Editor's Note:
British drug maker GSK issued some disappointing drug data this morning and the stock suffered for it. We were stopped out of our GSK trade at the open this morning.

-James

Current Portfolio:


BULLISH Play Updates

Ball Corp. - BLL - close: 36.83 change: -0.29

Stop Loss: 39.00
Target(s): 35.35
Current Gain/Loss: + 0.7%
Time Frame: up to the earnings report (01/26)
New Positions: see below

Comments:
01/09 update: BLL hit some profit taking today, down -0.7%. Broken resistance near $36.50 should be new support.

Don't forget that we plan to exit ahead of the late January earnings report.

Earlier Comments:
Our target is $39.00. More conservative traders may want to take profits early near $38.00 instead. FYI: The Point & Figure chart for BLL is currently bearish but a rally past $37.00 would produce a brand new buy signal.

current Position: Long BLL stock @ 36.55

- or -

Long Feb $35 call (BLL1221A35) entry 2.30

01/06/12 trade triggered at $36.55
01/05/12 adjusted stop loss to $35.35, plan to exit prior to earnings

Entry on January 06 at $36.55
Earnings Date 01/26/12 (confirmed)
Average Daily Volume = 985 thousand
Listed on January 03, 2011


Harley-Davidson - HOG - close: 39.35 change: -0.23

Stop Loss: 38.75
Target(s): 44.50
Current Gain/Loss: unopened
Time Frame: up to the earnings report (late January)
New Positions: Yes, see below

Comments:
01/09 update: HOG is still drifting sideways under resistance near $40.00. The stock underperformed today with a -0.5% decline.

I am suggesting a trigger to open small bullish positions at $40.35 with a stop loss at $38.75. Our target is $44.50 but we may have to exit early given our time frame. HOG is tentatively scheduled to report earnings in late January and we do not want to hold over the announcement.

Trigger @ 40.35

Suggested Position: buy HOG stock @ 40.35

- or -

buy the Feb $40 call (HOG1221B40)

Entry on January xx at $ xx.xx
Earnings Date 01/24/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on January 05, 2011


Lam Research - LRCX - close: 38.71 change: +0.87

Stop Loss: 36.40
Target(s): 39.50
Current Gain/Loss: + 4.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: The semiconductor sector was showing relative strength today and LRCX was doing its part with a +2.2% gain. Today's move is a bullish breakout over resistance at $38.00. Please note that we are raising the stop loss to $36.40. I am adjusting our exit target down to $39.50.

(small positions)

current Position: Long LRCX stock @ $37.02

- or -

Long 2012Jan $38 call (LRCX1221A38) entry $0.60

01/09/12 new stop loss @ 36.40, adjust target to $39.50
01/03/12 new stop loss @ 35.75
12/23/11 trade opened.
12/22/11 trade not open yet. try again.

Entry on December 23 at $37.02
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on December 21, 2011


PetMed Express Inc. - PETS - close: 10.55 change: +0.10

Stop Loss: 9.90
Target(s): 11.90
Current Gain/Loss: - 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/09 update: PETS slowly drifted higher on Monday and closed up with a +0.9% gain. Readers may want to consider inching up their stop loss toward the $10.15 area.

Earlier Comments:
A breakout could spark a short squeeze. The stock could see a short squeeze due to the high amount of short interest. The most recent data listed short interest is almost 29% of the very small 19.8 million-share float.

PETS has potential technical resistance at the simple 150-dma at $10.35. I would keep our position size small to limit our risk. The simple and exponential 200-dma could be significant overhead resistance and PETS struggled with resistance near $11.50 in the past.

NOTE: I would prefer to trade the stock over the options but we're listing the options as an alternative.

(small positions)

current Position: Long PETS stock @ $10.59

- or -

Long Feb $10 call (PETS1218B10) entry $0.74

01/04/12 readers may want to exit early. PETS is not cooperating and the action looks bearish.
01/03/12 PETS gapped higher at $10.59, which is above our trigger at $10.45.

Entry on January 03 at $10.59
Earnings Date 01/24/12 (unconfirmed)
Average Daily Volume = 231 thousand
Listed on December 27, 2011


Starbucks Corp. - SBUX - close: 46.59 change: -0.13

Stop Loss: 43.95
Target(s): 49.75
Current Gain/Loss: + 1.1%
Time Frame: up to the January earnings report.
New Positions: see below

Comments:
01/09 update: Monday was a quiet day for SBUX with the coffee stock churning sideways. There is no change from my weekend comments. I am a bit hesitant to open new positions in SBUX. More conservative traders may want a stop closer to $44.50 or near $45.00 instead.

NOTE: SBUX is tentatively scheduled to report earnings in late January. Normally we prefer to exit prior to any earnings announcement.

Earlier Comments:
Our multi-week target is $49.75. FYI: The Point & Figure chart for SBUX is bullish with a long-term $75 target.

current Position: long SBUX stock @ $46.08

- or -

Long FEB $47 call (SBUX1218B47) entry $1.56

01/07/12 new stop loss @ 43.95

Entry on December 29 at $46.08
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 5.1 million
Listed on December 28, 2011


BEARISH Play Updates

Electronic Arts - EA - close: 19.42 change: -0.25

Stop Loss: 21.05
Target(s): 18.00
Current Gain/Loss: + 2.7%
Time Frame: up to the earnings report
New Positions: see below

Comments:
01/09 update: Our new EA trade is off to a good start. Shares opened at $19.97 and then immediately spiked down to a new relative low at $19.08 before paring its losses.

Our plan was to keep our position size small to limit risk.

Our exit target is $18.00 but we may adjust it as the play progresses. Please note that we want to exit prior to the early February earnings report (still unconfirmed).

(Small Positions)

current Position: short EA stock @ 19.97

- or -

Long 2012Jan $20 PUT (EA1221M20) entry $0.70

Entry on January 09 at $19.97
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 4.9 million
Listed on January 07, 2011


EZchip Semiconductor - EZCH - close: 29.54 change: +0.24

Stop Loss: 30.10
Target(s): 25.50
Current Gain/Loss: - 3.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/09 update: Warning! Readers may want to exit immediately. EZCH is flirting with a breakout past resistance at $30.00. The stock saw an intraday spike to $30.08 before trimming its gains. I am not suggesting new positions at this time.

Earlier Comments:
We want to keep our position size small to limit our risk. The $26.60 level has been support in the past but we're aiming for $25.50. More aggressive trades may want to aim for $23 over the next several weeks. FYI: The Point & Figure chart for EZCH is bearish with a $24 target.

Suggested Position: short EZCH @ 28.38

- or -

Long Jan $28 PUT (EZCH1221M28) entry $0.95

Entry on December 29 at $28.38
Earnings Date 02/08/12 (unconfirmed)
Average Daily Volume = 280 thousand
Listed on December 28, 2011


Jos. A Bank Clothiers - JOSB - close: 46.40 change: -0.07

Stop Loss: 48.55
Target(s): 41.00
Current Gain/Loss: + 0.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/09 update: JOSB continues to underperform the market although today's decline was pretty minor. Shares opened at $46.75 and dipped to $45.78 before paring its losses.

Earlier Comments:
I suspect the path of least resistance is down and I'm not the only one. The most recent data listed short interest at 19% of the small 27.5 million-share float. This high amount of short interest does raise the risk of a short squeeze should the stock suddenly reverse unexpectedly.

Our target is $41.00 but don't be surprised to see a temporary bounce near $44.00. FYI: The Point & Figure chart for JOSB is bearish with a $39.00 target.

(Small Positions)

Suggested Position: short JOSB stock @ 46.75

- or -

Long Feb. $45 PUT (JOSB1218N45) entry $1.55

Entry on January 09 at $46.75
Earnings Date 03/29/12 (unconfirmed)
Average Daily Volume = 236 thousand
Listed on January 07, 2011


Target Corp. - TGT - close: 48.57 change: -0.38

Stop Loss: 50.50
Target(s): 46.05
Current Gain/Loss: - 1.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/09 update: The oversold bounce is already beginning to fade. This is good news for the bears. The $49.50-50.00 zone should be resistance.

(small positions)

current Position: short TGT stock @ 48.00

- or -

Long Feb $50 PUT (TGT1218B50) entry $2.65

01/05/12 new stop loss @ 50.50
01/05/12 Our trade was opened on the gap down at $48.00 instead of our trigger at $49.45 thanks to TGT's missed same-store sales numbers and an earnings warning.

Entry on January 05 at $48.00
Earnings Date 02/22/12 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on January 04, 2011


CLOSED BULLISH PLAYS

GlaxoSmithKline - GSK - close: 44.36 change: -1.82

Stop Loss: 44.90
Target(s): 49.25
Current Gain/Loss: - 3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/09 update: Ouch! Investors were unhappy with the latest news out of GSK this morning. The company released data on its final trials for a new asthma medication. Unfortunately the new once-a-day drug, Relovair, did not show any significant improvement over GSK's twice-a-day drug already on the market. The stock gapped open lower at $44.25, which was under our stop loss at $44.90, immediately closing our trade.

closed Position: long GSK stock @ 45.75, exit 44.25 (-3.2%)

- or -

Feb $46 call (GSK1218B46) entry $1.05, exit 0.30 (-71.4%)

01/09/12 stopped out on gap down at $44.25 on lackluster news regarding GSK's Relovair drug
01/04/12 new stop loss @ 44.90

chart:

Entry on December 23 at $45.75
Earnings Date 02/07/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on December 22, 2011