Editor's Note:
We are exiting our bullish positions on GPC and WRLD. Citigroup also hit a target today. The action in the market's major averages looks like a short-term top. We should expect a pull back that could last a couple of days, but fortunately it should offer a new entry point.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 14.15 change: -0.09

Stop Loss: 12.90
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 7.3%
Time Frame: 8 to 10 weeks
New Positions: Yes, but see below

Comments:
12/07 update: Reversal alert! AA spiked to $14.50 this morning and then gave it all back. This looks like a short-term bearish reversal following the recent gains. I'm not surprised. We've been expecting a pull back. I would consider new positions on a dip near the $13.60-13.50 zone. (If we do see another entry point we might consider buying some 2011 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: 56.20 change: +0.16

Stop Loss: 51.90
Target(s): 59.75
Current Option Gain/Loss: + 2.3%
Time Frame: 8 to 9 weeks
New Positions: Yes, see below

Comments:
12/07 update: ALK is still showing a little strength and still outperforming the XAL airline index. ALK managed to hit a new multi-year high this morning but eventually succumbed to some profit taking. The close over $56 is bullish but I suspect if the market sees a pull back ALK will likely follow. 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


American Express - AXP - close: 44.78 change: -0.22

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:
12/07 update: AXP hit a new relative high this morning but ended the session in the red. There is no change from my prior comment. 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 4.62 change +0.17

Stop Loss: 4.08
Target(s): 4.60, 4.85
Current Option Gain/Loss: +11.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/07 update: Target achieved. Investors seem enthusiastic that the U.S. will exit their Citigroup stake. The government made about $12 billion on their stock position and maintains some warrants worth a couple of hundred million dollars. Meanwhile shares of C gapped open higher and hit $4.65 intraday. We have had three exit target. Our first target is $4.60. I am adjusting our final exit target to be $4.85 (I'm eliminating the $4.75 and $4.95 targets). Odds favor some profit taking soon. Look for support near $4.40 and $4.30.

I am not suggesting new positions at this time.

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

12/07: Target achieved @ $4.60 (+10.5%)
12/04 Exit the December $4.00 calls (+40%)

chart:

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: 41.84 change: +0.38

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: + 3.9%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/07 update: CBD gapped open higher this morning but eventually pared it gains to settle with a +0.9% advance. The trend is up but CBD is arguably short-term overbought. 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: 56.80 change: -0.58

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:
12/07 update: CYN rallied toward resistance near $58.00 and failed. This should be a short-term top and I would expect a pull back toward $55 soon. 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


Hansen Natural Corp. - HANS - close: 52.94 change: +0.00

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:
12/07 update: There is no change from my prior comment. We want to see HANS dip to $51.00. More conservative traders could wait to launch bullish positions on a dip closer to $50.00 or its 50-dma.

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: 49.72 change: +0.23

Stop Loss: 44.90
Target(s): 48.50, 52.50
Current Option Gain/Loss: + 9.8%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/07 update: The rally in LRCX has been impressive. Shares posted their fifth gain in a row and tagged new two-year highs. The stock is now short-term overbought and due for a correction. I would expect a pull back toward the $47.50 area. Look for a new entry point there.

FYI: Cautious traders may want to take profits in our 2011 January $45 calls early. The bid has reached $5.40 (+89%).

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: 26.87 change: +0.03

Stop Loss: 24.70
Target(s): 27.45, 29.00
Current Option Gain/Loss: + 5.1%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/07 update: MSFT managed to spike to a new three-week high but eventually settled almost unchanged on the session. I still expect a pull back after last week's gains. 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: 10.31 change: -0.33

Stop Loss: 9.15
Target(s): 11.90
Current Option Gain/Loss: + 0.7%
Time Frame: 10 to 12 weeks
New Positions: No

Comments:
12/07 update: Caution! PIR spiked toward $11.00 this morning and then settled with a -3% loss. This looks like a short-term bearish reversal. I would expect a pullback toward the $10.00-9.50 zone. Wait for the dip or a bounce from this level before considering new positions.

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: 36.10 change: -0.47

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:
12/07 update: SNE is still consolidating sideways above $36.00 but it looks like the stock could correct soon. We want to see a dip toward $34.00. 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: 46.37 change: +0.35

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:
12/07 update: Naturally TSCO delivered another new high. Shares remain short-term overbought. We want to see a correction. Our trigger to open bullish positions is 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: 40.32 change: +0.47

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:
12/07 update: TRMB displayed some relative strength with a +1.1% gain on Tuesday. The stock is short-term overbought and due for some profit taking. 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: 28.47 change: -0.27

Stop Loss: 26.40
Target(s): 29.25, 31.90
Current Option Gain/Loss: + 5.9%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/07 update: No surprises here. We've been expecting a dip back toward the $28.00-27.50 zone. It looks like that pullback has begun today with a -0.9% loss. 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


CLOSED BULLISH PLAYS

Genuine Parts Co. - GPC - close: 50.90 change: +0.37

Stop Loss: 46.85
Target(s): 51.50
Current Option Gain/Loss: + 5.5%
Time Frame: 6 to 8 weeks
New Positions: No

Comments:
12/07 update: Close enough for me! It's time to exit. GPC has continued to rally and shares hit $51.44 late this afternoon. Our target has been $51.50. I am suggesting we go ahead and exit now, especially since the action in the major market indices looks like a potential short-term top. I would keep GPC on your watch list. We can reconsider new positions on a dip near support.

Closed Position: Long GPC stock @ $48.24, exit @ $50.90 (+5.5%)
- or -
Long the 2011 January $50.00 calls (GPC1122A50) Entry @ $0.40, exit @ $1.50 (+275%)

chart:

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


World Acceptance Corp. - WRLD - close: 49.68 change: +1.16

Stop Loss: 41.90
Target(s): 47.25, 49.75
Current Option Gain/Loss: +12.4%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
12/07 update: Target achieved! WRLD surged toward round-number resistance near $50.00 and hit $49.91. Our final target to exit was hit at $49.75. I remain bullish on WRLD and could keep this stock on your watch list. We could re-evaluate new positions on a dip near the $47-46 zone.

Closed Position: Long WRLD stock @ 44.25, exit @ $49.75 (+12.4%)
- or -
Long the 2011 January $45 calls (WRLD1122A45) Entry @ $2.40, exit @ $5.25 (+118.7%)

12/07 Final Target Hit @ $49.75 (+12.4%), option @ $5.25 (+118.7%)
12/01 First Target Hit @ $47.25 (+6.7%), Option @ $3.50 (+45.8%)
12/01 New stop @ 41.90

chart:

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