Editor's Note:
The stock market closed near two-year highs as investors were content to run out the clock on 2010. As we face 2011 we have a newsletter full of bullish candidates. I did update a couple of stop losses. NVDA hit our trigger to launch positions. I removed TX from the play list.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 15.39 change: +0.18

Stop Loss: 14.25
Target(s): 14.95, 15.95
Current Gain/Loss: +16.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/01 update: AA ended the year with a little relative strength and a +1.1% gain. I would not chase AA at these levels. I'd prefer to look for a potential entry point near support at $14.50 but that means AA would have to breakdown under short-term support near $15.00. Another strong session could lift AA to our final target at $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%)

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: 46.28 change: -0.15

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
01/01 update: Entry point alert! We are adjusting our entry point strategy on ADP. Instead of waiting for a breakout over resistance near $47.00 I am suggesting we launch small bullish positions now on this dip toward support near $46.00 instead. I consider this an aggressive, higher-risk entry point so keep your position size small to limit your risk. We'll move our stop loss to $45.45, which is under the rising 50-dma. Our overhead targets are unchanged. I've adjusted our option strike to Feb. $45 calls.
FYI: The Point & Figure chart for ADP is forecasting a bullish price target of $66.00.

Open small bullish positions now.

Suggested Position: Buy ADP stock @ current levels

- or -

Buy the 2011 February $45.00 call (ADP1119B45) current ask $2.05

01/01: New stop loss @ 45.45
01/01: New entry point @ current levels, new option strike (Feb. $45)

chart:

Entry on January 3 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: 56.69 change: -0.80

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 3.2%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/01 update: We only have three weeks left on our January calls. The action in the XAL airline index is not very encouraging. Trading in shares of ALK over the last two weeks is arguably a short-term top. More conservative traders may want to raise their stops or just exit positions altogether. I am not suggesting new bullish trades.

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: 3.14 change: +0.04

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 4.6%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
01/01 update: Gain in the banking sector were mild on Friday. Shares of BPOP managed to outperform most of its peers. The stock is challenging its December highs. If you're looking for a new entry point I'd probably wait or the next bounce from the $3.00 area. Conservative traders may want to raise their stop closer to the 50-dma (currently near $2.90).

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: 4.73 change: -0.03

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:
01/01 update: It's been almost two weeks and we're right back where we started in Citigroup at $4.73. The stock is still building a bullish trend of higher lows but I remain cautious here. 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

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: 41.98 change: -0.28

Stop Loss: 39.80
Target(s): 44.95, 49.00
Current Gain/Loss: + 4.3%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
01/01 update: Last week's rally in CBD stalled at resistance near its 2010 highs. I would not be surprised to see another dip toward $41.00 or its trend of higher lows. Look for the next bounce from its highs lows as a new entry point. Or as an alternative you could wait for a close over $42.50. I am raising our stop loss to $39.80. 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

01/01 new stop loss @ 39.80
12/29 new stop loss @ 39.25
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: 46.26 change: +0.24

Stop Loss: 43.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 2.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/01 update: Good news! There was no follow through on Thursday's failed-rally pattern. CHKP still looks poised to move higher from here. I would consider new positions here but keep your position size small to limit your risk.

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


Walt Disney Co. - DIS - close: 37.51 change: +0.03

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:
01/01 update: If you are a nimble trader looking to buy another dip near DIS's trend of higher lows then you got another entry point on Friday. For the rest of us I'm suggesting we wait for a breakout over $38.00 and use a trigger at $38.25 to open positions. 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)

chart:

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: 16.79 change: +0.10

Stop Loss: 16.29
Target(s): 18.40, 19.95
Current Gain/Loss: - 0.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/01 update: Ford has been consolidating sideways the entire month of December. It's time for shares to break one way or the other. I'm betting the prevailing trend will resume. Readers can launch new bullish positions now or wait for a move past $17.00.

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: 29.75 change: -0.22

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 2.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/01 update: FLIR continues to trade sideways under resistance at $30.00. I'm expecting a correction back toward $29.00 or possibly the $28.50 area. Wait for the dip before considering new 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

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: 40.81 change: -0.02

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:
01/01 update: The sideways consolidation in the Dow Jones Transportation index is narrowing and the index looks ready to breakout higher. When that happens it should help kick start JBHT's next move. I would consider new positions now but you may want to keep your position size small to limit your risk.

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: 27.21 change: -0.12

Stop Loss: 25.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 0.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/01 update: I don't see any changes from my prior comments. We would prefer to launch new positions on a dip near the 200-dma around the $26.50 area. More conservative traders might want to inch up their stops closer to the rising 50-dma (currently at $25.87). 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: 27.91 change: +0.06

Stop Loss: 25.95
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/01 update: MSFT dipped to its rising 20-dma and bounced on Friday. The move looks like it could be a short-term bullish reversal. I want to caution readers that MSFT is still very overbought from its December rally. I am not suggesting new positions at this time. I'd prefer to see a dip near the rising 50-dma.

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: 21.13 change: -0.04

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:
01/01 update: MYL traded under the $21.00 level for the first time in two weeks. The stock pared its intraday losses but the short-term trend is lower. We've been waiting for a correction. Currently our plan is to open bullish positions on a dip at $20.50.

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)

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


NII Holdings Inc. - NIHD - close: 44.66 change: +0.33

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:
01/01 update: Telecom stock NIHD continues to bounce from its lows set early last week. I would be tempted to launch new positions here but readers may want to wait for a move over $45.00. Should the market suddenly correct lower watch for NIHD to find support near $42.00.

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

chart:

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


NVIDIA Corp - NVDA - close: 15.40 change: +0.41

Stop Loss: 14.45
Target(s): 16.75, 17.90
Current Gain/Loss: + 1.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/01 update: We did not have to wait very long for NVDA to hit our breakout trigger at $15.15. I didn't see any specific news to account for NVDA's relative strength on Friday. Shares rallied +2.7% to close at new seven-month highs. If you missed our entry point at $15.15 you could buy NVDA (or call options) now or you could wait for a dip back toward the $15.15-15.00 area. Our time frame is two or three months. We'll try and limit our risk with a relatively tight stop loss.

(small positions)

Current Position: Long NVDA stock @ $15.15

- or -

Long the 2011 February $15.00 calls (NVDA1119B15) Entry @ $1.05

- or -

Long the 2011 March $15.00 calls (NVDA1119C15) Entry @ $1.25

chart:

Entry on December 31 at $15.15
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: 13.2 million
Listed on December 30th, 2010


Starbucks Corp. - SBUX - close: 32.13 change: -0.28

Stop Loss: 31.70
Target(s): 34.75
Current Gain/Loss: - 0.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/01 update: The upward momentum in SBUX has definitely stalled. Shares are trading sideways above support near $32.00 but I'm concerned SBUX is poised to breakdown under this level. We already have a pretty tight stop loss at $31.70. 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

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: 17.52 change: +0.03

Stop Loss: 15.95
Target(s): 17.00, 17.90
Current Gain/Loss: +11.6%
Time Frame: 10 to 12 weeks
New Positions: no

Comments:
01/01 update: SLE continues to shed businesses. Last Tuesday they sold their White King and Janola cleaning brands to Symex. On Friday SLE sold their Kiwi brand shoe care unit to SC Johnson. This news is having no affect on the stock price as it hovers near the $17.50 level. There is no change from my prior comments. 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%)

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: 35.71 change: +0.14

Stop Loss: 34.75
Target(s): 37.75, 39.75
Current Gain/Loss: + 0.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/01 update: SNE has spent the last few days bouncing around the $35-36 zone. Friday was no different. Readers may want to wait for a new move over $36.00 before initiating new positions. The 50-dma has risen to $34.79. I am raising our stop loss to $34.75.

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

01/01 New stop loss @ 34.75
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: 39.93 change: -0.28

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:
01/01 update: TRMB tried to rally again and once again it failed under the $40.60 level. Shares accelerated lower into the closing bell. I don't see any changes from my prior comments. We might want to consider a buy-the-breakout entry point over $40.60 with a tight stop loss. However, for the moment we're going to keep our trigger to open bullish positions 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


Wells Fargo & Co - WFC - close: 30.99 change: +0.17

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:
01/01 update: WFC recovered from its morning lows to post a decent gain on Friday. Shares have been consolidating sideways for over a week now. We don't want to chase WFC given its big move from late November. 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: 14.24 change: -0.05

Stop Loss: 13.90
Target(s): 14.95, 16.40
Current Gain/Loss: + 0.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/01 update: WWE is fading lower and could be headed for support near $14.10 and its rising 50-dma. Readers may want to 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.

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

chart:

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: 18.93 change: -0.02

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

Comments:
01/01 update: WY has spent the last few days trading sideways under resistance near $19.00. The stock is a little bit overbought and probably due for a pull back. 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)

chart:

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


CLOSED BULLISH PLAYS

Ternium S.A. - TX - close: 42.41 change: +0.70

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:
01/01 update: I am temporarily giving up on TX as a bullish candidate. The trend is still up and TX looks poised to move higher but shares remain overbought and it looks pretty risky. Aggressive traders might want to consider buying Friday's bounce and just use a tight stop under $41.50 or under $41.25. Our plan to buy the dip has not been triggered. Our plan never opened.

chart:

Entry on December xx at $xx.xx
Earnings Date 02/23/11 (unconfirmed)
Average Daily Volume: 295 thousand
Listed on December 14th, 2010