Editor's Note:
The Santa Claus rally lost a little steam on Thursday but bulls remain in control. The path of least resistance seems to be higher. Not much has changed on our play list below. I did update stop losses for AA and MSFT. Plus, I've adjusted our entry point on SBUX.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 15.34 change: +0.20

Stop Loss: 14.25
Target(s): 14.95, 15.95
Current Gain/Loss: +16.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/25 update: AA's rally continues. The stock is up about +10% in the last few days with a six-day rally. The action on Thursday could be a short-term top. AA spiked to $15.63 and pared its gains. Volume continues to be healthy in spite of the holidays. I am raising our stop loss to $14.25 since broken resistance near $14.50 should be new support. Cautious traders may want to take profits now. Currently our final exit target is $15.95. Aggressive traders could aim higher (maybe the $17 area).

Current Position: Long AA stock @ 13.18

12/25: new stop loss @ 14.25
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: 46.52 change: -0.39

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:
12/25 update: ADP ran into some profit taking on Thursday with a -0.8% drop. This move does break the very short-term bullish pattern of higher lows. We could see ADP retest support near $46.00 or its 50-dma nearing $45.50. If we see a bounce at one of these levels we might reconsider our entry point. However, for the moment we'll keep our trigger at $47.25.
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.

chart:

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: 57.40 change: -0.90

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 4.5%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
12/25 update: Uh-oh! The XAL airline index could be in trouble. The bounce has failed under resistance at the 50-dma. Rising oil prices do not help this industry. It does seem like the XAL is in a correction lower. Meanwhile shares of ALK are seeing some profit taking after spiking higher on Tuesday. Volume was exceptionally low on Thursday so it's hard to put a lot of conviction behind the move. We are not suggesting new bullish positions at this time. Look for short-term support in the $57-55 zone.

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.

chart:

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: 2.98 change: -0.09

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: - 0.6%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
12/25 update: I have to urge caution on BPOP tonight. After strong gains in December the banking stocks finally saw some profit taking on Thursday. Yet the action in BPOP looks like a bearish reversal with the early morning spike higher and close lower. It could be a symptom of the low volume on Thursday but we should remain cautious. I am not suggesting new bullish positions at this time. Conservative traders may want to raise their stop closer to the 50-dma.

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

chart:

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: 4.68 change: -0.05

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: - 1.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/25 update: Citigroup is also seeing some profit taking. Shares appear to be headed for a move back toward the $4.60-4.55 area. Wait for a the dip (or a bounce) near the $4.60 area before considering new bullish positions in C. 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

chart:

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: 40.85 change: +0.10

Stop Loss: 37.90
Target(s): 44.95, 49.00
Current Gain/Loss: + 1.5%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
12/25 update: CBD rebounded from another test of its rising 40-dma. This continues to look like a buy-the-dip entry point to launch new positions. Although more conservative traders may want to use a higher stop loss. CBD can be a volatile stock so readers should consider this a higher-risk trade.

NOTE: We may need to reconsider our time frame on CBD. It could take longer than previously expected for shares to hit our targets.

Current Position: Long CBD stock @ $40.25

12/21 New stop loss @ 37.90

chart:

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: 45.85 change: -0.05

Stop Loss: 43.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 1.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/25 update: Thursday was another sleepy session for CHKP with the stock moving sideways in a narrow range. I would prefer to start new positions on a dip near $45.00. If the market sees any sort of correction CHKP could easily retest prior resistance and current support near $44.00.

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

chart:

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


Ford Motor Co. - F - close: 16.78 change: -0.21

Stop Loss: 16.29
Target(s): 18.40, 19.95
Current Gain/Loss: - 0.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/25 update: Ford suffered a little bit of profit taking on Thursday. Shares opened at $16.90 (our entry point). Nothing has changed from my Wednesday night comments. We would still consider new bullish positions now or on a dip near $16.50. We'll try and limit our risk with a stop loss at $16.29.

FYI: The Point & Figure chart for Ford is bullish with a long-term target of $19.50.

- Suggested Positions -

Long Ford stock @ $16.90

- or -

Long the 2011 January $17.50 calls (F1122a17.5) Entry @ $0.25

- or -

Long the 2011 March $18.00 calls (F1119C18) Entry @ $0.61

chart:

Entry on December 23 at $16.90
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 58.7 million
Listed on December 22nd, 2010


FLIR Systems Inc. - FLIR - close: 29.63 change: -0.06

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 1.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/25 update: FLIR rally took a moment to rest on Thursday. The stock has broken through several layers of resistance in the past few days. I would expect a dip back toward $29.00, which should be new support. Look for a dip near $29 as our next entry point. FLIR doesn't move super fast but our targets are $30.90 and $33.00.

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: 40.74 change: -0.05

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 1.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/25 update: JBHT was little changed on Thursday. I am suggesting readers look for a dip near $40.00 as our next entry point to launch bullish positions.

FYI: The Point & Figure chart for JBHT is bullish with a $54.50 target.

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)

chart:

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: 27.41 change: +0.01

Stop Loss: 25.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/25 update: The rally in the financial stocks paused on Thursday and MS hovered near its new six-week highs. 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

chart:

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: 28.30 change: +0.11

Stop Loss: 25.95
Target(s): 27.45, 29.00
Current Gain/Loss: +10.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/25 update: Shares of MSFT continue to grow more and more overbought. Shares hit new multi-month highs on Thursday. I would not launch new positions here. Wait for a correction. I am raising our stop loss to $25.95.

Current Position: Long MSFT stock @ 25.55

- or -

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

12/25/10 new stop @ 25.95
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

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


Mylan, Inc. - MYL - close: 21.41 change: +0.00

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:
12/25 update: Thursday was an extremely quiet day for MYL with shares moving sideways in a narrow range. The stock closed unchanged on the session. Aggressive traders could buy a breakout over $21.50. 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)

chart:

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: 32.63 change: -0.30

Stop Loss: 31.70
Target(s): 34.75
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/25 update: I am going to suggest we turn more aggressive on SBUX. Until this stock breaks down from its channel we'll respect the trend. Thus we need to move our buy the dip entry point to $32.25 and we'll move our stop loss to $31.70. I would still keep your position size very small. Eventually SBUX will break this channel and the correction could be sharp.

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 @ $32.25 <-- new trigger

Suggested Position: Buy SBUX stock @ $31.25

- or -

Buy the 2011 January $33.00 call (SBUX1122A33)
Buy the 2011 April $34.00 call (SBUX1116D34)

12/25/10 new trigger 32.25, new stop 31.70

chart:

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: +0.00

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:
12/25 update: For the third day in a row shares of SLE have hovered a long the $17.50 line. Cautious traders may want to go ahead and take profits now with a complete exit. 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%)

chart:

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: 35.57 change: +0.09

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:
12/25 update: Traders bought the dip again in SNE. There is no change from my prior comments. This bounce from the rising 30-dma looks like another entry point to buy SNE (or calls).

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: 40.15 change: -0.13

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:
12/25 update: It looks like TRMB is starting to roll over again. If we don't see shares pull back under its Dec. 16th low soon I'll drop it. We want to wait for a pull back toward support near $38.00. I'm suggesting a trigger 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

chart:

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: 41.97 change: -0.31

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:
12/25 update: The rally in TX has stalled near its 2010 highs. Shares look like they might be correcting. We don't want to chase it at current levels. At the moment our buy the dip entry point is $38.25 but we might adjust that if TX finds new support near $40.00.

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.

chart:

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: 30.99 change: -0.32

Stop Loss: 28.90
Target(s): 29.25, 32.90
Current Gain/Loss: +15.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/25 update: Banks have been big winners in December. It's not surprising to see a little profit taking on Thursday. I am not suggesting new positions at this time. Our target to exit is $32.90. 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%)

chart:

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: 14.36 change: -0.13

Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Gain/Loss: + 1.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/25 update: WWE is correcting a little bit. Shares lost -0.89% on Thursday. Look for support in the $14.20-14.00 zone. I would still consider new bullish positions in the $14.30-14.00 area but readers may want to wait and buy a bounce instead of buying a dip.

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.

chart:

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