Our steel sector candidate hit our target and we're taking profits on WCRX. Plus several new stop loss adjustments.


BULLISH Play Updates

Bank of Hawaii - BOH - close: 48.87 change: +0.57 stop: 46.49 *new*

Banking stocks continue to rally although now the sector looks a little overbought given last week's gains. BOH broke to new highs. Last week's low was $46.59. I'm raising our stop loss to $46.49. I am not suggesting new positions. Our target to exit is $49.85. More aggressive traders may want to aim higher but I would avoid holding over earnings.

Annotated chart:

Entry on  November 18 at $46.20     
Change since picked: + 2.67
Earnings Date 01/25/10 (unconfirmed)
Average Daily Volume: 424 thousand
Listed on November 17, 2009


Home Depot - HD - close: 28.98 change: -0.14 stop: 27.80 *new*

Unfortunately I remain concerned about HD. The stock did rebound from its January 5th lows but some of the technicals still look bearish. At this point I'm not suggesting new bullish positions but traders could jump in on a dip or a bounce near the $28.00 level. I am inching up our stop loss to $27.80.

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: + 0.16
Earnings Date 02/23/10 (unconfirmed)
Average Daily Volume: 15.7 million
Listed on December 12, 2009


Hologic Inc. - HOLX - close: 14.97 change: -0.02 stop: 14.40

The consolidation in HOLX has narrowed considerably. The stock's been trading in a 25-cent range for the last four days. A breakout is imminent.

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.

Annotated chart:

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: 32.68 change: -0.09 stop: 31.49 *new*

PCH looks ready to breakout from its $32-33 trading range. I am raising our stop loss to $31.49. I am not suggesting new positions with potential resistance at the August 2009 high. Our first target to take profits is at $33.60. Our second target is $35.75.

Annotated chart:

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: 53.14 change: -0.25 stop: 52.45 *new*

I am not seeing a lot of change in our RAI play. Shares continue to trade sideways although I will point out that many of the technical indicators are turning negative. More conservative traders may want to take some money off the table now. I am raising our stop loss to $52.45. I'm not suggesting new bullish positions at this time. Our target to exit is $55.90.

Annotated chart:

Entry on  November 14 at $50.32      
Change since picked: + 2.82
Earnings Date 02/11/10 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on November 14, 2009


Starbucks Corp. - SBUX - close: 23.28 change: -0.08 stop: 21.95

SBUX has been trading sideways in the $23-24 zone for nearly three weeks now. More conservative traders may want to up their stops toward $22.50 or even $22.75. The longer-term trend is up but short-term the momentum has clearly stalled. 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: + 1.09
Earnings Date 01/28/10 (unconfirmed)
Average Daily Volume: 10.9 million
Listed on November 30, 2009


Sonoco Products - SON - close: 30.73 change: +0.25 stop: 29.20

SON gave us another entry point with an intraday bounce near $30.00 on Friday morning. I would consider new positions now but keep them small. We are still at risk for a correction in January. Our first target is $34.50.

Annotated chart:

Entry on  December 26 at $30.31      
Change since picked: + 0.42
Earnings Date 02/04/10 (unconfirmed)
Average Daily Volume: 343 thousand
Listed on December 26, 2009


Steel Dynamics - STLD - close: 20.19 change: +0.82 stop: 18.45 *new*

Target achieved. Steel stocks have continued to perform well. STLD soared past round-number resistance at $20.00 and hit $20.38 intraday. Our first target to take profits was at $19.95. I am raising our stop loss to $18.45. Our second and final target is $21.95. No new positions at this time.

Annotated chart:

Entry on   January 06 at $18.75 (small positions)     
Change since picked: + 1.44
1st target hit @ 19.95 (+6.4%)
Earnings Date 01/26/10 (unconfirmed)
Average Daily Volume: 5.7 million
Listed on January 04, 2009


Seagate Technology - STX - close: 17.89 change: -0.15 stop: 17.45

The correction in STX has now hit four days in a row. Not only did STX dip on Friday morning due to the jobs report but the stock was also downgraded. Shares spike to a low of $17.48 before bouncing. More conservative traders may want to exit now to avoid or limit any losses. I am not suggesting new positions at this time but a move over $18.25 might change my mind.

We don't have a lot of time left. Earnings are coming in just over a week and we don't want to hold over the report. Our target to exit is $19.75. The plan was to keep positions small to limit our risk.

Annotated chart:

Entry on  December 19 at $17.83 /gap open higher (small positions)     
Change since picked: + 0.06
Earnings Date 01/19/10 (unconfirmed)
Average Daily Volume: 8.2 million
Listed on December 19, 2009


Vishay Intertechnology - VSH - close: 9.01 change: +0.33 stop: 8.20

VSH broke out to new highs and hit our trigger to buy the stock at $8.85. Volume was above average, which is a bullish sign. Now that the play is open our target is $9.95. The plan was to keep positions small to limit our risk.

Annotated chart:

Entry on   January 08 at $ 8.85 (small positions)
Change since picked: + 0.16
Earnings Date 02/09/10 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on January 05, 2009


Wright Express Corp. - WXS - close: 32.13 change: -0.10 stop: 30.95

Traders bought the dip near the 21-dma again. The stock looks poised to bounce from here but I would wait for the bounce before considering new bullish positions. Cautious traders might want to adjust their stops toward $31.50ish.

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.

Annotated chart:

Entry on  December 21 at $32.30     
Change since picked: - 0.17
Earnings Date 02/10/10 (unconfirmed)
Average Daily Volume: 209 thousand
Listed on December 19, 2009


Wyndham Worldwide - WYN - close: 20.86 change: -0.21 stop: 19.90

WYN suffered some profit taking on Friday but the trend remains higher. If you're looking for an entry point consider buying a dip or a bounce near the rising 30-dma (20.28). 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: + 1.98
/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: 39.91 change: -1.63 stop: 41.26

Investors must have been expecting more out of BBY. On Friday the company announced that its December same-store sales came in at +8.2%. U.S. sales were up 13% over 2008. While online sales last month surged 34%. Yet that wasn't good enough and investors sold the news. More aggressive traders may want to go ahead and launch positions. I am suggesting readers stick to our plan.

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. We will consider adding to positions on a breakdown under $38.00. Our first target is $35.25.

Annotated chart:

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


CLOSED BULLISH PLAYS

EMCOR Group - EME - close: 27.14 change: -0.31 stop: 25.75

I am suggesting an early exit from EME. The general trend is higher but short-term it looks weak. I might be tempted to buy a dip near $26.00 with a very tight stop loss. As of today we're closing the play and will keep it on our watch list. More aggressive traders willing to endure some volatility can let it ride since the $26.35 level should offer some support.

chart:

Entry on  December 21 at $27.18      
Change since picked: - 0.04 <--early exit @ 27.14 (-0.01%)
Earnings Date 02/25/10 (unconfirmed)
Average Daily Volume: 514 thousand
Listed on December 21, 2009


Warner Chilcott - WCRX - close: 28.44 change: -0.15 stop: 27.95

I think it's time we say good bye to WCRX. The trend is still up but the relative weakness on Friday looks like a warning. I'm suggesting we exit now and put WCRX back on our watch list and wait for a correction. More aggressive traders could stay long and just keep their stops tight.

chart:

Entry on  December 01 at $24.77 gap open entry point (small positions)     
Change since picked: + 3.67 <--early exit @ 28.44 (+14.8%)
/1st target hit @ 27.40 (+10.6%)
Earnings Date 02/25/10 (unconfirmed)
Average Daily Volume: 1.8 million
Listed on November 28, 2009