Editor's Note:
We exited our SBUX trade at the closing bell tonight to avoid holding over earnings.

Meanwhile ADSK, GPOR, JPM, and TCK were all opened.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 36.55 change: +0.32

Stop Loss: 34.75
Target(s): 39.90
Current Gain/Loss: + 0.1%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
01/26 update: ADSK hit our trigger to open positions at $36.50 today. Unfortunately the trading action today looks bearish. Shares opened higher at $36.45, spiked to $38.00, and then reversed to close almost where it opened. I am very cautious here. This suddenly looks like a possible top. Readers may want to inch up their stop loss.

Our target is $39.90 but more aggressive traders could definitely aim higher. We do not want to hold over the late February earnings report. FYI: The Point & Figure chart for ADSK is bullish with a long-term $49.00 target.

current Position: Long ADSK stock @ 36.50

- or -

Long Feb $37 call (ADSK1218B37) Entry $1.08

01/26/12 the action today looks like a potential top or bearish reversal. Be careful!

Entry on January 26 at $36.50
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on January 24, 2011


Cisco Systems Inc. - CSCO - close: 19.83 change: +0.00

Stop Loss: 18.95
Target(s): 21.75
Current Gain/Loss: + 2.3%
Time Frame: up to CSCO's February earnings
New Positions: see below

Comments:
01/26 update: CSCO tried to rally past $20.00 but could not hold its gains this morning. The stock spent the rest of the session churning on either side of the $19.80 area. The fact that CSCO closed unchanged is a little bit encouraging considering the market's losses today. However, CSCO is stuck under resistance at $20.00. If the market corrects we should expect it to follow lower.

I am not suggesting new positions at this time.

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

01/24/12 new stop loss @ 18.95, target adjusted to $21.75
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: 39.35 change: -0.21

Stop Loss: 37.90
Target(s): 42.50
Current Gain/Loss: - 0.6%
Time Frame: up to earnings on Feb. 7th
New Positions: see below

Comments:
01/26 update: DIS slowly drifted lower all session before finally bouncing in the last few minutes of trading. If the S&P 500 and DIS both open positive tomorrow I would be tempted to launch new positions. More conservative traders might want to adjust their stops closer to the $38.50 area.

Earlier Comments:
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.

(Small Positions)

Suggested Position: Long DIS stock @ 39.60

- or -

Long Feb $40 call (DIS1218B40) Entry $0.87

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


Gulfport Energy - GPOR - close: 33.50 change: -0.45

Stop Loss: 31.40
Target(s): 37.00
Current Gain/Loss: - 1.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/26 update: Our GPOR trade is open. Both the stock and the S&P 500 met our entry point requirements. Shares spiked to $34.47 this morning before reversing lower into a -1.3% decline. A little profit taking is normal. If you don't want to buy GPOR here then look for a dip near its rising 10-dma instead.

Our target is $37.00 but keep an eye on the $35.00 level, which could be resistance.

Current Position: long GPOR stock @ 34.15

- or -

Long FEB $35 call (GPOR1218B35) Entry $1.25

01/26/12 Trade finally opened. GPOR @ 34.15
01/25/12 trade did not open. try again.
01/24/12 trade did not open. try again.

Entry on January 26 at $34.15
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 522 thousand
Listed on January 23, 2011


Human Genome Sciences - HGSI - close: 9.76 change: -0.16

Stop Loss: 8.49
Target(s): 11.00
Current Gain/Loss: + 7.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/26 update: HGSI spiked to a new multi-week high at $10.28 this morning but reversed as the market turned lower. Shares closed down -1.6% after yesterday's big rally. Please note that we are moving our stop loss up to $8.49. Readers might want to consider a stop closer to $8.75 instead.

I am not suggesting new positions at this time.

Earlier Comments:
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

01/26/12 new stop loss @ 8.49
01/25/12 readers may want to take profits now (HGSI @ $9.92)
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: 16.39 change: -0.24

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:
01/26 update: We have been waiting for a pull back in HST, which appears to have started today. Shares fell -1.4%. Right now the current plan is to wait and buy a dip at $16.00. FYI: The Point & Figure chart for HST is bullish with a $24.00 target.

Buy-the-dip trigger @ 16.00
(Small Positions)

Suggested Position: buy HST stock @ $16.00

- or -

buy the Feb $16 call (HST1218B16)

01/24/12 trade not open yet. adjust strategy to buy the dip at $16.00.

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: 37.49 change: -0.11

Stop Loss: 35.95
Target(s): 42.50
Current Gain/Loss: - 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/26 update: Be careful here. JPM spiked to $38.10 this morning and quickly reversed. Shares spent most of the day in its recent $38-37 trading range. Our trigger to open bullish positions was hit at $38.05 but I am not suggesting new positions at current levels. Wait for a new relative high above $38.10.

Earlier Comments:
More conservative traders may want to wait for JPM to actually close over $38.00 before launching new positions. Our multi-week target is $42.50. FYI: The Point & Figure chart for JPM is bullish with a long-term $56 target.

Current Position: Long JPM stock @ $38.05

- or -

Long Feb $38 call (JPM1218B38) Entry $1.00

- or -

Long Mar $38 call (JPM1217C38) Entry $1.50

01/26/12 triggered at $38.05
01/24/12 still not open. adjust strategy to use a trigger @ 38.05
01/23/12 trade not open yet, S&P 500 opened negative. Try again.

Entry on January 26 at $38.05
Earnings Date 01/13/12
Average Daily Volume = 35.2 million
Listed on January 21, 2011


Marvell Technology - MRVL - close: 15.76 change: -0.26

Stop Loss: 15.40
Target(s): 19.00
Current Gain/Loss: unopened
Time Frame: exit ahead of earnings in early March
New Positions: Yes, see below

Comments:
01/26 update: Our new play on MRVL is not open yet. Shares spiked to $16.20 this morning but quickly reversed as the market sank. Today's move looks like a potential bearish reversal with a bearish engulfing candlestick pattern. Overall I don't see any changes from my prior comments.

I am suggesting a trigger to open bullish positions at $16.35 with a stop loss at $15.40. If triggered our multi-week target is $19.00. However, keep an eye on the $18.00 area as potential overhead resistance. FYI: The Point & Figure chart for MRVL is bullish with a $21.00 target.

Trigger @ 16.35

Suggested Position: buy MRVL stock @ 16.35

- or -

buy the Feb $17 call (MRVL1218B17)

- or -

buy the May $17 call (MRVL1219E17)

Entry on January xx at $ xx.xx
Earnings Date 03/01/12 (unconfirmed)
Average Daily Volume = 14.1 million
Listed on January 25, 2011


Smith & Wesson Holding Corp. - SWHC - close: 5.07 change: +0.13

Stop Loss: 4.55
Target(s): 5.65 or 6.40
Current Gain/Loss: + 4.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/26 update: SWHC is showing relative strength. Not only did it breakout past round-number resistance at $5.00 but it also closed up +2.6% on a day the major indices were down. I am not suggesting new positions at this time.

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

01/24/12 new stop loss @ 4.55

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


Teck Resources - TCK - close: 42.74 change: +0.41

Stop Loss: 40.75
Target(s): 49.00
Current Gain/Loss: - 0.8%
Time Frame: up to Feb 9 earnings report.
New Positions: see below

Comments:
01/26 update: Our bullish TCK trade has been opened at $43.10. Shares gapped higher at $42.93, spiked toward $44.00, but eventually faded back under $43 again. While the breakout above its simple 200-dma is bullish the intraday reversal lower is bearish. I am hesitant to launch new positions tonight.

Earlier Comments:
More aggressive traders might want to keep their stop under $40.00 instead. Our target is the $47.00 level. Our target is pretty optimistic given our time frame. We do not want to hold over the Feb. 9th earnings report. FYI: The Point & Figure chart for TCK is bullish with a long-term $61.00 target.

(small positions)

current Position: long TCK stock @ 43.10

- or -

Long Feb $43 call (TCK1218B43) entry $2.05

01/26/12 trade opened at $43.10
01/25/12 adjusted exit target to $47.00.

Entry on January 26 at $43.10
Earnings Date 02/09/12 (confirmed)
Average Daily Volume = 2.3 million
Listed on January 23, 2011


Textainer Group Holdings - TGH - close: 32.11 change: +0.14

Stop Loss: 29.90
Target(s): 34.00
Current Gain/Loss: + 4.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/26 update: TGH outperformed the market with another gain today (+0.4%) but I would not chase it here. Shares are starting to look short-term overbought. More conservative traders may want to take profits now. 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

01/25/12 new stop loss @ 29.90
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

None. Currently we do not have any active bearish trades.


CLOSED BULLISH PLAYS

Starbucks Corp. - SBUX - close: 48.34 change: +0.57

Stop Loss: 46.95
Target(s): 49.00
Current Gain/Loss: + 4.9%
Time Frame: up to the January earnings report.
New Positions: see below

Comments:
01/26 update: The trading gods have smiled on us. Most of the market was drifting lower today. Yet SBUX bucked the trend. Shares rallied off support near $47.00 and closed at new all-time highs. It was our plan to exit at the close tonight to avoid holding over earnings after the bell.

The stock might see another spike higher tomorrow due to its strong earnings report but I'm not seeing a lot of strength after hours. SBUX beat estimates by 2 cents and beat on revenues and management guided higher. All around it seems like a solid report. We will want to keep SBUX on our watch list. A dip to technical support at the 50-dma might work.

closed Position: long SBUX stock @ $46.08, exit $48.34 (+4.9%)

- or -

FEB $47 call (SBUX1218B47) entry $1.56 exit $2.30 (+47.4%)

01/26/12 exit at the close
01/24/12 prepare to exit at the close on Jan. 26th.
new stop loss @ 46.95
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

chart:

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