Editor's Note:
Alcoa hit one of our exit targets with today's rally toward $15.00. I have adjusted our entry point on JBHT and updated a couple of stop losses.

Please note that I have corrected the format for our plays. Previously our play entries had the line "Current Option Gain/Loss" when they were supposed to say "Current Gain/Loss". This has been corrected. Some of our plays do have options but we don't calculate the gain/loss on a daily basis.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 14.77 change: +0.21

Stop Loss: 13.45
Target(s): 14.95, 15.95
Current Gain/Loss: +12.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/21 update: Target achieved. AA continues to rally with the stock up four days in a row. The stock hit $14.99 intraday. Our first target to take profits was hit at $14.95. I am not suggesting new bullish positions at this time. AA should find support near $14.50 and near $14.00. More conservative traders may want to raise their stops. Our final target is $15.95.

Current Position: Long AA stock @ 13.18

12/21: 1st Target Hit @ 14.95 (+13.4%)

chart:

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


Automatic Data Processing - ADP - close: 46.85 change: +0.08

Stop Loss: 45.95
Target(s): 49.75, 52.50
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/21 update: ADP is still churning sideways under resistance near $47.00. I am suggesting a trigger to open bullish positions at $47.25. If triggered we'll use a stop loss at $45.95. Our first target is $49.75. While the trend is up ADP doesn't move super fast so this could take several weeks.
FYI: The Point & Figure chart for ADP is forecasting a bullish price target of $66.00.

Buy-the-breakout Trigger @ $47.25

Suggested Position: Buy ADP stock @ $47.25

- or -

Buy the 2011 February $50.00 call (ADP1119B50)

*Note: just because the Feb. $50 calls are cheap don't go overboard and buy too many. They're cheap for a reason. ADP may not hit $50 by Feb. expiration.

Entry on December xx at $xx.xx
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on December 16th, 2010


Alaska Air Group - ALK - close: 59.06 change: +1.39

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 8.5%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
12/21 update: ALK outperformed the market on Tuesday with a +2.4% gain. While the $60.00 level is probably round-number, psychological resistance I am suggesting we adjust our exit target on the January calls. Time decay has eaten into our call values. Conservative traders will want to exit near $60.00 anyway just to recapture their original capital (if that's your plan then you could exit now). We still want to sell part of our stock position at $59.75 but we'll move our target on the calls to $61.75. By moving the exit target out we are raising the risk on the option trade. We'll set a secondary, longer-term exit target on the rest of our ALK stock at $64.00. I am not suggesting new positions at this time.

Current Position: Long ALK stock @ $54.91

- or -

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

12/21: First target is 59.75, adding second target at $64 for ALK stock.
12/21: Adjusting our only exit target on the calls to $61.75.

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


Popular Inc. - BPOP - close: 2.94 change: +0.05

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: - 2.0%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
12/21 update: Banks were some of the best performers today. BPOP rose +1.6% but I remain cautious on this stock. I'd rather wait for a new close over the $3.00 mark before considering new positions.

Current Position: Long BPOP stock @ $3.00

- or -

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

12/18: New stop loss @ 2.75

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


Citigroup Inc. - C - close: 4.74 change: +0.03

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: + 0.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/21 update: Uh-oh! Banks were some of the strongest performers on Tuesday. Yet Citigroup only added +0.6%. The action on the daily chart almost looks like a short-term top forming. I would expect a correction back toward the $4.65-4.60 zone. Wait to launch new positions there. This remains an aggressive, higher-risk trade. I am suggesting that readers keep their position size small to limit their risk.

Current Position: Long Citigroup stock @ $4.73

- or -

Long the 2011 March $5.00 calls (C1119C5) Entry @ $0.20

Entry on December 20 at $ 4.73
Earnings Date 01/18/11 (confirmed)
Average Daily Volume: 688 million
Listed on December 18th, 2010


Companhia Brasileira de Distribuicao - CBD - close: 41.78 change: +0.86

Stop Loss: 37.90
Target(s): 44.95, 49.00
Current Gain/Loss: + 3.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/21 update: CBD is showing a little relative strength today with a +2.1% gain. The stock is nearing resistance at the $42.00 level. I am not suggesting new positions at this time. Please note our new stop loss at $37.90.

Current Position: Long CBD stock @ $40.25

12/21 New stop loss @ 37.90

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


Check Point Software Technologies - CHKP - close: 45.78 change: +0.14

Stop Loss: 43.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 1.5%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/21 update: It was a quiet day for CHKP with the stock moving sideways in a narrow range. I would still consider initiating new positions on dips near $45.00. Our first target is $47.25. Our second, longer-term target is $49.75. This could take several weeks. Investors will have to decide whether or not they are willing to hold over CHKP's earnings in late January.

Current Position: Long CHKP stock @ $45.10

- or -

Long the 2011 April $45.00 calls (CHKP1116D45) Entry @ $2.55

Entry on December 20 at $45.10
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume: 1.4 million
Listed on December 18th, 2010


City National Corp. - CYN - close: 61.81 change: +1.01

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

Comments:
12/21 update: Strength in the banks pushed CYN to a +1.6% gain but the stock remains under short-term resistance at $62. There is no change from my prior comments. If CYN doesn't begin to correct lower soon I'll drop it as a candidate.

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


FLIR Systems Inc. - FLIR - close: 29.00 change: +0.18

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/21 update: The rally in FLIR continues. Believe it or not we are still sitting on the sidelines. Our trigger to launch positions is at $29.10 and FLIR only hit $29.09 today. If the rally continues then odds are good FLIR will hit our trigger tomorrow. Aggressive traders may want to open positions now. FLIR doesn't move super fast but our targets are $30.90 and $33.00.

Breakout Trigger @ $29.10

Suggested Position: Buy FLIR stock @ $29.10

- or -

Buy the 2011 April $30.00 calls (FLIR1116D30) current ask $1.35

Entry on December xx at $xx.xx
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on December 18th, 2010


JB Hunt Transport Services - JBHT - close: 40.33 change: +0.89

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/21 update: JBHT was showing relative strength on Tuesday. Shares rallied +2.2% and closed back above round-number resistance at $40.00. Instead of waiting for the dip toward support near $38.00 I am suggesting we go ahead and launch small positions now on today's rally. This is a much more aggressive entry point so we want to keep our position sizes small. I'm raising our stop loss to $38.75. Our first target is $43.50.

Open Small Positions Now

Suggested Position: Buy JBHT stock @ current levels

- or -

Buy the 2011 February $40 calls (JBHT1119B40) current ask $1.90

12/21 New Entry Point - Launch Positions Now (open of 12/22)

chart:

Entry on December 22 at $xx.xx
Earnings Date 01/28/11 (unconfirmed)
Average Daily Volume: 1.2 million
Listed on December 13th, 2010


Microsoft Corp. - MSFT - close: 28.07 change: +0.26

Stop Loss: 25.70
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/21 update: MSFT was showing relative strength on Tuesday and managed to close over resistance near $28.00. I would not launch new positions at these levels. The stock is short-term overbought!

Current Position: Long MSFT stock @ 25.55

- or -

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

12/18/10 new stop @ 25.70
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


Mylan, Inc. - MYL - close: 21.21 change: +0.01

Stop Loss: 19.70
Target(s): 21.90, 22.90
Current Gain/Loss: unopened
Time Frame: 12 to 14 weeks
New Positions: Yes, see trigger

Comments:
12/21 update: MYL spent the day in a narrow range. I am suggesting we launch bullish positions on a dip at $20.65. The December 13th low was $19.79. I'm suggesting a stop loss at $19.70. The most recent data listed short interest at 12% of the 287 million-share float. Any significant rallies could fuel some short covering.
FYI: The Point & Figure chart for MYL is bullish with a $33 target.

Trigger to buy-the-dip @ $20.65

Suggested Position: Buy MYL stock @ $20.65

- or -

Buy the 2011 April $20.00 calls (MYL1116D20)

Entry on December xx at $xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 9.0 million
Listed on December 20th, 2010


Starbucks Corp. - SBUX - close: 32.86 change: -0.07

Stop Loss: 30.75
Target(s): 34.75
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/21 update: SBUX underperformed the market's major averages but traders bought the dip intraday. Currently our trigger to initiate bullish positions is at $31.75 but we might want to raise that trigger to $32.00 to better align with SBUX's rising bullish channel.

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 @ $31.75

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


Sara Lee Corp - SLE - close: 17.53 change: -0.16

Stop Loss: 15.75
Target(s): 17.00, 17.90
Current Gain/Loss: +11.8%
Time Frame: 10 to 12 weeks
New Positions: no

Comments:
12/21 update: It was a quiet day for SLE with shares churning sideways in a very narrow range near the $17.50 level. Please note that I am raising our stop loss to $15.75, just above our entry point. I am not suggesting new positions at this time.

Current Position: Long SLE stock @ $15.68

- or -

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

12/21/10 New stop loss @ 15.75
12/18/10 New stop @ 15.45, New final target @ 19.75
12/17/10 Target Hit @ 17.00 (+8.4%), option @ $2.00 (+48.1%)

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: 36.24 change: +1.05

Stop Loss: 34.40
Target(s): 37.75, 39.75
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/21 update: Big gains in the Asian markets helped SNE to a +2.9% gain. We need to adjust our entry point strategy if we want to hop on board. I am suggesting we move our buy-the-dip trigger to $35.60 and we'll move our stop loss to $34.40.

Trigger @ $35.60 <-- new trigger

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

12/21 New trigger @ 35.60, New stop @ 34.40

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: 40.28 change: +0.31

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:
12/21 update: TRMB is trying to bounce but volume has been very low. I'm about ready to drop TRMB from our play list. We don't want to buy it at current levels. The nearest support appears to be the $38 area.

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: 43.07 change: +1.96

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

Comments:
12/21 update: Can I have buyer's remorse for NOT buying a stock? TX has refused to pull back. Shares surged again today and hit new highs above the April 2010 high. The stock remains short-term overbought. We don't want to chase it. Right now I'm looking at raising our entry point toward the $40 area but we'll keep it at $38.25 for now. The $43 level should be resistance so maybe TX will see a correction soon.

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: 30.82 change: +0.72

Stop Loss: 28.49
Target(s): 29.25, 31.90
Current Gain/Loss: +14.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/21 update: Strength in the banking sector helped WFC delivered a +2.3% gain. Shares closed at new multi-month highs. I am raising our stop loss to $28.49. Currently our final exit target is $31.90 but aggressive traders could aim high (given enough time).

Current Position: Long WFC stock @ $26.88

- or -

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

12/21: New stop loss @ 28.49
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: 14.47 change: +0.17

Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Gain/Loss: + 2.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/21 update: WWE managed to outperform the S&P 500 with a +1.1% gain. There is no change from my prior comments. I would still consider new bullish positions in the $14.30-14.00 area.

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