Editor's Note:
Bulls appear to have complete freedom in this market. Stocks are free to run without any serious profit taking thus far.

The PI newsletter was expecting some sort of pull back or correction following the QE news on Wednesday. The sell-off never showed up. Our bias was always bullish we just expected some sort of pull back. Now we're in the buy-the-dip mode if we can ever get a dip. I'll also be looking for some breakout candidates as well. I have updated most of the triggers for our current candidates tonight.

You might notice a few small changes in the format today. I've moved the stop loss data to the rest of the stat block with targets, etc.


Current Portfolio:

BULLISH Play Updates

Citigroup Inc - C - close 4.49 change +0.16

Stop Loss: 4.08 *new*
Target(s): 4.60, 4.75, 4.95
Current Option Gain/Loss: +7.9%
Time Frame: 4 to 6 weeks
New Positions: NO

11/6 (James): Citigroup has rallied +7% in just the last two days as traders pour into the financials. The pace of this rally won't last but the trend is up. If you're looking for an entry point I would wait for a dip or a bounce from the $4.30 level. If you do enter at $4.30 you may want to consider a tight stop loss. Speaking of stops I'm moving our stop to $4.08. No new positions at this time.

Suggested Position: Long C stock, entry was at $4.16
Options Traders: Long December $4.00 CALL

Annotated chart:

Entry on October 27, 2010
Earnings Date 01/19/11 (unconfirmed)
Average Daily Volume: 523 million
Listed on October 25, 2010

Hansen Natural Corp. - HANS - close: 51.54 change: +0.42

Stop Loss: 46.75
Target(s): 51.75
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

11/6 (James): HANS has spent two weeks now struggling with resistance near $52.50, which gives me hope the stock will see a pull back soon. Shares remain very overbought. If HANS breaks down under $50.00 I think it sees a dip to its rising 50-dma near $47.50. I am adjusting our trigger to open bullish positions. We want to buy the stock or call options at $48.25 and we'll use a stop loss at $46.75. If triggered our first target is $51.75.

Suggested Position: BUY the stock at $48.25 <- New Trigger

- or -

BUY the December $50.00 calls (on a dip at $48.25)

Annotated chart:

Entry on November xx
Earnings Date 11/04/10 (confirmed)
Average Daily Volume: 4.5 million
Listed on October 16, 2010

Kroger Co. - KR - close 23.11 change -0.10 stop 21.50

Stop Loss: 21.45
Target(s): 23.70
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

11/6 (James): It was a very bullish week for KR with the stock breaking out through several layers of resistance. We don't want to buy it here. Wait for a dip back to $22.55 since the $22.50 level should be new support. We'll use a stop loss at $21.45. Our target is $23.70 near the April highs. We'll set a secondary, longer-term target at $24.75.

Trigger to open positions @ 22.55

Suggested Position: Buy KR stock

Annotated chart:

Entry on November XX
Earnings Date 12/8/2010 (unconfirmed)
Average Daily Volume: 6 million
Listed on November 3, 2010

SPDR Financial ETF - XLF - close 15.58 change +0.35

Stop Loss: 14.45
Target(s): 17.25
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

11/6 (James): Financials are finally participating in the market's rally after months of under performance. The recent breakout over resistance is fueling both short covering and new money coming in. I would like to wait for a dip near $15.00 but it may not happen. Dips in this market have been very shallow. I'm suggesting we use a trigger at $15.25. If triggered our target is $17.25. Keep in mind this could take weeks for the XLF to climb this high. You might want to consider buying calls options instead of the ETF to maximize your gains.

Trigger to open bullish positions @ 15.25

Suggested Position: Buy XLF stock

- or -

Options Traders: Buy 2011 January $15.00 call

Annotated chart:

Entry on November XX
Earnings Date N/A (unconfirmed)
Average Daily Volume: 83 million
Listed on November 4, 2010

BEARISH Play Updates

None. No bearish plays currently.


Leggett & Platt, Inc. - LEG - close 20.50 change -0.08

Stop Loss: 21.75
Target(s): 19.80
Current Option Gain/Loss: -0.05%
Time Frame: 6 to 8 weeks
New Positions: No

11/6 (James): I think it's time to wrap up our LEG play and exit early. It's true that LEG has shown incredible relative weakness but given the market's breakout to new highs I'm very cautious on bearish trades. LEG is trying to find support near $20.00 and what could be a long-term trendline of support (see chart below). Maybe if we see a close under $20.00 we can look at LEG for potential bearish positions.

Exit Early

Closed Position: Short LEG stock, entry @ 20.49, exit @ 20.50

Annotated chart:

Entry on October 25, 2010
Earnings Date: More than two months (unconfirmed)
Average Daily Volume: 1.5 million
Listed on October 23, 2010