Editor's Note:
The gap open higher in HITK this morning was beneficial, closing both our stock and option position. Meanwhile we took profits on our KOG calls, as planned.

-James

Current Portfolio:


BULLISH Play Updates

AutoNation Inc. - AN - close: 36.92 change: +0.74

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: + 7.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/05 update: AN put out a press release this morning, prior to the open, that said its new vehicle sales in November were up +21% from a year ago. This positive news helped fuel a gap open higher and AN managed to close over technical resistance at its 100-dma.

I am not suggesting new positions at this time.

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

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: 12.44 change: +0.17

Stop Loss: 11.59
Target(s): 13.45
Current Gain/Loss: + 1.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/05 update: The action in ATVI today was good news. Not only did shares outperform the market with a +1.3% gain but there was no follow through on Friday's bearish reversal pattern.

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: 5.50 change: +0.15

Stop Loss: 4.98
Target(s): 6.45
Current Gain/Loss: + 4.7%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
12/05 update: BRCD also delivered a strong session. Shares outperformed the market with a +2.8% gain. Today's move is also a close over technical resistance at its simple 200-dma. I am not suggesting new positions at this time. We will up our stop loss to $4.98.

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

12/05/11 new stop loss @ 4.98
12/03/11 new stop loss @ 4.84

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


iShares Gold ETF - IAU - close: 16.78 change: -0.25

Stop Loss: 16.85
Target(s): 19.75*
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks or more
New Positions: Yes, see below

Comments:
12/05 update: Gold turned lower on Monday. The IAU opened at $16.96 and closed with a -1.4% decline. Shares of this ETF are still trading inside the triangle pattern. I don't see any changes from my weekend comments.

We are suggesting a trigger for small bullish positions at $17.25. If triggered at $17.25 we'll set our multi-week target at $19.75. The 2011 highs near $18.50 could definitely prove to be resistance. We want to keep our position size small.

Trigger @ 17.25

Suggested Position: buy the IAU @ 17.25

- or -

buy the April $18 call (IAU1221D18)

*final exit price will be adjusted as the trade progresses.

Entry on December xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 5.0 million
Listed on December 03, 2011


Ipath Copper ETN - JJC - close: 45.70 change: -0.43

Stop Loss: 44.75
Target(s): 48.90
Current Gain/Loss: + 0.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/05 update: Copper prices also turned lower later this afternoon. The JJC opened higher but couldn't get past last week's high. Shares closed down -0.9%. Today's move is a bearish engulfing candlestick pattern. Readers may want to seriously consider an early exit now! 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.

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: 9.09 change: +0.12

Stop Loss: 7.75
Target(s): 9.45
Current Gain/Loss: +21.0%
Time Frame: two to three months
New Positions: see below

Comments:
12/05 update: KOG continues to inch higher. Shares managed to close over the $9.00 level. Our exit target is $9.45 but readers may want to exit now to lock in a gain (trade is up +21%). I am raising our stop loss to $8.20.

We are not suggesting new positions at this time. It was our plan to exit the March $7.50 calls at the open this morning.

current Position: Long the stock @ 7.51

- or -

2012 MAR $7.50 call (KOG1217C7.5) Entry $1.25 exit $2.15 (+72.0%)

12/05 KOG gapped higher at $9.13. Exit on the March $7.50 calls at $2.15 (+72%)
12/05 new stop loss @ 8.20
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.

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: 28.60 change: -0.16

Stop Loss: 27.90
Target(s): 37.50
Current Gain/Loss: - 6.9%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
12/05 update: The situation with MAKO is not improving. The stock tried to rally this morning but failed near resistance at $30.00. Readers may want to exit early now. I am not suggesting new positions at this time.

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

12/05/11 MAKO is underperforming. Readers may want to exit early
12/03/11 MAKO gapped higher at $30.73. Trigger was 30.55.

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


NVIDIA Corp. - NVDA - close: 15.72 change: -0.10

Stop Loss: 14.75
Target(s): 19.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks, or more
New Positions: Yes, see below

Comments:
12/05 update: NVDA tried to rally past resistance but failed. Shares retreated to close down -1.5%. Nimble traders might want to consider buying a dip near $15.00 with a tight stop loss. Our plan has not changed.

Use a trigger at $16.30 to open small bullish positions on NVDA. We want to keep our position size small because NVDA can be a volatile stock.

Trigger @ 16.30

Suggested Position: buy NVDA stock @ 16.30

- or -

buy the 2012Jan $17.50 call (NVDA1221A17.5)

Entry on December xx at $ xx.xx
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 18.5 million
Listed on December 03, 2011


BEARISH Play Updates

Broadcom Corp. - BRCM - close: 30.42 change: +0.43

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: + 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/05 update: The gap open higher in BRCM at $30.53 provided a better entry point for our bearish positions. Shares spent the rest of the day consolidating sideways. I would still consider new positions now but more conservative traders may want to wait for a drop under $29.85 before initiating positions.

Our target is $26.00 although more aggressive traders could aim lower. FYI: The Point & Figure chart for BRCM is bearish with a $21.00 target.

Suggested Position: short BRCM stock @ $30.53

- or -

Long 2012Jan $28 PUT (BRCM1221M28) Entry $0.88

12/05/11 BRCM gapped open higher at $30.53.

Entry on December 05 at $ 30.53
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 8.2 million
Listed on December 03, 2011


AT&T Inc. - T - close: 29.15 change: +0.19

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:
12/05 update: AT&T continues to inch higher. Shares hit $29.30 intraday before settling with a +0.6% gain. There is no change from my weekend comments.

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)

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

Hi Tech Pharmacal Co. - HITK - close: 38.90 change: -3.78

Stop Loss: 39.75
Target(s): 44.00
Current Gain/Loss: +17.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
12/05 update: Sometimes your trading results are impacted by luck. Today we were fortunate that good luck smiled on us. The trend in HITK has been higher but we were worried about some profit taking. That's why over the weekend I suggested we exit our December $40 calls at the open this morning. I was not expecting the stock to gap open higher nor was I expecting the sharp sell-off that followed. The big move was fueled by HITK's earnings report, released prior to the opening bell. We were not expecting HITK's earnings to come out until December 8th.

The company beat estimates by 27 cents, which helped fuel the gap open higher at $44.36. Shares hit $44.58 and then plunged to a -8.8% loss. Fortunately our exit target for the stock position was $44.00 so the opening gap closed both positions (stock and options) for us. Why the big drop? I couldn't find any bad news so maybe it's just a classic "sell the news" reaction.

NOTE: The December $40 call closed with an bid of $3.30 on Friday. Given the $1.68 gap open on Monday morning I would have expected the bid to open around $4.30 or higher. Unfortunately it looks like the option wasn't trading first thing this morning. Our exit is in the $2.85 area.

closed Position: Long HITK stock @ $37.84, exit $44.36 (+17.2%)

- or -

DEC $40 call (HITK1117L40) Entry $1.65 exit $2.85 (+ 72.7%)

12/05/11 Target exceeded. HITK gapped open higher at $44.36. Our exit was $44.00. Both stock and option positions were closed.
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