Editor's Note:
We had another profit target hit today, this time in a tech stock. Plus, we had an entry point triggered this afternoon. MSFT hit our first target to take profits. Meanwhile BPOP hit our buy-the-dip trigger.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 14.20 change: -0.16

Stop Loss: 12.90
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 7.7%
Time Frame: 8 to 10 weeks
New Positions: Yes, but see below

Comments:
12/14 update: A bounce in the U.S. dollar helped prompt some profit taking in commodity-related names. AA may have just formed a short-term double top (bearish) pattern. I am still expecting a correction toward $13.60. I would wait for a dip near $13.60 before considering new positions. (If we do see another entry point we might consider buying some 2011 call options).

Current Position: Long AA stock @ 13.18

Entry on November 16 at $13.18
Earnings Date 01/10/11 (unconfirmed)
Average Daily Volume: 26.1 million
Listed on November 6th, 2010


Alaska Air Group - ALK - close: 56.34 change: -0.15

Stop Loss: 54.90
Target(s): 59.75
Current Option Gain/Loss: + 2.6%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
12/14 update: Readers need to be cautious on this trade. The XAL airline index has broken down under its simple 50-dma. If the sector starts to fall it could make things tough for shares of ALK. Cautious traders could just exit early now and keep your cash ready for the next bullish candidate. I am raising our stop loss to $54.90. No new positions at this time.

Current Position: Long ALK stock @ $54.91

- or -

Long the 2011 January $60 calls (symbol: ALK1122A60) entry @ $1.60

Entry on November 22 at $54.91
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 331 thousand
Listed on November 20th, 2010


American Express - AXP - close: 46.20 change: -0.17

Stop Loss: 41.95
Target(s): 47.50, 49.85
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/14 update: Financials are starting to see some profit taking after their big gains in December. Let's hope the pull back continues. We want to buy AXP or calls on AXP on a dip to $44.50.

Trigger @ $44.50 Suggested Position: Buy AXP stock at $44.50

- or -

Buy the 2011 April $45 calls (AXP1116D45)

Entry on December xx at $xx.xx
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 9.0 million
Listed on December 2nd, 2010


Popular Inc. - BPOP - close: 3.00 change: -0.02

Stop Loss: 2.69
Target(s): 3.40, 3.95
Current Option Gain/Loss: + 0.3%
Time Frame: 12 to 16 weeks
New Positions: Yes, see below

Comments:
12/14 update: Our new play on BPOP has been triggered. Shares dipped to $3.00 late this afternoon. While I would still consider new positions here near $3.00 there is a good chance we might see a better entry point on a dip near $2.95-2.90. Our first target is $3.40. Our second, much longer-term target is $3.90.

Triggered Today

Current Position: Long BPOP stock @ $3.00

- or -

Long the 2011 April $3.00 calls (BPOP1116D3) Entry @ $0.34

Entry on December 14 at $ 3.00
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 11.7 million
Listed on December 11th, 2010


Companhia Brasileira de Distribuicao - CBD - close: 40.81 change: +0.85

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: + 1.3%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/14 update: The rebound in CBD continues. Shares gained +2.1% and challenged the $41.00 level this afternoon. I don't see any changes from my prior comments. I would still consider new positions in the $40-39 zone.

More conservative traders may want to consider a stop loss closer to $38.00. We have a wide stop because CBD can be so volatile. Bear in mind this is a higher-risk trade.

Current Position: Long CBD stock @ $40.25

Entry on November 23 at $40.25
Earnings Date 03/02/11 (unconfirmed)
Average Daily Volume: 608 thousand
Listed on November 20th, 2010


City National Corp. - CYN - close: 60.00 change: -0.15

Stop Loss: 54.75
Target(s): 60.00, 64.00
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/14 update: It looks like the rally in CYN has finally stalled. We want to see a correction in this stock. The plan is to wait for a dip to $57.00. FYI: The Point & Figure chart is bullish with a $77 target.

Trigger @ $57.00

Suggested Position: buy CYN stock @ $57.00

- or -

Buy the 2011 February $60 calls (cyn1119B60)*

*Caution: most of the option spreads on CYN seem a little too wide. I consider the options a more aggressive trade. You may want to keep your position size small.

Entry on December xx at $xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 223 thousand
Listed on December 4th, 2010


JB Hunt Transport Services - JBHT - close: 39.82 change: -0.14

Stop Loss: 36.75
Target(s): 40.70, 43.75
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/14 update: JBHT is slowly starting to pull back. There is no change from my prior comments, which I am reposting here:

The outlook for our economy and GDP growth in 2011 is improving. If the data continues to back up these positive expectations then transports could be in for a long trend higher. Big picture the transports already look bullish. Short-term the sector looks a little tired and due for a pull back. The action in JBHT actually turned bearish today with a bearish engulfing (reversal) candlestick pattern. Odds are good that JBHT will correct back toward broken resistance and new support at $38.00. A week ago the NASDAQ announced they were removing JBHT from the NASDAQ-100 index and this removal takes place on Dec. 20th. Firms should start selling shares of JBHT to make room for those stocks being added to the index. Nimble traders could try and scalp the decline. I would rather wait to just buy the dip. If triggered we'll start with a stop loss at $36.75.

Trigger to buy the dip at $38.00

Suggested Position: Buy JBHT stock @ 38.00

- or -

Buy the 2011 February $40 calls (JBHT1119B40)

Entry on December xx at $xx.xx
Earnings Date 01/28/11 (unconfirmed)
Average Daily Volume: 1.2 million
Listed on December 13th, 2010


Microsoft Corp. - MSFT - close: 27.62 change: +0.38

Stop Loss: 25.45
Target(s): 27.45, 29.00
Current Gain/Loss: + 8.1%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/14 update: Target achieved. MSFT displayed some relative strength and closed with a +1.3% gain and a new five-week high. Our first target to take some money off the table was hit at $27.45. That's a +7.4% move in MSFT and a +83% move in the option. I am still concerned that MSFT is short-term overbought. I'm not suggesting new bullish positions at current levels.
FYI: We may need to adjust our time frame and focus on three or four months for MSFT to pay off. If you're buying calls, keep that in mind.

Current Position: Long MSFT stock @ 25.55

- or -

Buy the 2011 January $25.00 calls (symbol: MSFT1122A25) Entry @ $1.39

12/14/10 Target hit @ 27.45 (+7.4%), option @ $2.55 (+83.4%)
12/11/10 New stop @ 25.45
11/29/10 New stop @ 24.70

chart:

Entry on November 17 at $25.55
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 68.4 million
Listed on November 15th, 2010


Peir 1 Imports - PIR - close: 10.41 change: -0.24

Stop Loss: 10.24
Target(s): 11.90
Current Option Gain/Loss: + 1.6%
Time Frame: 10 to 12 weeks
New Positions: No

Comments:
12/14 update: - Attention - Tomorrow is our last day for this play. I've decided that in an effort to preserve capital we will exit PIR at the closing bell on Wednesday. This way we can avoid holding over earnings on Thursday morning. I am raising our stop loss to $10.24 (breakeven).

Current Position: Long PIR stock @ $10.24

- or

Buy the 2011 March $10.00 calls (PIR1119C10) Entry @ $1.55

Entry on December 2 at $10.24
Earnings Date 12/16/10 (confirmed)
Average Daily Volume: 2.3 million
Listed on December 1st, 2010


Starbucks Corp. - SBUX - close: 32.11 change: +0.12

Stop Loss: 29.90
Target(s): 34.75
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/14 update: There is no change from my prior comments. We're waiting for a dip toward $31. We have a trigger to launch bullish positions at $31.25. If triggered our first target is $34.75.

FYI: SBUX is currently in a legal battle with Kraft Foods (KFT) over distribution of SBUX's ground coffee brand but investors seem to be ignoring it.

Trigger @ $31.25

Suggested Position: Buy SBUX stock @ $31.25

- or -

Buy the 2011 January $32.00 call (SBUX1122A32)
Buy the 2011 April $33.00 call (SBUX1116D33)

Entry on December xx at $xx.xx
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 7.1 million
Listed on December 8th, 2010


SAKS Inc. - SKS - close: 11.60 change: +0.09

Stop Loss: 10.90
Target(s): 13.95, 14.95
Current Option Gain/Loss: - 3.1%
Time Frame: 10 to 12 weeks
New Positions: No

Comments:
12/14 update: Thankfully there was no follow through on yesterday's bearish reversal in SKS. That doesn't mean we're out of the woods. I remain cautious here. Readers may want to wait for a close over $10.80 or $11.00 before considering new bullish positions. Cautious traders may want to raise their stop loss (maybe toward $11.30-11.40ish).

Suggested Position: Long SKS stock @ $11.98

- or -

Buy the 2011 February $12.50 calls (SKS1119B12.5) Entry @ $0.65

Entry on December 13 at $11.98
Earnings Date 02/22/11 (unconfirmed)
Average Daily Volume: 3.1 million
Listed on December 11th, 2010


Sara Lee Corp - SLE - close: 16.26 change: +0.37

Stop Loss: 14.70
Target(s): 17.00, 17.90
Current Option Gain/Loss: + 3.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/14 update: Some positive analyst comments this morning helped SLE outperform the major averages. Shares added +2.3% to close at new relative highs. I am not suggesting new bullish positions at current levels. Broken resistance at $15.50 and $15.00 should be support.
FYI: the Point & Figure chart is suggesting a long-term bullish target of $32 for SLE.

Current Position: Long SLE stock @ $15.68

- or -

Long the 2011 April $15.00 calls (SLE1116D15) Entry @ $1.35

Entry on December 8 at $15.68
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 7.6 million
Listed on December 7th, 2010


Sony Corp. - SNE - close: 35.63 change: -0.25

Stop Loss: 33.45
Target(s): 36.50, 39.00
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/14 update: The correction in SNE, while slow, continues lower. We want to open bullish positions on a dip at $34.50.

Trigger @ $34.50

Suggested Position: Buy SNE stock
- or -
Buy the 2011 APRIL $35 calls (SNE1116D35)

Entry on December xx at $xx.xx
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 888 thousand
Listed on November 23rd, 2010


Trimble Navigation - TRMB - close: 40.76 change: -0.90

Stop Loss: 36.40
Target(s): 41.00, 43.00
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/14 update: It's about time! We've been waiting for TRMB to pull back. Yesterday's blow-off top looking move and today's bearish engulfing candlestick pattern are definitely suggesting the rally in TRMB has run out of steam - at least short-term. Very nimble traders could try short-term bearish positions to scalp the move lower but that's a high-risk trade. I suggest that the rest of us just wait for the pull back toward support near $38.00. We have a trigger to buy TRMB or calls at $38.50.

Trigger @ $38.50

Suggested Position: Buy TRMB stock @ $38.50

- or -

Buy the 2011 February $40.00 calls (TRMB1119B40) current ask $2.35

Entry on December xx at $xx.xx
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 435 thousand
Listed on December 4th, 2010


Wells Fargo & Co - WFC - close: 29.82 change: -0.40

Stop Loss: 27.90
Target(s): 29.25, 31.90
Current Option Gain/Loss: +10.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/14 update: Financial stocks are seeing some overdue profit taking after their early December gains. If you're looking for a new entry point I would wait for WFC to pull back and redefine short-term support. That support might be $29.25 or it could be the 200-dma near $28.00. Our final target to exit is $31.90.

Current Position: Long WFC stock @ $26.88

- or -

Long the 2011 January $27.50 call (WFC1122A27.5) Entry @ $1.16

12/09: New stop loss @ $27.90
12/08: Target Hit $29.25 (+8.8%), Option @ $2.30 (+98.2%)

Entry on November 30 at $26.88
Earnings Date 01/19/11 (unconfirmed)
Average Daily Volume: 32.7 million
Listed on November 29th, 2010


World Wrestling Entertainment - WWE - close: 14.45 change: +0.17

Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Option Gain/Loss: + 2.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/14 update: Shares of WWE are showing a little relative strength on Tuesday. The stock added +1.1% with decent volume. I would still consider new positions here. However, the market looks like it might dip tomorrow. You may see another entry point in the $14.20-14.00 zone if you're patient.

Suggested Position: Long WWE stock @ $14.10

- or -

Buy the 2011 April $15.00 calls (WWE1116D15), entry @ $0.45

*Note: The call options on WWE have very large spreads, making them a higher-risk trade.

Entry on December 13 at $14.10
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume: 242 thousand
Listed on December 9th, 2010