Editor's Note:
The stock market is holding up relatively well and for the most part bulls are still in control. We did see HANS surge to a new high while MSFT underperformed on Friday.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 13.38 change: +0.00

Stop Loss: 12.45
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 1.5%
Time Frame: 6 to 8 weeks
New Positions: Yes, but see below

Comments:
11/20 update: AA dipped to $13.09 on Friday but managed to claw its way back to unchanged by the closing bell. If you were looking for a new entry point you got it Friday morning. The bullish commodity trade seems to be "on" again so watch for weakness in the U.S. dollar to keep the rally going.

Current Position: Long AA stock @ 13.18

Entry on November 16 at $13.18
Earnings Date 01/10/11 (unconfirmed)
Average Daily Volume: 26.1 million
Listed on November 6th, 2010


Abercrombie & Fitch - ANF - close: 47.30 change: +0.62

Stop Loss: 43.95
Target(s): 49.95
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
11/20 update: ANF's volume was relatively low on Friday. The stock essentially traded sideways after bouncing from the morning decline. We are still waiting for a dip towards $46. Currently I am suggesting a trigger to buy the stock (or call options) on a dip at $46.10. More conservative traders could cross their fingers and hope for a dip toward $45.00 instead.

Trigger to buy ANF @ $46.10

Suggested Position: Buy ANF stock @ $46.10
- or -
Buy the 2011 January $50 call (symbol: ANF1122A50)

Entry on November xx at $xx.xx
Earnings Date 02/15/11 (unconfirmed)
Average Daily Volume: 3.1 million
Listed on November 17th, 2010


Citigroup Inc - C - close 4.27 change -0.03

Stop Loss: 4.08
Target(s): 4.60, 4.75, 4.95
Current Option Gain/Loss: + 2.6%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
11/20 update: There was no follow through on Thursday's bounce for the financial sector and banking stocks struggled on Friday. C is still trading in a two-week pattern of lower highs and lower lows. Optimistically this is a new bull-flag pattern. I would use dips near $4.20 as a new entry point but more conservative traders may want to wait for a close over its 10-dma before launching new positions (the 10-dma is currently at $4.31).

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: 52.86 change: +2.65

Stop Loss: 48.95
Target(s): 54.90, 57.45
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
11/20 update: The latest data listed short interest in HANS at only 2% of the float. Those still short on Friday appeared to get squeezed with a surge to new highs. Average volume is 750 thousand shares a day but Friday saw a volume surge of 1.6 million. This is a bullish breakout and I'm adjusting our entry point strategy. We will move our buy-the-dip entry point from $48.25 to $51.50 and we'll move the stop loss to $48.95. If triggered our first target is $54.90. Our second, longer-term target is $57.45.

Earlier Comments:

Trigger @ 51.50

Suggested Position: BUY the stock

- or -

BUY the January $55.00 calls (symbol:HANS1122A55)

Annotated chart:

Entry on November xx
Earnings Date 11/04/10 (confirmed)
Average Daily Volume: 750 thousand
Listed on October 16, 2010


Kroger Co. - KR - close 22.83 change +0.07

Stop Loss: 21.45
Target(s): 23.70, 24.75
Current Option Gain/Loss: + 1.2%
Time Frame: 6 to 8 weeks
New Positions: Yes, but see below

Comments:
11/20 update: There is no change from my previous comments on KR. The stock is still consolidating sideways. I have been suggesting new positions on dips in the $22.60-22.00 zone and KR hit $22.54 on Friday morning. Cautious traders may want to raise their stop closer to $22.00.

Current Position: Long KR stock @ 22.55

Entry on November 9th @ 22.55
Earnings Date 12/2/2010 (unconfirmed)
Average Daily Volume: 6 million
Listed on November 3, 2010


Lam Research - LRCX - close: 46.51 change: +0.48

Stop Loss: 42.75
Target(s): 48.50, 52.50
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
11/20 update: Semiconductor stocks continued to rebound on Friday. LRCX gained another +1%. There is no change from my Thursday night comments. We want to open bullish positions on a dip at $45.25. We'll use a tight stop loss at $42.75 near the 50-dma. More conservative traders could probably use a stop a lot closer to the $44.00 level. If triggered our first target is $48.50.

Suggested Position: Buy LRCX stock @ 45.25
- or -
Suggested Position: Buy the 2011 January $45 calls (LRCX1122A45)

Entry on November xx at $xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on November 18th, 2010


Microsoft Corp. - MSFT - close: 25.69 change: -0.15

Stop Loss: 24.90
Target(s): 27.45, 29.00
Current Option Gain/Loss: + 0.5%
Time Frame: 8 to 10 weeks
New Positions: Yes

Comments:
11/20 update: The action in MSFT was disappointing on Friday. The stock slipped at the open and never recovered. Shares churned sideways in a very narrow range the rest of the day. So far support near $25.50 is holding and I would still consider bullish positions here but more cautious traders may want to wait for some sign of strength first like a move over or close above $26.10.

Current Position: Long MSFT stock @ 25.55

- or -

Buy the 2011 January $25.00 calls (symbol: MSFT1122A25) Entry @ $1.39

Entry on November 17 at $25.55
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 68.4 million
Listed on November 15th, 2010


Onyx Pharmaceuticals - ONXX - close: 30.16 change: -0.04

Stop Loss: 26.45
Target(s): 32.00, 34.50
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
11/20 update: We are still waiting for a dip toward support in ONXX but the way shares are trading it may not happen. More aggressive traders may want to consider buying a breakout past $30.60. If we see ONXX close over $30.50 I might adjust our entry point strategy.

Suggested Position: Buy ONXX stock @ 28.60

Entry on November xx at $xx.xx
Earnings Date 02/23/11 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on November 13th, 2010


Tractor Supply Co. - TSCO - close: 41.49 change: +0.59

Stop Loss: 38.49
Target(s): 44.75
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
11/20 update: TSCO managed a strong bounce from its rising 10-dma on Friday. Aggressive traders may want to consider buying the stock (or call options) now. I am suggesting we wait for a dip toward the 50-dma. Currently the 50-dma is at $39.37. Our trigger is at $39.55.

Buy-the-Dip Trigger @ $39.55 (dip to the 50-dma)

Suggested Position: Buy TSCO stock @ 39.55
- or -
Buy the 2011 January $45 calls (symbol:TSCO1122A45)

Entry on November xx at $xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 751 thousand
Listed on November 11th, 2010


SPDR Financial ETF - XLF - close 14.85 change -0.01

Stop Loss: 14.45
Target(s): 17.25
Current Option Gain/Loss: - 2.6%
Time Frame: 6 to 8 weeks
New Positions: Yes, see details below

Comments:
11/20 update: The XLF gapped open lower on Friday morning but managed to bounce from its 50-dma. The financial stocks did not see any follow through on its Thursday rebound. While I remain bullish on the group and would consider buying this intraday bounce on Friday readers may want to wait for a close over $15.00 before initiating new positions.

Earlier Comments:
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).

Current Position: Long the XLF (etf) @ 15.25

- or -

Options Traders: Long the 2011 January $15.00 call, entry @ $0.85

Entry on November 9th @ 15.25
Earnings Date N/A (unconfirmed)
Average Daily Volume: 83 million
Listed on November 4, 2010


BEARISH Play Updates

Corporate Office Properties - OFC - close: 34.39 change: -0.06

Stop Loss: 37.05
Target(s): 32.25, 30.25
Current Change: - 1.7%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
11/20 update: OFC tagged a new nine-month low on Friday morning before paring its losses. The trend is down and OFC should have overhead resistance near $35.00 and $36.00. Look for another failed rally near $35.00 as a potential entry point.

Current Position: Short OFC stock @ 35.07

Entry on November 10 at $35.07
Earnings Date 02/09/11 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on November 9th, 2010