Editor's Note:
The European and U.S. markets rallied on news that multiple central banks are working together to provide liquidity to EU banks. This was just part of the rash of positive news that helped fuel stocks higher.

Our ATVI and JJC trades are open. AFL and NXY have been stopped out.

-James

Current Portfolio:


BULLISH Play Updates

AutoNation Inc. - AN - close: 36.11 change: +0.81

Stop Loss: 33.45
Target(s): 39.50
Current Gain/Loss: + 4.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/30 update: AN managed a +2.2% gain but that feels a bit disappointing versus +4% gains in the major indices. I can't complain about the ongoing bounce here. We will raise our stop loss to $33.45.

Earlier Comments:
Our multi-week target is $39.50. More conservative traders may want to exit in the $37.75 region instead.

current Position: Long AN stock @ $34.45

- or -

Long Jan $35 call (AN1221A35) Entry $1.95

11/30/11 new stop loss @ 33.45

Entry on November 22 at $34.45
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on November 21, 2011


Activision Blizzard, Inc. - ATVI - close: 12.42 change: +0.33

Stop Loss: 11.59
Target(s): 13.45
Current Gain/Loss: + 0.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/30 update: Our ATVI is now active with positive opens for both the S&P 500 and ATVI this morning. ATVI opened at $12.30 and rallied to a +2.7% gain. If you don't feel like chasing it here then wait for a dip into the $12.20-12.00 zone as your next entry point.

current Position: Long ATVI stock @ $12.30

- or -

Long FEB $13 call (ATVI1218B13) Entry $0.42

11/30/11 trade open. ATVI gaps higher at $12.30
11/29/11 ATVI gapped open lower. Trade not open yet.

Entry on November 30 at $12.30
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 14.9 million
Listed on November 28, 2011


Brocade Communications - BRCD - close: 5.38 change: +0.14

Stop Loss: 4.75
Target(s): 6.45
Current Gain/Loss: + 2.4%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/30 update: BRCD has rallied to its next level of resistance near $5.40 and its simple 200-dma. I would not chase it here. Wait for a dip near the $5.10-5.00 zone before considering new positions.

Earlier Comments:
Keep in mind that the simple 200-dma near $5.40 could still be technical resistance. I expect this trade to take many weeks to play out but we're aiming for $6.75. We'll make adjustments to our exit strategy as needed.

current Position: Long BRCD stock @ $5.25

- or -

Long 2012JAN $5.50 call (BRCD1221A5.5) Entry $0.37

Entry on November 28 at $5.25
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 8.6 million
Listed on November 26, 2011


Hi Tech Pharmacal Co. - HITK - close: 41.72 change: +1.31

Stop Loss: 37.65
Target(s): 44.00
Current Gain/Loss: + 9.7%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/30 update: Uh-oh! Today's action could be a warning sign that HITK's rally is running out of gas. The stock spiked to $42.93 this morning but then reversed lower to close down -0.4%. After a couple of days of relative strength it's disappointing to see HITK underperform like this. More conservative traders may want to exit immediately! I am not suggesting new positions at this time.

Earlier Comments:
The stock could see a short squeeze. The most recent data listed short interest at 14% of the very small 9.9 million-share float. The $40.00 level might be resistance but if HITK does see a short squeeze I am expecting a much bigger move. FYI: The Point & Figure chart for HITK is bullish with a $58.00 target. NOTE: We do not want to hold over the December earnings report so we only have two or three weeks.

current Position: Long HITK stock @ $37.84

- or -

Long DEC $40 call (HITK1117L40) Entry $1.65

11/30/11 HITK underperformed. Readers may want to take profits now.
11/29/11 new stop loss @ 37.65
Readers may want to take profits early right now.
HITK +10.2%, Dec $40 call +66%
11/28/11 new stop loss @ 36.75

Entry on November 22 at $37.84
Earnings Date 12/08/11 (unconfirmed)
Average Daily Volume = 180 thousand
Listed on November 21, 2011


Ipath Copper ETN - JJC - close: 46.00 change: +2.23

Stop Loss: 42.90
Target(s): 48.90
Current Gain/Loss: + 1.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/30 update: Wow! Today was definitely a "risk on" day. News that China had reduced the reserve ratio requirement by 50 basis points helped light a fire under stocks today. This means the country is trying to help spur growth a little bit, which could mean stronger demand for commodities. The JJC gapped open higher at $45.30 and spiked to $46.75 before settling down with a +5.0% gain. Obviously the open at $45.30 is not as attractive as our planned entry point at $44.25 but today's move does represent a bullish breakout. I am adjusting our stop loss to $42.90 and moving our exit target to $48.90.

No new positions at this time.

current Position: Long JJC (ETF) @ $45.30

- or -

Long JAN $45 call (JJC1221A45) Entry $3.30

11/30/11 JJC gaps higher at $45.30. Adjusting stop loss to $42.90 and moving exit target to $48.90.

Entry on November 30 at $45.30
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 148 thousand
Listed on November 29, 2011


Kodiak Oil & Gas - KOG - close: 8.88 change: +0.34

Stop Loss: 7.75
Target(s): 9.75
Current Gain/Loss: +18.2%
Time Frame: two to three months
New Positions: see below

Comments:
11/30 update: The rally in KOG continues to impress. The stock gapped higher and hit $9.08 intraday. The stock settled with a +3.9% gain. Readers may want to take profits now. I am raising our stop loss to $7.75.

Earlier Comments:
Our multi-month target is $9.75. FYI: The Point & Figure chart for KOG is bullish with a $13.75 target. KOG is a potential takeover target.

current Position: Long the stock @ 7.51

- or -

Long 2012 MAR $7.50 call (KOG1217C7.5) Entry $1.25

11/30 new stop loss @ 7.75
11/28 new stop loss @ 7.49
11/23 new stop loss @ 7.38
11/15 gap down at 7.41 and hit 7.21 before bouncing.
11/14 new stop loss @ 7.20
11/14 KOG announces plans to sell an additional 37.5 million shares of new stock
11/08 trade opened at $7.51.

Entry on November 08 at $ 7.51
Earnings Date 03/05/12 (unconfirmed)
Average Daily Volume = 6.6 million
Listed on November 5, 2011


Blue Nile Inc. - NILE - close: 37.99 change: +3.53

Stop Loss: 34.40
Target(s): 39.40
Current Gain/Loss: + 9.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/30 update: NILE saw some serious short covering today with a gap higher and the stock closing up +10.2% on the session. I am raising our stop loss to $34.40. I am adjusting our exit target to $39.40. No new positions at this time.

Earlier Comments:
Readers should consider this an aggressive, higher-risk trade. If triggered our target is $39.75. More conservative traders may want to exit at the 50 or 100-dma instead.

(small positions)

current Position: Long NILE stock @ 34.67

- or -

Long 2012Jan $35 call (NILE1221A35) Entry $2.90

11/30/11 new stop loss @ 34.40. new exit target at $39.40
11/28/11 NILE gapped higher at $34.67, which was above our entry trigger at $34.60

Entry on November 28 at $34.60
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 491 thousand
Listed on November 22, 2011


Stamps.com - STMP - close: 27.37 change: +0.87

Stop Loss: 24.75
Target(s): 32.50
Current Gain/Loss: + 4.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/30 update: I am a little surprised that STMP did not see a bigger move today. The is a lot of short interest in the stock. I would have expected more short covering. STMP did spike to $28.30 before paring gains to close up +3.2%.

Earlier Comments:
NOTE: STMP could see a short squeeze if the market bounces. The most recent data listed short interest at more than 10% of the very small 12.3 million-share float.

current Position: Long STMP stock @ $26.16

- or -

Long Feb $30 call (STMP1218C30) Entry $2.00

11/28 trade opened. STMP gapped higher at $26.16
11/26 No change in our strategy. Trade not open yet. Readers may want to consider alternatives listed in tonight's update.
11/23 STMP gapped down again. Trade not open.
11/22 trade did not open. STMP opened lower by one cent.
11/21 trade not open. try again. Move stop loss to $24.75

Entry on November 28 at $26.16
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 646 thousand
Listed on November 19, 2011


BEARISH Play Updates

Forest Labs Inc. - FRX - close: 29.96 change: +0.94

Stop Loss: 30.10
Target(s): 25.25
Current Gain/Loss: - 3.4%
Time Frame: 9 to 12 weeks
New Positions: see below

Comments:
11/30 update: The stock market's widespread gains pushed FRX to a +3.2% advance. The stock closed directly under resistance at $30.00. If the rally continues tomorrow we could see FRX hit our stop loss at $30.10. More aggressive traders might want to consider adjust their stop loss so it's above the simple 50-dma, which was resistance back in October. I am not suggesting new positions at this time.

Earlier Comments:
Our multi-week target is $25.25. FRX doesn't move very fast so we have to give it some time. FYI: The Point & Figure chart for FRX is bearish with a $19 target.

NOTE: You may want to trade the options instead of the stock to limit risk. FRX has about 6 or 7 days worth of short interest (approximately 9% of the float). Looking at the chart you can see the super sharp bounces caused by short covering.

current Position: short FRX stock @ 28.95

- or -

Long FEB $30 put (FRX1218N30) Entry $2.25

11/29/11 new stop loss @ 30.10

Entry on November 21 at $28.95
Earnings Date 01/17/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on November 19, 2011


AT&T Inc. - T - close: 28.98 change: +0.92

Stop Loss: 28.55
Target(s): 24.25 or 22.75
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks or more
New Positions: Yes, see below

Comments:
11/30 update: Our AT&T trade is not open yet. The stock has been soaring higher thanks to the market-wide bounce. Shares of T just powered through a lot of technical resistance today, climbing past several moving averages. I am not adjusting our strategy yet. We will leave our trigger to open bearish positions at $27.15 for now. However, readers will want to keep an eye on the $29.50-29.75 zone, which is the top of the right-hand shoulder to T's large head-and-shoulders pattern (a.k.a. this area should be resistance). A failure near $29.50 might prove to be a new entry point for bearish positions.

Earlier Comments:
AT&T has significant support in the $27.20-27.50 zone. Currently we are suggesting a trigger to open bearish positions at $27.15. More conservative traders may want to use a trigger under $27.00 instead as their entry point for bearish positions. If we are triggered at $27.15 our multi-month target is $22.75, however, more conservative traders may want to exit near $24.00 instead. I have listed to targets (24.25 and 22.75) above depending on your risk tolerance. The $24.00 level was significant support back in 2010. Unfortunately for AT&T shareholders the stock has produced a huge (bearish) head-and-shoulders pattern over the last several months. A breakdown under $27.00 would signal a drop toward the $22.50 area (see weekly chart).

Trigger @ $27.15

Suggested Position: short T stock @ 27.15

- or -

buy the 2012Jan $25 PUT (T1221M25)

- or -

buy the Mar $25 PUT (T1217O25)

Entry on November xx at $ xx.xx
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 23.4 million
Listed on November 26, 2011


CLOSED BEARISH PLAYS

AFLAC Inc. - AFL - close: 40.88 change: +0.14

Stop Loss: 42.05
Target(s): 38.00
Current Gain/Loss: - 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/30 update: Our AFL trade has been stopped out. Shares gapped open higher at $42.31. We had a stop loss at $42.05. The trade was closed at the open. I would keep AFL on your watch list for a failure at resistance near $45.00 and its simple 200-dma.

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

(Small Positions)

current Position: Short AFL stock @ 42.12, exit $42.31 (-0.4%)

- or -

DEC $40 PUT (AFL1117x40) Entry $1.52 exit $0.59 (-61.1%)

11/30 stopped out at $42.31 (AFL gapped higher)
11/26 new stop loss @ 42.05, new exit target at $38.00
More conservative traders may want to take profits now
11/23 new stop loss @ 43.55
11/21 new stop loss @ 44.05

chart:

Entry on November 18 at $42.12
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 4.3 million
Listed on November 17, 2011


Nexen Inc. - NXY - close: 16.57 change: +1.11

Stop Loss: 16.05
Target(s): 10.25
Current Gain/Loss: - 9.8%
Time Frame: 6 to 9 weeks or more
New Positions: see below

Comments:
11/30 update: The rally in energy and oil stocks has been tremendous. NXY has surged from the $14.30 area to breakout past resistance near $16.00 and its 50-dma. We had a stop loss at $16.05 but NXY gapped open higher at $16.34 this morning, closing our play.

Currently the longer-term trend for NXY is still down. However, bulls might argue that NXY has formed a bullish double bottom near $14.00 now.

Suggested Position: short NXY stock @ $14.87, exit $16.34 (-9.8%)

- or -

JAN $14 PUT (NXY1221M14) Entry $0.85 exit $0.35*(-58.8%)

- or -

MAR $12 PUT (NXY1217o12) Entry $0.80 exit $0.40*(-50.0%)

*price is an estimate. Option did not trade at the time our stop was hit.
11/30/11 stopped out. NXY gapped open at $16.34, above our stop
11/28/11 NXY gapped open higher at $14.87

chart:

Entry on November 28 at $14.87
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 3.0 million
Listed on November 26, 2011