Editor's Note:
It was a rough day for stocks with big declines in financials and technology. We had a planned exits for a few candidates today. I'm also suggesting we sell our calls on ADP. Meanwhile NDAQ hit our trigger to open positions. There are new stop losses for JBHT, MSFT, and SXCI.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 48.71 change: -0.25

Stop Loss: 46.75
Target(s): 49.75, 52.50
Current Gain/Loss: + 4.1%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/19 update: ADP held up pretty well considering the market's widespread decline on Wednesday. I am concerned that if the market corrects we could see ADP pull back toward the $47.00 level. I am suggesting we go ahead and take profits (exit completely) on our February $45.00 calls right now (current bid is $3.80 (+90%)).

I am not suggesting new bullish positions at this time. Our plan was to keep your position size small to limit your risk.

Current Position: Long ADP stock @ $46.75

- or -

2011 February $45.00 call (ADP1119B45) Entry @ $2.00. Exit.

01/19: Take profits on call options @ $3.80 (+90%).
01/15: New stop loss @ 46.75
01/03: Entry @ $46.75
01/01: New stop loss @ 45.45
01/01: New entry point @ current levels, new option strike (Feb. $45)

chart:

Entry on January 3 at $46.75
Earnings Date 01/26/11 (confirmed)
Average Daily Volume: 2.8 million
Listed on December 16th, 2010


Alaska Air Group - ALK - close: 62.68 change: -0.29

Stop Loss: 59.95
Target(s): 59.75, 64.75, (option exit 61.75)
Current Gain/Loss: +14.5%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/19 update: ALK is also holding up pretty well. The stock failed near $64.25 again today and shares look poised to dip toward $60.00. More conservative traders may want to exit now. We only have a few days left as we plan to exit ahead of the late January earnings report. I am not suggesting new positions at this time. Our final target is $64.75.

Current Position: Long ALK stock @ $54.91

01/19: More conservative traders may want to exit now @ 62.68
01/15: New stop loss @ 59.95, Final Target adjusted to $64.75
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 01/25/11 (confirmed)
Average Daily Volume: 331 thousand
Listed on November 20th, 2010


BE Aerospace Inc. - BEAV - close: 39.45 change: -1.16

Stop Loss: 37.75
Target(s): 43.40
Current Gain/Loss: + 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/19 update: Uh-oh! It was a nasty day for BEAV with a -2.8% decline. Shares have reversed yesterday's bullish breakout over $40.00. More conservative traders may want to exit right now. I am not suggesting new bullish positions. Look for short-term support near $38.00. Our stop loss is at $37.75. We wanted to keep our position size small to limit our risk.

Current Position: BEAV stock @ $38.89

- or -

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

01/15: new stop loss @ 37.75

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


CA Technologies - CA - close: 25.50 change: +0.05

Stop Loss: 24.19
Target(s): 26.65, 27.90
Current Gain/Loss: + 1.1%
Time Frame: 6 to 7 DAYS
New Positions: Yes, see below

Comments:
01/19 update: CA was showing some relative strength with a new 52-week high. I'm concerned that this stock could see some volatility tomorrow. The reaction to FFIV's earnings report tonight is sparking some huge profit taking across the technology sector. Right now I'm not seeing any reaction in CA's stock afterhours but that doesn't mean shares will be safe tomorrow. Readers may want to wait for a dip or a bounce near $25.00 before considering new positions. Just keep in mind that we plan to exit on January 25th at the closing bell to avoid holding over CA's earnings report that evening.

Current Position: Long CA stock @ $25.21

- or -

Long the 2011 February $25 calls (CA1119B25) Entry @ $1.00

Entry on January 18 at $25.21
Earnings Date 01/25/11 (confirmed)
Average Daily Volume: 2.4 million
Listed on January 15th, 2010


Walt Disney Co. - DIS - close: 39.09 change: -0.30

Stop Loss: 37.85
Target(s): 39.90, 42.50
Current Gain/Loss: + 2.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/19 update: The bounce from $39.00 has failed and DIS looks poised to breakdown under short-term support at this level. If $39 breaks then it will probably be a fast decline to the next level of support near $38.00. Cautious traders may want to exit their call option positions early right now while these positions are still in positive territory. I'm not suggesting new positions at this time.

Our first target has already been hit. We're currently aiming for $42.50.

- 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

01/19: Consider an early exit from the option positions.
01/15: New stop loss @ 37.85
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


FLIR Systems Inc. - FLIR - close: 29.36 change: -0.36

Stop Loss: 28.49
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 0.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/19 update: FLIR spiked lower at the open but didn't see a lot of follow through. Overall the trend is still up in spite of today's decline. Yet I would seriously consider an early exit from our April call position now (current bid $1.30) to minimize losses. I am not suggesting new positions at this time.

Current Position: Long FLIR stock @ $29.10

- or -

Long the 2011 April $30.00 calls (FLIR1116D30) Entry @ $1.60

01/19: Consider an early exit from the option position (bid $1.30)
01/15: New stop loss @ 28.49
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: 41.55 change: -0.97

Stop Loss: 40.95
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 3.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/19 update: JBHT just erased over three days of gains with today's drop. More conservative traders may want to exit early right here. I am not suggesting new positions at this time. The low today was $41.23. I am raising our stop loss to $40.95.

Current Position: Long JBHT stock @ $40.33

- or -

Buy the 2011 February $40 calls (JBHT1119B40) Entry @ $1.85

01/19: New stop loss @ 40.95
01/15 New stop loss @ 40.75
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


Microsoft Corp. - MSFT - close: 28.47 change: -0.19

Stop Loss: 27.85
Target(s): 27.45, 29.75
Current Gain/Loss: +11.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/19 update: MSFT held up pretty well considering the negative analyst comments out today. Shares were actually bouncing from its lows late in the session. I'm not suggesting new bullish positions at this time. Reaction to FFIV's earnings report tonight has sparked some heavy selling across the technology sector. I wouldn't expect MSFT to be affected but you never know.

The low on January 14th was $27.91. I am raising our stop loss to $27.85. More conservative traders may just want to take profits now and exit.

Current Position: Long MSFT stock @ 25.55

01/19/11 New stop loss @ 27.85
01/15/11 New stop loss @ 27.49
01/14/11 Follow up. Exit Jan $25 calls @ 3.25 (+133.9%)
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: 13.36 change: -0.50

Stop Loss: 12.90
Target(s): 14.95, 16.25
Current Gain/Loss: - 1.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/19 update: Be careful here. MTW has broken down under what should have been short-term support near $13.50. I'm not expecting a decline toward the $13.00 level. More conservative traders may want to exit early right now to minimize/avoid any losses. I am not suggesting new positions at this time.

Current Position: Long MTW stock @ $13.54

- or

Long the 2011 February $14.00 calls (MTW1119B14) Entry @ $0.70

01/15: New stop loss @ 12.90
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


NASDAQ OMX Group - NDAQ - close: 23.78 change: -0.62

Stop Loss: 23.24
Target(s): 26.50
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
01/19 update: Our new play on the NDAQ has been triggered. Shares went beyond a dip to $24.00 with a -2.5% decline and a drop past its rising 10-dma. Shares are still inside their rising bullish channel but readers may want to wait for a dip or a bounce near $23.50 before considering new bullish positions. It was our plan to keep positions very small to limit our risk.

Current Position: Long NDAQ stock @ $24.00

chart:

Entry on January 19 at $24.00
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 1.5 million
Listed on January 18th, 2010


SXC Health Solutions - SXCI - close: 44.33 change: +0.17

Stop Loss: 42.65
Target(s): 49.00
Current Gain/Loss: + 0.0%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/19 update: SXCI showed some relative strength today. Traders bought the dip at $43.27 and the stock closed near its highs for the day. The low on January 14th was $42.72. I am raising our stop loss to $42.65. Even though SXCI is showing strength I would not open new bullish positions at this time.

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

01/19: New stop loss @ 42.65

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: 32.24 change: -0.49

Stop Loss: 29.85
Target(s): 33.75, 37.75
Current Gain/Loss: + 4.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/19 update: WCG encountered a little profit taking after yesterday's bullish breakout. I don't see any changes from my prior comments. The trend is up but I am not suggesting new positions at these levels.

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.

Current Position: WCG stock @ $30.75

- or -

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

01/15: new stop loss @ 29.85
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


CLOSED BULLISH PLAYS

BB & T Corp. - BBT - close: 27.29 change: -0.20

Stop Loss: 26.75
Target(s): 29.90
Current Gain/Loss: - 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/19 update: Our plan was to exit our BBT positions today at the closing bell to avoid holding over the company's earnings report later this week. Our plan was to keep our position size small to limit your risk.

(small positions only)

Closed Position: BBT stock @ $27.32, exit @ 27.29 (-0.1%)

- or -

2011 February $28.00 calls (BBT1119B28) Entry @ 0.90, exit @ 0.68 (-24.4%)

01/19: Planned exit on Wednesday.
01/18: Tomorrow is our last day. Prepare to exit.
01/15: New stop loss @ 26.75

chart:

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: 3.17 change: -0.05

Stop Loss: 3.04
Target(s): 3.40, 3.95
Current Gain/Loss: + 5.6%
Time Frame: 12 to 16 weeks
New Positions: see below

Comments:
01/19 update: Financial stocks continue to retreat and BPOP gave up -1.5%. It was our plan to exit our BPOP position today, Wednesday, because we couldn't find the company's earnings report date and there was a chance BPOP might report tomorrow. We did not want to hold over the announcement.

FYI: The April $3.00 calls are bidding $0.34 (+0.0%).

Closed Position: Long BPOP stock @ $3.00, exit @ 3.17 (+5.6%)

- or -

Long the 2011 April $3.00 calls (BPOP1116D3) Entry @ $0.34

01/19: Early Exit. BPOP +5.6%. Option @ $0.34 (+0.0%)
01/18: Prepare to exit at the close tomorrow
01/15: New stop loss @ 3.04
12/22: Close over $3.00 is another bullish entry point.
12/18: New stop loss @ 2.75

chart:

Entry on December 14 at $ 3.00
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 11.7 million
Listed on December 11th, 2010


Morgan Stanley - MS - close: 27.75 change: -1.00

Stop Loss: 27.49
Target(s): 29.85, 31.85
Current Gain/Loss: + 2.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/19 update: Investors were unhappy with the earnings news from Goldman Sachs (GS) and the financial sector struggled for it. Shares of MS plunged -3.4% in reaction to the GS news. It was our plan to exit our bullish positions in MS tonight at the close to avoid holding over MS' earnings report.

Closed Position: Long MS stock @ 26.95, Exit $27.75 (+2.9%)

- or -

2011 April $27 calls (MS1116D27) Entry @ $1.64, Exit $1.98 (+20.7%)

01/19: Planned exit on Wednesday.
01/15: Take Profits. Exit Jan. calls @ 1.63, half April calls @ 2.82
01/15: Sell half of our stock position @ 28.98 (+7.5%)
01/15: New stop loss @ 27.49
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

chart:

Entry on December 22 at $26.95
Earnings Date 01/20/11 (confirmed)
Average Daily Volume: 12.2 million
Listed on December 21st, 2010