Editor's Note:
We are making some adjustments to the current play list with new entries, new stops, and one early exit. I am also suggesting we take some profits on some option positions.

-James

Current Portfolio:


BULLISH Play Updates

AutoNation Inc. - AN - close: 36.18 change: +0.19

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: + 5.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/03 update: The last three days in a row look almost identical for AN. Shares gap open higher, see a short spike higher, and then slowly fade lower through out the rest of the session. This happens to be occurring near AN's 100-dma. I have been warning readers to expect a dip back toward $35.00 and I still think that's a possibility.

We are going to try and reduce our risk by raising the stop loss up to $34.75.

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

12/03/11 new stop loss @ 34.75
11/30/11 new stop loss @ 33.45

chart:

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: 12.27 change: -0.14

Stop Loss: 11.59
Target(s): 13.45
Current Gain/Loss: - 0.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/03 update: Warning! Friday's session has produced a bearish engulfing candlestick pattern and a failed rally near the $12.50 level and its 20-dma. I am expecting a pull back toward the $12.00 level soon. Wait for a bounce before considering new bullish positions.

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.

chart:

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: 5.35 change: -0.02

Stop Loss: 4.84
Target(s): 6.45
Current Gain/Loss: + 1.9%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
12/03 update: BRCD managed an intraday rally past resistance at its 200-dma on Friday but shares couldn't hold these gains. I would prefer to see a new bounce off the $5.00 mark before considering new bullish positions. Please note that we are adjusting our stop loss higher to $4.84.

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

12/03/11 new stop loss @ 4.84

chart:

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: 42.68 change: +1.13

Stop Loss: 39.75
Target(s): 44.00
Current Gain/Loss: +12.7%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
12/03 update: HITK continues to show relative strength. The stock added another +2.7% on Friday and hit new highs at $43.26 at its best levels of the day. Our final exit target is $44.00. However, I am suggesting we go ahead and exit our December call positions at the open on Monday morning. We only have two weeks left before December options expire. I'd rather lock in a gain now with the Dec $40 call up +100% from our entry point.

I am not suggesting new positions. We will raise our stop loss to $39.75.

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

12/03/11 new stop loss @ 39.75
12/03/11 Prepare to exit Dec. $40 calls on Monday. currently +100%
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

chart:

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: 46.13 change: +0.62

Stop Loss: 44.75
Target(s): 48.90
Current Gain/Loss: + 1.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/03 update: Copper saw a bounce on Friday but it is still consolidating sideways after Wednesday's big surge. If the market sees a significant pull back I would expect the JJC to drop toward $44.00. However, We don't want to endure a drop that low so we're adjusting our stop loss to $44.75. I am not suggesting new positions at this time.

current Position: Long JJC (ETF) @ $45.30

- or -

Long JAN $45 call (JJC1221A45) Entry $3.30

12/03/11 new stop loss @ 44.75
11/30/11 JJC gaps higher at $45.30. Adjusting stop loss to $42.90 and moving exit target to $48.90.

chart:

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: 8.97 change: +0.08

Stop Loss: 7.75
Target(s): 9.45
Current Gain/Loss: +19.4%
Time Frame: two to three months
New Positions: see below

Comments:
12/03 update: KOG is still showing relative strength. The stock added +0.8% on Friday. I am concerned that the stock is getting overbought. KOG is moving higher a lot faster than we expected. Shares are up +19% from our entry point and have more than doubled from the October lows.

We are not suggesting new positions at this time. Readers may want to go ahead and exit positions now to lock in a gain. Officially our exit target is $9.45 for the stock position but I am suggesting we exit our March $7.50 calls at the open on Monday.

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

12/03 plan to exit our March $7.50 calls @ Monday's open (currently +60%)
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.

chart:

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


MAKO Surgical - MAKO - close: 28.76 change: -1.28

Stop Loss: 27.90
Target(s): 37.50
Current Gain/Loss: - 6.4%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
12/03 update: Warning! MAKO has produced a significant reversal lower on Friday. I couldn't find any news to account for the relative weakness. Thursday's +1.24 gain was versed with a -1.28 drop. Making matters worse the stock gapped higher at $30.75. Our trigger to open bullish positions was $30.55 so the trade is open. The low on Friday was $28.00. We have a stop loss at $27.90.

Aggressive traders could buy a bounce from current levels.

Earlier Comments:
MAKO could see a short squeeze. The most recent data listed short interest at 38% of MAKO's small 32.1 million share float.

current Position: Long MAKO stock @ 30.73

- or -

Long 2012Jan $35 call (MAKO1221A35) Entry $1.00

12/03/11 MAKO gapped higher at $30.73. Trigger was 30.55.

chart:

Entry on December 02 at $30.73
Earnings Date 03/01/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on December 01, 2011


BEARISH Play Updates

AT&T Inc. - T - close: 28.96 change: +0.12

Stop Loss: 30.05
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:
12/03 update: We are adjusting our strategy on AT&T (T). The stock has seen a sharp bounce this past week but it's still within the $27.20-29.75 trading range. This happens to be the right shoulder to T's very large bearish head-and-shoulders pattern. I am suggesting we open bearish positions if T trades to the top of this range. The stock has some technical resistance at the simple 200-dma near $29.50.

Our new trigger to open bearish positions is at $29.40 and we'll use a stop loss at $30.05.

Trigger @ $29.40

Suggested Position: short T stock @ 29.40

- or -

buy the 2012Jan $27.50 PUT (T1221M27.5)

- or -

buy the Mar $26 PUT (T1217O26)

chart:

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

Stamps.com - STMP - close: 26.62 change: +0.36

Stop Loss: 24.75
Target(s): 32.50
Current Gain/Loss: + 1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/03 update: Last week the market saw a pretty strong bounce. I would have expected STMP to see a strong short squeeze higher. Instead shares are churning sideways, just above support near its 50-dma. The larger trend is still bullish but I am worried STMP is poised to breakdown. Thus I am suggesting we go ahead and exit early to avoid or limit any losses.

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.

closed Position: Long STMP stock @ $26.16, exit 26.62 (+1.7%)

- or -

Feb $30 call (STMP1218C30) Entry $2.00, exit $1.75 (-12.5%)

12/03 suggesting an early exit
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

chart:

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