Editor's Note:
I've had my eye on this stock for a long time and shares appear to be on the move again. Yet instead of correcting CHRW is breaking out again.

- James


CH Robinson Worldwide Inc. - CHRW - close: 72.25 change: +1.17

Stop Loss: 69.90
Target(s): 74.75, 79.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Company Description:
Founded in 1905, C.H. Robinson Worldwide, Inc., is a global provider of multimodal transportation services and logistics solutions, serving over 35,000 customers through a network of 232 offices in North America, South America, Europe, Asia, Australia, and the Middle East. C.H. Robinson is one of the largest third-party logistics companies in the world, with 2009 total revenues of $7.6 billion (source: company press release or website)

Why We Like It:
CHRW is breaking out again. The stock has been a big winner since it broke out over resistance near $62 back in July. Since then CHRW has seen a couple of consolidations. Shares just spent over a month consolidating sideways and did not see that much of a pull back during the market's recent decline. Now the stock is breaking out from its consolidation pattern. Aggressive traders may want to go ahead and buy calls now. I am suggesting we look for a little dip with a pull back to $71.75. If triggered we'll use a stop loss under short-term support at $69.90. Our first target is $74.75. Our second, longer-term target is $79.00. FYI: The Point & Figure chart is very bullish with a $92 target.

Trigger @ 71.75 (I prefer the January calls)

Suggested Position: Buy the December $75.00 calls (CHRW1018L75)

- or -

Suggested Position: Buy the January $75.00 calls (CHRW1122A75)

Annotated Chart:

Entry on November xxth at $ xx.xx
Earnings Date 02/03/11
Average Daily Volume = 1.1 million
Listed on November 18th, 2010