Editor's Note:
Stocks ended near their highs for the week. It has been hazardous for bears trying to fight this trend. One thing we all know is that an overbought market or stock can always get more overbought.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 17.21 change: +0.00

Stop Loss: 15.75
Target(s): 18.50, 19.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
02/05 update: AA's volume was very light on Friday as the stock hovered above the $17.00 level. I am almost tempted to buy the stock right here. However, we'll stick to the plan and wait to buy a dip at $16.65. More conservative traders could watch the 20-dma as their entry point. If triggered we'll start with a stop at $15.75. Our upside targets are $18.50 and $19.90. The early 2010 high near $17.60 will probably be short-term resistance but the trend for AA looks pretty healthy.

Trigger @ 16.65

Suggested Position: Buy AA stock @ 16.65

- or -

Buy the March $17.00 calls (AA1119C17) current ask $0.84

chart:

Entry on February xx at $xx.xx
Earnings Date 04/11/11 (unconfirmed)
Average Daily Volume: 41 million
Listed on February 2nd, 2010


Walt Disney Co. - DIS - close: 40.71 change: +0.21

Stop Loss: 38.60
Target(s): 39.90, 41.90
Current Gain/Loss: + 6.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
02/05 update: It was a very good week for DIS with the stock breaking out over resistance at $40.00. We are down to our last two days. DIS reports earnings on Feb. 8th after the closing bell. We'll plan on exiting on Tuesday at the close to avoid holding over the announcement unless shares hit our target first. Our final exit target is $41.90.

- Current Positions -

Long DIS stock @ 38.25

02/03: New stop loss @ 38.60
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

chart:

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: 32.13 change: -0.23

Stop Loss: 30.90
Target(s): 30.90, 33.00
Current Option Gain/Loss: +10.4%
Time Frame: exit before earnings
New Positions: see below

Comments:
02/05 update: Investors are still buying the dip in FLIR although volume has been sinking Tuesday's high. This trade is almost over. FLIR reports earnings on Wednesday, after the closing bell. I am suggesting we exit on Wednesday at the close to avoid holding over earnings. Unless of course FLIR hits our exit at $33.00 first. I am not suggesting new positions at this time. More conservative traders will want to consider an early exit now!

Current Position: Long FLIR stock @ $29.10

02/03: New stop loss @ 30.90
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

chart:

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: 56.91 change: -0.12

Stop Loss: 53.40
Target(s): 59.50
Current Gain/Loss: + 2.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/05 update: HANS is down three days in a row but shares are still up on the week. I wouldn't be surprised to see a dip toward the $55.50-55.00 zone and would look for a new entry point there. 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

chart:

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: 32.62 change: -0.37

Stop Loss: 31.40
Target(s): 34.90
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/05 update: It's been seven days and we're right back where we started at $32.62. I would still consider bullish positions on ORCL at current levels or you could wait for a dip closer to the $32.00 mark.

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

small positions to limit our risk.

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

chart:

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: 42.49 change: -0.55

Stop Loss: 40.45
Target(s): 44.75
Current Gain/Loss: + 3.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
02/05 update: UNH hit some profit taking after Thursday's big move higher. The trend of higher lows is bullish but UNH is starting to look a little overbought here. No new positions at this time.

Current Position: UNH stock @ $41.15

- or -

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

chart:

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: 53.00 change: +1.34

Stop Loss: 49.95
Target(s): 57.50, 59.90
Current Gain/Loss: + 0.5%
Time Frame: Just a few days
New Positions: see below

Comments:
02/05 update: Traders bought the dip again and WFMI outperformed on Friday with a +2.5% gain. We are down to our last three days. WFMI reports earnings on Feb. 9th and we will plan to exit on Wednesday at the closing bell to avoid holding over the announcement. With just three days left I am reluctant to open new positions.

Our plan was to keep our positions small to limit our risk.

- Small Positions to Limit our Risk -

Current Position: buy WFMI stock @ 52.70

- or -

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

chart:

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: 34.99 change: +0.22

Stop Loss: 35.40
Target(s): 31.00, 30.10
Current Gain/Loss: - 1.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/05 update: It certainly looks like I was wrong on ENDP but shares have rallied right back to the January 18th high and its 50-dma and the rally has stalled. Granted it wouldn't take much for ENDP to rise on Monday to stop us out at $35.40. I am not suggesting new positions at this time.

Current Position: Short ENDP stock @ 34.50

- or -

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

02/03 Consider an early exit now
02/01 New stop loss @ 35.40

chart:

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


Timken Co. - TKR - close: 48.98 change: +0.73

Stop Loss: 50.25
Target(s): 45.05, 42.00
Current Gain/Loss: - 2.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/05 update: Watch out! Traders are getting whipsawed in TKR with a false bullish breakout on Jan. 26th and what appears to be a false bearish breakout on Jan. 31st. The stock has rebounded back toward short-term overhead resistance at $49.00. The weekly chart has produced a potential bullish reversal candle. While a failed rally here near $49 or under the $50 level on the daily chart would look like a new bearish entry point. I am now reluctant to open new positions. More conservative traders may want to tighten their stops.

Current Position: short TKR stock @ $48.00

- or -

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

chart:

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


CLOSED BEARISH PLAYS

Riverbed Technology - RVBD - close: 37.11 change: +1.40

Stop Loss: 38.15
Target(s): 31.75, 28.00
Current Gain/Loss: - 4.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
02/05 update: That's it! I'm pulling the plug on our RVBD bearish trade. After a few days of consolidating sideways the stock finally broke and the move was higher. Shares hit $37.39 intraday. I am suggesting an early exit now to cut our losses. We can keep RVBD on our radar screen to see if shares make it past resistance at $40.00.

- Small Positions to Limit our Risk -

Closed Position: Short RVBD stock @ 35.55, Exit $37.11 (-4.3%)

- or -

2011 Feb. $35 puts (RVBD1119N35) Entry @ $1.05, Exit @ 0.35 (-66.6%)

- or -

2011 Mar. $35 puts (RVBD1119O35) Entry @ $1.75, Exit @ 1.25 (-28.5%)

02/05 Exit Early Now! RVBD @ 37.11 (-4.3%)
02/05 Exit Early. Options @ -66.6% and -28.5%

chart:

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