Editor's Note:
We had four bullish candidates hit upside targets today. Banks continue to be big winners. I have adjusted our final target on WFC to $32.75. Readers may want to start taking profits on our WFC calls (+318%). ALK, C, DIS, and NVDA all hit targets today. We've adjusted our entry point on MYL.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 47.63 change: +0.75

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: + 1.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: ADP made headlines today with its monthly private-sector employment report. ADP said December saw a record-breaking +297,000 gain, which was way above estimates and sets a positive tone for Friday's non-farm payroll report. Shares of ADP did well too with a +1.5% gain and a new three-year closing high. 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: 59.11 change: +1.70

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 7.6%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/05 update: Target achieved. ALK hit our target to sell part of our stock position at $59.75 (+8.8%). We want to wait until ALK hits $61.75 before selling our January options. Overall the airline sector was looking a lot more healthy today. I am not suggesting new bullish trades in ALK at this time.

Earlier Comments:
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

01/05: Target hit at $59.75 (+8.8%)
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: 3.20 change: +0.08

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:
01/05 update: BPOP is showing a lot of volatility. The stock erased yesterday's 8-cent loss with an 8-cent gain. 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: 4.97 change: +0.07

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: + 5.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Target achieved. Citigroup hit an intraday high of $5.00, which was our first target to take profits. The option hit $0.30 (+50%). I am raising our stop loss to $4.63 (from $4.49). More conservative traders may want to consider a higher stop. The $5.00 level should be round-number resistance so I would expect a pull back soon. 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

01/05: New stop loss @ 4.63
01/05: Target hit @ 5.00 (+5.7%), option @ $0.30 (+50%)

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: 42.43 change: -0.06

Stop Loss: 39.80
Target(s): 44.95, 49.00
Current Gain/Loss: + 5.4%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
01/05 update: CBD spend the session consolidating above what should be short-term support near $42.00. While the lack of movement today is disappointing this remains a potential entry point. 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: 48.36 change: +1.48

Stop Loss: 44.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 7.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/05 update: CHKP displayed relative strength on Wednesday with a +3% rally to new highs over $48. I am raising our stop loss to $44.95 and more conservative traders may want to move theirs closer to $46. Our final target is $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

01/05: New stop loss @ 44.95
01/03: 1st Target Hit @ $47.25 (+4.7%) Option @ $3.75 (+47%)

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: 39.96 change: +0.97

Stop Loss: 37.49
Target(s): 39.90, 42.50
Current Gain/Loss: + 4.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Target achieved. DIS did not waste any time in moving from resistance at $38.00 to resistance at $40.00. Our first target to take profits was hit at $39.90 (+4.3%). Fueling this move higher was news that Goldman Sachs had added DIS to their conviction buy list. The $40 level should be overhead resistance. I would expect some profit taking soon. No new positions at this time.

Please note our new stop loss at $37.49. Readers might want to consider a stop closer to $38.00, which should be new support.

- Current Positions -

Long DIS stock @ 38.25

- or -

Long the 2011 February $40.00 calls (DIS1119B40) Entry @ $0.45

- or -

Long the 2011 April $40.00 calls (DIS1116D40) Entry @ $1.10

01/05: 1st Target Hit. Stock @ 39.90 (+4.3%)
01/05: 1st Target Hit. Feb. call @ $1.20 (+166%). April call @ 1.80 (+63.6%)
01/05: new stop loss @ 37.49
01/04: Play triggered @ 38.25

chart:

Entry on January 4 at $38.25
Earnings Date 02/08/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on December 25th, 2010


Ford Motor Co. - F - close: 17.89 change: +0.51

Stop Loss: 16.49
Target(s): 18.40, 19.95
Current Gain/Loss: + 5.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Ford continues to rally. Shares hit $18.09 intraday and closed with a +2.9% gain. I am raising our stop loss to $16.49. Readers might want to consider a stop closer to $16.75. No new positions at this time.

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

01/05: New stop loss @ 16.49.

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: 29.43 change: +0.35

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 1.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: FLIR is bouncing from the $29.00 level. Volume was above average on the rebound. I don't see any changes from my prior comments. We can buy FLIR here or look for a dip closer to $28.50. 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: 41.31 change: +0.05

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 2.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Gains in the transports were mild on Wednesday. JBHT managed a bounce from the $40.50 area. This rebound could be used as a new entry point. Readers may want to raise their stops closer to the $40 level.

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: 28.83 change: +0.36

Stop Loss: 25.95
Target(s): 29.85, 31.85
Current Gain/Loss: + 6.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/05 update: Financials were showing leadership on Wednesday and MS gained another +1.2%. The stock is at new seven-month highs. I would not initiate new positions here. 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: 28.00 change: -0.09

Stop Loss: 25.95
Target(s): 27.45, 29.00
Current Gain/Loss: + 9.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: MSFT is still consolidating sideways and rebounded from its 20-dma this morning. I am not suggesting new positions at this time. MSFT remains overbought and due for some profit taking.

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


Manitowoc Co. Inc. - MTW - close: 13.32 change: +0.02

Stop Loss: 11.95
Target(s): 14.95, 16.25
Current Gain/Loss: -1.6%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
01/05 update: I am disappointed that MTW did not deliver a stronger performance given the market's widespread gains. Nothing has changed from my prior comments. I would still buy this stock (or calls) in the $12.75-13.50 zone. We want to keep our position size small to limit our risk. We're starting this play with a wide (aggressive) stop loss at $11.95. More conservative traders may want to use a stop closer to $12.50 or even Friday's low near 12.70. Our targets are $14.95 and $16.25. FYI: The Point & Figure chart for MTW is bullish with a long-term $21 price target.

Current Position: Long MTW stock @ $13.54

- or

Long the 2011 February $14.00 calls (MTW1119B14) Entry @ $0.70

Entry on January 4 at $13.54
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 2.0 million
Listed on January 3rd, 2010


Mylan, Inc. - MYL - close: 21.55 change: -0.12

Stop Loss: 20.90
Target(s): 22.90
Current Gain/Loss: +0.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
01/05 update: MYL dipped to $21.30 and bounced. Our trigger was at $21.25. I am suggesting we change our entry point strategy and go ahead and buy MYL (or calls) right now. We will ratchet up our stop loss to $20.90 to limit our risk. Our target remains $22.90 (for now). Keep your position size small to limit our risk. I have adjusted our option strike price to the April $22 calls.

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.

Open Positions Now (small positions)

Suggested Position: Buy MYL stock @ current levels.

- or -

Buy the 2011 April $22.00 calls (MYL1116D22) current ask $1.13

chart:

Entry on January 6 at $xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 9.0 million
Listed on December 20th, 2010


NVIDIA Corp - NVDA - close: 16.98 change: +1.21

Stop Loss: 15.25
Target(s): 16.75, 17.90
Current Gain/Loss: +12.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Target achieved. It was a very big day for NVDA. The stock was upgraded this morning and there is still strong speculation that NVDA is a takeover target. Shares rallied more than +7.6% to close just under $17.00. Our first target to take profits was hit at $16.75 (+10.5%). The options were trading at $2.10 (+100%) and $2.25 (+80%). I am raising our stop loss to $15.25. I am not suggesting new bullish positions at this time. NVDA is overbought and due for some profit taking.

(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

01/05: 1st Target Hit. Feb. call @ $2.10 (+100%) March call @ $2.25 (+80%)
01/05: 1st Target Hit @ 16.75 (stock +10.5%)
01/05: New stop loss @ 15.25

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


ResMed Inc. - RMD - close: 34.57 change: -0.71

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

Comments:
01/05 update: We have been expecting a pull back in RMD but the relative weakness during a session where the rest of the market rallied is worrisome. We want to keep our position size small! 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: 32.35 change: -0.13

Stop Loss: 31.70
Target(s): 35.75
Current Gain/Loss: + 0.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/05 update: Wall Street really didn't care much that SBUX unveiled a new logo that no longer includes the company name or their main product. Shares tried to rally but eventually succumbed to profit taking and underperformed the market. That's not a good sign on a day when the rest of the market is moving higher. I am not suggesting new positions at this time.

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: 36.21 change: +0.05

Stop Loss: 34.75
Target(s): 37.75, 39.75
Current Gain/Loss: + 1.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Traders are buying the dip in SNE and shares are building on their trend of higher lows. I would still consider new positions here.

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: 14.70 change: -0.08

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:
01/05 update: STX underperformed the market on Wednesday. There is no change from my prior comments. 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


WellCare Health Plans, Inc. - WCG - close: 30.61 change: +0.58

Stop Loss: 29.40
Target(s): 33.75, 37.75
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
01/05 update: The rebound in WCG continues. More aggressive traders may want to go ahead and launch positions now. I'm suggesting a trigger to open bullish positions at $30.75. If triggered we'll use a stop loss at $29.40. It could take several weeks before we see WCG hit our targets. Investors will have to decide whether or not they are willing to take the risk of holding over WCG's earnings report in late February.
FYI: The Point & Figure chart for WCG is bullish with a $41 target.

Trigger @ 30.75

Suggested Position: WCG stock @ $30.75

- or -

Buy the 2011 March $35.00 calls (WCG1119C35) current ask $0.55

Entry on January xx at $xx.xx
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: 410 thousand
Listed on January 4th, 2010


Wells Fargo & Co - WFC - close: 32.37 change: +0.72

Stop Loss: 30.40
Target(s): 29.25, 32.75
Current Gain/Loss: +20.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Banking stocks were showing leadership today and WFC added +2.2%. Our Jan. $27.50 calls have rallied to $4.85 (+318%). Readers may want to start taking profits in the calls now. I am adjusting our final exit target from $32.90 down to $32.75. We will raise our stop loss to $30.40. I am not suggesting new positions at this time.

Current Position: Long WFC stock @ $26.88

- or -

Long the 2011 January $27.50 call (WFC1122A27.5) Entry @ $1.16

01/05: New stop loss @ 30.40, final target adjusted to 32.75
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: +0.16

Stop Loss: 13.90
Target(s): 14.95, 16.40
Current Gain/Loss: + 1.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/05 update: Gains in WWE managed to outpace the wider market. Readers could buy this bounce but I would be tempted to raise your stop loss. Keep your position size small 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