Editor's Note:
Stocks soured on Tuesday morning with constant worries over Ireland's financial troubles and violence in Korea. Most of our candidates found support intraday but given the outside forces at work in Korea and Europe I'm leaning towards a wait-and-see approach before launching new bullish positions.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 13.29 change: -0.09

Stop Loss: 12.45
Target(s): 14.95, 15.95
Current Option Gain/Loss: - 0.3%
Time Frame: 6 to 8 weeks
New Positions: Yes, but see below

Comments:
11/23 update: Shots fired along the disputed Korean border and worries over European debt woes had investors looking for safety in the U.S. dollar. This dollar strength weighed on commodities. Shares of AA fell-1.2% on the session but managed to find support near $13.00 and its rising 40-dma. This dip looks like a new bullish entry point to me but it would probably be safer to wait for a close over $13.40 before launching new bullish positions.

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


Alaska Air Group - ALK - close: 54.63 change: -0.82

Stop Loss: 59.50
Target(s): 51.90
Current Option Gain/Loss: - 0.5%
Time Frame: 8 to 9 weeks
New Positions: Yes

Comments:
11/23 update: ALK's mild pull back on Tuesday looks like another entry point but rising tensions in Korea may continue to undermine the markets. You could wait for a bounce near the $54.00 level but essentially I would consider bullish positions in the $53-55 zone. Our first target is $59.50. FYI: The Point & Figure chart is bullish with a $79 target.

Current Position: Long ALK stock @ $54.91

- or -

Long the 2011 January $60 calls (symbol: ALK1122A60) entry @ $1.60

Entry on November 22 at $54.91
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 331 thousand
Listed on November 20th, 2010


Abercrombie & Fitch - ANF - close: 48.44 change: +0.92

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:
11/23 update: Yesterday we discussed ANF potentially breaking out past resistance near $48.00. Shares of ANF spiked higher apparently in reaction to news that JCG was being taken private. I didn't see any other catalyst that made sense. Aggressive traders may want to consider buying ANF here. I would rather wait for a dip.

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 4.10 change -0.08

Stop Loss: 4.08
Target(s): 4.60, 4.75, 4.95
Current Option Gain/Loss: - 0.6%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
11/23 update: Financials continue to underperform and Citigroup lost -1.9% on Tuesday. The stock has now broken support at its rising trendline of higher lows and broken down under its 50-dma. Citigroup spent the day hovering near support at $4.10. Any further weakness will stop us out at $4.08. I am not suggesting 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


Companhia Brasileira de Distribuicao - CBD - close: 39.61 change: -2.10

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: - 1.5%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
11/23 update: Stocks saw widespread global declines on Tuesday. The Brazilian market fell -2.4%. Shares of CBD, which had been soaring to new highs, gave up -5%. Our trigger to launch bullish positions was hit at $40.25. Traders bought the dip twice near $39.50 and I would still consider new positions now at current levels. Of course you could wait and see if there is any follow through on this decline and look to buy CBD on a dip near $38.00.

Current Position: Long CBD stock @ $40.25

chart:

Entry on November 23 at $40.25
Earnings Date 03/02/11 (unconfirmed)
Average Daily Volume: 608 thousand
Listed on November 20th, 2010


Hansen Natural Corp. - HANS - close: 52.47 change: -0.43

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:
11/23 update: HANS still looks strong as profit taking this morning was minimal with a drop toward $52.00. There is no change from my prior comments. Currently the plan is to launch bullish positions on a dip at $51.50 but readers could wait for a dip into the $51-50 zone instead.

Trigger @ 51.50

Suggested Position: BUY the stock

- or -

BUY the January $55.00 calls (symbol:HANS1122A55)

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


Kroger Co. - KR - close 23.01 change -0.12

Stop Loss: 21.95
Target(s): 23.70, 24.75
Current Option Gain/Loss: + 2.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, but see below

Comments:
11/23 update: There is no change from my prior comments. KR held up pretty well today with only a minor loss. If the market continues to slip we can look for new entry points on a pull back into the $22.75-22.50 zone.

FYI: KR is due to report earnings in early December.

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: 46.01 change: -0.86

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:
11/23 update: LRCX dipped to $45.48 before paring its losses. While it would be tempting to buy the intraday bounce I'm suggesting we wait. Use our trigger at $45.25. More conservative traders could wait for a dip into the $45.00-44.00 zone instead as their entry point.

Trigger @ $45.25

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: 25.12 change: -0.61

Stop Loss: 24.90
Target(s): 27.45, 29.00
Current Option Gain/Loss: - 1.6%
Time Frame: 8 to 10 weeks
New Positions: Yes

Comments:
11/23 update: Uh-oh! MSFT has taken a turn for the worse with a -2.3% decline and a breakdown under support near $25.50 and its 50-dma. Shares closed near their low for the day, which doesn't bode well for Wednesday. Now the $25.00 level should offer some round-number, psychological support but it's up to you whether you want to buy MSFT on a dip near $25.00 or wait for a bounce from $25.00. Alternatively more conservative traders could wait for a close over $26.10 instead.

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: 29.51 change: -0.20

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:
11/23 update: ONXX is inching closer and closer to a breakdown of its trading range. We're looking for the stock to find support near $28.00. Our trigger is at $28.60 but nimble traders could try and jump in on a dip closer to $28.00.

Trigger @ $28.60

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


Overseas Shipholding Group - OSG - close: 37.09 change: +0.09

Stop Loss: 34.75
Target(s): 39.90, 42.00
Current Option Gain/Loss: - 1.2%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
11/23 update: We are not off to a great start here. Market reaction to rising geopolitical worries had OSG gapping open lower at $36.50 and falling toward the $36.00 level for a -2.7% decline. I am raising our risk on this play by adjusting the stop loss to $34.75. More conservative traders will not want to move their stop and instead keep theirs at $35.75. Wait for a bounce before considering new bullish positions.

Previous Comments:
If OSG can breakout to new relative highs the stock could see a short squeeze. The most recent data listed short interest at 20% of the float. We should consider this trade higher risk. The Baltic Dry Goods index has been falling, which suggest shipping rates are sinking. OSG has managed to trend higher in spite of this decline in the $BDI. Investors should also be worried about the long-term trend of lower highs in OSG. Keep your position size small to limit risk.

Current Position: Long OSG stock @ $36.50

- or -

Long the 2011 January $40 calls (OSG1122A40) Entry @ $0.78

Entry on November 23 at $36.50
Earnings Date 03/01/11 (unconfirmed)
Average Daily Volume: 600 thousand
Listed on November 22nd, 2010


Tractor Supply Co. - TSCO - close: 41.84 change: -0.12

Stop Loss: 39.45
Target(s): 44.95
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
11/23 update: TSCO continues to show strength with traders quickly buying the dip this morning. The stock was slowly climbing higher throughout the session and almost made it back into positive territory. More aggressive traders will want to seriously consider launching bullish positions on a breakout over $42.00. For now our trigger remains at $40.75.

Buy-the-Dip Trigger @ $40.75

Suggested Position: Buy TSCO stock
- 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



BEARISH Play Updates

Corporate Office Properties - OFC - close: 33.82 change: -0.39

Stop Loss: 36.65
Target(s): 32.25, 30.25
Current Change: - 3.5%
Time Frame: 6 to 8 weeks
New Positions: No

Comments:
11/23 update: OFC sank to new nine-month lows with today's -1.1% decline. Shares closed under recent support near $34.00. I am not suggesting new bearish positions at current levels. Our first target is $32.25.

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


CLOSED BULLISH PLAYS

SPDR Financial ETF - XLF - close 14.41 change -0.23

Stop Loss: 14.45
Target(s): 17.25
Current Option Gain/Loss: - 5.2%
Time Frame: 6 to 8 weeks
New Positions: No

Comments:
11/23 update: The market's initial reaction to ongoing worries about Ireland's financial problems and escalating military action on the Korean peninsula sent the financial sector lower. The XLF gapped open lower at $14.48 and quickly hit our stop loss at $14.45 closing this trade.

Closed Position: Long the XLF (etf) @ 15.25, exit @ 14.45 (-5.2%)

- or -

Options Traders: Long the 2011 January $15.00 call, entry @ $0.85, Exit @ $0.33 (-61%)

chart:

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