Editor's Note:
The financials could see some volatility on Friday in reaction to JPM's report.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 48.51 change: -0.47

Stop Loss: 45.45
Target(s): 49.75, 52.50
Current Gain/Loss: + 3.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: ADP hit some profit taking on Thursday but this is normal after the stock's recent gains. I would look for support near $47.50. 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: 63.68 change: +0.57

Stop Loss: 58.75
Target(s): 59.75, 64.90, (option exit 61.75)
Current Gain/Loss: +15.9%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/13 update: ALK tested resistance at the $64.00 level several times today. Volume was light on today's +0.9% gain. ALK looks a little overbought here. I am not suggesting new positions 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 (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: 26.87 change: +0.02

Stop Loss: 25.80
Target(s): 29.90
Current Gain/Loss: - 1.6%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/13 update: Thursday was a quiet session for BBt with the stock trading sideways under $27 and its 200-dma. I am not suggesting new bullish positions at this time. 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: 39.16 change: -0.04

Stop Loss: 36.40
Target(s): 43.40
Current Gain/Loss: + 0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/13 update: BEAV spent another day consolidating sideways. Shares look poised to rally higher if the market will cooperate. I would consider new positions here but a dip near $38 would be more attractive. 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: 3.21 change: -0.05

Stop Loss: 2.75
Target(s): 3.40, 3.95
Current Gain/Loss: + 7.0%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
01/13 update: Financials failed to see any follow through on yesterday's gains. BPOP lost a nickel but traders are still buying the dips. 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: 5.04 change: -0.04

Stop Loss: 4.75
Target(s): 5.00, 5.45
Current Gain/Loss: + 6.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: Citigroup spiked to $5.12 before succumbing to profit taking. I don't see any changes from my prior comments. We have a new stop loss at $4.75. The $4.80 level should offer some support on any serious move lower. I am not suggesting new positions at this time. 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: 41.06 change: -0.94

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:
01/13 update: CBD gave back -2.2% with what appears to be a failed rally near $42. The stock's larger up trend is in jeopardy. 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: 39.26 change: +0.09

Stop Loss: 37.49
Target(s): 39.90, 42.50
Current Gain/Loss: + 2.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: DIS spent the day consolidating sideways above the $39 level. I'm not convinced the correction is over. I'm still expecting DIS to move 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: 18.68 change: -0.03

Stop Loss: 17.40
Target(s): 18.40, 19.75
Current Gain/Loss: +10.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: Ford spiked toward $19.00 (18.97) intraday before giving back all of its gains. Is this a top? We can't tell yet but Ford remains short-term overbought and due for some profit taking. 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: 29.13 change: +0.10

Stop Loss: 27.90
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 0.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: Our FLIR play has turned positive again but I remain cautious on this stock. I would hesitate to launch 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: 42.02 change: +0.19

Stop Loss: 38.75
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 4.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: JBHT is consolidating sideways near the $42 level. Unfortunately I don't see any changes from my previous 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


JetBlue Airways Corp. - JBLU - close: 6.89 change: -0.07

Stop Loss: 6.58
Target(s): 7.45
Current Gain/Loss: - 0.8%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/13 update: Hmm... the XAL airline index managed a gain today but JBLU lost -1%. That's telling me that we may want to be a bit more defensive on our entry point. The play is open but readers could wait for a dip closer to $6.60 or a close over $7.00 before initiating new positions. Any strength could spark a short squeeze. The most recent data listed short interest at 21% of the 228 million-share float.

I am suggesting very small bullish positions now. We'll use a stop loss at $6.58. Our target is $7.45. We want to exit in front of the late January earnings report.
FYI: The Point & Figure chart for JBLU is bullish with a $12 target.

Open Small Bullish Positions Now (at current levels)

Suggested Position: JBLU stock @ current levels

- or -

Buy the 2011 February $7.00 call (JBLU1119B7) current ask $0.35

Entry on January 13 at $xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 3.5 million
Listed on January 12th, 2010


Kansas City Southern - KSU - close: 51.86 change: +0.48

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

Comments:
01/13 update: KSU is still consolidating sideways. 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: 6.24 change: -0.02

Stop Loss: 5.95
Target(s): 6.90, 7.25
Current Gain/Loss: - 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/13 update: It was a very quiet day for LLNW with the stock drifting sideways in a narrow range. The high today was $6.32. I am repeating my comments from yesterday. 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: 28.30 change: -0.41

Stop Loss: 25.95
Target(s): 29.85, 31.85
Current Gain/Loss: + 5.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/13 update: Banking stocks hit some profit taking today but that could change tomorrow. JPM reports earnings on Friday morning and if the results are strong the banks could lead the market higher. Obviously the reverse is also true. If JPM disappoints then the sector will likely correct. I am not suggesting new bullish positions at this time.

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: 28.19 change: -0.36

Stop Loss: 26.95
Target(s): 27.45, 29.75
Current Gain/Loss: +10.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: MSFT was testing short-term support near $28.00 again. I am not suggesting new positions at this time.

Please note that we're down to our last five trading days on our January calls. I am suggesting that we exit our January $25.00 calls tomorrow (Friday) at the closing bell!

Current Position: Long MSFT stock @ 25.55

- or -

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

01/13/11 Plan to exit our January calls tomorrow at the close.
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: 13.69 change: -0.14

Stop Loss: 12.30
Target(s): 14.95, 16.25
Current Gain/Loss: + 1.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: MTW is losing steam under the $14.00 level. I would expect a dip back toward $13.00 and consider new positions there. 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: 22.73 change: +0.13

Stop Loss: 20.90
Target(s): 22.90, 23.60.
Current Gain/Loss: +4.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/13 update: MYL is still drifting higher and outperformed its peers in the biotech sector. The high today was $22.83. Readers may want to consider taking profits now. Our first target to exit is $22.90. No new positions at this time.

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


Starbucks Corp. - SBUX - close: 32.41 change: +0.21

Stop Loss: 31.70
Target(s): 35.75
Current Gain/Loss: + 0.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/13 update: It was a quiet day for SBUX. Shares managed a bounce but the stock is still stuck in its 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: 35.62 change: -0.78

Stop Loss: 34.95
Target(s): 37.75, 39.75
Current Gain/Loss: + 0.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: Uh-oh! SNE is breaking down. Shares lost -2.1% and is breaking the trend of higher lows. I didn't see any specific news and the Japanese NIKKEI did not see any unusual declines. Volume was big on SNE's drop today. That's a warning sign. If SNE does not recover tomorrow we may want to close this play early! No 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: 43.60 change: -0.71

Stop Loss: 42.40
Target(s): 49.00
Current Gain/Loss: - 1.6%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/13 update: SXCI is slipping toward support near $43.00 again. I would consider this dip a new entry point but more conservative traders may want to wait and buy a bounce. 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: 31.27 change: +0.26

Stop Loss: 29.40
Target(s): 33.75, 37.75
Current Gain/Loss: + 1.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: WCG delivered a +0.8% bounce off its rising 10-dma. I'm not convinced the correction is over yet. I'd prefer to launch new positions near $30.00. Wait for the dip. 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: 31.89 change: -0.12

Stop Loss: 30.40
Target(s): 29.25, 32.75
Current Gain/Loss: +18.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/13 update: Tomorrow could be very interesting. JPM is due to report earnings Friday morning before the market opens. If the banks beats estimates then the financials should rally and WFC might hit our target. If JPM disappoints then the opposite will happen and banks will correct. Yesterday I suggested that we might want to exit our January calls at $32.50 (even though our target is $32.75). No matter what happens we will want to exit our January calls tomorrow (Friday) before the closing bell since January options only have five trading days left. Nimble traders may want to aim higher than our target at $32.75 if JPM delivers a strong report.

In summary, exit our January calls tomorrow at the close assuming WFC hasn't hit our target yet. We will exit our stock position in front of WFC's 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


CLOSED BULLISH PLAYS

ResMed Inc. - RMD - close: 33.03 change: -0.14

Stop Loss: 32.40
Target(s): 38.00
Current Gain/Loss: - 4.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/13 update: Our play has been closed. RMD was downgraded this morning. Shares opened at $32.76 and quickly dipped to $32.26 before paring its losses. Our stop loss was hit at $32.40. RMD does look like it wants to bounce from its simple 200-dma. Readers may want to keep an eye on it.

Stopped out. (small positions only)

Closed Position: Long RMD stock @ $34.00, exit 32.40 (-4.7%)

- or -

Long the 2011 April $35.00 calls (RMD1116D35) Entry @ $1.55, exit $0.74(-52.2%)

01/13: Stopped out @ 32.40 (-4.7%), Option exit @ 0.74 (-52.2%)
01/07: Play opened at $34.00

chart:

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