Editor's Note:
The market managed to rebound off its intraday lows. The tone seems cautious. Investors overreacted when CHKP was downgraded this morning and the stock hit our stop loss.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 48.13 change: +0.02

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: + 2.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: ADP recovered from its morning dip near $47.50 and rallied to a new relative high this afternoon. There is no change from my prior comments. 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: 62.72 change: +3.02

Stop Loss: 57.75
Target(s): 59.75, 64.90, (option exit 61.75)
Current Gain/Loss: +14.6%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/10 update: ALK rallied to $63.63 intraday before trimming its gains. The stock looks a little short-term overbought here. I would look for a dip back toward $60.00, which could be new support.

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 (now 64.90).

Current Position: Long ALK stock @ $54.91

- or -

Long the 2011 January $60 calls (symbol: ALK1122A60) entry @ $1.60

01/08: New stop loss @ 57.75. New target at $64.90
01/07: Option Target Hit @ 61.75. Option @ $3.00 (+87.5%). 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: 26.44 change: +0.11

Stop Loss: 25.80
Target(s): 29.90
Current Gain/Loss: - 3.2%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/10 update: BBT was flirting with a breakdown under $26.00 this morning. Shares dipped to $25.95 before bouncing from its 30-dma. I remain very cautious on this stock at the moment and would hesitate to launch new positions. 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: 3.16 change: -0.03

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 5.3%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
01/10 update: Monday was a relatively quiet day for BPOP. Shares tested their 10-dma before bouncing this afternoon. I would prefer to open new positions in the $3.05-3.00 zone. If the financials continue to correct this week that could happen soon. Conservative traders may want to raise their stop closer to the 50-dma (currently near $2.93).

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: 4.91 change: -0.03

Stop Loss: 4.63
Target(s): 5.00, 5.35
Current Gain/Loss: + 3.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: You could have fallen asleep watching Citigroup trade today. The stock spent the entire session in a six-cent range. 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

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: 40.30 change: -0.08

Stop Loss: 39.80
Target(s): 44.95, 49.00
Current Gain/Loss: + 0.1%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
01/10 update: The trading in CBD was pretty quiet on Monday. Shares opened lower but held support near $40.00. I remain very cautious here given last week's pullback. 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


Walt Disney Co. - DIS - close: 39.50 change: +0.05

Stop Loss: 37.49
Target(s): 39.90, 42.50
Current Gain/Loss: + 3.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: DIS rebounded from its morning lows near $38.90. I'd wait for a dip closer to $38.00 before considering new bullish positions.

- 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: 18.31 change: +0.04

Stop Loss: 16.75
Target(s): 18.40, 19.95
Current Gain/Loss: + 8.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: Ford rallied toward $18.50 a couple of times today but couldn't quite get past this level. There is no change from my prior comments. Ford looks overbought and due for a pull back toward $17.50 or $17.00. Over the weekend I suggested we sell the rest of our January calls, which opened at 93 cents this morning. I am not suggesting new bullish positions at this time. Our final, longer-term target is $19.95.

- Suggested Positions -

Long Ford stock @ $16.90

Long the 2011 March $18.00 calls (F1119C18) Entry @ $0.61

01/10: FYI: our January $17.50 calls opened at $0.93 (+272%)
01/08: Sell the rest of our January calls now! @ $0.89 (+256%)
01/07: Target hit. F @ 18.42. Jan. call @ $0.90 (+260%). Mar. call @ $1.29 (+111%)
01/07: 1st Target Hit. Ford @ 18.42 (+8.99%)
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: 28.88 change: -0.23

Stop Loss: 27.90
Target(s): 30.90, 33.00
Current Option Gain/Loss: - 0.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: FLIR is drifting lower on very light volume. The low today was $28.53. I've been suggesting readers wait for a dip near $28.50 as our next entry point. $28.53 is close enough for me. 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

01/10: FLIR provided another entry point near $28.50
01/08: New stop loss @ 27.90

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: 41.87 change: -0.02

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 3.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: JBHT is still consolidating sideways near $42. There is no change from my prior comments. I'm not suggesting new bullish positions at this time. More conservative traders may want to raise their stops closer to the $40 level. I am growing a little worried that JBHT could be forming a bear wedge pattern.

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


Kansas City Southern - KSU - close: 52.17 change: +0.92

Stop Loss: 47.90
Target(s): 54.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
01/10 update: Railroad stocks continue to show relative strength. KSU is up several days in a row. There is no change from my prior comments. KSU broke through resistance near $50.00, which should be new support. I am suggesting we use a trigger to open bullish positions at $50.50. If triggered our target is $54.75. We will have to decide in a couple of weeks if we want to hold over KSU's earnings report. Normally we would prefer to avoid holding over earnings because announcements can bring unnecessary risk.
FYI: The Point & Figure chart for KSU is bullish with a $78.00 target.

Trigger @ 50.50

Suggested Position: Buy KSU stock @ $50.50

- or -

Buy the 2011 February $50.00 call (KSU1119B50) current ask $2.95

Entry on January xx at $xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 815 thousand
Listed on January 8th, 2010


Morgan Stanley - MS - close: 28.05 change: -0.15

Stop Loss: 25.95
Target(s): 29.85, 31.85
Current Gain/Loss: + 4.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/10 update: Financial stocks hit some profit taking today. We have been expecting MS to correct toward the $27.50-27.00 zone. Shares hit $27.63 at its lows on Monday. I am not convinced the correction is over yet. I am not suggesting new bullish positions at this time.

Over the weekend I suggested selling half of our January calls. These opened at $1.12 on Monday (+93%).

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

01/10: Follow up - January calls opened at $1.12 (+93%)
01/08: Sell half of our January calls @ $1.14 (+96%)
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: 28.22 change: -0.38

Stop Loss: 26.95
Target(s): 27.45, 29.75
Current Gain/Loss: +10.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: MSFT dipped toward short-term support near $28.00 before trimming its losses. I am not suggesting new positions at this time.

Don't forget that we only have two weeks left on our January calls.

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: 13.60 change: -0.15

Stop Loss: 12.30
Target(s): 14.95, 16.25
Current Gain/Loss: + 0.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: MTW spent the day consolidating sideways near $13.50. I would still consider new bullish positions (small positions) at this time. More conservative traders may want to raise their stop to $12.65, just underneath the Dec. 31 low of $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

01/08: New stop loss @ $12.30

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: 22.42 change: +0.10

Stop Loss: 20.90
Target(s): 22.90, 23.60.
Current Gain/Loss: +2.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/10 update: MYL was drifting higher toward $22.50 again. I don't see any changes from my prior comments. 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: 33.36 change: -0.37

Stop Loss: 32.40
Target(s): 38.00
Current Gain/Loss: - 1.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/10 update: The correction in RMD continues. Shares are now under their 50-dma and look headed for the early December support near $33.00. We could buy this dip now or wait for the dip to hit $33.00 before initiating positions. More conservative traders might want to wait for RMD to close back above $34.00 again. We want to keep our position size small! Our multi-week target is $38.00.

Play is now open!

Current Position: Long RMD stock @ $34.00

- or -

Long the 2011 April $35.00 calls (RMD1116D35) Entry @ $1.55

01/07: Play opened at $34.00

Entry on January 7 at $34.00
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 752 thousand
Listed on January 1st, 2010


Starbucks Corp. - SBUX - close: 32.77 change: -0.01

Stop Loss: 31.70
Target(s): 35.75
Current Gain/Loss: + 1.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/10 update: SBUX bounced around the $32-33 zone only to close virtually unchanged on the session. I don't see any changes from my prior comments. There is still resistance at the top of the trading range in the $33.10 area. If you do choose to open positions I would keep your position size small.

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: 36.16 change: +0.12

Stop Loss: 34.95
Target(s): 37.75, 39.75
Current Gain/Loss: + 1.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: There is no change from my previous comments on SNE. The stock is consolidating sideways with a bullish trend of higher lows. Cautious traders may want to wait for a move over $36.50 before initiating new positions.

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

01/08 New stop loss @ 34.95
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


SXC Health Solutions - SXCI - close: 43.71 change: -0.86

Stop Loss: 42.40
Target(s): 49.00
Current Gain/Loss: + 0.0%
Time Frame: 8 to 9 weeks
New Positions: Yes, see trigger

Comments:
01/10 update: SXCI opened lower (44.31) and pretty much filled the gap from Friday morning before spending the rest of the day consolidating sideways. I would still consider new positions now. There is potential resistance at the December highs near $45.75 but we're aiming for $49.00.
FYI: The Point & Figure chart for SXCI is bullish with a $62.00 target.

NOTE: Buying the options is a higher-risk trade. The calls on SXCI have wider than normal spreads put option traders at a disadvantage here.

Suggested Positions: Long SXCI stock @ $44.31

- or -

Long the 2011 February $45.00 calls (SXCI1119B45) Entry @ $1.44

Entry on January 10 at $44.31
Earnings Date 03/03/11 (unconfirmed)
Average Daily Volume: xxx million
Listed on January 8th, 2010


WellCare Health Plans, Inc. - WCG - close: 32.00 change: +0.70

Stop Loss: 29.40
Target(s): 33.75, 37.75
Current Gain/Loss: + 4.0%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
01/10 update: WCG continues to show relative strength. Traders quickly bought the dip this morning and WCG ended the day with a +2.2% gain and new multi-month highs. The $32.00 level has been resistance in the past so I wouldn't be surprised to see some profit taking here. We might get another entry point near $30 before the week is out. 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.

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: 31.20 change: -0.30

Stop Loss: 30.40
Target(s): 29.25, 32.75
Current Gain/Loss: +16.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: WFC was downgraded this morning but shares found support near $31.00 and spent the day consolidating sideways. I still think readers will want to seriously consider exiting their call position now. We only have two weeks left before January options expire. 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

01/08: Consider exiting the call position now.
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: 14.08 change: -0.13

Stop Loss: 13.98
Target(s): 14.95, 16.40
Current Gain/Loss: - 0.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/10 update: There is no change from my weekend comments on WWE. The stock fading lower toward support near $14.00. If this trend continues tomorrow we'll likely get stopped out at $13.98. oversold bounce. I am not suggesting new bullish positions at this time. The plan was to 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.

01/08/11 new stop loss $ 13.98
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

Check Point Software Technologies - CHKP - close: 44.91 change: -0.89

Stop Loss: 44.95
Target(s): 47.25, 49.75
Current Gain/Loss: - 0.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/10 update: We have been stopped out of CHKP. Bank of America changed their rating on CHKP from a "buy" to "neutral". Investors overreacted and the stock gapped open lower at $45.03 and then plunged to $43.20 before rebounding almost to $45 again. Our stop loss was hit at $44.95.

Closed Position: Long CHKP stock @ $45.10, Exit 44.95 (-0.33%)

- or -

Long the 2011 April $45.00 calls (CHKP1116D45) Entry @ $2.55, Exit @ 2.00 (-21.5%)

01/10: Stopped out @ 44.95 (-0.33%), Option @ $2.00 (-21.5%)
01/05: New stop loss @ 44.95
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