Editor's Note:
Tuesday was largely a forgettable session. Early gains faded into a listless churn. Generally there was little change from my prior comments. WWE did hit our stop loss.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 48.35 change: +0.22

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: + 3.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: ADP rallied to a new 52-week high at $48.67 intraday. 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: 62.21 change: -0.74

Stop Loss: 57.75
Target(s): 59.75, 64.90, (option exit 61.75)
Current Gain/Loss: +13.2%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/11 update: After ALK's recent gains it's normal to see a little profit taking. I am not suggesting new positions at this time but we can keep an eye on the $60.00 level for short-term 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

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: 26.53 change: +0.09

Stop Loss: 25.80
Target(s): 29.90
Current Gain/Loss: - 2.8%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/11 update: BBT was trying to bounce this morning but it did not make it very far. There is no change from my prior comments. 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


BE Aerospace Inc. - BEAV - close: 38.58 change: -0.18

Stop Loss: 36.40
Target(s): 43.40
Current Gain/Loss: - 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: BEAV opened at $38.89 (entry point) but failed to rally past the $39.00 level. If we're patient we might see a better entry point in the $38-37 zone. We want to keep our position size small to limit our risk. BEAV has some resistance in the $43.50-44.00 zone so we'll set our target at $43.40.
FYI: The Point & Figure chart for BEAV is bullish with a $44.00 target.

Current Position: BEAV stock @ $38.89

- or -

Long the 2011 February $40.00 calls (BEAV1119B40) Entry @ $1.35

Entry on January 11 at $38.89
Earnings Date 02/01/11 (unconfirmed)
Average Daily Volume: 542 thousand
Listed on January 10th, 2010


Popular Inc. - BPOP - close: 3.20 change: -0.03

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:
01/11 update: BPOP is still slowly drifting higher. There is no change from my prior comments. I would prefer to open new positions in the $3.05-3.00 zone. Conservative traders may want to raise their stop closer to the 50-dma.

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: 4.94 change: +0.03

Stop Loss: 4.63
Target(s): 5.00, 5.35
Current Gain/Loss: + 4.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: C managed to erase yesterday's loss but that's about it. Volume was pretty light. Citigroup is due to report earnings on the 18th of January and we normally want to avoid holding over an earnings report. 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: 41.68 change: +1.38

Stop Loss: 39.80
Target(s): 44.95, 49.00
Current Gain/Loss: + 3.5%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
01/11 update: CBD outperformed on Tuesday with a +3.4% gain. I didn't see any specific news to account for the stock's relative strength. The Brazilian Bovespa was only up +0.4%. Volume improved on today's rally in CBD, which is a good sign. I'm still a little bit cautious about launching new positions here. 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: 39.40 change: -0.10

Stop Loss: 37.49
Target(s): 39.90, 42.50
Current Gain/Loss: + 3.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: DIS showed some strength this morning but the gains faded into a small loss. I'm still expecting DIS to correct lower toward $38. 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: 18.28 change: -0.03

Stop Loss: 16.75
Target(s): 18.40, 19.95
Current Gain/Loss: + 8.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: I have been warning readers that Ford looks short-term overbought here above $18 and is due for some profit taking. Look for a dip near $17.50. 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: 28.87 change: -0.01

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:
01/11 update: Tuesday was a forgettable day for FLIR. The stock traded in a narrow range to close virtually unchanged. I'm suggesting readers look for dips near $28.50 or even the 200-dma before considering new bullish 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

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: 41.80 change: -0.07

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 3.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: Positive analyst comments this morning boosted JBHT to $42.63 intraday but the gains were short lived. 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: 51.43 change: -0.74

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

Comments:
01/11 update: The rally in the railroad stocks may have run out of gas. KSU popped higher at the open only to reverse lower. We've been waiting for a dip back toward $50.00 so maybe that will happen soon. 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: 27.96 change: -0.09

Stop Loss: 25.95
Target(s): 29.85, 31.85
Current Gain/Loss: + 3.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: The early morning gains in MS faded although MS has been able to maintain its short-term trend of higher lows. I don't see any changes from my prior comments. Look for a correction into the $27.50-27.00 zone. 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: 28.11 change: -0.11

Stop Loss: 26.95
Target(s): 27.45, 29.75
Current Gain/Loss: +10.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: MSFT is hovering near support at the $28.00 level. Readers may want to consider an early exit on the January calls right here. If MSFT breaks down those calls are going to get hammered lower. I am not suggesting new positions at this time.

Don't forget that we have less than 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: 13.78 change: +0.18

Stop Loss: 12.30
Target(s): 14.95, 16.25
Current Gain/Loss: + 1.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: MTW is still showing relative strength. The stock hit new multi-month highs this morning at $14.00. There is no change from my prior comments. 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: 22.59 change: +0.17

Stop Loss: 20.90
Target(s): 22.90, 23.60.
Current Gain/Loss: +3.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/11 update: MYL is still creeping higher and hit relative highs over $22.50 today. 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: 32.66 change: -0.70

Stop Loss: 32.40
Target(s): 38.00
Current Gain/Loss: - 3.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/11 update: The correction in RMD is accelerating. The relative weakness in this stock this past week has been worrisome. Shares are testing support near $32.50 and its simple 200-dma. It's do or die time with our stop loss at $32.40. The low today was $32.54. 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: 32.26 change: -0.51

Stop Loss: 31.70
Target(s): 35.75
Current Gain/Loss: + 0.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/11 update: The bounce in SBUX has rolled over. Shares are still stuck in the middle of their trading range. 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: 36.36 change: +0.20

Stop Loss: 34.95
Target(s): 37.75, 39.75
Current Gain/Loss: + 2.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: Shares of SNE are still drifting higher. The stock looks poised to breakout past $36.00 soon. 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: 44.00 change: +0.29

Stop Loss: 42.40
Target(s): 49.00
Current Gain/Loss: - 0.7%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/11 update: SXCI delivered a bounce on Tuesday (+0.6%) while volume was very average. I would still consider new positions here. 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: 292 thousand
Listed on January 8th, 2010


WellCare Health Plans, Inc. - WCG - close: 31.60 change: -0.40

Stop Loss: 29.40
Target(s): 33.75, 37.75
Current Gain/Loss: + 2.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: Bingo! Right on cue shares of WCG stumbled at resistance near $32.00. I warned readers to expect some profit taking here. I'm suggesting readers wait for a dip near $30 before considering new positions. 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: 31.40 change: +0.20

Stop Loss: 30.40
Target(s): 29.25, 32.75
Current Gain/Loss: +16.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: WFC is due to report earnings on January 19th. We normally want to avoid holding over an earnings report. Readers should prepared to exit prior to earnings. If you're holding the January calls I would strongly consider an early exit now. 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


CLOSED BULLISH PLAYS

World Wrestling Entertainment - WWE - close: 14.02 change: -0.06

Stop Loss: 13.98
Target(s): 14.95, 16.40
Current Gain/Loss: - 0.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/11 update: Shares of WWE continue to underperform. Shares hit a lot of $13.97, which was enough to close this play since our stop loss was at $13.98. According to my data today the April $15 calls traded at $0.40 at their lows although I find that a little hard to believe.

Closed Position: Long WWE stock @ $14.10, exit @ 13.98 (-0.85%)

- or -

Buy the 2011 April $15.00 calls (WWE1116D15), entry @ $0.45, exit @ 0.40

*Note: The call options on WWE have very large spreads, making them a higher-risk trade.

01/11/11 Stopped out @ 13.98 (-0.85%). Option at less than 40 cents.
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

Chart:

Entry on December 13 at $14.10
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume: 242 thousand
Listed on December 9th, 2010