Editor's Note:

Warning for Wednesday

Investors need to be aware that Wednesday, December 18th could be a pivotal day for the stock market. If the Federal Reserve does announce a taper to their QE program on Wednesday afternoon it could spark a significant sell off in equities.

You may want to try and reduce your risk by adjusting your stop loss on bullish positions. Another idea might be some sort of hedge, maybe put options on the S&P 500 or similar index or ETF.


Closed Plays


YUM was stopped out.

We closed the 2014 calls on HOG on December 9th.



Play Updates


American Intl. Group - AIG - close: 49.73

Comments:
12/15/13: AIG managed to eke out a small gain for the week, which was enough to outperform the broader market. Shares remain stuck inside its $47-50 trading range. More conservative traders may want to raise their stops closer to the simple 150-dma nearing $48.00. I am not suggesting new positions at this time.

NOTE: We only have about five weeks left on our 2014 January calls.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $1.20/1.23

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.30/3.40

10/20/13 new stop loss @ 46.40
10/13/13 exit strategy update: exit 2014 calls at $54.50
adjust the exit target for the 2015 calls to $59.00
09/15/13 new stop loss @ 44.65
08/04/13 new stop loss @ 43.75
...please see earlier updates for more history...

Current Target:$ exit 2014 calls @ 54.50, exit 2015 calls @ 59.00
Current Stop loss: 46.40
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Avago Technologies - AVGO - close: 45.65

Comments:
12/15/13: AVGO's big gains from December 5th are fading. The stock is down four days in a row and failed to move on a new analyst upgrade this past Friday. This stock should see short-term support near $45.00 and its 50-dma. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 11, 2013 - entry price on AVGO @ 44.44, option @ 3.60
symbol: AVGO1517a50 2015 JAN $50 call - current bid/ask $3.40/3.90

12/08/13 new stop loss @ 42.40
11/24/13 AVGO is not participating in the market rally.
investors may want to exit early now to cut their losses.
11/11/13 trade opens.
11/10/13 promoted from watch list to new play.
11/03/13 adjust trigger to $43.00
10/27/13 removed the 2014 call
10/20/13 adjust the buy-the-dip trigger to $43.50
adjust the stop loss to $39.40 & adjust the option strikes
adjust the 2014 exit target to $49.50
adjust the 2015 exit target to $54.00
10/13/13 adjust the buy-the-dip trigger from $40.00 to $40.50

Current Target: $55.00
Current Stop loss: 42.40
Play Entered on: 11/11/13
Originally listed on the Watch List: 09/22/13


Bank of America - BAC - close: 15.18

Comments:
12/15/13: Financial stocks continued to drift lower and BAC followed suit. The stock is now down two weeks in a row following a four-week rally. Broken resistance near $15.00 should be new support for BAC. I'm not suggesting new positions.

FYI: BAC is scheduled to report earnings on January 15th.

- Suggested Positions -
(exit target hit on 07/23/13 @ $15.00)
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - exit $1.04 (+136.3%)

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.90/1.92

11/24/13 new stop loss @ 13.70
11/17/13 new stop loss @ 13.35
07/23/13 $15.00 exit target hit for the 2014 Jan. $15 calls.
07/20/13 new stop loss @ 12.75. Adjust the exit target for the 2014 calls to exit when BAC hits $15.00. Our exit for the 2015 calls is $18.00 on BAC
07/07/13 new stop loss @ 11.35
05/04/13 BAC did not participate in the market's rally this past week. Investors should turn more defensive here.

Current Target: BAC @ 15.00 for 2014 calls. BAC @ $18 for 2015 call
Current Stop loss: 13.70
Play Entered on: 03/18/13

Originally listed on the Watch List: 03/09/13


Capital One Financial - COF - close: 71.47

Comments:
12/15/13: COF also followed the financial sector lower. On the weekly chart last week's decline looks like a bearish engulfing candlestick reversal pattern. Fortunately, COF still has a long-term bullish trend of higher lows. I would not be surprised to see COF dip toward round-number support near $70.00. Nimble traders could use a bounce from $70.00 as a new bullish entry point.

FYI: COF is scheduled to report earnings on January 16th.

- Suggested Positions -
NOV 29, 2013 - entry price on COF @ 71.69, option @ 5.80*
symbol: COF1517a75 2015 JAN $75 call - current bid/ask $5.50/5.65

*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: COF @ 84.00 for 2015 calls
Current Stop loss: 66.95
Play Entered on: 11/29/13
Originally listed on the Watch List: 11/17/13


Caesars Entertainment - CZR - close: 20.16

Comments:
12/15/13: CZR was making headlines last week with the company filing a lawsuit against the state of Massachusetts's gaming commission chairman claiming he was biased in a recent decision. Shares of CZR didn't move much on the news. CZR actually held support near $19.00 and was on the rise later in the week.

I would be tempted to buy calls on this bounce or investors could wait for a new relative high above $21.30.

STRATEGY NOTE: (December 8th) I think it is important that investors re-evaluate this trade. Initially the market was bullish about the impact and opportunity that online gaming might offer CZR. Yet on Thursday morning CZR came out with a warning that said online gaming could actually hurt their business. The company said that online gaming is not only additional competition but CZR's own online business could cannibalize its traditional revenue sources. This new disclosure changes the impetus for the stock to climb. More conservative investors may just want to abandon ship and exit positions now. If this stock does not recover soon I will consider dropping it.

- Suggested Positions -
DEC 03, 2013 - entry price on CZR @ 20.91, option @ 4.70*
symbol: CZR1517a25 2015 JAN $25 call - current bid/ask $3.80/4.30

12/05/13 CZR warns that online gaming could negatively impact its business. Investors should re-evaluate their strategy
12/03/13 trade opens. CZR @ $20.91
12/02/13 CZR closes at $21.01, above our close above $21.00 trigger

Current Target: CZR @ 26.00
Current Stop loss: 18.75
Play Entered on: 12/03/13
Originally listed on the Watch List: 12/01/13


E.I. du Pont - DD - close: 60.24

Comments:
12/15/13: The recent action in DD does not bode well for the bulls. The stock failed at its six-week trend of lower highs. DD has been trying to hold at support near $60.00. A breakdown here could put its long-term up trend in jeopardy.

Last week we raised our stop to $58.90. I am not suggesting new positions. At this point our 2014 calls will likely expire worthless unless DD sees a dramatic move higher.

We only have about five weeks left on our 2014 January calls.

- Suggested Positions -
OCT 25, 2013 - entry price on DD @ 62.57, option @ 0.74
symbol: DD1418a65 2014 JAN $65 call - current bid/ask $0.15/0.18

- or -

OCT 25, 2013 - entry price on DD @ 62.57, option @ 3.15
symbol: DD1517a65 2015 JAN $65 call - current bid/ask $2.65/2.73

12/08/13 new stop loss @ 58.90
10/25/13 trade opens. DD gaps higher a $62.57
10/24/13 DD closed above our trigger @ 60.75
09/22/13 adjust entry: wait for a close above $60.75
instead of a close above $60.50

Current Target: DD @ 69.00
Current Stop loss: 58.90
Play Entered on: 10/25/13
Originally listed on the Watch List: 08/11/13


Deer & Co - DE - close: 87.18

Comments:
12/15/13: DE is a watch list candidate that has graduated to our active play list. Shares of DE had spent months consolidating sideways in the $80-86 zone. We wanted to wait for shares to close above $86.25. The stock shot higher early last week and closed at $87.20 on December 9th. Our trade opened on Dec. 10th at $87.26. Since then DE has seen a little bit of profit taking. Broken resistance in the $85-86 area should be new support so more nimble traders might want to consider buying calls on a dip near $86.00 as an alternative entry point.

Earlier Comments:
DE recently displayed strength following news that its board of directors approved an $8 billion stock buyback program. That's on top of the $1 billion they had left in their existing buyback program.

- Suggested Positions -
DEC 10, 2013 - entry price on DE @ 87.26, option @ 5.85*
symbol: DE1517a90 2015 JAN $90 call - current bid/ask $5.60/5.75

12/10/13 trade opens. DE @ 87.26
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/09/13 DE closed @ 87.20, above our suggested entry of a close above $86.25

Chart of DE:

Current Target: DE @ 98.50
Current Stop loss: 81.75
Play Entered on: 12/10/13
Originally listed on the Watch List: 12/08/13


Dollar General Corp. - DG - close: 60.48

Comments:
12/15/13: DG displayed some strength last week with a rally to new all-time highs. Yet gains faded late in the week after news surfaced that private equity firm KKR and Goldman Sach's private equity division both sold their stakes in DG.

At the moment I am not suggesting new positions in DG. Please note that we only have about five weeks left on our 2014 calls.

Earlier Comments:
Our long-term target is $64.00 for the 2014 calls. Our target is $69.00 for the 2015 calls. FYI: The point & figure chart is bullish with a $78.00 target.

- Suggested Positions -
SEP 06, 2013 - entry price on DG @ 57.61, option @ 2.58
symbol: DG1418a60 2014 JAN $60 call - current bid/ask $2.10/2.20

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $3.50/4.00

11/17/13 new stop loss @ 54.75
09/22/13 new stop loss @ 53.60

Current Target: 64.00 for the 2014s, 69.00 for the 2015s
Current Stop loss: 54.75
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/04/13


The Walt Disney Co. - DIS - close: 69.62

Comments:
12/15/13: The trading action in DIS last week was short-term bearish. Wednesday morning saw a spike to a new all-time high that quickly failed. That same day shares closed near their lows and in doing so created a bearish engulfing candlestick reversal pattern. Additional declines confirmed the reversal. At this point I would not be surprised to see DIS retest what should be significant support near the $68.00 level. Investors may want to wait for a new bounce from $68 before considering new positions.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $4.35/4.50

12/08/13 new stop loss @ 65.75
11/24/13 new stop loss @ 64.75

Current Target: DIS @ 84.00
Current Stop loss: 65.75
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


Dick's Sporting Goods - DKS - close: 55.66

Comments:
12/15/13: DKS posted a gain for the week but shares peaked on Wednesday. Shares almost appear to be trading under a new short-term trend of lower highs. I would not be surprised to see DKS drop back toward support near $54.00 again.

The market seems either confused or possibly apathetic to many of the retail names over worries that this holiday season may not meet expectations. At the moment I am not suggesting new positions.

Our long-term target is $65.00. More aggressive traders could aim higher. The point & figure chart is already bullish and forecasting at $71 target.

- Suggested Positions -
NOV 12, 2013 - entry price on DKS @ 54.73, option @ 4.00*
symbol: DKS1517a60 2015 JAN $60 call - current bid/ask $3.80/4.10

11/12/13 trade opens. DKS opens at $54.73
*option entry price is an estimate since the option did not trade at the time our play was opened.
11/11/13 closed about our suggested entry trigger (above 54.50)
10/27/13 removed the 2014 call.

Current Target: DKS @ 65.00
Current Stop loss: 49.95
Play Entered on: 11/12/13
Originally listed on the Watch List: 10/06/13


Dollar Tree, Inc. - DLTR - close: 55.72

Comments:
12/15/13: Shares of DLTR snapped a three-week losing streak. Gains were mild. DLTR has been struggling to breakout past short-term technical resistance at its simple 100-dma (near $56.25). The $55.00 area remains short-term support.

More conservative investors might want to just abandon ship. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 21, 2013 - entry price on DLTR @ 55.50, option @ 2.75*
symbol: DLTR1517a65 2015 JAN $65 call - current bid/ask $2.25/2.45

12/08/13 DLTR is not performing. Investors may want to exit early now. I am raising the stop loss to $54.45
11/21/13 trade opened on gap down at $55.50. Trigger was $56.25.
gap down was a reaction to earnings news
10/27/13 removed the 2014 call
10/20/13 adjust the trigger to $56.25 and the stop to $52.40

Current Target: DLTR @ 65.00
Current Stop loss: 54.45
Play Entered on: 11/21/13
Originally listed on the Watch List: 09/22/13


Ford Motor Co. - F - close: 16.59

Comments:
12/15/13: Ford's stock sank to new three-month lows before bouncing on Friday. It looks like the short-term trend is down. Ford's stock now has overhead resistance near $17.00 with a small cloud of moving averages in that area. The $15.75-16.00 area should be support and an area underpinned by the rising 200-dma. At the moment I am not suggesting new positions.

In the news this past week Ford has announced an aggressive schedule for 2014. The company plans to launch 23 new vehicles making it the first time in over a century they have released that many new products in one year. Ford is also planning to build two new facilities in Asia and one in South America to keep up with demand. The company also said they will be adding 5,000 new jobs in the U.S. We may hear more details after Ford's analyst meeting coming up on December 18th (this Wednesday).

- Suggested Positions -
(closed the 2014 calls on May 20th, at the open)
APR 29, 2013 - entry price on F @ 13.73, option @ 0.60
symbol: F1418a15 2014 JAN $15 call - exit $1.18 (+96.6%)

- or -

APR 29, 2013 - entry price on F @ 13.73, option @ 1.22
symbol: F1517a15 2015 JAN $15 call - current bid/ask $ 2.60/2.65

10/20/13 new stop loss @ 15.65
09/15/13 adjust exit target on 2015 calls to $19.50 (on Ford stock)
09/08/13 new stop loss @ 15.35
08/04/13 new stop loss @ 14.85
07/07/13 new stop loss @ 14.25
...please see earlier updates for more history...

Current Target:$ 19.50
Current Stop loss: 15.65
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Freeport-McMoRan - FCX - close: 34.34

Comments:
12/15/13: Gold and silver prices continue to struggle and remain in a down trend but copper is rising and on the verge of a bullish break higher. This could be helping shares of FCX. The stock really didn't move much last week as it bounced along short-term support near $34.00.

I am concerned that new weakness in gold could hurt FCX but it could be counter balanced by the rally in copper. Investors may want to wait for a new close above the 50-dma (above $35.50) before considering new bullish positions on FCX.

- Suggested Positions -
NOV 13, 2013 - entry price on FCX @ 35.25, option @ 2.60*
symbol: FCX1517a39 2015 JAN $39 call - current bid/ask $1.95/1.99

11/13/13 FCX hits our buy-the-dip entry point at $35.25
*option entry price is an estimate since the option did not trade at the time our play was opened.
10/27/13 strategy update: removed the 2014 calls
adjust the buy-the-dip trigger to $35.25 and the stop to $32.25.
adjust the option strike to the 2015 Jan $39 call

Current Target:$ 42.50
Current Stop loss: 32.25
Play Entered on: 11/13/13
Originally listed on the Watch List: 09/15/13


Fluor Corp. - FLR - close: 74.79

Comments:
12/15/13: Uh-oh! It was not a good week for FLR. Wednesday's drop broke support near $78.00 and its simple 50-dma. Shares have continued to fall and are now down three days in a row. The next level of support could be as low as $70.00 and currently our stop loss is at $72.75. I am not suggesting new positions at this time. More conservative traders may want to exit now to lock in gains.

Earlier Comments:
We will plan to exit our 2015 calls when FLR trades at $88.00.

- Suggested Positions -
SEP 12, 2013 - entry price on FLR @ 67.14, option @ 2.90
symbol: FLR1418a70 2014 JAN $70 call - exit $9.30 (+220.6%)

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - current bid/ask: 8.20/8.50

11/24/13 new stop loss @ 72.75
11/13/13 exit target hit for 2014 Jan. $70 calls
11/10/13 new stop loss @ 71.40
10/31/13 FLR reported earnings and management lowered guidance
10/20/13 new stop loss @ 68.80
adjust exit targets: Target for 2014 call is $79.00
target for 2015 call is $88.00
09/22/13 new stop loss @ 64.75
09/22/13 adjust exit target from $74.75 to $79.50
09/20/13 high for the day was $74.72
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target:$ Target for 2014 call is $79.00,
Target for 2015 is $88.00
Current Stop loss: 72.75
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/11/13


HollyFrontier Corp. - HFC - close: 45.32

Comments:
12/15/13: I am worried about our HFC trade. The stock is on the verge of breaking down below support near $45.00 and its 50-dma. More conservative investors might want to just go ahead and exit now. I am not suggesting new positions. We will raise the stop loss to $43.75.

NOTE: The options for HFC have changed. Due to a 50-cent special dividend the option strikes have all been adjusted down by 50 cents. Our listed option strike 2015 January $49.50 has become $49.00.

- Suggested Positions -
NOV 26, 2013 - entry price on HFC @ 47.17, option @ 5.00*
symbol: HFC1517a49 2015 JAN $49 call - current bid/ask $4.40/4.70

12/15/13 new stop loss @ 43.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: HFC @ 59.00
Current Stop loss: 43.75
Play Entered on: 11/26/13
Originally listed on the Watch List: 11/24/13


Harley-Davidson - HOG - close: 67.51

Comments:
12/15/13: HOG rallied to new multi-year highs and almost made it to $70.00 before paring its gains. Our plan was to exit our 2014 January calls on Monday, December 9th at the opening bell. HOG opened at $68.46 (down 7 cents).

Earlier Comments:
Our exit target for the 2015 calls remains $74.50 for now.

- Suggested Positions -
(exited 2014 calls on Monday, December 9th, 2013)
SEP 04, 2013 - entry price on HOG @ 61.01, option @ 2.36
symbol: HOG1418a65 2014 JAN $65 call - closed @ 3.70 (+56.7%)

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 5.85/6.00

12/09/13 planned exit for 2014 calls. option @ $3.70 (+56.7%)
12/08/13 prepare to exit 2014 calls immediate on Monday morning
12/08/13 new stop loss @ 62.75
11/17/13 new stop loss @ 61.45
adjust the exit target for 2015 calls to $74.50
10/20/13 do not be surprised to see some profit taking after HOG reports earnings on Oct. 22nd.
09/22/13 new stop loss @ 59.00
*note the entry price on our 2015 call is an estimate since the option did not trade at the time our play opened.

Current Target: exit 2014 calls @ 69.00, exit 2015 calls @ 74.50
Current Stop loss: 62.75
Play Entered on: 09/04/13
Originally listed on the Watch List: 08/25/13


Honeywell Intl. - HON - close: 86.61

Comments:
12/15/13: HON made headlines on Friday with news of a new $5 billion stock buyback program but the rally on this headline struggled to make any real gains. Shares appear to be correcting lower and I would expect a drop toward what should be support near $85.00 and its 100-dma.

Earlier Comments:
Our initial plan was to keep our position size small to limit risk.

- Suggested Positions -
(closed the 2014 calls on May 20th at the open)
MAY 07, 2013 - entry price on HON @ 76.20, option @ 2.68
symbol: HON1418a80 2014 JAN $80 call - exit $5.10 (+90.2%)

- or -

MAY 07, 2013 - entry price on HON @ 76.20, option @ 4.10
symbol: HON1517a85 2015 JAN $85 call - current bid/ask $ 7.85/8.10

11/24/13 new stop loss @ 83.75
11/17/13 new stop loss @ 82.75
11/10/13 new stop loss @ 81.75
10/20/13 new stop loss @ 79.40
10/13/13 investors might want to take profits on our 2015 calls, which have doubled in value.
...please see earlier newsletter for prior comments...

Current Target:$ 95.00
Current Stop loss: 83.75
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Helmerich & Payne, Inc. - HP - close: 79.52

Comments:
12/15/13: Oil related stocks struggled last week but the pullback in HP wasn't that bad. The stock has been churning sideways inside the $78-81 zone for almost two weeks. I would wait for a new close above $81.50 before considering new bullish positions.

- Suggested Positions -
DEC 05, 2013 - entry price on HP @ 81.00, option @ 5.60*
symbol: HP1517a90 2015 JAN $90 call - current bid/ask $ 4.70/5.00

12/05/13 trade opens with HP opening at $81.00
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/04/13 HP closes at $80.97, above our suggested trigger @ 80.25
11/17/13 strategy change: Wait for HP to close above $80.25 and then buy calls the next day with a stop loss at $74.75. Our new long-term target is $95.00. New option strike at 2015 $90 call

Current Target:$ 95.00
Current Stop loss: 74.75
Play Entered on: 12/05/13
Originally listed on the Watch List: 10/27/13


JPMorgan Chase & Co. - JPM - close: 56.17

Comments:
12/15/13: It was a quiet week for JPM with shares consolidating sideways between short-term support near $56.00 and its short-term bearish trend line of lower highs. This pattern is bearish and would suggest a drop toward the $55-54 area soon. With only five weeks left on our 2014 calls investors have a decision to make. Do you exit those 2014 calls now and lock in a gain or do you hold on expecting JPM to rally before January expiration? That could depend on if the Federal Reserve announces a taper on Wednesday. We are expecting the Fed to not taper and the market to rally on the no taper headline. Thus we're suggesting investors hold on but it's a decision each investors has to make individually.

Earlier Comments:
Plan to exit the 2014 calls when JPM hits $59.50.
Our target to exit the 2015 calls is $64.00.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 2.06/2.08

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 5.50/5.60

12/01/13 adjust exit target for the 2014 calls to exit when JPM hits $59.50
11/24/13 new stop loss @ 51.95
Consider taking profits on the 2014 calls now
09/01/13 adjust stop loss to $48.99
07/21/13 new stop loss @ 49.65
07/14/13 new stop loss @ 48.75
Current Target: exit 2014 calls when JPM hits $59.50
exit 2015 calls when JPM hits $64.00
Current Stop loss: 51.95
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Level 3 Communications - LVLT - close: 30.41

Comments:
12/15/13: Traders bought the dip on Thursday and Friday's bounced lifted LVLT to a gain for the week. The stock remains under resistance near the $31.00 level. Investors may want to consider launching new bullish positions if we see LVLT close above $31.00.

- Suggested Positions -
OCT 31, 2013 - entry price on LVLT @ 29.39, option @ 4.40*
symbol:LVLT1517a30 2015 JAN $30 call - current bid/ask $ 4.50/4.70

12/08/13 new stop loss @ 27.75
11/24/13 new stop loss @ 26.75
*option entry price is an estimate since the option did not trade at the time our play was opened.
Current Target: $39.00
Current Stop loss: 27.75
Play Entered on: 10/31/13
Originally listed on the Watch List: 10/20/13


National Oilwell Varco - NOV - close: 78.74

Comments:
12/15/13: Ouch! It was a down week for oil stocks but NOV underperformed with a plunge toward new support near $78.00 and its 100-dma. On a short-term basis the stock is oversold and poised for a bounce but broken support near $81.00 is now new overhead resistance (as well as the simple 50-dma).

Currently our stop is at $76.75. More conservative investors might want to adjust their stop closer to the $78.00 level. I am not suggesting new positions. Given the recent breakdown I would seriously consider exiting bullish positions on a bounce back toward the $81.00 area.

Earlier Comments:
FYI: NOV is planning a spinoff of its oilfield production equipment business by late 2014. We will likely exit positions prior to the spinoff.

- Suggested Positions -
OCT 17, 2013 - entry price on NOV @ 81.00, option @ 5.00
symbol: NOV1517a90 2015 JAN $90 call - current bid/ask $ 3.75/3.90

Current Target: $89.75
Current Stop loss: 76.75
Play Entered on: 10/17/13
Originally listed on the Watch List: 10/13/13


NVIDIA Corp. - NVDA - close: 15.02

Comments:
12/15/13: I warned readers right from the start that NVDA was a volatile stock. Unfortunately all of the volatility over the last several weeks could make you seasick. This last week we can blame a widespread sell off in the semiconductor industry and not just NVDA alone. Shares ended the week at round-number support near $15.00. I'm not suggesting new positions.

Don't forget that we only have about five weeks left on the 2014 January options.

Earlier Comments:
Due to NVDA's recent volatility I am labeling this a more aggressive, higher-risk trade and thus suggest we use smaller positions to limit our risk. Our target to exit the 2014 calls is $18.00. Our target to exit the 2015 calls is $19.75. Currently the point & figure chart is bullish and forecasting at $23 target.

- Suggested *Small* Positions -
SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 0.88
symbol: NVDA1418a16 2014 JAN $16 call - current bid/ask $0.13/0.15

- or -

SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 1.54
symbol: NVDA1517a17 2015 JAN $17 call - current bid/ask $1.01/1.06

09/22/13 new stop loss @ 14.45

Current Target: exit for 2014 calls is $18.00, exit for 2015s is $19.75
Current Stop loss: 14.45
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/18/13


QUALCOMM Inc. - QCOM - close: 72.58

Comments:
12/15/13: Overall sentiment for QCOM stock remains very bullish but technically the action last week was bearish. QCOM produced a failed rally and bearish reversal pattern at resistance near $74.00 on Wednesday. The reversal was confirmed. Shares now look poised to drop back toward what should be significant support near $70.00. I would wait for that dip near $70 before considering new bullish positions.

Earlier Comments:
I want to remind readers that QCOM does a lot of business with Apple (AAPL), and if AAPL encounters any bad news (example: lower iPhone sales) it could influence trading in shares of QCOM.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $5.35/5.50

12/08/13 new stop loss @ 67.75
11/15/13 trade opens. QCOM @ 71.34
11/14/13 QCOM closes above entry trigger (above 70.50)

Current Target: $85.00
Current Stop loss: 67.75
Play Entered on: 11/15/13
Originally listed on the Watch List: 11/03/13


Starbucks - SBUX - close: 76.35

Comments:
12/15/13: It looks like we were too early to buy the dip in shares of SBUX. In this business being early means you're wrong. The stock accelerated lower with a breakdown below technical support at its 50-dma. Shares have spent the last couple of days trying to hold at new support near its 100-dma (around the $76.00 level). The recent weakness in SBUX may have been exacerbated by a bounce in coffee prices. The JO coffee ETN is up five days in a row and breaking out past its simple 50-dma. If this rally in JO continues it could put more pressure on SBUX.

More conservative investors will want to seriously consider an early exit from our SBUX trade or as an alternative consider raising your stop closer to the $76.00 level. I am not suggesting new positions.

- Suggested Positions -
DEC 04, 2013 - entry price on SBUX @ 80.00, option @ 4.70
symbol: SBUX1517a90 2015 JAN $90 call - current bid/ask $3.45/3.55

12/15/13 The breakdown in SBUX this past week throws the up trend in question. Investors might want to exit early now to minimize losses
12/04/13 triggered on a dip at $80.00
12/01/13 adjust the trigger to $80.00
11/24/13 adjust the trigger to $79.25
adjust the option strike to the 2015 January $90 call
11/17/13 adjust the trigger to $78.25
11/10/13 adjust the buy-the-dip entry to $78.00 and stop to $74.75
11/03/13 adjust buy-the-dip entry from $76 to $77.00

Current Target: exit calls when SBUX hits $98.00
Current Stop loss: 74.75
Play Entered on: 12/04/13
Originally listed on the Watch List: 10/27/13


VeriSign, Inc. - VRSN - close: 57.05

Comments:
12/15/13: A bounce on Friday helped pare VRSN's loss for the week to just 15 cents. The up trend remains intact but VRSN is facing short-term resistance near $57.50. Investors might want to consider a stop loss closer to the $55.00 level.

Earlier Comments:
We will still have the 2015 calls and our exit target remains $64.50 for this position.

- Suggested Positions -
(option exit on December 2nd, 2013)
SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 1.16
symbol:VRSN1418a55 2014 JAN $55 call - exit @ $2.80** (+141.3%)

- or -

SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 4.25*
symbol:VRSN1517a55 2015 JAN $55 call - current bid/ask $ 6.80/7.05

12/02/13 planned exit for the 2014 calls, option @ +141.3%
**option exit price is an estimate since the option did not trade at the time our play was closed.
12/01/13 prepare to exit our 2014 Jan. $55 calls on Monday, Dec. 2nd.
11/24/13 new stop loss @ 52.40
11/17/13 new stop loss @ 49.75
11/03/13 new stop loss @ 48.40
*option entry price is an estimate since the option did not trade at the time our play was opened.
09/15/13 adjust entry trigger: wait for a close over $50.50 instead of $50.25

Current Target:
Exit 2014 calls when VRSN hits $57.50, 2015 calls @ $64.50
Current Stop loss: 52.40
Play Entered on: 09/19/13
Originally listed on the Watch List: 08/18/13


Western Digital Corp. - WDC - close: 79.05

Comments:
12/15/13: WDC has finally graduated from our watch list to our active play list. Volatility on Tuesday pushed WDC toward its simple 10-dma. Shares hit our buy-the-dip trigger at $77.00. Since then WDC has continued to consolidate sideways below round-number resistance at the $80.00 level. If you missed our buy-the-dip entry point I would also consider buying calls on a close above $80.25.

Our long-term target is $94.00. FYI: The Point & Figure chart is bullish with a $91 target.

- Suggested Positions -
DEC 10, 2013 - entry price on WDC @ 77.00, option @ 6.00*
symbol: WDC1517a90 2015 JAN $90 call - current bid/ask $ 6.70/7.00

12/10/13 triggered on our buy-the-dip entry at $77.00
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/08/13 adjust the entry point strategy to buy calls on a dip at $77.00 since we missed the breakout (see the December 8th, watch list update)
12/01/13 adjust entry point to a close above $76.50 instead of 76.25
adjust the stop loss to $69.75

Chart of WDC:

Current Target: Exit 2015 calls when WDC hits $94.00
Current Stop loss: 69.75
Play Entered on: 09/19/13
Originally listed on the Watch List: 11/17/13


Wyndham Worldwide - WYN - close: 70.59

Comments:
12/15/13: Double-check your stop loss placement because WYN could be headed for a correction. After a four-week rally the stock hit some profit taking last week. Shares did find support near $70.00. Yet last week's pullback has created a bearish engulfing candlestick reversal pattern on the weekly chart. The next level of support, if the $70 level fails, is the $67.50-68.00 area. I am not suggesting new positions at this time.

Earlier Comments:
The point & figure chart is bullish and currently forecasting a $93.00 target.

- Suggested Positions -
NOV 18, 2013 - entry price on WYN @ 68.97, option @ 4.20
symbol: WYN1517a75 2015 JAN $75 call - current bid/ask $ 4.50/5.20

12/01/13 new stop loss @ 65.40
11/24/13 new stop loss @ 64.75
11/18/13 trade opens. WYN opens @ 68.97

Current Target: 85.00
Current Stop loss: 65.40
Play Entered on: 11/18/13
Originally listed on the Watch List: 11/10/13



CLOSED Plays


Yum! Brands - YUM - close: 71.81

Comments:
12/15/13: It also looks like we were too early to buy the dip in shares of YUM. Normally broken resistance becomes new support so we were expecting broken resistance in the $74-75 zone to hold as new support. Unfortunately the reversal in YUM actually picked up speed.

YUM hit our stop loss at $71.90 on Thursday.

- Suggested Positions -
DEC 03, 2013 - entry price on YUM @ 75.25, option @ 3.75
symbol: YUM1517a85 2015 JAN $85 call - exit @ $2.50** (-33.3%)

- or -

DEC 03, 2013 - entry price on YUM @ 75.25, option @ 6.65*
symbol: YUM1615a85 2016 JAN $85 call - exit @ $4.35** (-19.5%)

12/12/13 stopped out at $71.90
**option exit price is an estimate since the option did not trade at the time our play was closed.
12/03/13 trade opened on buy-the-dip trigger at $75.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of YUM:

Current Target: 95.00
Current Stop loss: 71.90
Play Entered on: 12/03/13
Originally listed on the Watch List: 12/01/13