Editor's Note:
The market is breaking out to new two-year highs thanks to a widespread rally. Our banking candidates look strong. I have updated stop losses on ALK, C, and F.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 48.98 change: +0.63

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: + 4.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: ADP continues to extend its rally. Shares surged toward the $49.00 level and held there today. Another strong session and ADP will hit our first target at $49.75. I am not suggesting new positions at this time. 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: 63.11 change: +0.90

Stop Loss: 58.75
Target(s): 59.75, 64.90, (option exit 61.75)
Current Gain/Loss: +14.9%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/12 update: Airline stocks were strong performers today with the XAL index up +1.6%. Shares of ALK rose +1.4% near its highs early this week. I am not suggesting new positions at this time. Please note our new stop loss at $58.75.

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

01/12: New stop loss @ 58.75
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: 26.85 change: +0.32

Stop Loss: 25.80
Target(s): 29.90
Current Gain/Loss: - 1.7%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/12 update: BBT has bounced back toward its simple 200-dma with today's +1.2% gain. I remain cautious on this stock and would hesitate to launch new positions. Our plan was to keep our 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: 39.20 change: +0.62

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

Comments:
01/12 update: BEAV's strength occurred early this morning. Shares were slowly fading lower throughout the rest of the session. I still think that if we're patient and wait we might get 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: 3.26 change: +0.06

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 8.6%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
01/12 update: Strength in the banking stocks lifted BPOP to a +1.8% gain. Shares look poised to breakout past recent resistance. Our first target is $3.40. I am not suggesting new positions at this time. 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: 5.08 change: +0.14

Stop Loss: 4.63
Target(s): 5.00, 5.45
Current Gain/Loss: + 7.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: It was a big day for Citigroup with a +2.8% gain. This is the first close over the $5.00 mark in over a year. This should make this stock a lot more attractive for investors. Many firms won't let you buy stocks on margin unless they are over $5.00 and many mutual funds avoid owning stocks that trade under $5.00. Citigroup could see a new surge of buying pressure soon. I am raising our final exit target from $5.35 to $5.45. We will raise our stop loss to $4.75. 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

01/12: New stop loss @ 4.75, new target at $5.45
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: 42.00 change: +0.32

Stop Loss: 39.80
Target(s): 44.95, 49.00
Current Gain/Loss: + 4.3%
Time Frame: 12 to 14 weeks
New Positions: see below

Comments:
01/12 update: CBD continues to bounce after Monday's test of the $40 level. I am not suggesting new bullish 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: 39.17 change: -0.23

Stop Loss: 37.49
Target(s): 39.90, 42.50
Current Gain/Loss: + 2.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: DIS is still consolidating and did not participate in the rally on Wednesday. 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: 18.71 change: +0.43

Stop Loss: 17.40
Target(s): 18.40, 19.75
Current Gain/Loss: +10.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: It was a big day for Ford with a +2.3% gain and a breakout past recent resistance near $18.50. The next level of potential resistance is the $19.00 area dating back to November 2001. I am raising our stop loss to $17.40. I'm also adjusting our final target down from $19.95 to $19.75. I am not suggesting new bullish positions at this time.

- Suggested Positions -

Long Ford stock @ $16.90

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

01/12: New stop loss @ 17.40
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: 29.03 change: +0.16

Stop Loss: 27.90
Target(s): 30.90, 33.00
Current Option Gain/Loss: - 0.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: Gains in FLIR today were mild (+0.5%) versus the S&P 500 (+0.9%). My enthusiasm for this trade is waning. Readers may want to wait for FLIR to show a little more strength before considering new 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: 41.83 change: +0.03

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 3.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: Wednesday was a very quiet session for JBHT with the stock in a narrow range almost the entire session. 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: 51.38 change: -0.05

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

Comments:
01/12 update: The railroad index was up again on Wednesday. KSU underperformed its peers. We're still waiting for a pullback. 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


Limelight Networks - LLNW - close: 6.26 change: -0.04

Stop Loss: 5.95
Target(s): 6.90, 7.25
Current Gain/Loss: - 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: The market is in rally mode and yet LLNW, our new bullish play, failed to participate. That's a warning sign for the bulls. Shares opened at $6.33 and then faded lower. I'd probably wait for a move past $6.33 or another bounce near $6.00 before initiating new positions.

We want to keep our position size pretty small to limit your risk. While the options do offer a bit more reward here they also offer a lot more risk! You might be happier just trading the stock.

-Small Positions-

Current Position: LLNW stock @ $6.33

- or -

Long the 2011 February $5.00 call (LLNW1119B5) Entry @ $1.45

Entry on January 12 at $6.33
Earnings Date 02/22/11 (unconfirmed)
Average Daily Volume: 1.3 million
Listed on January 11th, 2010


Morgan Stanley - MS - close: 28.71 change: +0.75

Stop Loss: 25.95
Target(s): 29.85, 31.85
Current Gain/Loss: + 6.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: A rally in the financials boosted MS to a +2.6% gain. Readers may want to consider an early exit in our January calls (either here or near the $29 level). 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: 28.55 change: +0.44

Stop Loss: 26.95
Target(s): 27.45, 29.75
Current Gain/Loss: +11.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: After hovering near $28 for a couple of days MSFT took off again with a +1.5% gain on Wednesday. I am tempted to raise our stop loss again. More aggressive traders could buy MSFT here and use a stop loss near $27.70. For the rest of us (non aggressive traders) 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: 13.83 change: +0.05

Stop Loss: 12.30
Target(s): 14.95, 16.25
Current Gain/Loss: + 2.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: MTW underperformed the wider market but shares did continue to inch higher. I'd probably wait for a dip into the $13.50-13.00 zone before initiating new positions. 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: 22.60 change: +0.01

Stop Loss: 20.90
Target(s): 22.90, 23.60.
Current Gain/Loss: +3.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/12 update: Hmm... my intraday chart is showing MYL traded at $23.00 this morning. Yet if you look at the data for the high of the day it's only $22.79. Our first target to exit is $22.90. I'm going to assume the $23.00 trade on my charts is a bad tick. If you're looking for a new bullish entry point I'd wait for a dip near $22.00-21.75.

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: 33.17 change: +0.51

Stop Loss: 32.40
Target(s): 38.00
Current Gain/Loss: - 2.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/12 update: RMD delivered an oversold bounce just in the nick of time. Traders could buy this bounce but I consider it an aggressive, higher-risk trade. We want to keep our position size small to limit our risk. 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: 32.20 change: -0.06

Stop Loss: 31.70
Target(s): 35.75
Current Gain/Loss: - 0.1%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/12 update: Uh-oh! SBUX failed to participate in the widespread market rally on Wednesday. Even some positive analyst comments couldn't get the stock moving higher. This is a warning signal. 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: 36.40 change: +0.04

Stop Loss: 34.95
Target(s): 37.75, 39.75
Current Gain/Loss: + 2.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: Traders bought the dip near $36.00 this morning. SNE looks poised to breakout past short-term resistance near $36.40 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: 44.31 change: +0.31

Stop Loss: 42.40
Target(s): 49.00
Current Gain/Loss: - 0.0%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/12 update: It's taken a couple of days but we're right back to where we started with SXCI. Shares are bouncing from short-term support. I would 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: 31.01 change: -0.59

Stop Loss: 29.40
Target(s): 33.75, 37.75
Current Gain/Loss: + 0.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: Ouch! I warned readers to expect some profit taking but it still hurts to see it when the rest of the market is in rally mode. Look for WCG to find support near $30.00 where we can look for a new entry point. 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: 32.01 change: +0.61

Stop Loss: 30.40
Target(s): 29.25, 32.75
Current Gain/Loss: +19.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/12 update: Strength in the banking sector helped WFC to a +1.9% gain. The January high (so far) is near $32.50. I would seriously consider exiting our January calls near this level. Whether or not WFC makes it to $32.50 or our final exit target at $32.75, I am thinking we want to exit our January calls before Friday's close this week (just two more days). Those of you trading the stock could aim for the $34.00 level but I would not hold over the earnings report on January 19th. 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