Editor's Note:
It has been years since I've watched "Wheel of Fortune" where participants could buy a vowel. I'd sincerely like to ask the market if we could buy a dip.

There is very little change from my weekend comments. Stocks remain overbought and we need a dip to trigger some entry points. Readers may want to take some profits out of the Citigroup trade.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 13.96 change: -0.04

Stop Loss: 12.75
Target(s): 14.95, 15.95
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
11/8: Normally a strong dollar is bearish for commodity-related names but the commodity space held up pretty well on Monday in spite of a dollar bounce. AA actually performed well considering one firm downgraded the stock to a "neutral" this morning. We are still waiting for a dip. There is no change from my prior comments.

Earlier Comments:
Wait for a dip to $13.50 to buy shares of AA. If triggered we'll use a stop loss at $12.75.

Suggested Position: Buy AA stock @ 13.50

Entry on November xx at $xx.xx
Earnings Date 01/10/11 (unconfirmed)
Average Daily Volume: 26.1 million
Listed on November 6th, 2010


Citigroup Inc - C - close 4.50 change -0.05

Stop Loss: 4.08
Target(s): 4.60, 4.75, 4.95
Current Option Gain/Loss: + 8.1%
Time Frame: 4 to 6 weeks
New Positions: NO

Comments:
11/8: Financial stocks faltered on Monday as the sector was hit with some profit taking after last week's big gains. The action today in Citigroup could be a short-term top for the stock. More conservative traders will want to seriously consider taking some money off the table right now. I would expect a correction toward $4.30, which should be new support. No new positions at this time.

Current Position: Long C stock, entry was at $4.16
Options Traders: Long December $4.00 CALL

Entry on October 27, 2010
Earnings Date 01/19/11 (unconfirmed)
Average Daily Volume: 523 million
Listed on October 25, 2010


Hansen Natural Corp. - HANS - close: 50.97 change: -0.57

Stop Loss: 46.75
Target(s): 51.75
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
11/8: There is no change from my previous comments. HANS looks vulnerable to more profit taking. We want to see a dip.

Earlier Comments:
Use a trigger at $48.25 to buy HANS or buy calls. If triggered we'll use a stop loss at $46.75.

Suggested Position: BUY the stock at $48.25

- or -

BUY the December $50.00 calls (on a dip at $48.25)

Entry on November xx
Earnings Date 11/04/10 (confirmed)
Average Daily Volume: 4.5 million
Listed on October 16, 2010


Kroger Co. - KR - close 22.71 change -0.40

Stop Loss: 21.45
Target(s): 23.70
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
11/8: Almost there! KR gave up -1.7% on Monday thanks in part to rival Safeway getting downgraded this morning. Shares of KR slipped to $22.66 intraday. We want to see a dip to $22.55 (more cautious traders may want to wait for a dip closer to $22.00 instead).

Earlier Comments:
Use a dip at $22.55 to launch bullish positions. Stop loss at $21.45. Our target is $23.70 near the April highs. We'll set a secondary, longer-term target at $24.75.

Trigger to open positions @ 22.55

Suggested Position: Buy KR stock

Entry on November XX
Earnings Date 12/8/2010 (unconfirmed)
Average Daily Volume: 6 million
Listed on November 3, 2010


NYSE Euronext - NYX - close: 30.34 change: -0.45

Stop Loss: 29.40
Target(s): 34.50
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
11/8: Shares of NYX faded from resistance near $31.00 as investors digested a press release from the NYX regarding October trading volumes. Year over year the average volume was up +6.2% but October saw declines of -2.9% compared to September this year. I don't see any changes from my prior comments.

Earlier Comments:
We want to use a trigger at $31.25 to buy NYX (or calls) with an initial target of $34.50. More conservative traders could wait for a close over $31.25 instead of an intraday move above this level.

Trigger @ 31.25

Suggested Position: Buy NYX stock @ 31.25

Entry on November xx at $xx.xx
Earnings Date 02/09/11 (unconfirmed)
Average Daily Volume: 2.5 million
Listed on November 6th, 2010


SPDR Financial ETF - XLF - close 15.46 change -0.12

Stop Loss: 14.45
Target(s): 17.25
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
11/8: After last week's monster gains in the financial sector the group was due for some profit taking. The XLF gave up -0.77% on Monday. That's not enough. The low today was only $15.32. I'm suggesting a trigger at $15.25 and more conservative traders could wait for a dip closer to $15.00 before launching positions. There is no change from my weekend comments.

Earlier Comments:
Trigger at $15.25. Stop loss at $14.45. Our first target is $17.25. You might want to buy call options instead of the ETF because the XLF doesn't move very fast (I'm thinking the 2011 January calls).

Trigger to open bullish positions @ 15.25

Suggested Position: Buy XLF stock

- or -

Options Traders: Buy 2011 January $15.00 call

Entry on November XX
Earnings Date N/A (unconfirmed)
Average Daily Volume: 83 million
Listed on November 4, 2010


BEARISH Play Updates

None. No bearish plays currently.