Editor's Note:
The U.S. market continues to melt higher. Financials and homebuilders were some of today's best performers. Our TKR play has been stopped out.

-James

Current Portfolio:


BULLISH Play Updates

Agilent Technologies - A - close: 44.44 change: +1.45

Stop Loss: 39.95
Target(s): 47.50
Current Gain/Loss: unopened
Time Frame: 1 week
New Positions: Yes, see trigger

Comments:
02/07 update: The rally in shares of Agilent continues with the stock hitting a new multi-year high just after lunch time. Shares do look very short-term overbought so we're waiting for a dip. Right now the plan is to open bullish positions on a dip at $42.15 Bear in mind that we don't have a lot of time. A is due to report earnings on February 14th and we do not want to hold over the report.

Trigger @ 42.15

Suggested Position: Buy A stock @ $42.15

- or -

Buy the February $43.00 calls (A1119B43) current ask $1.20

Entry on February xx at $xx.xx
Earnings Date 02/14/11 (confirmed)
Average Daily Volume: 3.3 million
Listed on February 5th, 2010


Alcoa Inc - AA - close: 17.32 change: +0.18

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:
02/07 update: AA tagged a new 52-week high this morning before paring its gains to +1%. Shares look ripe for a little pull back. Right now the plan is to open bullish positions at $16.65. You could use a dip into the $16.65-16.00 zone as your 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

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: 40.94 change: +0.23

Stop Loss: 38.60
Target(s): 39.90, 41.90
Current Gain/Loss: + 7.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
02/07 update: This is it. Tomorrow is our last day. We plan to exit tomorrow (Tuesday) at the close to avoid holding over DIS' earnings report. More conservative traders may want to exit now (in the morning). Due to our time frame I am raising our stop loss to $39.95. Our final exit target has been $41.90.

- Current Positions -

Long DIS stock @ 38.25

02/07: New stop loss @ 39.95
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

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: 31.98 change: -0.15

Stop Loss: 30.90
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 9.9%
Time Frame: exit before earnings
New Positions: see below

Comments:
02/07 update: Time is almost up. We've got two days left. Readers may want to go ahead and exit early now. 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.

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

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: 55.76 change: -1.15

Stop Loss: 53.40
Target(s): 59.50
Current Gain/Loss: + 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/07 update: The profit taking in HANS continues. Shares are now down four days in a row. Over the weekend I warned readers to look for a dip into the $55.50-55.00 zone and HANS hit $55.26. This looks like a new entry point for bullish trades but you might want to inch up your stop loss. 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: 32.98 change: +0.36

Stop Loss: 31.40
Target(s): 34.90
Current Gain/Loss: + 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/07 update: ORCL outperformed the NASDAQ with a +1.1% gain on Monday. I'd prefer to launch new positions on a dip closer to the $32.00 level.

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

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


The TJX Companies - TJX - close: 49.79 change: +0.09

Stop Loss: 46.49
Target(s): 52.00, 54.50
Current Gain/Loss: unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see trigger

Comments:
02/07 update: TJX finally tagged the $50.00 mark but shares failed to breakthrough it. This should be round-number resistance for the stock and I am expecting a pull back soon. We want to be ready to buy the dip at $48.00 with a stop loss at $46.49. TJX has earnings in about two and a half weeks and we'll exit ahead of the report. We'll be aiming for $52.00 and $54.50.


FYI: The Point & Figure chart for TJX is bullish with a $62 target.

Trigger @ 48.00

Suggested Position: buy TJX stock @ $48.00

- or -

Buy the March $50.00 calls (TJX1119C50) current ask $1.30

Entry on February xx at $xx.xx
Earnings Date 02/23/11 (unconfirmed)
Average Daily Volume: 3.4 million
Listed on February 5th, 2010


UnitedHealth Group - UNH - close: 41.81 change: -0.68

Stop Loss: 40.45
Target(s): 44.75
Current Gain/Loss: + 1.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
02/07 update: Rival Humana (HUM) reported earnings this morning that missed estimates. This news cast a shadow across the healthcare space and UNH lost -1.6%. The trend is up but bears could argue the spike higher last week might have been a top. I am not suggesting new positions at this time.

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: 52.83 change: -0.17

Stop Loss: 49.95
Target(s): 57.50, 59.90
Current Gain/Loss: + 0.2%
Time Frame: Just a few days
New Positions: see below

Comments:
02/07 update: WFMI struggled with resistance near its January highs today. Our trade is almost over. WFMI reports earnings on Feb. 9th and we will plan to exit on Wednesday at the closing bell to avoid holding over the announcement. I am not suggesting new positions at this time.

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

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: 34.97 change: -0.02

Stop Loss: 35.40
Target(s): 31.00, 30.10
Current Gain/Loss: - 1.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/07 update: ENDP is flirting with resistance at its 50-dma. Shares hit $35.33 intraday and our stop loss is sat $35.40. Readers might want to inch their stop just above the $35.50 mark. I am not suggesting new bearish positions in ENDP 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

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


CLOSED BEARISH PLAYS

Timken Co. - TKR - close: 49.97 change: +0.99

Stop Loss: 50.25
Target(s): 45.05, 42.00
Current Gain/Loss: - 4.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/07 update: TKR has broken through short-term resistance in the $49 and $50 levels and several moving averages on Monday. The stock hit our stop loss at $50.25 closing our trade.

Closed Position: short TKR stock @ $48.00, Exit @ 50.25 (-4.6%)

- or -

March $45 puts (TKR1119O45) Entry @ $0.85, Exit @ 0.35 (-58.8%)

02/07: Stopped out @ 50.25

chart:

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