Growth Stocks

JOYG @ $63.83 (Joy Global) manufactures continuous miners, longwall shears, electric shovels and blast hole drills for coal and mineral extraction. Earnings are expected to grow 27% this year and another 23% in 2009 to $4.19 a share. For those looking for an investment, we are establishing half a position here and will enter the remaining half on a pull back to $57. Our stop loss will be set at $55. The traders could establish a full position here and set a tight $1 stop loss.

Shorts

Our Shorts in CF, MOS, TRA, SYT and MON all seem to be going in the right direction. For those that shorted any of these stocks today, remember to adjust your stops and trail them lower as the stock works it's way lower.

Current Portfolio

For those that are wondering, Citigroup (C) bottomed out at $13.30 in 1998 during the Asian financial crisis and is the next major level of support. We started nibbling in C last week at $22 and added another 1/4 to our position today at $20. With a cost average of $21 on half a position, we will not add to position until we get a climactic sell off, which may allow us to enter the remaining half between $15 and $16 hopefully. We still like the Citigroup January 2010 Call Leaps at $11. Another very attractive play for those that have experience in options is to sell (or write) the January 2010 $15 Puts for $3.20. It would give you a cost average of $11.80 on your position in Citigroup as a worst case scenario, which is pretty attractive, unless you think Citigroup is going out of business.

Vs. Cramer

BBI @ $2.87 (Blockbuster) operates 6,551 and franchises 1,809 movie and video rental stores in the U.S. and 22 countries worldwide. We made money on this pig a couple years ago and believe Cramer might be onto something with the attractive risk to reward ratio this is offering us. We will establish a position on a pull back to the $2.75 and set our stop loss at $2.60. If we're wrong, we lose 0.15 cents. If we're right, $4 gives us almost a 50% return. This is a great place to hide in this weak market, with all the damage already being done in this company. 

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