Editor's Note:
The market rallied off its intraday lows and a few sectors closed positive. We are seeing some sharp profit taking in individual stocks but there are a few pockets of strength. JBHT and MTW both hit our stop losses today.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 49.09 change: +0.38

Stop Loss: 46.75
Target(s): 49.75, 52.50
Current Gain/Loss: + 5.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/20 update: ADP continues to show relative strength and added +0.7% to close at new relative highs. There is no change from my prior comments. I am not suggesting new bullish positions at this time. Our plan was to keep your position size small to limit your risk.

FYI: the February $45 calls opened at $3.80 this morning.

Current Position: Long ADP stock @ $46.75

01/19: Take profits on Feb. 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)

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: 61.25 change: -1.43

Stop Loss: 59.95
Target(s): 59.75, 64.75, (option exit 61.75)
Current Gain/Loss: +11.5%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/20 update: ALK suffered some profit taking on Thursday. The stock's -2.2% decline was a lot worse than the XAL's -0.8% pullback. I didn't see any specific news behind the relative weakness. Traders did buy the dip near $60.50. The company reports earnings early next week so be prepared to exit soon. 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: 38.62 change: -0.83

Stop Loss: 37.75
Target(s): 43.40
Current Gain/Loss: - 0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/20 update: Our BEAV play could be in trouble. The stock underperformed the defense sector indices on Thursday. Today's drop accentuates yesterday's bearish reversal. Traders did buy the dip near support at $38 this morning but I would not suggesting new positions at this time. Our stop loss is at $37.75. The plan was 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: 25.46 change: -0.04

Stop Loss: 24.19
Target(s): 26.65, 27.90
Current Gain/Loss: + 0.9%
Time Frame: 6 to 7 DAYS
New Positions: see below

Comments:
01/20 update: CA did not seem to be affected by the big sell-off in technology stocks this morning. Shares spent a second day churning sideways in the $25.25-25.60 zone. I don't see any changes from my prior comments. We don't have much time left. 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: 39.17 change: +0.08

Stop Loss: 37.85
Target(s): 39.90, 42.50
Current Gain/Loss: + 2.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/20 update: DIS saw a spike lower at the open but shares bounced at $38.51. If the market didn't look so vulnerable I would be tempted to launch new positions in DIS here. However, I'm concerned the major indices could be rolling over so no 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: 29.27 change: -0.09

Stop Loss: 28.49
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 0.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/20 update: There is no change from my prior comments on FLIR. The overall trend is up but I'm cautious on this stock right now. I would seriously consider an early exit from our April call position now 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


Microsoft Corp. - MSFT - close: 28.35 change: -0.12

Stop Loss: 27.85
Target(s): 27.45, 29.75
Current Gain/Loss: +10.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/20 update: There is no change from my prior comments on MSFT. The stock is still churning sideways above the $28.00 level. I am not suggesting new positions at this time.

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


NASDAQ OMX Group - NDAQ - close: 24.01 change: +0.23

Stop Loss: 23.24
Target(s): 26.50
Current Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/20 update: NDAQ displayed some relative strength today. Shares dipped toward their 30-dma and the bottom of its bullish channel only to bounce back into positive territory. NDAQ closed with a +0.9% gain. This looks like a new bullish entry point but I'm very worried about the broader market so readers may want to hesitate on launching 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: 45.07 change: +0.74

Stop Loss: 42.65
Target(s): 49.00
Current Gain/Loss: + 1.7%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/20 update: SXCI displayed some impressive relative strength with a +1.6% gain. The stock closed at new four-week highs. The rally is encouraging but I would hesitate to launch new positions.

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: 31.08 change: -1.16

Stop Loss: 29.85
Target(s): 33.75, 37.75
Current Gain/Loss: + 1.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/20 update: WCG ran into some painful profit taking today with a -3.4% decline. The HMO index only lost -1.7% and I couldn't find any news to explain WCG's relative weakness. The stock should find support near $30.00. I am not suggesting new positions at this time.

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

JB Hunt Transport Services - JBHT - close: 40.95 change: -0.60

Stop Loss: 40.95
Target(s): 43.50, 46.75
Current Option Gain/Loss: + 1.5%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/20 update: JBHT was unable to recover from yesterday's sell-off. The stock spiked lower again this morning and hit $40.64 intraday. Our stop loss was tagged at $40.95. Our play is closed but readers may want to keep JBHT on their watch list for a dip near what should be stronger support near $38.00.

Closed Position: Long JBHT stock @ $40.33, Exit @ $40.95 (+1.5%)

- or -

2011 February $40 calls (JBHT1119B40) Entry @ $1.85, exit $1.65 (-10.8%)

01/20: Stopped out (+1.5%). Option @ $1.65 (-10.8%)
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)

chart:

Entry on December 22 at $40.33
Earnings Date 01/28/11 (unconfirmed)
Average Daily Volume: 1.2 million
Listed on December 13th, 2010


Manitowoc Co. Inc. - MTW - close: 12.93 change: -0.43

Stop Loss: 12.90
Target(s): 14.95, 16.25
Current Gain/Loss: - 4.7%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/20 update: Ouch! It was another ugly day for MTW. The stock opened lower at $13.25 and hit our stop loss at $12.90 before lunchtime. I didn't see any news behind MTW's relative weakness today. Readers might want to keep an eye on MTW for a dip back toward the $12.00 level or the 200-dma and then reconsider potential trades.

Closed Position: Long MTW stock @ $13.54, exit @ $12.90 (-4.7%)

- or

2011 February $14.00 calls (MTW1119B14) Entry @ $0.70, exit $0.25 (-64.2%)

01/20: Stopped out (-4.7%). Option @ 01/15: New stop loss @ 12.90
01/08: New stop loss @ $12.30

chart:

Entry on January 4 at $13.54
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 2.0 million
Listed on January 3rd, 2010