Editor's Note:
AA hit our final target on today's gain. Several stocks saw breakouts higher. CHKP also hit one of our targets today. We're taking profits early and closing our SLE play. I've updated our stop loss on MS and changed our entry point strategy on TRMB. We've also dropped WY as a candidate.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 47.05 change: +0.77

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: + 0.6%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
01/03 update: Over the weekend I suggested buying ADP on the dip. Unfortunately the stock gapped open higher at $46.75 this morning (our new entry point). Shares spiked above resistance near $47.00 before paring its gains. I would still consider new positions here but you will want to keep your position size small to limit your risk.
FYI: The Point & Figure chart for ADP is forecasting a bullish price target of $66.00.

Current Position: Long ADP stock @ $46.75

- or -

Long the 2011 February $45.00 call (ADP1119B45) Entry @ $2.00

01/03: Entry @ $46.75
01/01: New stop loss @ 45.45
01/01: New entry point @ current levels, new option strike (Feb. $45)

Entry on January 3 at $46.75
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on December 16th, 2010


Alaska Air Group - ALK - close: 57.88 change: +1.19

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 5.4%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/03 update: Airlines were strong performers on Monday. ALK gained +2%. Yet I remain somewhat cautious on ALK and the group. 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.

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: 3.20 change: +0.06

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 6.6%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
01/03 update: Banking stocks were big performers on Monday. BPOP gained +1.9% and closed at new multi-month highs. I'm not suggesting new positions at current levels. 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

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: 4.90 change: +0.17

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: + 3.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: Citigroup was showing lots of relative strength on Monday. The stock broke out to new multi-month highs and closed with a +3.5% gain. Our first target to take profits is at $5.00. 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: 43.40 change: +1.42

Stop Loss: 39.80
Target(s): 44.95, 49.00
Current Gain/Loss: + 7.8%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
01/03 update: CBD has broken out to new all-time highs over recent resistance. Over the weekend I suggested readers could buy a breakout over $42.50. You might want to wait for a dip back toward $42.50 before considering 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

01/01 new stop loss @ 39.80
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: 46.89 change: +0.63

Stop Loss: 43.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 3.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/03 update: Target achieved. CHKP is having a hard time keeping its gains. The stock spiked to $47.94 and then retreated back under the $46 level. Our first target was hit at $47.25. The option was trading at $3.75 (+47%) and hit a high over $4. We still have a longer-term target at $49.75. 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

01/03: 1st Target Hit @ $47.25 (+4.7%) Option @ $3.75 (+47%)

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: 37.82 change: +0.31

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:
01/03 update: DIS rallied toward resistance near $38.00 and failed. 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)

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: 17.25 change: +0.46

Stop Loss: 16.29
Target(s): 18.40, 19.95
Current Gain/Loss: + 2.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: Ford delivered a strong move with a +2.7% gain but the stock has not yet broken out past its November 2010 highs (near $17.42). If you were waiting for a move over $17.00 as your entry point you got it today.

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: 29.65 change: -0.10

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 1.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: Shares of FLIR were downgraded this morning and the stock dipped to $29.00 before paring its losses. I have been suggesting readers wait for a dip near $29.00 or $28.50 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: 41.64 change: +0.83

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 3.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: Just as we expected the transports broke out higher and JBHT rallied to new highs. If you're looking for a new entry point wait for a dip near the $41-40 zone.

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: 28.23 change: +1.02

Stop Loss: 25.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 4.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/03 update: Financial stocks were showing relative strength today. MS outperformed many of its peers with a +3.7% gain. I am raising our stop loss to $25.95. I'm not suggesting new positions at this time. 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

01/03: New stop loss @ 25.95

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: 27.98 change: +0.07

Stop Loss: 25.95
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: MSFT did not really participate in the market's rally on Monday. Shares did post a gain but the stock underperformed the major indices. 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

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: 21.66 change: +0.53

Stop Loss: 19.99
Target(s): 22.90
Current Gain/Loss: unopened
Time Frame: 12 to 14 weeks
New Positions: Yes, see trigger

Comments:
01/03 update: MYL rallied to a new seven-month high with Monday's +2.5% gain. Aggressive traders may want to buy this breakout. I am raising our trigger to buy the dip from $20.50 to $21.25. We'll move our stop loss to $19.99. More conservative traders could move it closer to $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 @ $21.25

Suggested Position: Buy MYL stock @ $21.25

- 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: 43.48 change: -1.18

Stop Loss: 41.75
Target(s): 49.00, 53.50
Current Gain/Loss: - 2.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/03 update: Warning! The action in NIHD today is very bearish. The stock has produced a failed rally and bearish reversal pattern. More conservative traders will want to seriously consider an early exit right here. I am not suggesting new bullish positions at this time. If NIHD underperforms again tomorrow we might close this trade early.

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


NVIDIA Corp - NVDA - close: 15.82 change: +0.42

Stop Loss: 14.45
Target(s): 16.75, 17.90
Current Gain/Loss: + 4.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: NVDA delivered another strong performance with a +2.7% gain on Monday. I would not chase it here. If you're looking for a new position wait for a dip near $15.25. 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

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


ResMed Inc. - RMD - close: 35.02 change: +0.38

Stop Loss: 32.40
Target(s): 38.00
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
01/03 update: RMD bounced with the market's widespread gains but shares still look poised for a pull back toward support near $34.00. I am suggesting a trigger to launch bullish positions at $34.00 with a stop loss at $32.40. If triggered our multi-week target is $38.00.

Trigger to buy-the-dip @ $34.00

Suggested Position: Buy RMD stock @ $34.00

- or -

Buy the 2011 April $35.00 calls (RMD1116D35) current ask $2.05

Entry on January xx at $xx.xx
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 752 thousand
Listed on January 1st, 2010


Starbucks Corp. - SBUX - close: 33.25 change: +1.12

Stop Loss: 31.70
Target(s): 35.75
Current Gain/Loss: + 3.1%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/03 update: SBUX added +3.4% and closed at new three-year highs. This move over resistance near $33.00 could be used as a new bullish entry point. The plan was to keep our position size very small to limit our risk as SBUX remains overbought. Please note that I am raising our exit target to $35.75.

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

01/03/11 New target at $35.75
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


Sony Corp. - SNE - close: 36.38 change: +0.67

Stop Loss: 34.75
Target(s): 37.75, 39.75
Current Gain/Loss: + 2.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: SNE rallied +1.8% to close over recent resistance near $36.00. If you were waiting for a move over $36.00 to buy SNE you got it today.

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

Entry on December 22 at $35.60
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 888 thousand
Listed on November 23rd, 2010


Seagate Technology - STX - close: 14.97 change: -0.06

Stop Loss: 14.70
Target(s): 16.95, 17.75
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
01/03 update: The action in STX was disappointing today. Shares rallied to $15.33 and failed. We are waiting for a breakout past resistance. I am suggesting a breakout trigger at $15.45. Our targets are $16.95 and $17.75. I anticipate this trade taking several weeks. However, STX is due to report earnings in about three weeks. Normally we do not want to hold over earnings. Conservative traders will want to exit ahead of the announcement.
FYI: The Point & Figure chart for STX is bullish with a long-term $28.50 target.

Trigger at $15.45

Suggested Position: Buy STX stock @ $15.45

- or -

Buy the 2011 February $15 calls (STX1119B15) current ask $0.91

Entry on January xx at $xx.xx
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 7.1 million
Listed on January 1st, 2010


Trimble Navigation - TRMB - close: 40.64 change: +0.71

Stop Loss: 39.40
Target(s): 42.75, 44.75
Current Option Gain/Loss: + 0.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
01/03 update: Attention! We are changing our entry point strategy on TRMB. I've been talking about potentially buying a breakout higher. TRMB did indeed breakout higher from its recent sideways consolidation. I'm suggesting we open bullish positions now. We want to keep our position size small to limit our risk! We'll move our stop loss to $39.40. Our targets are now $42.75 and $44.75.

Open positions now. (Small Positions Only)

Suggested Position: Buy TRMB stock @ current levels

- or -

Buy the 2011 February $40.00 calls (TRMB1119B40) current ask $2.30

chart:

Entry on January 4 at $xx.xx
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 435 thousand
Listed on December 4th, 2010


Wells Fargo & Co - WFC - close: 31.58 change: +0.59

Stop Loss: 28.90
Target(s): 29.25, 32.90
Current Gain/Loss: +17.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: Strength in the banking stocks pushed WFC toward its late December highs and a +1.9% gain. 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: 14.36 change: +0.12

Stop Loss: 13.90
Target(s): 14.95, 16.40
Current Gain/Loss: + 1.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/03 update: WWE managed a +0.8% gain but that was weak compared to the major stock market indices. I remain bullish on the stock but would only consider small positions to limit your risk.

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


CLOSED BULLISH PLAYS

Alcoa Inc - AA - close: 15.80 change: +0.41

Stop Loss: 14.25
Target(s): 14.95, 15.95
Current Gain/Loss: +21.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/03 update: Target achieved. AA gapped open higher this morning at $15.82 and spiked to $16.20 on some positive analyst comments this morning. Our target was hit at $15.95 closing this play. I'd keep AA on your watch list as a potential buy-the-dip candidate for late January. Keep an eye on the 40 or 50-dma as support.

Closed Position: Long AA stock @ 13.18. Exit @ $15.95 (+21%)

01/03: Final target hit @ $15.95 (+21%)
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


Sara Lee Corp - SLE - close: 17.48 change: -0.03

Stop Loss: 15.95
Target(s): 17.00, 17.90
Current Gain/Loss: +11.4%
Time Frame: 10 to 12 weeks
New Positions: no

Comments:
01/03 update: SLE is still not moving, which is rather disappointing given the market's strength. I am giving up on SLE. More aggressive traders could hold on but I'm not sure what your upside is.

Closed Position: Long SLE stock @ $15.68, exit @ $17.48 (+11.4%)

- or -

Long the 2011 April $15.00 calls (SLE1116D15) Entry @ $1.35, exit $2.55 (+88%)

01/03/11 Exit early @ 17.48 (+11.4%), option @ $2.55 (+88%)
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


Weyerhaeuser Co. - WY - close: 19.76 change: +0.83

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

Comments:
01/03 update: I am giving up on WY. We missed the entry point. The stock never pulled back after its Christmas week consolidation sideways. Now the stock is nearing potential resistance at $20.00 (and our target). I am removing WY as a bullish candidate. Our play never opened.

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