The market's late day bounce appeared to be strongest in the big caps. We're updating four stop losses.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 46.95 change: -0.11 stop: 46.25

The banking sector was one of the market's best performers today. Seeing relative weakness in BOH today is definitely bearish. The stock is hovering above previous resistance and what should be support near $46.50. A bounce from here could be used as a new entry point but investors might do better with a faster moving bank stock than BOH. Our target to exit is $49.85.

Entry on  November 18 at $46.20 
Change since picked: + 0.75
Earnings Date 01/25/10 (unconfirmed)
Average Daily Volume: 424 thousand
Listed on November 17, 2009


EMCOR Group - EME - close: 27.32 change: -0.56 stop: 25.75

EME ran into some profit taking with a sharp 2% decline and on above average volume, which should put bullish traders on alert. The move was sparked by an analyst downgrade. There is no change from my prior comments. 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: + 0.14
Earnings Date 02/25/10 (unconfirmed)
Average Daily Volume: 514 thousand
Listed on December 21, 2009


Home Depot - HD - close: 28.88 change: +0.21 stop: 27.75

HD dipped toward its 30-dma and bounced. Unfortunately if you look at an intraday chart (like a 30-minute chart) it looks like the oversold bounce is stalling at resistance near $29.00. At this time I'm still expecting a dip to the $28.00 level. 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: + 0.06
Earnings Date 02/23/10 (unconfirmed)
Average Daily Volume: 15.7 million
Listed on December 12, 2009


Hologic Inc. - HOLX - close: 14.94 change: +0.00 stop: 14.40

HOLX is still hovering near resistance at $15.00 and shares closed unchanged on the session. I am suggesting a trigger to buy HOLX at $15.15. If triggered our first target is $16.45 although we'll have to keep a cautious eye on the 100-dma, which could be resistance. I would keep positions small. There is still a chance for the market to correct in January.

Entry on   January xx at $xx.xx <-- TRIGGER @ 15.15  (small positions)
Change since picked: + 0.00
Earnings Date 02/01/10 (unconfirmed)
Average Daily Volume: 2.7 million
Listed on January 04, 2009


Potlatch Corp. - PCH - close: 32.27 change: +0.13 stop: 30.45

PCH is still trading sideways. If almost looks like another bull-flag pattern. I remain very cautious on PCH and I'm not suggesting new positions. 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: + 1.97
Earnings Date 02/11/10 (unconfirmed)
Average Daily Volume: 503 thousand
Listed on November 11, 2009


Renolds American - RAI - close: 53.30 change: +0.06 stop: 51.75 *new*

It looks like RAI is still in hibernation mode. The stock has been trading sideways for weeks. I am adjusting our stop loss to $51.75. 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.

Entry on  November 14 at $50.32 
Change since picked: + 2.98
Earnings Date 02/11/10 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on November 14, 2009


Starbucks Corp. - SBUX - close: 23.59 change: +0.54 stop: 21.75

SBUX displayed some relative strength with a 2.3% gain. The stock actually spiked to resistance near $24.00 intraday. I didn't see any specific news behind the rally. 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: + 1.34
Earnings Date 01/28/10 (unconfirmed)
Average Daily Volume: 10.9 million
Listed on November 30, 2009


Sonoco Products - SON - close: 30.49 change: +0.44 stop: 29.20 *new*

SON is showing strength and the stock broke out to new 52-week highs. Volume was above average, which is a good sign. This looks like a new entry point but I am raising our stop loss to $29.20, just under last week's low. Our first target is $34.50.

Entry on  December 26 at $30.31 
Change since picked: + 0.18
Earnings Date 02/04/10 (unconfirmed)
Average Daily Volume: 343 thousand
Listed on December 26, 2009


Steel Dynamics - STLD - close: 18.18 change: -0.11 stop: 17.49

The rally in steel stocks stalled today. We're waiting for a breakout past resistance. I am suggesting a trigger to open small bullish positions at $18.75. I'm suggesting small positions because this sector can be volatile and we're still at risk for a market correction in January. If triggered at $18.75 our first target to take profits is at $19.95. Our second target is $21.50.

Entry on   January xx at $xx.xx <-- TRIGGER @ 18.75 (small positions)
Change since picked: + 0.00
Earnings Date 01/26/10 (unconfirmed)
Average Daily Volume: thousand
Listed on January 04, 2009


Seagate Technology - STX - close: 18.52 change: -0.37 stop: 17.45 *new*

STX managed a new high this morning and then reversed. Volume was way above average and that makes me a little nervous. Investors could be selling into strength to get out. I am raising our stop loss to $17.45. 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: + 0.69
Earnings Date 01/19/10 (unconfirmed)
Average Daily Volume: 8.2 million
Listed on December 19, 2009


Texas Instruments - TXN - close: 25.86 change: -0.15 stop: 25.45 *new*

Once again I'm concerned about relative weakness in TXN. I am raising our stop loss to $25.45. If TXN does not close above $26.00 tomorrow we'll drop it as a bullish candidate. Don't get me wrong, the larger trend is still very bullish but short term I'm concerned the stock could see a correction. I'm not suggesting new positions. Our target to exit is $29.75.

Entry on  December 02 at $26.15
Change since picked: - 0.29
Earnings Date 01/26/10 (unconfirmed)
Average Daily Volume: 12.6 million
Listed on December 01, 2009


iPath VIX ETN - VXX - close: 32.09 change: -0.62 stop: 31.99

Odds are really good that we're going to get stopped out of the VXX tomorrow. Last week's rebound looked like a bullish reversal. I think we may have been a few days early. Aggressive traders may want to keep a bullish position open over the jobs report announcement on Friday.

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: - 1.13
Earnings Date --/--/--
Average Daily Volume: 1.6 million
Listed on January 02, 2009


Warner Chilcott - WCRX - close: 28.50 change: -0.45 stop: 27.95

Traders took some money off the table in WCRX today. I'm suggesting our readers do the same. 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: + 3.73
/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: 32.88 change: -0.44 stop: 30.95

Traders bought the dip near $32.30 this morning and the intraday bounce in WXS looks like a new bullish 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: + 0.58
Earnings Date 02/10/10 (unconfirmed)
Average Daily Volume: 209 thousand
Listed on December 19, 2009


Wyndham Worldwide - WYN - close: 20.71 change: +0.43 stop: 19.90

Hmm... WYN is bouncing right where it's supposed to near support at $20.00. Today's gain appears to have broken the two-week trend of lower highs. Readers could use this move as a new entry point with a stop close to $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).

Entry on  November 10 at $18.88 (1/2 position) /gap open higher
Change since picked: + 1.83
/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: 41.21 change: +1.02 stop: 41.26

Retail stocks delivered a bounce today but I remain cautious on them. BBY out performed its peers with a 2.5% gain. The close over $41.00 is short-term bullish. Yet I find it more than coincidence that the rally stalled right at its old trendline of prior support. There is no change from my prior comments.

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: 38.96 change: +0.51 stop: 39.26

This is the moment of truth for JEC. The stock has rallied straight to resistance near $39.00 and its 50-dma. We should see a bullish breakout or a bearish reversal tomorrow. If we see the reversal lower I'd use it as a new entry point for 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: + 0.86
Earnings Date 01/26/10 (unconfirmed)
Average Daily Volume: 2.2 million
Listed on January 02, 2009


CLOSED BULLISH PLAYS

Disney - DIS - close: 31.99 change: -0.08 stop: 31.70

It looks like investors were not impressed by news that DIS's EPSN channel would start broadcasting certain events in 3D for the new 3D televisions. Shares of DIS dipped to $31.70 this morning, which was just enough to tag our stop loss.

chart:

Entry on  December 12 at $31.70 
Change since picked: + 0.00 <-- stopped @ 31.70
Earnings Date 02/09/10 (unconfirmed)
Average Daily Volume: 11.0 million
Listed on December 12, 2009