Editor's Note:
Financials continue to rally and technology continues to show strength. LRCX hit our first target. Meanwhile KR and OFC have been stopped out. I have adjusted our trigger on HANS and TSCO.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 14.09 change: +0.52

Stop Loss: 12.90
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 6.9%
Time Frame: 6 to 8 weeks
New Positions: Yes, but see below

Comments:
12/02 update: It was another strong day for AA. Shares spiked higher at the open and settled with a +3.8% gain. The stock is nearing its recent highs from November just under $14.20. Don't be surprised to see a little pull back after AA tags this level. If you're looking for a new entry point I'd wait for a dip into the $15.60-15.50 zone. Please note that I'm raising the stop loss to $12.90.

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: 55.32 change: -0.14

Stop Loss: 51.90
Target(s): 59.75
Current Option Gain/Loss: + 0.7%
Time Frame: 8 to 9 weeks
New Positions: Yes, see below

Comments:
12/02 update: I remain disappointed in ALK. The stock is not participating in the market's widespread rally. The XAL airline index also sat out the rally today. This is worrisome. I'm not suggesting new positions at this time until we see a breakout past resistance near $56.00. I need to make a correction to ALK's stop loss and targets. Our stop loss is at $51.90 and our first target is now $59.76. More conservative traders might want to consider a stop closer to $54.

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


Citigroup Inc - C - close 4.42 change +0.12

Stop Loss: 4.08
Target(s): 4.60, 4.75, 4.95
Current Option Gain/Loss: + 6.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/02 update: Financials were some of the best performers on Wall Street with the banking indices up about +4%. Shares of C managed to gain +2.8%. I don't see any changes from my previous comments. If you're looking for a new entry point I would consider dips into the $4.25-4.20 zone.

Don't forget the December calls expire in about two weeks. They are currently trading with a bid of $0.40. It looks like our entry point on the call was Oct. 28th at $0.29 or Oct. 28th at $0.30. Readers holding the calls may want to consider exiting for a profit soon, especially as C nears the $4.50 level.

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: 41.94 change: +0.29

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: + 4.2%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/02 update: It was a quiet day for CBD. I don't see any changes from my previous comments. If you're looking for an entry point wait for a dip into the $40.50-40.00 zone. More conservative traders may want to consider a stop loss closer to $38.00. We have a wide stop because CBD can be so volatile. Bear in mind this is a higher-risk trade.

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


Genuine Parts Co. - GPC - close: 49.60 change: +1.09

Stop Loss: 46.85
Target(s): 51.50
Current Option Gain/Loss: + 2.8%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
12/02 update: GPC is showing strength again and the stock added +2.2% to close at new 52-week highs. Volume was strong, which is a good sign. If you missed our entry point and want to see another entry I'd wait for a dip toward $48.50ish. Readers may want to buy the call options to leverage this play. FYI: The point & figure chart is bullish with a $52 target.

Current Position: Long GPC stock @ $48.24
- or -
Long the 2011 January $50.00 calls (GPC1122A50) Entry @ $0.40

Entry on November 29 at $48.24
Earnings Date 02/16/11 (unconfirmed)
Average Daily Volume: 763 thousand
Listed on November 27th, 2010


Hansen Natural Corp. - HANS - close: 52.94 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:
12/02 update: HANS is still under performing the rest of the market these last couple of days. Volume has been kind of light too. I'm a little bit cautious here. Let's move our trigger down to $51.00 and if HANS suddenly starts to act strong again we can re-evaluate.

Trigger @ 51.00

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


Lam Research - LRCX - close: 48.55 change: +0.85

Stop Loss: 43.80
Target(s): 48.50, 52.50
Current Option Gain/Loss: + 5.4%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/02 update: Target achieved. The SOX semiconductor index has broken out to new relative highs. LRCX is not quite there. Shares added +1.7% as they approach their 2010 highs set last month near $48.75. The stock did hit $48.68 and that was enough to tag our first target at $48.50. If you're looking for an entry point I'd wait for a dip toward $45.40.

Current Position: Long LRCX stock @ 45.25
- or -
Current Position: Long the 2011 January $45 calls (LRCX1122A45) Entry @ $2.85

12/02 Target hit @ $48.50, LRCX +7.2%, option @ $4.55 (+59.5%)

chart:

Entry on November 30 at $45.25
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on November 18th, 2010


Microsoft Corp. - MSFT - close: 26.89 change: +0.85

Stop Loss: 24.70
Target(s): 27.45, 29.00
Current Option Gain/Loss: + 5.2%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/02 update: Wow! MSFT is just screaming higher. Shares added another +3.2% and broke through technical resistance at its 200-dma on Thursday. Shares are short-term overbought at this point. If you're looking for an entry point I'd wait for a dip toward the $26.00-25.50 zone. Our first target to take profits is at $27.45.
FYI: We may need to adjust our time frame and focus on three or four months for MSFT to pay off. If you're buying calls, keep that in mind.

Current Position: Long MSFT stock @ 25.55

- or -

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

11/29/10 New stop @ 24.70

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: 30.01 change: -0.17

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:
12/02 update: ONXX is still not participating in the market's rally. I'm about ready to drop it as a candidate. Aggressive traders may want to consider buying a breakout past $30.50. Currently our buy-the-dip trigger is at $28.60.

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


Peir 1 Imports - PIR - close: 10.00 change: -0.14

Stop Loss: 9.15
Target(s): 11.90
Current Option Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: No

Comments:
12/02 update: Investors were not sure hot to interpret today's data from PIR. The company said their comparable store sales were +10.2% but that was down from a year ago (+13.7%). Meanwhile margins were improving and PIR raised their revenue guidance. Yet the stock failed to really move. Shares spiked higher, which was bad news for our entry point, and then sank. This looks like a possible bearish engulfing candlestick pattern. If the stock closes under $9.80 soon I will close this play early! No new positions at this time. Let's wait and see how PIR reacts tomorrow.

Investors should know that PIR is due to report earnings on December 16th. We plan to hold over that event. I consider holding over the earnings announcement a high-risk event. Keep that in mind as you plan your trades.

Current Position: Long PIR stock @ $10.24

Entry on December 2 at $10.24
Earnings Date 12/16/10 (confirmed)
Average Daily Volume: 2.3 million
Listed on December 1st, 2010


Sony Corp. - SNE - close: 36.56 change: +0.09

Stop Loss: 33.45
Target(s): 36.50, 39.00
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/02 update: SNE extends its gains to four days in a row. We are still waiting for a pull back. Our trigger to open bullish positions is $34.50.

Trigger @ $34.50

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

Entry on December 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: 45.44 change: +1.65

Stop Loss: 39.90
Target(s): 47.50
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/02 update: Gosh, just a couple of days ago I was talking about buying TSCO instead of waiting for a dip. Can I have buyer's remorse without actually having bought TSCO yet? The stock is soaring higher and shares added +3.7%. Naturally I don't want to chase it here, not after this big move higher. We will move our trigger to $43.00.

Buy-the-Dip Trigger @ $43.00 <-- new trigger

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

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


Wells Fargo & Co - WFC - close: 28.78 change: +1.25

Stop Loss: 26.40
Target(s): 29.25, 31.90
Current Option Gain/Loss: + 7.0%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/02 update: It was a good day for WFC. Financials performed very well and WFC added +4.5%. The stock has broken through technical resistance at its 200-dma. If you're looking for a new entry point I would wait for a dip toward $27.50.

Current Position: Long WFC stock @ $26.88

- or -

Long the 2011 January $27.50 call (WFC1122A27.5) Entry @ $1.16

Entry on November 30 at $26.88
Earnings Date 01/19/11 (unconfirmed)
Average Daily Volume: 32.7 million
Listed on November 29th, 2010


World Acceptance Corp. - WRLD - close: 47.78 change: +0.78

Stop Loss: 41.90
Target(s): 47.25, 49.75
Current Option Gain/Loss: + 7.9%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
12/02 update: WRLD continues to inch higher and added another +1.6%. I don't see any changes from my previous comments. If you're looking for a new entry point I would wait for a dip into the $45-44 zone. FYI: The option was trading with a bid around $3.50 when WRLD hit our target.

Current Position: Long WRLD stock @ 44.25
- or -
Long the 2011 January $45 calls (WRLD1122A45) Entry @ $2.40

12/01 First Target Hit @ $47.25 (+6.7%), Option @ $3.50 (+45.8%)
12/01 New stop @ 41.90

Entry on November 29 at $44.25
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 122 thousand
Listed on November 27th, 2010


CLOSED BULLISH PLAYS

Abercrombie & Fitch - ANF - close: 56.02 change: +5.58

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:
12/02 update: I'm giving up on ANF. Shares exploded higher today after the company announced very strong same-store sales figures for November. Analysts were only looking for +6.4% sales growth and ANF reported +22.0%. The stock gapped open higher and posted a +11% gain. Shares never hit our trigger to buy the dip and we certainly don't want to buy it now. I would consider putting ANF on your watch list and wait for it to retest the $50.00 area. Broken resistance should be new support.

Our play never opened.

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


Kroger Co. - KR - close 21.63 change -2.23

Stop Loss: 22.45
Target(s): 23.70, 24.75
Current Option Gain/Loss: - 2.8%
Time Frame: 8 to 10 weeks
New Positions: No

Comments:
12/02 update: KR reported earnings this morning that were only inline with Wall Street's estimates of 32 cents each. Revenues were $18.7 billion versus the $18.5 billion estimate. KR narrowed its 2011 earnings guidance from $1.60-1.80 to $1.65-1.78. The market was very unhappy that they lowered their top line estimates. The stock gapped open lower at $21.90 and quickly fell toward its 200-dma. This is a great example of why we normally do not want to hold over an earnings report. Our stop loss was $22.45 so the play was closed at the opening bell.

Closed Position: Long KR stock @ 22.55, exit @ 21.90 (-2.8%)

12/02 Stopped out!
12/01 New stop @ 22.45
12/01 Target exceeded, gap higher @ 23.81 (+5.5%)

chart:

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


CLOSED BEARISH PLAYS

Corporate Office Properties - OFC - close: 35.20 change: +0.85

Stop Loss: 36.15
Target(s): 32.25, 30.25
Current Change: - 2.0%
Time Frame: 6 to 8 weeks
New Positions: No

Comments:
12/02 update: Yesterday I was growing concerned about what the market's bullish influence might have on OFC. That's why we lowered the stop loss down to $35.07. Shares surged +2.4% today and hit our stop loss this afternoon closing the play.

Closed Position: Short OFC stock @ 35.07, exit @ $35.07 (+0.0%)

12/02/10 Stopped out
12/01/10 New stop @ 35.07
11/27/10 New stop @ 36.15

chart:

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