Editor's Note:
Shares of Blue Nile Inc. (NILE) hit our exit target thanks to a sharp two-day rally. Meanwhile we did see FRX hit our stop loss.

-James

Current Portfolio:


BULLISH Play Updates

AutoNation Inc. - AN - close: 35.99 change: -0.12

Stop Loss: 33.45
Target(s): 39.50
Current Gain/Loss: + 4.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/01 update: AN spiked to a new three-week high at $36.87 this morning and then retreated to close down 12 cents. Readers may want to wait for a dip back toward the $35.00 area before considering new positions.

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: 12.41 change: -0.01

Stop Loss: 11.59
Target(s): 13.45
Current Gain/Loss: + 0.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/01 update: ATVI settled virtually unchanged on the session. Although if you look at the intraday chart you'll see a continuation of the bullish trend of higher lows. 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: 5.37 change: -0.01

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

Comments:
12/01 update: BRCD just can't seem to breakout past resistance near $5.40 and its simple 200-dma. The stock saw a spike lower this morning to $5.15 but managed to recover and closed almost unchanged on the day. I would prefer to launch new positions on a bounce off the $5.00 level.

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: 41.55 change: -0.03

Stop Loss: 37.65
Target(s): 44.00
Current Gain/Loss: + 9.8%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
12/01 update: HITK tried to rally this morning but the stock spent a couple of hours struggling with resistance near the $42.30 level before finally paring its gains. Once again I am suggesting that more conservative traders may want to exit immediately to lock in a gain! 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: 45.51 change: -0.49

Stop Loss: 42.90
Target(s): 48.90
Current Gain/Loss: + 0.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/01 update: After yesterday's spike it's natural to see a little profit taking. I would prefer to launch new positions on a dip into the $44.50-44.00 zone. Conservative traders will want to wait and buy a bounce from this area.

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: 8.89 change: +0.01

Stop Loss: 7.75
Target(s): 9.45
Current Gain/Loss: +18.3%
Time Frame: two to three months
New Positions: see below

Comments:
12/01 update: KOG held up well and closed virtually unchanged, up a penny on the session. Readers may want to go ahead and take profits here. I am not suggesting new positions at this time. Please note that I am adjusting our exit target down to $9.45 (from 9.75).

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

12/01 Readers may want to exit now to lock in a gain (+18.3%). I am adjusting our exit target to $9.45
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


Stamps.com - STMP - close: 26.26 change: -1.11

Stop Loss: 24.75
Target(s): 32.50
Current Gain/Loss: + 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/01 update: Warning! STMP underperformed the market. Today's -4.0% drop completely erased yesterday's gains. Shares are near technical support at the 50-dma (25.66). More conservative traders may want to inch up their stop loss. I couldn't find any news to account for today's relative weakness. Today's action doesn't bode well for tomorrow.

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

AT&T Inc. - T - close: 28.84 change: -0.14

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:
12/01 update: We are still in a wait and see mode with AT&T. There is no change from my prior comments. 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 BULLISH PLAYS

Blue Nile Inc. - NILE - close: 39.66 change: +1.67

Stop Loss: 34.40
Target(s): 39.40
Current Gain/Loss: +13.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/01 update: Target achieved. NILE continued to rally. Shares opened near $38.00 and soared to almost $41.00 before paring gains and settling up +4.3%. Our exit target was hit at $39.40.

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, exit $39.40 (+13.4%)

- or -

2012Jan $35 call (NILE1221A35) Entry $2.90 exit $5.50 (+89.6%)

12/01/11 exit target hit at $39.40
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

chart:

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


CLOSED BEARISH PLAYS

Forest Labs Inc. - FRX - close: 29.91 change: -0.05

Stop Loss: 30.10
Target(s): 25.25
Current Gain/Loss: - 3.9%
Time Frame: 9 to 12 weeks
New Positions: see below

Comments:
12/01 update: We have been stopped out of FRX at $30.10. The stock climbed to $30.19 intraday before reversing lower and closing back under the $30.00 mark.

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, exit $30.10 (-3.9%)

- or -

FEB $30 put (FRX1218N30) Entry $2.25 exit $1.50*(-33.3%)

*option didn't trade at time our trade closed. This is an estimate.
12/01/11 stopped out at $30.10
11/29/11 new stop loss @ 30.10

chart:

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