Editor's Note:

Stocks were mostly higher today. Overall the prevailing trends continue.

-James

Current Portfolio:


CALL Play Updates

Boeing Co. - BA - close: 74.53 change: +0.55

Stop Loss: 72.65
Target(s): 77.00
Current Option Gain/Loss: -26.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: BA bounced back toward the top of its $73-75 trading range. Readers looking for a new entry point could use a breakout past $75.00 as a trigger but you'll want to consider aiming for a move into the $78-80 zone. Currently our exit target is $77.00.

Earlier Comments:
There is potential resistance at $75.00 and more conservative traders may want to exit there. I am aiming for $77.00. FYI: The Point & Figure chart for BA is bullish with a $79 target.

- Suggested Positions -

Long 2012Jan $75 call (BA1221A75) entry $1.08

01/07/12 new stop loss @ 72.65
01/05/12 new stop loss @ 72.25
12/31/11 new stop loss @ 71.75
12/28/11 new stop loss @ 71.40
12/22/11 new stop loss @ 69.85
12/13/11 trade opened
12/12/11 adjusted stop loss to $69.25
12/12/11 trade did not open, try again.

Entry on December 13 at $71.67
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on December 10, 2011


Coach, Inc. - COH - close: 62.86 change: +0.22

Stop Loss: 60.75
Target(s): 65.75
Current Option Gain/Loss: - 9.3%
Time Frame: up to the earnings report
New Positions: see below

Comments:
01/09 update: Our new play on COH is open. The stock rallied to $63.64 this morning before paring its gains. Traders bought the dip near short-term support at $62.00. I would still consider new positions now at current levels.

Our upside target is $65.75. More aggressive traders could aim higher. NOTE: We do not want to hold over COH's late January earnings report, which is not confirmed yet (around January 25th).

- Suggested Positions -

Long Feb $65 call (COH1218B65) Entry $2.04

Entry on January 09 at $62.99
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on January 07, 2012


Deere & Co. - DE - close: 82.73 change: +0.43

Stop Loss: 78.45
Target(s): 84.75
Current Option Gain/Loss: +53.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: DE continues to inch higher. I don't see any changes from my prior comments. The $80 level should be short-term support. More conservative traders may want to raise their stop loss. DE is arguably short-term overbought and due for a dip. I am not suggesting new positions at this time.

Our target is $84.75. More aggressive traders could aim higher. FYI: The Point & Figure chart for DE is bullish with a $96 target.

- Suggested Positions -

Long 2012Jan $80 call (DE1221A80) entry $2.05

Entry on January 04 at $80.50
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 3.3 million
Listed on January 03, 2012


Hi Tech Pharmacal Co. - HITK - close: 41.84 change: -0.40

Stop Loss: 39.40
Target(s): 44.50
Current Option Gain/Loss: +51.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: After three days of gains HITK was due for a little profit taking. Shares gave up -0.9%. The $41.00 level might offer some short-term support but if you're looking for a new entry point I'd wait for a dip or a bounce near $40.00 instead.

Earlier Comments:
We want to keep our position size small to limit our risk. The most recent data listed short interest at more than 13% of the very small 10 million share float. Our target is $44.50. Readers might want to aim higher. The Point & Figure chart for HITK is bullish with a $58 target.

(small positions) - Suggested Positions -

Long 2012Jan $40 call (HITK1221A40) entry $1.45

01/07/12 new stop loss @ 39.40
01/05/12 trade opened at $40.15 (trigger)
01/04/12 still not open yet. Adjust stop loss to $37.95
12/27/11 new trigger @ 40.15, stop loss 38.85
12/22/11 not open yet. New Trigger @ 37.25, stop 36.70
12/21/11 trade not open yet. (SP500 opened lower) Try again. New stop loss @ 37.90

Entry on January 05 at $40.15
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 298 thousand
Listed on December 20, 2011


iShares Transportation - IYT - close: 90.90 change: +0.59

Stop Loss: 88.75
Target(s): 94.75 or 98.50
Current Option Gain/Loss: Jan$95c: -50.0% & Feb$95c: -41.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/09 update: The transportation index and ETF continues to churn sideways. It just so happens that today ended on an up swing with the IYT gaining +0.6%. I am still cautious when it comes to new positions. Readers may want to wait for a move past $91.25 or last week's high of $91.81 before considering new positions.

- Suggested Positions -

Long Jan $95 call (IYT1221A95) entry $0.20
target 94.75

- or -

Long Feb $95 call (IYT1218B95) entry $1.45
target 98.50

01/07/12 new stop loss @ 88.75
01/03/12 IYT gapped open higher at $91.20, above our trigger at $90.75

Entry on January 03 at $91.20
Earnings Date --/--/--
Average Daily Volume = 582 thousand
Listed on December 22, 2011


TJX Companies - TJX - close: 65.70 change: -0.76

Stop Loss: 63.25
Target(s): 68.00
Current Option Gain/Loss: Jan$65c: +35.0% & Feb$65c: +25.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/09 update: Before the opening bell Goldman Sachs removed TJX from its conviction buy list and slapped a neutral rating on the stock. Shares of TJX reacted by gapping open lower but traders bought the dip near $65.00 midday. I am not suggesting new positions at this time. More conservative traders may want to exit now to lock in gains.

Earlier Comments:
On January 5th, management announced a 2-for-1 stock split payable on February 2nd, 2012.

- Suggested Positions -

Long 2012Jan $65 call (TJX1221A65) Entry $1.00

- or -

Long Feb $65 call (TJX1218B65) Entry $1.75

01/07/12 readers may want to take profits now (Jan$65call +90%, Feb$65call +57%)
01/05/12 new stop loss @ 63.25, TJX announced strong same-store sales and a 2:1 split.
12/31/11 new stop loss @ 62.75

Entry on December 22 at $64.10
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on December 21, 2011


Whole Foods Market, Inc. - WFM - close: 72.89 change: +0.01

Stop Loss: 69.25
Target(s): 74.00
Current Option Gain/Loss: +60.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: Monday proved to be another quiet session for WFM. The stock churned sideways and closed almost unchanged on the session. Readers may want to go ahead and lock in profits now. We should expect a minor gap down on Wednesday morning. WFM begins trading ex-dividend on January 11th for its dividend payable on Jan. 23rd (WFM's annual yield is 0.8%).

Wait for another dip or a bounce near $70.00 before considering new positions.

- Suggested Positions -

Long 2012Jan $70 call (WFM1221A70) entry $1.90

01/07/12 new stop loss @ 69.25
01/05/12 new stop loss @ 68.75
01/03/12 WFM gapped open higher at $70.55, above our trigger (70.25)

Entry on January 03 at $70.55
Earnings Date 02/08/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on December 28, 2011


PUT Play Updates

Accenture Plc, - ACN - close: 51.74 change: -0.09

Stop Loss: 54.15
Target(s): 48.50
Current Option Gain/Loss: - 7.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: ACN lost nine cents on Friday and lost another nine cents today. While momentum has slowed the trend is still bearish. I would still consider new put positions now or you could wait for a new lower high in the $53.00 area.

Our target is $48.50. We'll use a stop loss at $54.15, just above Wednesday's high. FYI: The Point & Figure chart for ACN is bearish with a $43 target.

(small positions) - Suggested Positions -

Long 2012Jan $52.50 PUT (ACN1221M52.5) Entry $1.35

Entry on January 06 at $51.91
Earnings Date 03/26/12 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on January 05, 2012


Cash America Intl. - CSH - close: 45.43 change: -0.17

Stop Loss: 46.75
Target(s): 40.50
Current Option Gain/Loss: Unopened
Time Frame: up to the earnings report.
New Positions: Yes, see below

Comments:
01/09 update: CSH continues to drift lower. We are waiting on a breakdown below support.

We want to use a trigger to buy puts at $44.75 with a stop loss at $46.75. Our target is $40.50. FYI: The Point & Figure chart for CSH is bearish with a $33 target.

NOTE: We do not want to hold over CSH's earnings report on January 26th.

Trigger @ 44.75

- Suggested Positions -

buy the Jan $45 PUT (CSH1221M45)

- or -

buy the Feb $45PUT (CSH1218N45)

Entry on January xx at $ xx.xx
Earnings Date 01/26/12 (confirmed)
Average Daily Volume = 292 thousand
Listed on January 05, 2012


Coinstar, Inc. - CSTR - close: 43.18 change: +2.20

Stop Loss: 44.75
Target(s): 40.25
Current Option Gain/Loss: + 25.0%
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Comments:
01/09 update: Ouch! CSTR almost completely erased Friday's losses with a +5.3% bounce. The low this morning was $40.68 before the stock rebounded. I couldn't find any news behind this relative strength. Readers can watch for a failed rally near $44.00 as a new bearish entry point.

Earlier Comments:
I do want to point out that the larger trend for CSTR is suggesting a long-term target in the $25.00 area. If you've got the patience then consider aiming for the $27-25 zone over the next three or four months. The real signal will be a breakdown under significant support in the $38.50-37.50 zone.

NOTE: I have to warn you that being short CSTR is a popular trade. The most recent data listed short interest at almost 45% of the very small 28.2 million-share float. Any unexpected surge higher could produce a short squeeze. We will want to keep our position size small to limit our risk.

FYI: The Point & Figure chart for CSTR is bearish with a $34 target.

(SMALL Positions) - Suggested Positions -

Long Jan $45 PUT (CSTR1221M45) Entry $2.20

01/07/12 new stop loss @ 44.75
Readers may want to take profits now. The put option has already doubled (+100%).

Entry on January 05 at $44.38
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 846 thousand
Listed on January 04, 2012


Fossil, Inc. - FOSL - close: 78.98 change: +0.52

Stop Loss: 83.05
Target(s): 73.50
Current Option Gain/Loss: -26.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: FOSL tried to rally again this morning thanks to some positive analyst comments. Yet the early gains faded and FOSL trimmed its advance to +0.6%. I am still tempted to buy puts here or you could wait for a new drop under $78.00.

Earlier Comments:
Our target is $73.50. More conservative traders may want to exit in the $75 area instead. FYI: The Point & Figure chart for FOSL is bearish with a $71 target.

- Suggested Positions -

Long 2012Jan $75 PUT (FOSL1221M75) entry $0.95

01/06/12 there was no follow through on Thursday's bounce.
01/05/12 Today's move might be a bullish reversal. Readers may want to consider an early exit immediately

Entry on January 03 at $81.12
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on December 31, 2011


LinkedIn Corp. - LNKD - close: 63.55 change: -0.64

Stop Loss: 62.55
Target(s): 51.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/09 update: LNKD underperformed the market on Monday with a -0.99% loss but shares are still churning inside its $61-66 trading range. There is no change from my weekend comments.

Bigger picture the stock seems to have a bearish pattern of lower highs and lower lows. Furthermore LNKD has tens of millions of shares that will come to market when their lock up period expires in mid February.

The newsletter is suggesting readers wait for a breakdown with a trigger to buy puts at $59.75 instead. Our exit target is $51.50. FYI: The Point & Figure chart for LNKD is bearish with a $55 target.

Trigger @ 59.75 (small positions)

- Suggested Positions -

buy the Jan $57.50 PUT (LNKD1221M57.5)

Entry on January xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on January 04, 2012


Tractor Supply Company - TSCO - close: 70.60 change: +0.89

Stop Loss: 72.15
Target(s): 65.50
Current Option Gain/Loss: -50.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: Hmm... TSCO displayed some relative strength on Monday with a +1.2% gain. The close above $70 is arguably short-term bullish. Yet TSCO still has a bearish trend of lower highs and still has technical resistance at the 50-dma. I would wait for a new drop under $69.50 before considering new positions.

Earlier Comments:
We will aim for a drop to $65.50 but more aggressive traders may want to aim for the $62-60 zone instead.

- Suggested Positions -

Long Jan $70 PUT (TSCO1221M70) entry $2.20

01/07/12 new stop loss @ 72.15

Entry on January 03 at $69.50
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 550 thousand
Listed on December 31, 2011


Walter Energy, Inc. - WLT - close: 56.87 change: -1.86

Stop Loss: 62.05
Target(s): 50.50
Current Option Gain/Loss: + 5.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/09 update: Our new put play on WLT is off to a good start. Shares opened at $58.96 and quickly broke down to new relative lows. The stock hit our trigger to buy puts at $57.75. I am lowering our stop loss to $62.05.

Earlier Comments:
Before I continue I have to warn you that WLT can be a volatile stock. What makes this trade even more challenging is that WLT has been considered a potential takeover candidate for months. Rumors consistently spark short-term spikes in this stock. Yet the overall trend is definitely bearish. We want to keep our position size pretty small to limit our risk. More conservative traders may want to exit near the 2011 low ($53.41). I am listing our exit target at $50.50. FYI: The Point & Figure chart for WLT is bearish with a $49 target.

- Suggested Positions -

Long Feb $55 PUT (WLT1218N55) Entry $3.50

01/09/12 new trigger 62.05

Entry on January 09 at $57.75
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on January 07, 2012