Editor's Note:
NVDA surged more than +13% in one day on excitement at the CES convention in Vegas. Our profit target was hit. MSFT also had a strong day and I've updated our stop loss on MSFT. Plus, WCG hit our trigger to open bullish positions.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 48.00 change: +0.37

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: + 2.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: ADP extends its gains to close at new relative highs near $48. If you're looking for a new entry point I'd wait for a dip near $47.00. 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: 59.70 change: +0.59

Stop Loss: 54.90
Target(s): 59.75, 64.00, (option exit 61.75)
Current Gain/Loss: + 8.7%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/06 update: A drop in oil prices failed to buoy the XAL airline index but ALK managed to post another gain (+0.99%). There is no change from my prior comments. 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.

Entry on November 22 at $54.91
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 331 thousand
Listed on November 20th, 2010


BB& T Corp. - BBT - close: 26.89 change: -0.58

Stop Loss: 25.80
Target(s): 29.90
Current Gain/Loss: - 1.5%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/06 update: Our new BBT play is not off to the strongest start. Financial stocks saw some profit taking today and BBY opened at $27.32 but settled with a -2.1% loss. I'm still bullish and could consider new positions here but readers may want to wait and see if BBT can bounce from its 10-dma near $26.65 or will it test the $26.00 level. Keep your position size small to limit your risk. Our first target is $29.90. We will have to decide whether or not we want to hold over BBT's earnings in late January.

(small positions only)

Current Position: BBT stock @ $27.32

- or -

Buy the 2011 February $28.00 calls (BBT1119B28) Entry @ 0.90

Entry on January 6 at $27.32
Earnings Date 01/21/11 (confirmed)
Average Daily Volume: 6.4 million
Listed on January 5th, 2010


Popular Inc. - BPOP - close: 3.13 change: -0.07

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 4.3%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
01/06 update: Profit taking in the banking stocks shaved off -2.1% in BPOP. There is no change from my prior comments. 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: 4.95 change: -0.02

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Gain/Loss: + 4.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: Yesterday C hit our target at $5.00 and I warned readers to look for some profit taking. This morning C spiked to $5.05 and faded lower. I am still looking for a bigger pull back, maybe to the $4.80 area. 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%)

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: 41.07 change: -1.36

Stop Loss: 39.80
Target(s): 44.95, 49.00
Current Gain/Loss: + 2.0%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
01/06 update: Uh-oh! CBD underperformed the market with a -3.2% loss. Shares have broken short-term support near $42.00 and are now testing the trend of higher lows. If CBD breaks the 40-dma it will be a very quick drop toward $40.00 and we'll be at risk of getting stopped out. I am not suggesting new positions at this time. 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: 46.72 change: -1.64

Stop Loss: 44.95
Target(s): 47.25, 49.75
Current Gain/Loss: + 3.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/06 update: Ouch! CHKP completely erased yesterday's gains thanks to an analyst downgrade this morning. The stock settled with a -3.3% loss. I am not suggesting new bullish positions at this time. There is some short-term support near $46.00 and CHKP should also see some support at the $45.00 level. 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: 39.65 change: -0.31

Stop Loss: 37.49
Target(s): 39.90, 42.50
Current Gain/Loss: + 3.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: There should be no surprise here. With the quick rally toward $40.00 DIS was overbought and due for some profit taking. The profit taking probably isn't over yet. No new positions at this time.

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

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: 18.22 change: +0.33

Stop Loss: 16.75
Target(s): 18.40, 19.95
Current Gain/Loss: + 7.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: Ford continued to look strong with another new relative high. Shares hit $18.29 intraday. Our first target to take profits is at $18.40. 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: 29.18 change: -0.25

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 0.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: It was a relatively quiet session for FLIR on Thursday. I don't see any changes from my prior comments. Don't be surprised to see a dip toward the 200-dma. 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: 41.42 change: +0.11

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 2.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: JBHT was drifting higher on Thursday. If we see a bad jobs number tomorrow then JBHT could easily dip toward $40.00. No new positions until we see the jobs number. 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: 28.80 change: -0.03

Stop Loss: 25.95
Target(s): 29.85, 31.85
Current Gain/Loss: + 6.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: With the big gains in MS this week I'm surprised the profit taking today wasn't worse especially with the company shuffling some of its top executives. I am not suggesting new bullish positions at this time. MS should have some support near $27.50 and $27.00. 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: 28.82 change: +0.82

Stop Loss: 26.95
Target(s): 27.45, 29.75
Current Gain/Loss: +12.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: MSFT was flexing its muscles today. The stock outperformed the market with a +2.9% gain. Maybe it was something they said at the CES convention. I didn't see any specific news behind the rally. Please note that I am raising our final exit target from $29.00 to $29.75. I am raising our stop loss to $26.95.

Current Position: Long MSFT stock @ 25.55

- or -

Buy the 2011 January $25.00 calls (symbol: MSFT1122A25) Entry @ $1.39

01/06/11 raised final exit target to $29.75
01/06/11 new stop loss @ 26.95
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: 13.39 change: +0.07

Stop Loss: 11.95
Target(s): 14.95, 16.25
Current Gain/Loss: -1.1%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
01/06 update: MTW turned in a mild session with shares consolidating sideways. I would still buy this stock (or calls) in the $13.00-13.50 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: 22.46 change: +0.77

Stop Loss: 20.90
Target(s): 22.90, 23.60.
Current Gain/Loss: +2.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/06 update: Thursday proved to be a healthy session for MYL. The stock opened at $21.81 (our entry point) and rallied past the $22.00 level to close with a +3.5% gain. Volume was strong on the move, which is normally bullish. If you missed our entry point you might want to wait for a dip near $21.75. I am setting a secondary target at $23.60. Our first target is $22.90.

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.

Current Position: Long MYL stock @ 21.81

- or -

Long the 2011 April $22.00 calls (MYL1116D22) Entry @ $1.25

Entry on January 6 at $21.81
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 9.0 million
Listed on December 20th, 2010


ResMed Inc. - RMD - close: 34.49 change: -0.08

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

Comments:
01/06 update: RMD is still slowly consolidating lower. There is no change from my prior comments. 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: 31.96 change: -0.39

Stop Loss: 31.70
Target(s): 35.75
Current Gain/Loss: - 0.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/06 update: It's not looking good for our SBUX play. Shares sank to $31.79 intraday. I'm sure the disappointing same-store retail sales numbers across the retail sector did not help investor sentiment. If the jobs report on Friday morning is disappointing we could see SBUX gap open lower below our stop loss at $31.70. Assuming we don't get stopped out I would look for a move over $32.50 before considering new positions.

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: 36.01 change: -0.20

Stop Loss: 34.75
Target(s): 37.75, 39.75
Current Gain/Loss: + 1.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: SNE is moving sideways inside its larger up trend. Wait to see how the jobs number turns out before considering new positions.

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: 14.75 change: +0.05

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:
01/06 update: STX was underperforming this morning but managed to rebound intraday. Aggressive traders might want to buy a bounce over $15.00. I am suggesting we stick to our plan and wait for a move to $15.45 before launching bullish positions. Don't forget that 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: 31.39 change: +0.78

Stop Loss: 29.40
Target(s): 33.75, 37.75
Current Gain/Loss: + 2.0%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
01/06 update: Our play in WCG has been triggered. The stock continues to show relative strength and shares broke out to new relative highs and hit our trigger at $30.75. If you missed our entry point consider waiting for a dip in the $30.75-30.00 area. Keep in mind that 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.

Current Position: WCG stock @ $30.75

- or -

Long the 2011 March $35.00 calls (WCG1119C35) Entry @ $0.60

01/06: Play triggered @ 30.75.

chart:

Entry on January 6 at $30.75
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: 410 thousand
Listed on January 4th, 2010


Wells Fargo & Co - WFC - close: 32.15 change: -0.22

Stop Loss: 30.40
Target(s): 29.25, 32.75
Current Gain/Loss: +19.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: If the jobs number is disappointing we're going to wish we'd taken profits today. WFC spent the session moving sideways as investors wait for the economic data tomorrow. Our final target to exit is $32.75. 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: 14.10 change: -0.19

Stop Loss: 13.90
Target(s): 14.95, 16.40
Current Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: I am growing more and more concerned about WWE. We might want to consider an early exit to make room for something else. I am not suggesting new bullish positions at this time. 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


CLOSED BULLISH PLAYS

NVIDIA Corp - NVDA - close: 19.33 change: +2.35

Stop Loss: 15.25
Target(s): 16.75, 17.90
Current Gain/Loss: +18.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/06 update: Target achieved. NVDA exploded higher with a +13.8% gain. The stock surged past resistance near $18.00 and tagged a high at $19.34. Fueling this rally was news that some of the most alluring products at the CES show in Vegas this year has NVDA's Tegra 2 chips in it. Plus, MSFT is designing a new tablet with NVDA chips. Our final target to exit was hit at $17.90.

(small positions)

Closed Position: Long NVDA stock @ $15.15, exit @ 17.90 (+18.5%)

- or -

Long the 2011 February $15.00 calls (NVDA1119B15) Entry @ $1.05, exit @ $3.10 (+195%)

- or -

Long the 2011 March $15.00 calls (NVDA1119C15) Entry @ $1.25, exit @ 3.25 (+160%)

01/06: Final Target Hit @ 17.90 (+18.5%)
01/06: Final Target Hit. Feb. $15 call @ $3.10 (+195%), Mar. call @ $3.25 (+160%)
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