Editor's Note:
Fears over Egypt cool and stocks stage a bounce. Lack of follow through lower is positive for the bulls.

-James

Current Portfolio:


BULLISH Play Updates

Walt Disney Co. - DIS - close: 38.87 change: +0.02

Stop Loss: 37.85
Target(s): 39.90, 42.50
Current Gain/Loss: + 1.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/31 update: Traders have been buying the dip in DIS near $38.65 for two days in a row. Yet the stock closed virtually unchanged on the day. I'm still expecting a drop toward what should be stronger support near $38.00. I am not suggesting new positions at this time.

- Current Positions -

Long DIS stock @ 38.25

01/31: Update option exit: Feb call @ 0.41 (-8.8%) Apr. call @ 1.06 (-3.6%)
01/29: Exit call positions. Feb call @ 0.38 (-15.5%) April call @ 1.02 (-7.2%)
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 (confirmed)
Average Daily Volume: 8.6 million
Listed on December 25th, 2010


FLIR Systems Inc. - FLIR - close: 31.04 change: +0.41

Stop Loss: 29.75
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 6.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/31 update: FLIR continues to inch higher and posted a +1.3% gain on Monday, outperforming the broader market. I am not suggesting new positions at this time. Our final target is $33.00 but we plan to exit ahead of the earnings report.

Current Position: Long FLIR stock @ $29.10

- or -

2011 April $30 calls (FLIR1116D30) Entry @ $1.60, exit @ 1.80 (+12.5%)

01/29 Exit remaining call positions. option @ 1.80 (+12.5%)
01/29: New stop loss @ 29.75
01/28: 1st Target Hit @ 30.90 (+6.1%), option @ $2.00 (+25%)
01/25: New stop @ 28.90
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 02/09/11 (confirmed)
Average Daily Volume: 1.6 million
Listed on December 18th, 2010


Hansen Natural Corp. - HANS - close: 56.64 change: +1.49

Stop Loss: 53.40
Target(s): 59.50
Current Gain/Loss: + 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/31 update: Traders were quick to buy the dip in HANS this morning and the stock rallied to a new relative high. Shares settled with a +2.7% gain, strongly outperforming the major averages. Considering HANS' relative strength I would be tempted to buy the stock on a dip near $55.50 again but consider a tight stop if you do. Small positions only to limit our risk.

- Small Positions to limit our risk -

Current Position: HANS stock @ $55.54

01/29 Exit call positions early. @ $1.15 (-23.3%)
01/26 the CBOE listed the MAR $60 call's open @ $1.50

Entry on January 26 at $55.54
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 654 thousand
Listed on January 25th, 2010


Oracle Corp. - ORCL - close: 32.03 change: +0.03

Stop Loss: 31.40
Target(s): 34.90
Current Gain/Loss: - 1.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/31 update: ORCL has spent a day and a half consolidating sideways in the $31.80-32.20 zone. Lack of follow through on Friday's big drop is encouraging but I'm reluctant to open new positions here.

Our target on ORCL is the $34.90 mark since $35.00 looks like the next level of resistance.

small positions

Current Position: ORCL stock @ $32.62

- or -

Long the 2011 March $33 calls (ORCL1119C33) Entry @ $0.80

01/29 Consider an early exit, especially the calls.
01/27 The CBOE listed the open for our calls at $0.80

Entry on January 27 at $32.62
Earnings Date 03/24/11 (unconfirmed)
Average Daily Volume: 27 million
Listed on January 26th, 2010


UnitedHealth Group - UNH - close: 41.05 change: +0.12

Stop Loss: 40.45
Target(s): 44.75
Current Gain/Loss: - 0.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
01/31 update: There was no follow through lower on UNH's bearish reversal on Friday but we're still in danger. I am reluctant to open new bullish positions here. I would still strongly consider exiting call positions early to limit risk.

Current Position: UNH stock @ $41.15

- or -

Long the 2011 March $42 calls (UNH1119C42) Entry @ $1.20

Entry on January 28 at $41.15
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 5.9 million
Listed on January 20th, 2010


BEARISH Play Updates

Endo Pharmaceuticals - ENDP - close: 33.22 change: -0.31

Stop Loss: 35.75
Target(s): 31.00, 30.10
Current Gain/Loss: - 3.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/31 update: So far so good. ENDP is still slipping lower and underperformed the market on Monday. Shares are quickly approaching the January 10th low of $33.12, where the stock might try and bounce. The next level of support lower is the late September lows at $32.50. More conservative traders might want to consider a tighter stop loss. Our targets are $31.00 and $30.10.

Current Position: Short ENDP stock @ 34.50

- or -

Long the 2011 February $35 PUT (ENDP1119N35) Entry @ $1.30

Entry on January 27 at $34.50
Earnings Date 02/22/11 (unconfirmed)
Average Daily Volume: 1.3 million
Listed on January 24th, 2010


Hittite Microwave Corp. - HITT - close: 59.79 change: +0.26

Stop Loss: 62.05
Target(s): 56.15, 53.50
Current Gain/Loss: + 0.3%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/31 update: HITT saw a late morning climb that ran out of steam. I see this move as just another entry point to launch bearish positions. Keep an eye on the SOX semiconductor index since this is a chip company.

Our targets are $56.15 and $53.50. Readers should note that the most recent data listed short interest in HITT at 4% of the 28.2 million-share float. That's a very small float and raises our risk of a short squeeze. FYI: The Point & Figure chart for HITT has turned bearish.

Editor's note: The options on HITT have relative wide spreads making them a significantly higher-risk trade for us.

Current Position: short HITT stock @ 59.76

- or -

Long the 2011 March $55 PUTS (HITT1119O55) Entry @ $1.65

Entry on January 31 at $59.76
Earnings Date 02/17/11 (confirmed)
Average Daily Volume: 166 thousand
Listed on January 29th, 2010


Reliance Steel - RS - close: 52.29 change: +0.10

Stop Loss: 55.05
Target(s): 45.05
Current Gain/Loss: + 1.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/31 update: Monday was a quiet day for RS. Shares churned sideways under the $53.00 level. There is no change from my weekend comments. I am suggesting new bearish positions now at current levels. More conservative traders may want to move their stop loss closer to the $54 mark. There is potential support near $48 but I'm targeting a drop toward the $45 level and its 200-dma. We do not want to hold over the earnings in mid February.

Current Position: Short RS stock @ $51.41

- or -

Long the February $50 PUT (RS1119N50) Entry @ $1.35

01/29 New entry point for bearish positions.
01/24 CBOE listed the $50 PUT opening price at $1.35

Entry on January 24 at $51.41
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: 654 thousand
Listed on January 22nd, 2010


Riverbed Technology - RVBD - close: 35.87 change: +0.34

Stop Loss: 38.15
Target(s): 31.75, 28.00
Current Gain/Loss: + 0.9%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/31 update: RVBD tried to bounce but didn't get very far. There is no change from my weekend comments. I would still consider new bearish positions now at current levels. Our targets for RVBD are $31.75 and $28.50. This is an aggressive, higher-risk trade. Keep your position size small.

Readers need to know that the latest data listed short interest at 7.6% of the 135 million share float. That's relatively high short interest and raises the risk on this trade. You may want to buy put options instead. FYI: The Point & Figure chart for HITT has turned bearish.

- Small Positions to Limit our Risk -

Current Position: Short RVBD stock @ 35.55

- or -

Long the 2011 Feb. $35 puts (RVBD1119N35) Entry @ $1.05

- or -

Long the 2011 Mar. $35 puts (RVBD1119O35) Entry @ $1.75

Entry on January 31 at $35.55
Earnings Date 01/27/11
Average Daily Volume: 5.1 million
Listed on January 29th, 2010


Virgin Media, Inc. - VMED - close: 25.16 change: +0.23

Stop Loss: 26.15
Target(s): 22.25
Current Gain/Loss: + 0.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/31 update: VMED produced a decent little bounce but shares still looks bearish given Friday's failure. There is no change from my weekend comments. I would still consider new positions here. Our target is the $22.25 mark, since the simple 200-dma could be technical support. Readers need to know that the most recent data listed short interest at 9.7% of the 298 million-share float. That's a lot of short interest and definitely raises the risk of a short squeeze. You might want to buy the puts instead of shorting the stock.

Current Position: short VMED stock @ 25.08

- or -

Long the 2011 Feb. $24 puts (VMED1119N24) Entry @ $0.51

- or -

Long the 2011 Mar. $22.50 puts (VMED1119O22.5) Entry @ $0.45

Entry on January 31 at $25.08
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: xxx million
Listed on January 29th, 2010