Editor's Note:
Our new candidates from this weekend are not open yet. We want to reload our entry point strategy.

Meanwhile I've added a trigger to the DIS trade. We have removed BMRN as a candidate.

Current Portfolio:


BULLISH Play Updates

Ball Corp. - BLL - close: 37.79 change: -0.12

Stop Loss: 39.00
Target(s): 36.65
Current Gain/Loss: + 3.3%
Time Frame: up to the earnings report (01/26)
New Positions: see below

Comments:
01/23 update: BLL dipped to its rising 10-dma and pared its losses with an afternoon rebound off its lows. Readers may want to start exiting now. We only have a few days left. The plan is to exit at $39.00 or prior to the earnings report on Jan. 26th. I am not suggesting new positions at this time.

current Position: Long BLL stock @ 36.55

- or -

Long Feb $35 call (BLL1221A35) entry 2.30

01/21/12 remember, we want to exit prior to earnings on 01/26
01/18/12 new stop loss @ 36.65
01/12/12 new stop loss @ 36.25
01/11/12 new stop loss @ 35.75
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


Cisco Systems Inc. - CSCO - close: 19.83 change: -0.09

Stop Loss: 18.60
Target(s): 20.75
Current Gain/Loss: + 2.3%
Time Frame: up to CSCO's February earnings
New Positions: see below

Comments:
01/23 update: The rally in CSCO has paused as shares challenge resistance near $20. Do not be surprised to see CSCO dip toward short-term technical support at the rising 10-dma.

Earlier Comments:
We want to ride the stock up to its early February earnings report but exit prior to the announcement. FYI: The Point & Figure chart for CSCO is bullish with a long-term $27.00 target.

Long Position: Long CSCO stock @ 19.37

- or -

Long Feb $20 call (CSCO1218B20) Entry $0.43

01/18/12 trade opened on gap higher at $19.37

Entry on January 18 at $19.37
Earnings Date 02/08/12 (confirmed)
Average Daily Volume = 39.0 million
Listed on January 12, 2011


Walt Disney Company - DIS - close: 39.31 change: -0.13

Stop Loss: 37.90
Target(s): 42.50
Current Gain/Loss: unopened
Time Frame: up to earnings on Feb. 7th
New Positions: Yes, see below

Comments:
01/23 update: Our DIS trade is not open yet. DIS opened positive but the S&P 500 did not. I am adjusting our entry point strategy. We will use a trigger to open bullish positions at $39.60 with a stop loss at $37.90. However, readers will want to stay alert and watch for a dip to and bounce from the $38.00 level as an alternative entry point. Keep positions small.

Our bullish target might be a little optimistic given our time frame. We do not want to hold over DIS' earnings report on Feb 7th. Speaking of targets, we are aiming for $42.50 but the Point & Figure chart for DIS is bullish with a long-term $53 target.

Trigger @ 39.60 (Small Positions)

Suggested Position: buy DIS stock @ 39.60

- or -

buy the Feb $40 call (DIS1218B40)

01/23/12 adjusted strategy. Use trigger @ 39.60
01/21/12 trade not open yet. try again.

Entry on January xx at $ xx.xx
Earnings Date 02/07/12 (confirmed)
Average Daily Volume = 7.7 million
Listed on January 19, 2011


Human Genome Sciences - HGSI - close: 8.91 change: -0.02

Stop Loss: 8.30
Target(s): 11.00
Current Gain/Loss: - 1.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/23 update: This is an important test for HGSI's short-term trend. The stock didn't move much today but it did slip toward the rising 10-dma. Readers could use this dip as a new bullish entry point or wait for a bounce. As an alternative you could wait for a rally past $9.30 as a bullish entry point.

Keep in mind this is an aggressive trade and HGSI can be a volatile stock.

Our target is $11.00 but readers should note that the $10.00 level and the simple 100-dma could act as overhead resistance. I am suggesting we keep our position size small to limit our risk.

(small positions)

current Position: Long HGSI stock @ $9.06

- or -

Long Feb $10 call (HGSI1218B10) Entry $0.59

01/19/12 HGSI gapped open higher at $9.06 on a new "buy" rating

Entry on January 19 at $9.06
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on January 18, 2011


Host Hotels & Resorts - HST - close: 16.23 change: +0.37

Stop Loss: 15.45
Target(s): 17.90
Current Gain/Loss: unopened
Time Frame: up to the Feb. 14th earnings report
New Positions: Yes, see below

Comments:
01/23 update: HST did its part with a positive open but the S&P 500 did not. Our trade is not open yet. I am suggesting we try again. We want to launch small bullish positions at the open but only if both HST and the S&P 500 index open positive. Nimble traders may want to take a different approach and wait for a dip near the rising 10-dma instead as their entry point. FYI: The Point & Figure chart for HST is bullish with a $24.00 target.

Do not enter position unless HST and the S&P500 are both positive at the open
(Small Positions)

Suggested Position: buy HST stock @ the open

- or -

buy the Feb $16 call (HST1218B16)

Entry on January xx at $ xx.xx
Earnings Date 02/14/12 (confirmed)
Average Daily Volume = 7.5 million
Listed on January 21, 2011


J.P.Morgan Chase & Co - JPM - close: 37.36 change: +0.43

Stop Loss: 35.95
Target(s): 42.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/23 update: JPM outperformed the market today with a +0.8% gain. Unfortunately our trade is not open yet since the S&P 500 opened negative before moving higher. I am suggesting we try again. The plan is to launch new bullish positions at the open tomorrow morning but only if both the S&P 500 and JPM open positive. More conservative traders may want to wait for JPM to actually close over $38.00 before launching new positions.

If our trade is opened we'll use a stop loss at $35.95. Our multi-week target is $42.50. FYI: The Point & Figure chart for JPM is bullish with a long-term $56 target.

Do not enter position unless JPM and the S&P500 are both positive at the open

Suggested Position: buy JPM stock @ the open

- or -

buy the Feb $38 call (JPM1218B38)

- or -

buy the Mar $38 call (JPM1217C38)

01/23/12 trade not open yet, S&P 500 opened negative. Try again.

Entry on January xx at $ xx.xx
Earnings Date 01/13/12
Average Daily Volume = 35.2 million
Listed on January 21, 2011


SAIC, Inc. - SAI - close: 13.00 change: +0.00

Stop Loss: 12.74
Target(s): 14.50
Current Gain/Loss: - 0.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/23 update: SAI dipped toward the next level of support near $12.80 before bouncing back to close unchanged. I am growing a bit cautious here. We are not suggesting new positions at this time.

Earlier Comments:
Our target is $14.50 but I have to warn you that I see potential resistance near $13.50, and the 150-dma, the exponential 200-dma and the simple 200-dma.

(Small Positions)

Suggested Position: long SAI stock @ $13.10

- or -

Long Feb $12 call (SAI1218B12) Entry $1.30

Entry on January 17 at $13.10
Earnings Date 03/22/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on January 14, 2011


Starbucks Corp. - SBUX - close: 47.34 change: -0.81

Stop Loss: 46.75
Target(s): 49.00
Current Gain/Loss: + 2.7%
Time Frame: up to the January earnings report.
New Positions: see below

Comments:
01/23 update: Ouch! We knew SBUX would see some profit taking eventually. I was hoping it would get postponed until the earnings report. Shares broke down under short-term support at the 10-dma, which is bearish. If SBUX drops again tomorrow then odds are good we'll see it hit our stop loss at $46.75. I am not suggesting new positions at this time. We still want to exit prior to the Jan. 26th earnings report.

current Position: long SBUX stock @ $46.08

- or -

Long FEB $47 call (SBUX1218B47) entry $1.56

01/21/12 new stop loss @ 46.75
01/19/12 Readers may want to take profits now!
01/18/12 new stop loss $ 46.40, adjust exit to $49.00
01/17/12 new stop loss @ 45.95
01/14/12 new stop loss @ 45.75, plan to exit prior to earnings
01/12/12 new stop loss @ 44.90
01/11/12 new stop loss @ 44.60
01/07/12 new stop loss @ 43.95

Entry on December 29 at $46.08
Earnings Date 01/26/12 (confirmed)
Average Daily Volume = 5.1 million
Listed on December 28, 2011


Smith & Wesson Holding Corp. - SWHC - close: 4.72 change: -0.02

Stop Loss: 4.45
Target(s): 5.65 or 6.40
Current Gain/Loss: - 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/23 update: SWHC dipped to $4.60 and its 20-dma before bouncing back to close almost unchanged on the session. I am not suggesting new positions at this time and more conservative traders may want to raise their stops toward today's intraday low.

Earlier Comments:
I do consider this a very aggressive trade and we want to keep our position size small. The $5.00 level could be resistance but we're going to aim higher. I am setting two different targets depending on your risk tolerance. I'd aim for $5.65 or $6.40. FYI: The Point & Figure chart for SWHC is bullish with a long-term $9.50 target.

(Small Positions)

Suggested Position: long SWHC stock @ $4.83

Entry on January 17 at $4.83
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 962 thousand
Listed on January 14, 2011


Textainer Group Holdings - TGH - close: 31.55 change: +0.21

Stop Loss: 29.40
Target(s): 34.00
Current Gain/Loss: + 3.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/23 update: It was a choppy first half of the day but TGH recovered to close up +0.6%. I am not suggesting new positions at this time.

Earlier Comments:
A breakout could spark some short covering. The most recent data listed short interest at 11% of the very small 12.8 million share float. That raises the risk of a short squeeze. Plus, TGH should appeal to the high-yield crowd since shares sport a 4.7% yield. NOTE: TGH does have options but the spreads are a little wide.

current Position: Long TGH stock @ 30.60

01/19/12 new stop loss @ 29.40
01/13/12 TGH hit our trigger at $30.60 and reversed in less than one second. I am suggesting caution here.

Entry on January 13 at $30.60
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 172 thousand
Listed on January 11, 2011


BEARISH Play Updates

C&J Energy Services, Inc. - CJES - close: 17.62 change: +0.10

Stop Loss: 19.75
Target(s): 15.00
Current Gain/Loss: + 1.0%
Time Frame: 4 to 6 weeks, exit prior to earnings
New Positions: see below

Comments:
01/23 update: CJES produced another oversold bounce this morning but gains began to fade after the first 30 minutes of trading. There is no change from my prior comments.

I am still a little cautious launching new positions given the broader market's strength but the trend in CJES is definitely down. The stock looks like it might have overhead resistance near $19.00 and its 10-dma (near 19.15).

Earlier Comments:
Our target is $15.00. We do want to keep our position size small to limit our risk. The most recent data listed short interest at about 15% of the small 35.9 million-share float. That does raise the risk of a short squeeze. You may want to use put options to limit your risk instead of shorting the stock. FYI: The Point & Figure chart for CJES is bearish with a $12.00 target.

(small positions)

Current Position: short CJES stock @ 17.80

- or -

Long Feb $17.50 put (CJES1218N17.5) Entry $0.98

Entry on January 18 at $17.80
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 923 thousand
Listed on January 17, 2011


CLOSED BULLISH PLAYS

BioMarin Pharmaceuticals - BMRN - close: 34.78 change: -0.42

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/23 update: BMRN is not cooperating. Shares continue to fade lower. It is unlikely that BMRN will hit our trigger to open bullish positions at $36.20 any time soon. The longer-term trend is still bullish. More nimble traders might want to consider buying a dip or a bounce near the rising 100-dma with a tight stop loss.

Trigger @ 36.20, stop loss 34.75 (small positions)

Our Trade Did Not Open.

01/23/12 BMRN not cooperating. Trade removed from newsletter
01/21/12 new stop loss @ 34.75, still waiting for a breakout.
01/19/12 trade did not open. Adjust entry to use a trigger at $36.20, new stop loss at $34.20
01/18/12 trade did not open. try again.

chart:

Entry on January xx at $ xx.xx
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 839 thousand
Listed on January 17, 2011