Editor's Note:
The market recovered from its intraday lows. Overall it was generally a quiet session. HANS hit our trigger to launch bullish positions at $51.00. WFC hit our first target to take profits at $29.25.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 14.14 change: -0.01

Stop Loss: 12.90
Target(s): 14.95, 15.95
Current Option Gain/Loss: + 7.2%
Time Frame: 8 to 10 weeks
New Positions: Yes, but see below

Comments:
12/08 update: It was a mixed day for commodities and shares of bounced around this morning only to settle with a one-cent decline. I am expecting more declines. Look for a dip toward $13.60. 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: 56.03 change: -0.17

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:
12/08 update: Airline stocks struggled with the XAL off -1%. Shares of ALK managed to pare its losses to settle down -0.3%. The stock is maintaining its bullish trend of higher lows. I would hesitate to launch new positions at the moment. 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: 45.63 change: +0.85

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:
12/08 update: Financials were some of the best performers on Wednesday. AXP surged +1.89% to close at new four-month highs. I still don't want to chase it. 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 4.64 change +0.02

Stop Loss: 4.08
Target(s): 4.60, 4.85
Current Option Gain/Loss: +11.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/08 update: Citigroup has extended its gains to 7 out of the last 8 days. Volume remains strong on the rally but shares are short-term overbought and due for some profit taking. I am not suggesting new positions at this time. We will wait for a dip toward $4.40 or $4.30.

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%)

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: 40.59 change: -1.25

Stop Loss: 36.75
Target(s): 44.95, 49.00
Current Option Gain/Loss: + 0.8%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/08 update: The Brazilian stock market fell almost -1.7%. Naturally CBD saw some profit taking but shares underperformed with a -2.9% decline. The $40 area and the rising 30, 40 and 50-dma(s) should all offer some short-term support. I would consider new bullish positions now or you could wait for a dip closer to $39.00. 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: 58.46 change: +1.66

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:
12/08 update: There is no change from my prior comments. CYN is in rally mode but we're still looking for an entry point. I would not chase this move. Currently the plan is to buy CYN (or calls) at $55.50. FYI: The Point & Figure chart is bullish with a $71 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: 51.04 change: -1.90

Stop Loss: 48.95
Target(s): 54.90, 57.45
Current Option Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
12/08 update: HANS has finally fallen toward support. We've been waiting for a dip to $51.00 to launch bullish positions. Shares gapped open lower near $52.00 and tagged $50.50 intraday near technical support at the rising 50-dma. Unfortunately, this move was sparked by an analyst downgrade to "sell" with a $41 target.

Our play was opened at $51.00. I would still consider new positions here at current levels. Cautious traders might want to consider a tighter stop loss closer to $50.00.

Current Position: Long HANS stock @ $51.00

- or -

Long the January $55.00 calls (HANS1122A55) Entry @ $0.65

chart:

Entry on December 8th @ $51.00
Earnings Date 11/04/10 (confirmed)
Average Daily Volume: 750 thousand
Listed on October 16, 2010


Lam Research - LRCX - close: 50.21 change: +0.49

Stop Loss: 44.90
Target(s): 48.50, 52.50
Current Option Gain/Loss: +10.9%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/08 update: Semiconductors and LRCX continue to show relative strength. The stock hit new two-year highs again. There is no change from my prior comment. 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 $5.70 (+100%).

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: 27.23 change: +0.36

Stop Loss: 24.70
Target(s): 27.45, 29.00
Current Gain/Loss: + 6.5%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
12/08 update: MSFT displayed relative strength with a +1.3% gain. Volume was light and I would still expect a pull back before shares breakout past $27.50. 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: 10.43 change: +0.12

Stop Loss: 9.15
Target(s): 11.90
Current Option Gain/Loss: + 1.8%
Time Frame: 10 to 12 weeks
New Positions: See below

Comments:
12/08 update: Good news! There was no follow through on PIR's bearish reversal yesterday. I would still expect a retracement to the $10.00 level. If the market sees any sharp declines then PIR could hit $9.50. Wait for the dip or a bounce from these 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


Sara Lee Corp - SLE - close: 15.59 change: -0.12

Stop Loss: 14.70
Target(s): 17.00, 17.90
Current Option Gain/Loss: - 0.5%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/08 update: Shortly after the opening bell SLE spiked to over $16.00 on takeover rumors. The move was short-lived and shares eventually succumbed to profit taking. Our entry point was the opening trade at $15.68. I would still consider positions now. However, today's action actually looks like a short-term top or reversal. If you wait we might see a better entry point on a decline into the $15.50-15.00 zone.
FYI: the Point & Figure chart is suggesting a long-term bullish target of $32 for SLE.

Current Position: Long SLE stock @ $15.68

- or -

Long the 2011 April $15.00 calls (SLE1116D15) Entry @ $1.35

Entry on December 8 at $15.68
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 7.6 million
Listed on December 7th, 2010


Sony Corp. - SNE - close: 36.36 change: +0.26

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:
12/08 update: There is no change from my previous comment on SNE. The stock 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: 46.18 change: -0.19

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:
12/08 update: Finally - a down day for TSCO. Shares gave up less than twenty cents. We will have to be patient if we want a decent entry point on this stock. Currently the plan is to launch bullish positions 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: 40.68 change: +0.36

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:
12/08 update: TRMB spent the session drifting sideways. There is no change from my prior comment. 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: 29.37 change: +0.90

Stop Loss: 27.20
Target(s): 29.25, 31.90
Current Option Gain/Loss: + 9.2%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below

Comments:
12/08 update: Target achieved. Financials were the best performers in the market on Wednesday. Shares of WFC rallied more than three percent. Our first target to take profits was hit at $29.25. I am raising our stop loss to $27.20. We still have a longer-term target at $31.90 (although our remaining call position may not last that long). I am not suggesting new positions at this time.

Current Position: Long WFC stock @ $26.88

- or -

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

12/08: Target Hit $29.25 (+8.8%), Option @ $2.30 (+98.2%)

chart:

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