Editor's Note:
Not much has changed from Tuesday's performance. The rally in the financials stalled. Oil service stocks did well. Yet overall stocks are still drifting sideways. Almost nothing has changed on our play list below. I did move our trigger on MYL to $20.50.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 15.25 change: +0.02

Stop Loss: 14.25
Target(s): 14.95, 15.95
Current Gain/Loss: +14.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/29 update: The action in AA on Wednesday was short-term bearish. Of course we've been expecting a little correction. Look for short-term support at $15.00 and if that breaks we can expect a pull back toward $14.50. 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: 46.47 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:
12/29 update: ADP appears to be getting weaker but shares remain in the $46-47.00 zone. Currently our plan is to wait for a breakout and launch bullish positions 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: 57.43 change: +0.39

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 4.6%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
12/29 update: ALK spiked higher this morning but pared its gains to close up +0.68%. There is no change from my previous comments. I remain cautious on the stock given the sector's weakness. More conservative traders may want to consider raising their stops. 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: 3.07 change: -0.01

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:
12/29 update: The rally in financials paused on Wednesday. There is no change from my prior comments on BPOP. 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: -0.01

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:
12/29 update: Citigroup's rally stalled at the $4.80 mark again. 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: 41.91 change: +1.48

Stop Loss: 39.25
Target(s): 44.95, 49.00
Current Gain/Loss: + 4.1%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
12/29 update: CBD delivered a strong performance with a +3.6% gain. Shares are nearing recent resistance in the $42 area. I am raising our stop loss to $39.25. Readers might want to raise theirs closer to $40.00. 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

12/29 new stop loss @ 39.25
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: 45.79 change: -0.04

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:
12/29 update: There is nothing new to report on for CHKP. The stock is drifting sideways near the $46 area. 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: 37.60 change: +0.24

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:
12/29 update: DIS is bouncing from technical support at the 40-dma. Aggressive traders could buy this bounce. I am suggesting a trigger 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: 16.74 change: +0.01

Stop Loss: 16.29
Target(s): 18.40, 19.95
Current Gain/Loss: - 0.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/29 update: There is no change from my prior comments on Ford. The stock is moving sideways. 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: 29.84 change: +0.04

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:
12/29 update: FLIR is still consolidating under resistance near $30.00. I am expecting a correction toward $29.00 (maybe 28.50). 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: 40.51 change: +0.03

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 0.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/29 update: The transportation index is consolidating sideways but it appears to be coiling for another breakout higher. When that happens the rally in JBHT should resume. I would still consider new positions here or you could wait for a dip closer to the $40.00 mark.

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: 27.28 change: -0.38

Stop Loss: 25.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: Bearish analyst comments about MS earnings estimates helped push this stock to a -1.3% decline. The action over the last couple of days looks like a short-term bearish reversal. Look for a dip back toward the 200-dma and consider new positions there. 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: 27.97 change: -0.04

Stop Loss: 25.95
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/29 update: MSFT, like everything else, is drifting sideways. The stock remains overbought. I'm expecting a correction lower. I would not launch new positions here.

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: 21.20 change: -0.06

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:
12/29 update: MYL is still consolidating in the $21.00-21.50 zone. I am moving our trigger to open positions down to $20.50. More conservative traders could wait for a dip closer to $20.00 or the rising 50-dma.

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 @ $20.50

Suggested Position: Buy MYL stock @ $20.50

- 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


NII Holdings Inc. - NIHD - close: 44.26 change: +0.26

Stop Loss: 41.75
Target(s): 49.00, 53.50
Current Gain/Loss: - 0.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/29 update: NIHD is still trying to bounce. I would be tempted to buy this bounce on Wednesday but readers may want to wait for a move over $44.75 before initiating new positions.

My time frame is several weeks and we may end up exiting the January calls earlier than our stock position since January options expire in about four weeks. Cautious traders might want to consider a stop loss closer to $43.25 instead. FYI: The Point & Figure chart for NIHD is bullish with a $61 target.

Current Position: Long NIHD stock @ $44.49

- or -

Long the 2011 January $45.00 calls (NIHD1122A45) Entry @ $1.15

- or -

Long the 2011 February $48.00 calls (NIHD1119B48) Entry @ $1.10

Entry on December 28 at $44.49
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on December 27th, 2010


Starbucks Corp. - SBUX - close: 32.51 change: +0.12

Stop Loss: 31.70
Target(s): 34.75
Current Gain/Loss: + 0.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/29 update: It was another quiet day for SBUX. Shares managed a +0.37% gain. More conservative traders might be tempted to raise their stops a little bit closer to $32.00. I would prefer to see a move over $32.75 or even $33.25 before initiating new positions. 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

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: 17.49 change: -0.06

Stop Loss: 15.95
Target(s): 17.00, 17.90
Current Gain/Loss: +11.5%
Time Frame: 10 to 12 weeks
New Positions: no

Comments:
12/29 update: There is nothing new to report on for SLE. The stock has spent nearly six days hovering near $17.50. I am raising our stop loss to $15.95. 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

12/29/10 new stop loss @ 15.95
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: 35.87 change: +0.03

Stop Loss: 34.40
Target(s): 37.75, 39.75
Current Gain/Loss: + 0.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/29 update: SNE spent the session in a narrow range. There is no change from my prior comments. I would still consider new bullish positions at current levels.

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: 40.16 change: +0.23

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:
12/29 update: TRMB is hovering sideways near $40.00. There is no change from my prior comments. Our plan is to open bullish positions on a dip at $38.50. However, we might want to reconsider and buy a breakout over $40.60 with a stop at $39.49 as an alternative.

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: 42.24 change: +0.63

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:
12/29 update: TX was showing some relative strength today with a +1.5% gain. There is no change from my prior comments. 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: 31.02 change: -0.18

Stop Loss: 28.90
Target(s): 29.25, 32.90
Current Gain/Loss: +15.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/29 update: The rally in the financials faltered on Wednesday. Any correction would probably pull WFC down toward the $30.00 level. 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: 14.35 change: -0.10

Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Gain/Loss: + 1.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/29 update: It looks like we might see WWE retest the $14.15-14.00 zone again (this is a change from my prior comments of $14.30-14.00). Wait for that dip 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


Weyerhaeuser Co. - WY - close: 19.00 change: +0.16

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

Comments:
12/29 update: WY continues to rally higher without us. The stock is short-term overbought so we don't want to chase it. 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