Editor's Note:
One of the big stories today was big declines in Visa and Mastercard. The government wants to set a limit on the amount these two companies charge to use our debit cards. Both stocks tumbled and even AXP saw a strong decline. Yet AXP doesn't issue debit cards. We want to take advantage of this pull back in AXP and buy the dip. You can read the details below.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 14.46 change: +0.50

Stop Loss: 12.90
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 9.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/16 update: Investors were in the mood for industrials plays following the Philly Fed data. AA was one of the DJIA's best performers with a +3.5% gain. The stock is back to challenging short-term resistance near $14.50. I am not suggesting new bullish positions at this time.

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: 56.52 change: -0.07

Stop Loss: 54.90
Target(s): 59.75
Current Option Gain/Loss: + 2.9%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
12/16 update: Hmm.... the XAL airline index, which had been underperforming, managed a nice rebound with a +0.79% gain. Oddly enough ALK did not participate and closed virtually unchanged on the session. I remain cautious on ALK. I am not suggesting new bullish 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: 44.57 change: -1.55

Stop Loss: 41.95
Target(s): 47.50, 49.85
Current Option Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/16 update: Entry point alert! We've been waiting for AXP to pull back to the $44.50 level so we could buy the dip. Shares lost -3.3% but only hit $44.54 this afternoon. I am suggesting we go ahead and initiate positions now! Cautious traders may want to take a step back and wait a day to see how far this decline might go. AXP should have support in the $44-42 zone. Huge declines in Mastercard (MA) and Visa (V) are the reason AXP was falling today. The Federal Reserve is thinking about mandating a cap on what the transaction fee is to use your debit card. Naturally MA and V plunged on this news. Yet AXP does not issue debit cards so this decline is artificial.

If triggered I'm suggesting a stop loss at $41.95.

Open Positions Now at current levels! Suggested Position: Buy AXP stock @ current levels

- or -

Buy the 2011 April $45 calls (AXP1116D45) current ask $2.74

Entry on December 17 at $xx.xx
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 9.0 million
Listed on December 2nd, 2010


Popular Inc. - BPOP - close: 2.89 change: -0.04

Stop Loss: 2.69
Target(s): 3.40, 3.95
Current Option Gain/Loss: - 3.6%
Time Frame: 12 to 16 weeks
New Positions: Yes, see below

Comments:
12/16 update: Uh-oh! Now I'm worried. BPOP has broken down under the $2.90 mark and closed below technical support at its simple 200-dma. Volume was pretty low on the move but the action remains very bearish. I am not suggesting new positions at this time! More conservative traders may want to raise their stop loss.

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: 41.12 change: +0.78

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: + 2.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/16 update: CBD is still rebounding higher. I don't see any changes from my prior comments. If you're looking for a new entry point we can use a dip into the $40.00-38.00 zone.

FYI: 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: 60.40 change: +0.22

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:
12/16 update: CYN is churning sideways near the $60.00 level. We are still waiting for a correction. 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: 40.07 change: +0.78

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:
12/16 update: Widespread market gains and relative strength in the transportation sector helped JBHT deliver a +1.9% bounce. I still don't want to chase this move. Currently our plan is to open bullish positions at $38.00.

FYI: 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.

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: 27.99 change: +0.14

Stop Loss: 25.45
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/16 update: MSFT posted its third gain in a row. The stock is up +12% off its late November lows. Shares remain overbought. I would not launch new positions at current levels.

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

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


Starbucks Corp. - SBUX - close: 32.59 change: +0.72

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:
12/16 update: An analyst upgrade for SBUX this morning pushed the shares to a +2.2% gain. We're still waiting on an entry point. 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: 11.67 change: +0.22

Stop Loss: 10.90
Target(s): 13.95, 14.95
Current Option Gain/Loss: - 2.5%
Time Frame: 10 to 12 weeks
New Positions: No

Comments:
12/16 update: SKS managed a bounce from its 40-dma. Shares gained +1.9%, which was enough to outperform the rebound in the RLX retail index. I remain cautious on SKS. I am not suggesting new bullish positions at this time.

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: 16.39 change: +0.24

Stop Loss: 14.70
Target(s): 17.00, 17.90
Current Option Gain/Loss: + 4.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/16 update: Shares of SLE continue to show strength. The stock added +1.4% to close at new 52-week highs. SLE remains short-term overbought. I would not begin new positions at this time.
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: 35.59 change: -0.06

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:
12/16 update: SNE is still slowly correcting lower. Shares dipped to $35.16 intraday. 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: 39.64 change: -0.15

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:
12/16 update: TRMB slipped again marking its third drop in a row. There is no change from my prior comment. The stock should have support near $38.00. Our plan is to open bullish positions 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


Ternium S.A. - TX - close: 39.18 change: +0.06

Stop Loss: 35.85
Target(s): 43.00, 45.00
Current Option Gain/Loss: unopened
Time Frame: 12 to 14 weeks
New Positions: Yes, see trigger

Comments:
12/16 update: Thursday proved to be a very quiet day for TX with the stock drifting sideways in a narrow range. I am suggesting we buy this stock on a dip at $38.25. If triggered we'll use a stop loss at $35.85. Our targets are $43.00 and $45.00. Keep in mind that it could take several weeks for TX to hit these targets.
FYI: The Point & Figure chart for TX is forecasting a bullish target of $48.

Buy-the-Dip Trigger @ $38.25

Suggested Position: Buy TX stock

Note: TX does have options but the spreads are horrendously wide so I'm not suggesting any calls on this trade.

Entry on December xx at $xx.xx
Earnings Date 02/23/11 (unconfirmed)
Average Daily Volume: 295 thousand
Listed on December 14th, 2010


Wells Fargo & Co - WFC - close: 30.02 change: +0.23

Stop Loss: 27.90
Target(s): 29.25, 31.90
Current Option Gain/Loss: +11.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/16 update: You probably couldn't tell by the big 23-cent gain in WFC today but it was a momentous day for the bank. WFC has surpassed rival JPM to become the largest U.S. bank by market cap. JPM's market cap is $156.4 billion. WFC just hit $157.6 billion. This little factoid has no impact on our trade and odds are JPM and WFC could trade this title back and forth for months.

WFC outperformed its peers today but the stock continues to look a little overbought here. No new positions at this time. 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: 14.21 change: -0.04

Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Option Gain/Loss: + 0.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/16 update: WWE spent the day trading sideways inside a 10-cent range. The stock could pull back to test support near $14.00 and its 50-dma. Readers may want to wait for that dip (near $14.00) before considering new bullish positions.

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