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NEW DIRECTIONAL CALL PLAYS

Alcon Inc - ACL - close: 88.07 change: +1.37 stop: varies

Why We Like It:
The trend in ACL is growing a lot more bullish. The stock has built an inverse head-and-shoulders pattern so a breakout would be bullish not bearish. The neckline happens to be near round-number resistance at $90.00. More aggressive traders may want to consider positions now. We are suggesting two different entry points. One entry point is a breakout over resistance at $90.00 with a trigger to buy calls at $90.25. A second entry point would be another dip back toward $85.00 with a trigger to buy calls at $85.25. If triggered at $90.25 we'll use a stop loss at $85.75. If triggered at $85.25 we'll use a stop loss at $83.45.

There is potential resistance at the 50-dma and at the $100.00 level. The Point & Figure chart is bullish with a $110 target. If we are triggered our target is $99.00.

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 90.00 NOZ-AR open interest= 967 current ask $4.10
BUY CALL JAN 95.00 NOZ-AS open interest= 116 current ask $2.15
BUY CALL JAN 100.0 NOZ-AT open interest= 496 current ask $1.00

Annotated Chart:
ACL

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       840 thousand 


Goldman Sachs - GS - close: 80.73 change: +0.68 stop: 77.95

Why We Like It:
The market is not going to get very far unless the financial sector participates. Fortunately many of the financials have developed a bullish trend of higher lows. GS has a bull triangle pattern with resistance near $80-81. I am suggesting that readers buy calls on a breakout over the simple 50-dma. More aggressive traders may want to jump in now or on a move to a new relative high over $81.25. Our trigger to buy calls will be $$83.00. If triggered we will have two targets. Our first target is 89.85. Our second target will be $97.50. FYI: The P&F chart is bullish with a $112 target.

Suggested Options:
Our suggested trigger is $83.00. We would use the January calls although more conservative traders may want more time and use February calls.

BUY CALL JAN 80.00 GS-AP open interest=10846 current ask $6.45
BUY CALL JAN 85.00 GS-AQ open interest=10249 current ask $4.05
BUY CALL JAN 90.00 GS-AR open interest=12695 current ask $2.37
BUY CALL JAN 95.00 GS-AS open interest=15388 current ask $1.23

Annotated Chart:
GS

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           03/18/09 (unconfirmed)
Average Daily Volume =      25.7 million  


iShares Dow Jones US Real Estate - IYR - cls: 37.25 chg: +1.76 stop: 34.95

Why We Like It:
The IYR is the iShares exchange traded fund (ETF) that mimics the Dow Jones U.S. real estate index, which reflects the performance of a large number of REITs. This sector of the market has rebounded sharply and the IYR looks poised to move higher as investors hope the worst is behind it.

We are suggesting readers buy calls right here following the IYR's bounce from the $35.00 level on Thursday-Friday. We'll use a short-term target to take some money off the table at $39.95. Our secondary target is the $42.50 mark. More aggressive traders may want to aim higher. The Point & Figure chart is bullish with a $58 target.

Suggested Options:
We are suggesting the January calls. Strikes are available at $1.00 increments.

BUY CALL JAN 39.00 BJN-AM open interest=2680 current ask $2.80
BUY CALL JAN 40.00 BJN-AN open interest=7712 current ask $2.40
BUY CALL JAN 42.00 BJN-AP open interest=2676 current ask $1.70

Annotated Chart:
IYR

Picked on December 20 at $ 37.25
Change since picked:      + 0.00
Earnings Date           00/00/00
Average Daily Volume =        49 million  


Research In Motion - RIMM - close: 42.83 change: +4.39 stop: 37.99

Why We Like It:
RIMM surprised a lot of people with their positive fourth quarter guidance. The stock exploded higher on Friday with an 11.4% gain. This broke the bearish trend of lower highs. It's very possible that last week's earnings report may have been the spark that ignites a new trend higher for RIMM. We don't want to chase the rally on Friday. We're suggesting readers wait for a dip with a trigger to buy calls at $41.50. More conservative traders may want to use a trigger closer to $40.00.

If triggered at $41.50 our first target is $44.95. Our second target is $48.00. FYI: The P&F chart is bullish with a $56 target.

Suggested Options:
We are suggesting the January calls. Our trigger is $41.50.

BUY CALL JAN 40.00 RUP-AH open interest=11043 current ask $4.85
BUY CALL JAN 45.00 RFY-AI open interest= 8847 current ask $2.26

Annotated Chart:
RIMM

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           12/18/08 (confirmed)
Average Daily Volume =        25 million  


Sunoco Inc - SUN - close: 42.30 change: +2.46 stop: 39.45

Why We Like It:
The refining industry has seen its stocks come alive again and we're starting to see some bullish breakouts. SUN looked like the most attractive stock to play with relative strength and a bullish breakout over resistance at $40.00 and its simple and exponential 200-dma. The P&F chart is very bullish with a $54 target. We are suggesting call positions now or on a dip back toward $40.00. Our target is $47.00.

Suggested Options:
We are suggesting the January calls although more conservative traders may want to use February calls.

BUY CALL JAN 40.00 SUN-AH open interest=3077 current ask $4.90
BUY CALL JAN 45.00 SUN-AI open interest=3627 current ask $2.45

Annotated Chart:
SUN

Picked on December 20 at $ 42.30
Change since picked:      + 0.00
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       4.2 million  


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