Editor's Note:
The XAL airline index was a big performer on Wednesday and our airline play rallied toward its highs. I remain in a buy-the-dip mode but we are starting to see more and more breakouts past resistance. If the set up looks right I'm not too opposed to buying a breakout.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 13.31 change: +0.18

Stop Loss: 12.45
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 0.9%
Time Frame: 6 to 8 weeks
New Positions: Yes, but see below

Comments:
11/24 update: AA rallied with the markets and closed with a +1.3% gain. Yet the stock is still trading under its simple 10-dma. I would use the bounce as a bullish entry point but more conservative traders may want to wait for a little follow through first.

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: 56.00 change: +1.37

Stop Loss: 59.50
Target(s): 51.90
Current Option Gain/Loss: + 1.9%
Time Frame: 8 to 9 weeks
New Positions: Yes, see below

Comments:
11/24 update: Airline stocks were some of the best performers today with the XAL index up +3.7%. Shares of ALK delivered a +2.5% gain to close at new two-week highs. If you're looking for a new entry point I'd wait for a dip in the $55.00-54.50 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: 48.19 change: -0.25

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:
11/24 update: After yesterday's outperformance ANF is suddenly underperforming. The stock spiked toward round-number resistance at $50.00 and reversed although shares held short-term support near $48.00. I don't see any changes from my prior comments and suggest readers buy a dip in the $46.10-45.00 zone.

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 4.17 change +0.07

Stop Loss: 4.08
Target(s): 4.60, 4.75, 4.95
Current Option Gain/Loss: + 0.2%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
11/24 update: Banking stocks bounced on Wednesday but Citigroup did not quite recover all of yesterday's losses. Shares of C are still trading in a bearish trend of lower highs and lower lows over the last two and a half weeks. I would rather see a close over $4.25 before considering new bullish positions.

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: 40.98 change: +1.37

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: + 1.8%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
11/24 update: I did mention that CBD is a volatile stock and shares rebounded with a +3.4% gain on Wednesday. Currently I would try and time new entries on dips near $40.00.

Current Position: Long CBD stock @ $40.25

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: 54.02 change: +1.55

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:
11/24 update: I am starting to worry that we have missed our entry point in HANS but I am reluctant to chase it here. However, we will adjust our entry point trigger from $51.50 to $52.00.

Trigger @ 52.00 <-- new trigger

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 23.02 change +0.01

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:
11/24 update: KR churned sideways and closed virtually unchanged on the session. There is no change from my prior comments. 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 before the opening bell on the morning of December 2nd. More conservative traders may want to exit ahead of the earnings report.

Current Position: Long KR stock @ 22.55

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


Lam Research - LRCX - close: 47.20 change: +1.19

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:
11/24 update: The semiconductor sector continues to rally and the SOX added +2.6% today. LRCX kept pace with a +2.58% gain. While the relative strength is encouraging I don't want to chase the bounce. 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: 25.37 change: +0.25

Stop Loss: 24.90
Target(s): 27.45, 29.00
Current Option Gain/Loss: - 0.7%
Time Frame: 8 to 10 weeks
New Positions: Yes

Comments:
11/24 update: MSFT delivered a minor bounce and failed to break the two-week trend of lower highs. While I'm long-term bullish on this stock the short-term action is worrisome. I don't see any changes from my prior comments. This pull back into the $25.00-25.50 zone looks like an entry point but the short-term trend is down! 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: 29.82 change: +0.31

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:
11/24 update: ONXX is bouncing from the bottom of its trading range. Currently our trigger is to buy a dip at $28.60 but more aggressive traders may want to consider an entry point on a breakout past $30.60 instead.

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: 36.60 change: +0.54

Stop Loss: 34.75
Target(s): 39.90, 42.00
Current Option Gain/Loss: + 0.2%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
11/24 update: OSG delivered a bounce from $36.00 and matched +1.49% gain seen in the S&P 500 on Wednesday. I remain bullish on the stock and would use this bounce as a new entry point.

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


Sony Corp. - SNE - close: 35.00 change: +0.55

Stop Loss: 32.90
Target(s): 35.75, 39.00
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
11/24 update: Foreign markets bounced with Japan up +0.4%. SNE outpaced its homeland with a +1.59% gain. There are no changes from my prior comments. I'm suggesting we wait for a dip toward short-term support near $34.00. If triggered our first target is $35.75 with a stop loss t $32.90.

Trigger @ $34.00

Suggested Position: Buy SNE stock
- or -
Buy the 2011 APRIL $35 calls (SNE1116D35) current ask $2.45

Entry on November xx at $xx.xx
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 888 thousand
Listed on November 23rd, 2010


Tractor Supply Co. - TSCO - close: 42.39 change: +0.55

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:
11/24 update: TSCO managed to breakout past short-term resistance near $42.00 but it did not see much follow through past the opening gap higher. I don't see any changes from my previous comments. 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: 34.29 change: +0.47

Stop Loss: 36.65
Target(s): 32.25, 30.25
Current Change: - 2.2%
Time Frame: 6 to 8 weeks
New Positions: No

Comments:
11/24 update: After sinking to new multi-month lows yesterday OFC eked out a +1.3% bounce today. The trend is down but shares are arguably short-term oversold. Look for overhead resistance near $35.00. 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