Editor's Note:
Over the weekend China raised interest rates, which sparked some profit taking across the Asian and European markets. The U.S. market opened lower but strength in the financials helped fuel a rebound. You won't see a lot of change on the play list below but SBUX did hit our new aggressive entry point.

-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: +15.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/27 update: AA recovered from its morning low but still settled with a -0.7% decline. This isn't surprising after last week's potential top on Thursday. I'm expecting a correction toward the $14.50 area. 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). No new positions at this time.

Current Position: Long AA stock @ 13.18

12/25: new stop loss @ 14.25
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: 46.57 change: +0.05

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:
12/27 update: ADP is moving the wrong direction. The stock did recover from its intraday lows as traders bought the dip near short-term support at $46 and its 30-dma. I am not convinced the correction is over. We will keep our trigger to buy a breakout 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.

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: 56.55 change: -0.85

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 2.9%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
12/27 update: The XAL airline index tagged another new relative low on Monday. Shares of ALK saw a lot more volatility and closed with a -1.4% drop. The stock is testing very short-term support near $56.00. More conservative traders may want to consider raising their stops toward today's low (55.73). I am not suggesting new bullish 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: 3.03 change: +0.05

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 1.0%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
12/27 update: Banking stocks were some of the best performers today. BPOP managed to outperform its peers with a +1.6% gain. I remain somewhat cautious on the stock given last week's lower high. 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

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: 4.77 change: +0.09

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: + 0.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: Monday turned out to be a strong session for Citigroup. The stock rallied immediately off its morning low and closed with a +1.9% gain. I am not suggesting new bullish positions at these levels. This remains an aggressive, higher-risk trade. The plan was to keep our 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: 40.83 change: -0.02

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:
12/27 update: It was another forgettable day for CBD with the stock bouncing from its rising 40-dma again but shares failed to close in positive territory. I remain cautious on launching new positions. 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

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: 45.92 change: +0.07

Stop Loss: 43.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 1.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/27 update: CHKP recovered from its morning swoon and managed to challenge its highs from last week. Nothing has changed from my prior comments. I would prefer to initiate new positions on a dip 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


Walt Disney Co. - DIS - close: 37.48 change: -0.22

Stop Loss: 36.75
Target(s): 39.90, 42.50
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/27 update: DIS saw a little bit of profit taking on Monday. There is no change from my weekend comments. Nimble traders could try and buy a dip near $37.00. I am suggesting we wait for a breakout over resistance with a trigger to launch positions at $38.25. We'll use a stop loss at $36.75. Our targets are $39.90 and $42.50. Our time frame is two or three months.

Trigger @ 38.25

- Suggested Positions -

Buy DIS stock @ 38.25

- or -

Buy the 2011 February $40.00 calls (DIS1119B40)

- or -

Buy the 2011 April $40.00 calls (DIS1116D40)

Entry on December xx at $xx.xx
Earnings Date 02/08/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on December 25th, 2010


Ford Motor Co. - F - close: 16.87 change: +0.09

Stop Loss: 16.29
Target(s): 18.40, 19.95
Current Gain/Loss: - 0.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: The action today could be a new bullish entry point in Ford. The stock dipped to $16.60 and delivered a nice rebound higher this afternoon. Traders may want to consider new positions right here. Or you could wait for a move over the $17.00 level. 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

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: 29.83 change: +0.20

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 2.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: FLIR showed some relative strength. The stock quickly recovered from its gap open lower and shares rallied toward round-number resistance at $30.00. I am still expecting a correction toward $29.00. Wait for that dip near the $29.00 mark 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

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: 40.62 change: -0.12

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 0.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: The Dow Jones Transportation index managed to post a gain but most of the action was sideways. Shares of JBHT also spent the day moving sideways. 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)

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: 27.51 change: +0.10

Stop Loss: 25.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/27 update: Strength in the financial sector gave MS a boost. The stock quickly rebounded from its morning low and shares are now challenging the $27.50 mark. 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: 28.07 change: -0.23

Stop Loss: 25.95
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: MSFT dipped toward the $28 level and its rising 10-dma. The stock remains overbought and long over due for some profit taking. I would not launch new positions here. Wait for a correction.

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

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: 21.42 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:
12/27 update: Monday was a quiet day for MYL. The stock traded sideways in a 32-cent range. There is no change from my prior comments. 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)

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: 32.47 change: -0.16

Stop Loss: 31.70
Target(s): 34.75
Current Gain/Loss: + 0.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/27 update: Our aggressive entry point to open bullish positions in SBUX has been hit! The market's morning swoon pushed SBUX to $32.16. Our trigger was $32.25. We're starting this play with a stop loss at $31.70. I would still consider new bullish positions in the $32.30-31.75 zone. The plan was to keep our position size very small to limit our risk as SBUX remains overbought.

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.

Suggested Position: Long SBUX stock @ $31.25

- or -

Long the 2011 January $33.00 call (SBUX1122A33) Entry @ $0.55
Long the 2011 April $34.00 call (SBUX1116D34) Entry @ $1.30

12/27/10 Trigger hit @ 32.25
12/25/10 new trigger 32.25, new stop 31.70

chart:

Entry on December 27 at $32.25
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 7.1 million
Listed on December 8th, 2010


Sara Lee Corp - SLE - close: 17.51 change: -0.01

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:
12/27 update: Day four - SLE continues to hover near the $17.50 level. This sideways churn is not good for our options. Readers may want to exit the options early. 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: 35.61 change: +0.04

Stop Loss: 34.40
Target(s): 37.75, 39.75
Current Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: There is nothing new to report on for SNE. Shares are still hovering near their 30-dma. Readers can launch positions here in the $35.75-35.00 zone.

Current 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

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: 40.33 change: +0.18

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:
12/27 update: TRMB was showing a little relative strength with a nice bounce from its morning low. We still don't want to chase it here. If TRMB closes over $40.75 I'll drop it as a bullish candidate. I'm suggesting a trigger to buy the dip 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: 41.76 change: -0.21

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:
12/27 update: There is no change from my prior comments on TX. 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.

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: 31.21 change: +0.22

Stop Loss: 28.90
Target(s): 29.25, 32.90
Current Gain/Loss: +16.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: Strength in the banking sector propped up the market this morning. WFC did its part with a sharp rally from the opening low. 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%)

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: 14.50 change: +0.14

Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Gain/Loss: + 2.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/27 update: WWE is still drifting higher. There is no change from my prior comments. I would prefer to launch new positions in the $14.30-14.00 zone. 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.

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


Weyerhaeuser Co. - WY - close: 18.71 change: +0.15

Stop Loss: 16.99
Target(s): 19.95
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/27 update: WY was showing relative strength with a rally to a new seven-month high. We are waiting for a dip toward short-term support near $18.00. The plan is to buy the stock or calls at $18.10. We'll use a stop at $16.99 but more conservative traders might consider a stop loss closer to $17.50 instead. Our first target is $19.95.

Trigger @ 18.10

Suggested Position: Buy WY stock @ $18.10

- or -

Buy the 2011 April $20 calls (WY1116D20)

Entry on December xx at $xx.xx
Earnings Date 02/04/11 (unconfirmed)
Average Daily Volume: 4.7 million
Listed on December 25th, 2010