the $56.50-57.00 zone.

FYI: We should be receiving a $0.90 dividend from RAI soon. The record date was December 10th and the payable date is January 4th.

Entry on  November 14 at $50.32 
Change since picked:     + 2.92   			
Earnings Date          02/11/10 (unconfirmed)    
Average Daily Volume:       1.6 million 
Listed on  November 14, 2009    


Starbucks Corp. - SBUX - close: 23.05 change: -0.01 stop: 21.75

SBUX displayed relative weakness and looks like it could still be headed for the $22.50-22.00 zone. I'm not suggesting new bullish positions at this time but another bounce near $22 might change my mind. Our target to exit is $24.90.

Entry on  December 10 at $22.25
Change since picked:     + 0.80   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:      10.9 million 
Listed on  November 30, 2009    


Sonoco Products - SON - close: 30.05 change: +0.80 stop: 28.49

Hmmm? SON erased a good chunk of last week's losses with a 2.7% gain. The close over $30.00 is a bullish development yet I remain somewhat skeptical. I'm suggesting readers wait for a move over $30.50 before initiating new positions. Our first target is $34.50.

Entry on  December 26 at $30.31 
Change since picked:     - 0.26   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:       343 thousand
Listed on  December 26, 2009    


Seagate Technology - STX - close: 18.89 change: +0.70 stop: 16.95

STX garnered some positive analyst comments and the stock soared 3.8% to new 52-week highs. Volume was above average on the rally, which is a good sign. 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. The plan was to keep positions small to limit our risk.

Entry on  December 19 at $17.83 /gap open higher (small positions)
Change since picked:     + 1.06  			
Earnings Date          01/19/10 (unconfirmed)    
Average Daily Volume:       8.2 million 
Listed on  December 19, 2009    


Texas Instruments - TXN - close: 26.01 change: -0.05 stop: 25.30

Uh-oh! TXN under performed its peers and the broader market today. This morning Intel was upgraded and there were some positive analyst comments about the semiconductor sector. Shares of TXN rallied to $26.61 but quickly reversed. The stock's relative weakness is a concern and more conservative traders may want to exit early now. I'm not suggesting new positions. Our target to exit is $29.75.

Entry on  December 02 at $26.15
Change since picked:     - 0.14   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:      12.6 million 
Listed on  December 01, 2009    


iPath VIX ETN - VXX - close: 32.71 change: -1.36 stop: 31.99

The market rally got started in Japan and carried across Europe. By the time the U.S. market opened the tone was definitely bullish. The VXX gapped open lower at $33.22, which gave us a lower entry point. However, I'm not suggesting new positions. We'll wait and see how the week turns out.

Currently our target to take profits is at $39.50. FYI: The VXX is an exchange traded note (ETN) that tries to duplicate the performance of the Volatility index (VIX) through exposure to short-term vix futures.

Entry on   January 02 at $33.22 (small positions)/gap down entry
Change since picked:     - 0.51   			
Earnings Date          --/--/-- 
Average Daily Volume:       1.6 million 
Listed on   January 02, 2009    


Warner Chilcott - WCRX - close: 28.95 change: +0.48 stop: 27.95

I've been suggesting readers take profits for several days now. Today's gap higher looks like another opportunity to exit and take profits. The rally stalled at the $29.00 level. I am not suggesting new positions at this time. Our first target has been hit at $27.40. The newsletter is planning to exit at $29.45.

Entry on  December 01 at $24.77 gap open entry point (small positions)
Change since picked:     + 4.18   	
                         /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: 33.32 change: +1.46 stop: 30.95

2010 is starting to be a very good year for WXS. The stock rallied 4.5% and closed at new 52-week highs. I'd look for a dip back toward $32.70 as a new entry point. Our target is $35.90. I'm setting a longer-term target at $39.50 but we want to sell the majority of our position at $35.90. We will plan to exit ahead of the February earnings report.

Entry on  December 21 at $32.30
Change since picked:     + 1.02   			
Earnings Date          02/10/10 (unconfirmed)    
Average Daily Volume:       209 thousand
Listed on  December 19, 2009    


Wyndham Worldwide - WYN - close: 20.28 change: +0.11 stop: 19.90

The early morning rally stalled near short-term resistance around the $20.50 region. I remain cautious here. 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:     + 1.40
                          /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

Best Buy - BBY - close: 39.46 change: -0.88 stop: 41.26

BBY managed a bounce but the stock was starting to roll over late in the session. The RLX retail index was the only sector-specific index I can see that failed to participate in the market rally. Investors are concerned about retail and the strength of the consumer.

Use a trigger at $38.95 to open small bearish positions. I suggest small positions because the 200-dma just above $38 could offer some technical support. An alternative entry point would be a new failed rally near $41-42. We will consider adding to positions on a breakdown under $38.00.

Our first target is $35.25.

Entry on   January xx at $xx.xx <-- TRIGGER @ 38.95
Change since picked:     + 0.00   			
Earnings Date          03/25/10 (unconfirmed)    
Average Daily Volume:       8.0 million 
Listed on   January 02, 2009    


Jacobs Engineering - JEC - close: 38.45 change: +0.84 stop: 39.26

The strength behind the market's rally was a bit surprising but volume remained a little light today both for JEC and the market. Shares of JEC gapped open higher at $38.10, changing our entry point. Given this unexpected bounce I would wait for a failed rally under $39.00 before launching new bearish positions.

Our first target is $34.05. Our second target is $30.25. I'm tempted to hold over the company's earnings report in late January.

Entry on   January 02 at $38.10 /gap higher entry
Change since picked:     + 0.35   			
Earnings Date          01/26/10 (unconfirmed)    
Average Daily Volume:       2.2 million 
Listed on   January 02, 2009    


CLOSED BEARISH PLAYS

Wells Fargo - WFC - close: 27.32 change: +0.33 stop: 27.55

It's time we covered our bearish positions in WFC. Banks were strong performers today and the short-term technicals are turning bullish for this stock. More nimble traders may want to consider bullish positions on a breakout over $27.50 and use a stop loss under last week's low.

We knew this was going to be an aggressive, higher-risk trade so the plan was to use smaller positions.

chart:

Entry on  December 10 at $25.75 (small positions)
Change since picked:     + 1.57 <-- early exit @ 27.32 (+6.0%)
Earnings Date          01/27/10 (unconfirmed)    
Average Daily Volume:        37 million 
Listed on  December 08, 2009