Editor's Note:
Our bullish candidate DIS is showing some relative strength with a breakout past resistance. Yet DIS proved to be an exception with most stocks consolidating sideways.

-James

Current Portfolio:


BULLISH Play Updates

Walt Disney Co. - DIS - close: 40.49 change: +0.61

Stop Loss: 37.85
Target(s): 39.90, 41.90
Current Gain/Loss: + 5.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
02/02 update: Good news! DIS has finally broken out past resistance at the $40.00 mark. Volume was healthy on the move. Please note that I am adjusting our final target down from $42.50 to $41.90. Earnings are coming out soon and we don't want to hold over the report.

- Current Positions -

Long DIS stock @ 38.25

02/02: Adjusted exit target to $41.90
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: 32.15 change: +1.11

Stop Loss: 30.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: +10.5%
Time Frame: exit before earnings
New Positions: see below

Comments:
02/02 update: FLIR rallied to another new relative high (32.64) until the stock was downgraded to a "hold" which took some of the wind out of its sales. Now today's performance looks like a short-term top. More conservative traders will want to consider an early exit now! At the moment our exit target is $33.00 but we plan to exit ahead of the Feb. 9th earnings announcement.

Current Position: Long FLIR stock @ $29.10

02/01: New stop loss @ 30.40
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: 57.50 change: -0.45

Stop Loss: 53.40
Target(s): 59.50
Current Gain/Loss: + 3.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/02 update: HANS also traded to a new relative high today but gave back its gains to settle lower. There is no change from my prior comments. If you're looking for a new entry point I'd wait for a dip near the $56 area. 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: 33.14 change: -0.10

Stop Loss: 31.40
Target(s): 34.90
Current Gain/Loss: + 1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/02 update: ORCL also tagged a new relative high before succumbing to some profit taking. There is no change from my prior comments. I'd probably look for a dip in the $31.75-31.50 zone as a new entry point.

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: 41.95 change: -0.12

Stop Loss: 40.45
Target(s): 44.75
Current Gain/Loss: + 1.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
02/02 update: UND produced a very, very quiet session with shares hovering near the $42 level. I see no change from yesterday's comments. More conservative traders may want to raise their stop loss now. Given the trend higher we could launch new positions on a dip near $41.25.

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


Whole Foods Market, Inc. - WFMI - close: 51.72 change: -1.19

Stop Loss: 49.95
Target(s): 57.50, 59.90
Current Gain/Loss: - 1.8%
Time Frame: Just a few days
New Positions: Yes, see below

Comments:
02/02 update: Uh-oh! WFMI has almost completely erased yesterday's gains. This is not the sort of follow through we want to see after WFMI had just broken its short-term trend of lower highs. We only have a few days so we need to be careful with our entry point. I would be tempted to buy another dip near $50.50. Or you could wait for another bounce but I have to reiterate that we don't have much time.

Our plan was to keep our positions small to limit our risk. We'll exit in front of WFMI's earnings report. There is potential resistance near the 2007 highs around $53.50 but a move past that level could spark some short covering. I am listing our exit targets at $57.50 and $59.90.
FYI: The Point & Figure chart for WFMI is bullish with an $86 target.

- Small Positions to Limit our Risk -

Current Position: buy WFMI stock @ 52.70

- or -

Long the February $55 calls (WFMI1119B55) Entry @ $1.31

Entry on February 2 at $52.70
Earnings Date 02/09/11 (confirmed)
Average Daily Volume: 1.8 million
Listed on February 1st, 2010


BEARISH Play Updates

Endo Pharmaceuticals - ENDP - close: 34.55 change: +0.10

Stop Loss: 35.40
Target(s): 31.00, 30.10
Current Gain/Loss: + 0.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/02 update: ENDP is still trying to bounce and eked out a 10-cent gain on very low volume. There is no change from my prior comments. More conservative traders may want to exit early or at least strongly consider lowering your stop loss (maybe to the $34.75 area). I am not suggesting new positions at this time. 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

02/01 New stop loss @ 35.40

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


Riverbed Technology - RVBD - close: 35.65 change: +0.16

Stop Loss: 38.15
Target(s): 31.75, 28.00
Current Gain/Loss: + 0.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
02/02 update: RVBD managed another gain but shares have yet to break the trend of lower highs. I would be tempted to open bearish positions here but you could wait for a drop under $34.85 first.

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


Timken Co. - TKR - close: 47.92 change: -0.66

Stop Loss: 50.25
Target(s): 45.05, 42.00
Current Gain/Loss: - 0.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/02 update: So far so good. TKR is performing as expected. Shares failed in the $48-49 area. I would still consider new positions at this time but readers might want to wait for a little more follow through lower on this failed rally. Our exit targets are $45.05 and $42.00.

Current Position: short TKR stock @ $48.00

- or -

Long the March $45 puts (TKR1119O45) Entry @ $0.85

Entry on February 1 at $48.00
Earnings Date 01/27/11 (confirmed)
Average Daily Volume: 857 thousand
Listed on January 31st, 2011