Editor's Note:
Monday turned out to be a quiet session on Wall Street. Overall the trend today saw stocks drifting sideways in a narrow range.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 14.23 change: +0.14

Stop Loss: 12.90
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 8.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, but see below

Comments:
12/06 update: Metals continued to rally even in the face of dollar strength this morning. Shares of AA eked out a very minor gain. I don't see any changes from my weekend comments. I would not chase new positions here. Wait for a dip back toward the $13.60-13.50 zone. (If we do see another entry point we might consider buying some call options).

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: 56.04 change: +0.15

Stop Loss: 51.90
Target(s): 59.75
Current Option Gain/Loss: + 2.0%
Time Frame: 8 to 9 weeks
New Positions: Yes, see below

Comments:
12/06 update: The XAL airline index underperformed today but ALK displayed a little strength and managed to close over resistance near $56.00. Unfortunately the "breakout" today is not very convincing. I'd rather see a move past the November high near $56.50. If the market slips this week look for ALK to retest the $55-54 zone. More conservative traders might want to consider a stop closer to $54.

FYI: On Friday ALK reported that their November traffic was up +15.5% compared to last year. Planes were 83.9% full for the month.

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


American Express - AXP - close: 45.00 change: +0.12

Stop Loss: 41.49
Target(s): 47.50, 49.85
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Comments:
12/06 update: AXP managed to outperform the banking sector indices today. Yet I still wouldn't chase this move higher. Wait for a dip. I'm suggesting we launch bullish positions on a dip at $43.50. If triggered we'll use a stop loss at $41.49, under the 200-dma. We will plan on taking profits at $47.50 and at $49.85. Our time frame is several weeks.

Trigger @ $43.50 Suggested Position: Buy AXP stock at $43.50

- or -

Buy the 2011 April $45 calls (AXP1116D45)

Entry on December xx at $xx.xx
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 9.0 million
Listed on December 2nd, 2010


Citigroup Inc - C - close 4.45 change +0.00

Stop Loss: 4.08
Target(s): 4.60, 4.75, 4.95
Current Option Gain/Loss: + 6.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/06 update: The big headline on Citigroup today was news that the U.S. Treasury would sell its remaining 7% stake (2.4 billion shares) in a public offering. I did not see when they planned on selling this chunk of stock. This isn't a big surprise since Wall Street has been expecting the government to dump its last shares of Citigroup soon. Meanwhile shares of C spiked to $4.50 this morning but eventually settled at unchanged. I don't see any changes from my weekend comments.

If you're looking for a new entry point I would wait for a dip toward the $4.25-4.20 zone. If you like trading options I would look at February calls.

Current Position: Long C stock, entry was at $4.16

12/04 Exit the December $4.00 calls (+40%)

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: 41.46 change: -0.31

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: + 3.0%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/06 update: It was a very quiet day for CBD. The stock drifted sideways in a narrow 40-cent range. I don't see any changes from my prior 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


City National Corp. - CYN - close: 57.38 change: +0.64

Stop Loss: 52.95
Target(s): 58.00, 60.00+
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/06 update: It is encouraging to see CYN showing relative strength. Unfortunately we want it to dip first so we can hop on board. I don't see any changes from my weekend comments. Use a trigger to launch bullish positions at $55.50. FYI: The Point & Figure chart is bullish with a $68 target.

Trigger @ $55.50

Suggested Position: buy CYN stock @ $55.50

- or -

Buy the 2011 February $60 calls (cyn1119B60) current ask $1.90*

*Caution: most of the option spreads on CYN seem a little too wide. I consider the options a more aggressive trade. You may want to keep your position size small.

Entry on December xx at $xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume: 223 thousand
Listed on December 4th, 2010


Genuine Parts Co. - GPC - close: 50.53 change: +0.47

Stop Loss: 46.85
Target(s): 51.50
Current Option Gain/Loss: + 4.7%
Time Frame: 6 to 8 weeks
New Positions: No

Comments:
12/06 update: The rally continues for GPC and the stock extended its gains to four days in a row. Another couple of days like today and GPC will hit our target. I am not suggesting new positions at current levels. GPC has significant resistance in the $52 area.

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: +0.19

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:
12/06 update: HANS finally dipped to $52.00 and bounced like we expected last week. Yet over the weekend I had moved the trigger to $51.00. If the market does see any profit taking after last week's gains there is still a good chance HANS will pull back toward the $51-50 zone. Aggressive traders may want to buy this bounce. I'm sticking with our trigger at $51.00.

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: 49.49 change: +0.27

Stop Loss: 44.90
Target(s): 48.50, 52.50
Current Option Gain/Loss: + 9.3%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/06 update: LRCX quickly recovered from its morning dip and eventually made it to new highs after a very slow drift higher. There is no change from my prior comments. If the sector pulls back I would look for LRCX toward the $47.50-47.00 zone. Look for a new entry point there.

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

12/04 New stop loss @ $44.90
12/02 Target hit @ $48.50, LRCX +7.2%, option @ $4.55 (+59.5%)

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: 26.84 change: -0.18

Stop Loss: 24.70
Target(s): 27.45, 29.00
Current Option Gain/Loss: + 5.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/06 update: I warned readers over the weekend to expect some profit taking in MSFT. Shares lost 0.6% on Monday. Wait for a dip toward the $26.00-25.50 zone before considering new positions.
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


Peir 1 Imports - PIR - close: 10.64 change: +0.34

Stop Loss: 9.15
Target(s): 11.90
Current Option Gain/Loss: + 3.9%
Time Frame: 10 to 12 weeks
New Positions: No

Comments:
12/06 update: PIR continues to run and shares hit new multi-year highs on Monday. There is no change from my weekend comment. I would consider new positions in the $10.30-10.00 zone.

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

- or

Buy the 2011 March $10.00 calls (PIR1119C10) Entry @ $1.55

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: 36.57 change: +0.25

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:
12/06 update: SNE is hovering above the $36.00 level. Yet if the market sees any significant profit taking I'm expecting a dip toward the 30-dma. 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: 46.02 change: +0.04

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:
12/06 update: TSCO held up reasonably well and managed to eke out another gain. There is no change from my prior comments. Shares are very short-term overbought. We don't want to chase it. We have moved the trigger to buy a dip at $43.00.

Buy-the-Dip Trigger @ $43.00

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


Trimble Navigation - TRMB - close: 39.85 change: -0.18

Stop Loss: 36.40
Target(s): 41.00, 43.00
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
12/06 update: TRMB saw a little bit of volatility this morning but the stock quickly settled into a very narrow range and drifted sideways. I am suggesting we wait for a dip to $38.50 and then open positions. If triggered we'll use a stop loss at $36.40. Our first target is $41.00. FYI: The Point & Figure chart is bullish with a $65 target for TRMB.

Trigger @ $38.50

Suggested Position: Buy TRMB stock @ $38.50

- or -

Buy the 2011 February $40.00 calls (TRMB1119B40) current ask $2.35

Entry on December xx at $xx.xx
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 435 thousand
Listed on December 4th, 2010


Wells Fargo & Co - WFC - close: 28.74 change: -0.31

Stop Loss: 26.40
Target(s): 29.25, 31.90
Current Option Gain/Loss: + 6.9%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/06 update: After last week's big gains WFC hit some profit taking. I am expecting a pull back toward the $28.00 to $27.50 zone. 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: 48.52 change: -0.18

Stop Loss: 41.90
Target(s): 47.25, 49.75
Current Option Gain/Loss: + 9.6%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
12/06 update: It is the same story here with WRLD. After last week's gains the stock saw some profit taking on Monday. I don't see any changes from my prior comments. I would look for a new entry point on a dip near $46.00.

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