Editor's Note:
Our banking positions continue to rally. We had two more plays hit our trigger today. FLIR and SNE hit our entry point. I'm dropping CYN as a candidate. We've raised the exit target on WFC.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 15.14 change: +0.25

Stop Loss: 13.45
Target(s): 14.95, 15.95
Current Gain/Loss: +14.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/22 update: AA's rally continues with a move over the $15.00 mark but shares failed to close over resistance at their April 2010 highs (near $15.15). The stock is short-term overbought and due for some profit taking. 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%)

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: 46.91 change: +0.06

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:
12/22 update: Shares of ADP appear to have fallen into a coma. Shares are still drifting sideways under resistance near $47.00. There is no change from my prior comments. 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: 58.30 change: -0.76

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:
12/22 update: ALK almost hit our first target (for the stock) today. Shares spiked early this morning to $59.59. Our first target is $59.75. ALK ended the day down -1.2% but volume was pretty light. Airlines in general were weak on Wednesday and possibly due to strength in oil prices. I am not suggesting new positions at this time.

We want to sell half of our stock position at $59.75. Sell all of our January options at $61.75. Sell the rest of our stock position at $64.00.

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: 3.07 change: +0.13

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 2.3%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
12/22 update: BPOP is finally showing some strength and joining the rally that's currently in progress in the banking sector. Shares had me worried there but the close back above $3.00 looks like another bullish entry point.

Current Position: Long BPOP stock @ $3.00

- or -

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

12/22: Close over $3.00 is another bullish entry point.
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: 4.73 change: -0.01

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/22 update: Hmm.... the relative weakness in C today versus its peers in the banking sector was a little discouraging but the stock was bouncing higher into the close. I've been suggesting readers wait for a dip into the $4.65-4.60 zone before launching new positions. The stock hit $4.68 this afternoon. Readers could buy this bounce. 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: 40.75 change: -1.03

Stop Loss: 37.90
Target(s): 44.95, 49.00
Current Gain/Loss: + 1.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/22 update: I can't explain the relative weakness in CBD today. The Brazilian market closed higher on the session. Recently dips toward the 40-dma have been entry points but readers may want to wait for a bounce instead. CBD is a volatile stock so readers should consider this a higher-risk trade.

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: 45.90 change: +0.12

Stop Loss: 43.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 1.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/22 update: CHKP spent the day consolidating sideways but shares were drifting higher into the closing bell. There is no change from my prior comments. 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


FLIR Systems Inc. - FLIR - close: 29.69 change: +0.69

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:
12/22 update: Bingo! FLIR has broken through the $29.00 level with a convincing move higher. Shares hit our trigger to initiate positions at $29.10 early this morning. If you missed the move you could always wait for a dip back towards $29.00. FLIR doesn't move super fast but our targets are $30.90 and $33.00.

Play has been Triggered!

Current Position: Long FLIR stock @ $29.10

- or -

Long the 2011 April $30.00 calls (FLIR1116D30) Entry @ $1.60

chart:

Entry on December 22 at $29.10
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on December 18th, 2010


JB Hunt Transport Services - JBHT - close: 40.79 change: +0.46

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 1.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/22 update: Our new entry in JBHT is off to a good start. Shares opened at $40.33 and rallied to a new relative high over $41.00 this afternoon. Volume was decent. If you missed the entry point I would still consider positions on a dip near $40.00. Our first target is $43.50.

Suggested Position: Long JBHT stock @ $40.33

- or -

Buy the 2011 February $40 calls (JBHT1119B40) Entry @ $1.85

12/22 Entry at $40.33
12/21 New Entry Point - Launch Positions Now (open of 12/22)

Entry on December 22 at $40.33
Earnings Date 01/28/11 (unconfirmed)
Average Daily Volume: 1.2 million
Listed on December 13th, 2010


Morgan Stanley - MS - close: 27.40 change: +0.54

Stop Loss: 25.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/22 update: Banking and financial stocks continue to show relative strength. MS rallied another +2% to close at new six-week highs. Shares opened at $26.95 (entry point). If you're still looking for an entry point I would consider new positions now or anywhere in the $27-26.50 zone. Our first target is $29.85.

Current Position: Long MS stock @ 26.95

- or -

Long the 2011 January $27.50 calls (MS1122a27.50) Entry @ $0.58

- or -

Long the 2011 April $27 calls (MS1116D27) Entry @ $1.64

Entry on December 22 at $26.95
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 12.2 million
Listed on December 21st, 2010


Microsoft Corp. - MSFT - close: 28.19 change: +0.12

Stop Loss: 25.70
Target(s): 27.45, 29.00
Current Gain/Loss: +10.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/22 update: MSFT is still melting higher. While the relative strength is encouraging I would not launch new positions here. The stock is short-term overbought! I would expect a correction to bring it back down into the $27.25-26.75 area.

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: 21.41 change: +0.20

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:
12/22 update: We are still waiting for a dip in MYL although we may not see it. Shares look like they are coiling for a breakout past resistance near $21.50. Aggressive traders could buy a breakout. I'm suggesting we wait for a dip to $20.65.

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: 32.93 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:
12/22 update: SBUX is oscillating sideways. There is no change from my prior comments. 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: 17.50 change: -0.03

Stop Loss: 15.75
Target(s): 17.00, 17.90
Current Gain/Loss: +11.6%
Time Frame: 10 to 12 weeks
New Positions: no

Comments:
12/22 update: SLE saw a little bit of movement in the first five minutes of trading and then spent the rest of the day in an extremely narrow range near the $17.50 mark. 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: 35.48 change: -0.76

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

Comments:
12/22 update: Bingo! We adjusted our entry point to $35.60 last night and SNE corrected back to $35.32 today. Our trade is open and I would still consider new positions now at current levels. We have a stop loss at $34.40.

Suggested Position: Long SNE stock @ $35.60
- or -
Long the 2011 APRIL $35 calls (SNE1116D35) Entry @ $2.26

12/22 Triggered @ $35.60
12/21 New trigger @ 35.60, New stop @ 34.40

chart:

Entry on December 22 at $35.60
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 888 thousand
Listed on November 23rd, 2010


Trimble Navigation - TRMB - close: 40.28 change: +0.00

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:
12/22 update: TRMB is still slipping sideways. There is no change from my prior comments. 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: 42.28 change: -0.79

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:
12/22 update: There is no change from my prior comments. TX remains overbought and due for some profit taking. 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: 31.31 change: +0.49

Stop Loss: 28.90
Target(s): 29.25, 32.90
Current Gain/Loss: +16.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/22 update: Widespread strength in the banking sector continues to fuel gains in WFC. Shares rallied to $31.61 intraday. I am adjusting our final exit target higher from $31.90 to $32.90. Hopefully this little act of greediness won't bite us in the behind. The $32.00 level does look like potential resistance but the rally in the banking sector could last for a few weeks. I am raising our stop loss to $28.90. FYI: Aggressive traders could set their target near resistance at $34.00 instead. The Point & Figure chart is very bullish with a long-term $48 target.

Current Position: Long WFC stock @ $26.88

- or -

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

12/22: New stop loss @ 28.90, New final target @ 32.90
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: 14.49 change: +0.02

Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Gain/Loss: + 2.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/22 update: WWE rallied to $14.69 intraday before paring its gains. 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


CLOSED BULLISH PLAYS

City National Corp. - CYN - close: 62.31 change: +0.50

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:
12/22 update: I regret not launching positions in CYN on December 4th. One could not have predicted that CYN would surge higher, almost nonstop, for the next three weeks. It looks like the rally could be running out of steam here under $64. However, I am removing CYN from our play list. It could take weeks before shares correct low enough before I would want to buy the dip. Readers may want to keep it on their watch list.

Our trade never opened.

chart:

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