Editor's Note:
Investors seem to be waiting for the end of 2010 and the beginning of 2011 before making any moves in the stock market. The market continues to drift sideways. There is almost no change from my Wednesday play updates.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 15.21 change: +0.08

Stop Loss: 14.25
Target(s): 14.95, 15.95
Current Gain/Loss: +15.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/30 update: AA is developing a short-term trend of lower highs. This might suggest a deeper correction soon. I'd like to see a dip 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: 46.43 change: -0.04

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:
12/30 update: Traders bought the dip this morning but ADP is still struggling. 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: 57.49 change: +0.06

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 4.7%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
12/30 update: It was a very quiet day for ALK. I'm surprised the XAL airline index did not perform better given the decline in oil prices on Thursday. I remain cautious on ALK 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: 3.10 change: +0.03

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 3.3%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
12/30 update: BPOP is still drifting higher and outperformed the banking sector indices today. 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: 4.76 change: -0.01

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: + 0.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: Citigroup spent the session moving sideways. There is no change from my prior comments. 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: 42.26 change: +0.35

Stop Loss: 39.25
Target(s): 44.95, 49.00
Current Gain/Loss: + 4.9%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
12/30 update: The rally in CBD continued and the stock is now testing resistance near the $42.50 area. I am not suggesting new positions at this time but we could see a new entry point soon. 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: 46.02 change: +0.23

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:
12/30 update: I couldn't find any news behind the early morning spike higher on CHKP today. It's not like CHKP has a lot of short interest. The rally ran out of steam just over $47.00 and did not hit our first target. If CHKP closes under $45.50 soon the move is going to look like a bearish reversal. I am not suggesting new positions at this time.

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: -0.12

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:
12/30 update: There is no change on my prior comments for DIS. 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: 16.69 change: -0.05

Stop Loss: 16.29
Target(s): 18.40, 19.95
Current Gain/Loss: - 1.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: I am a little bit concerned that if Ford breaks down under the $16.60 level it could be headed for the $16.00 mark, which would close out our play since the stop is at $16.29. I am growing a little bit more hesitant to launch new positions. You could wait for a move over the $17.00 level before initiating positions.

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: 29.97 change: +0.13

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 2.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: FLIR is inching higher and higher as if it wants to breakout over the $30.00 mark. I would wait for a dip near $29.00 or $28.50 before considering new bullish positions. 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: 40.83 change: +0.32

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 1.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: JBHT was showing some relative strength today. The stock added 0.78%. This bounce could be used as a new bullish entry point.

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: 27.33 change: +0.05

Stop Loss: 25.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: MS saw its earnings estimates downgraded today but the news did not have much affect on the stock price. I would still wait for a dip near the simple 200-dma before launching new positions. 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: 27.85 change: -0.12

Stop Loss: 25.95
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: We have been expecting MSFST to correct. Shares have been fading lower four days in a row. I am expecting a dip toward $27.00, maybe 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: 21.17 change: -0.03

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:
12/30 update: There is no change from my prior comments on MYL. 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: 44.33 change: +0.07

Stop Loss: 41.75
Target(s): 49.00, 53.50
Current Gain/Loss: - 0.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/30 update: NIHD tried to rally but just didn't have enough gas to get past the $45.00 level or its 10-dma. We may want to postpone launching new positions until we see NIHD over $45.00. Or you could wait for another dip near the $42.50 area.

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: 32.41 change: -0.10

Stop Loss: 31.70
Target(s): 34.75
Current Gain/Loss: + 0.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/30 update: There is no change from my prior comments on SBUX. Shares continue to churn sideways. 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: 17.52 change: +0.03

Stop Loss: 15.95
Target(s): 17.00, 17.90
Current Gain/Loss: +11.7%
Time Frame: 10 to 12 weeks
New Positions: no

Comments:
12/30 update: There is no change from my prior comments on SLE. The stock continues to hover near $17.50. 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: 35.57 change: -0.30

Stop Loss: 34.40
Target(s): 37.75, 39.75
Current Gain/Loss: - 0.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: SNE pulled back toward the $35.50 area again. We can use this dip as another entry point. Patient traders may want to wait as we might get a lower entry point near $35.00 soon.

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: 40.21 change: +0.05

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:
12/30 update: There is no change from my prior comments on TRMB. 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: 41.71 change: -0.53

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:
12/30 update: The early morning strength in TX quickly faded. 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: 30.82 change: -0.20

Stop Loss: 28.90
Target(s): 29.25, 32.90
Current Gain/Loss: +14.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: The upward momentum is fading a little bit. We might see WFC retest 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: 14.29 change: -0.06

Stop Loss: 13.90
Target(s): 14.95, 16.40
Current Gain/Loss: + 1.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
12/30 update: WWE provided us a new entry point on Thursday. Last night I suggested readers wait for a dip into the $14.15-14.00 zone before launching positions. WWE dipped to $14.15 and rebounded midday. I would still consider new positions here at current levels. We will move our stop loss higher to $13.90.

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.

12/30/10 new stop loss @ 13.90
12/30/10 WWE provides another entry point at $14.15

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: 18.95 change: -0.05

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

Comments:
12/30 update: There is no change from my prior comments on WY. 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