Editor's Note:
Investors remain nervous about Europe and stocks sank on Thursday ahead of the next EU summit. U.S. markets experienced a widespread decline. We had two trades (EXPE and JJC) get stopped out.

-James

Current Portfolio:


BULLISH Play Updates

AutoNation Inc. - AN - close: 35.71 change: -0.54

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/08 update: The widespread market declines pulled AN to a -1.5% drop. Shares look poised to test the $35.00 level soon. If we see a bounce near $35.00 I'd buy it (with our stop loss at $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

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: 11.93 change: -0.34

Stop Loss: 11.59
Target(s): 13.45
Current Gain/Loss: - 3.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/08 update: It was a rough day for ATVI with shares falling -2.7%. The stock has closed under what could have been potential support near $12.00. Now it looks like ATVI might be headed for its November lows near $11.60. More conservative traders may want to abandon ship now. I am not suggesting new positions at this time.

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: 5.36 change: -0.20

Stop Loss: 4.98
Target(s): 6.45
Current Gain/Loss: + 2.1%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
12/08 update: BRCD erased a big chunk of our unrealized gains with today's -3.6% pull back. The stock closed just pennies below its 10-dma and simple 200-dma. If the market continues to drop tomorrow we could see BRCD retrace toward the $5.00 level. I'd wait for a bounce near $5.20 or $5.00 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

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


Fuel Systems Solutions, Inc. - FSYS - close: 16.97 change: -1.25

Stop Loss: 17.65
Target(s): 20.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
12/08 update: Our trade on FSYS is still not open. Shares gapped open lower and then plunged to close down -6.8%. I couldn't find any news to account for the underperformance. Shares look like they are headed for the November lows near $16.40. Nimble traders may want to consider buying a dip near the $16.50 level with a tight stop loss. The newsletter is going to temporarily remove any entry point plans and we'll wait to see how FSYS performs tomorrow.

Earlier Comments:
We want to keep our position size small to limit our risk.

No Entry Point Tonight - Just Wait and Watch

Entry on December xx at $ xx.xx
Earnings Date 03/05/12 (unconfirmed)
Average Daily Volume = 282 thousand
Listed on December 06, 2011


iShares Gold ETF - IAU - close: 16.65 change: -0.33

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:
12/08 update: Hmm.... gold is starting to act like a "risk" asset lately with the price of gold falling as the equity market falls. That's not a good sign if you're looking at gold as a hedge against the stock market. Currently we're still sitting on the sidelines with a trigger to buy a breakout.

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


Kodiak Oil & Gas - KOG - close: 8.52 change: -0.45

Stop Loss: 8.20
Target(s): 9.45
Current Gain/Loss: +13.4%
Time Frame: two to three months
New Positions: see below

Comments:
12/08 update: With the market acting weak traders were quick to lock in gains and KOG lost -5.0%. The stock has paused near short-term support at the $8.50 level. Once again I am suggesting that more conservative traders may want to exit early now to lock in a gain.

We are not suggesting new positions at this time.

current Position: Long the stock @ 7.51

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


NVIDIA Corp. - NVDA - close: 14.69 change: -0.48

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:
12/08 update: NVDA continues to retreat and the stock is off -8% from its highs earlier in the week. We will wait to see how NVDA (and the market) performs tomorrow and then re-evaluate our strategy with NVDA.

Earlier Comments:
I am suggesting a trigger to open positions at $16.30. We want to keep our position size small because NVDA can be a volatile stock.

Trigger @ 16.30 (small positions)

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


Piper Jaffray Companies - PJC - close: 20.99 change: -0.96

Stop Loss: 20.75
Target(s): 25.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
12/08 update: Financial stocks were weak as investor fret about tomorrow's EU summit. PJC gave up -4.3%. We are still waiting for a breakout higher.

I am suggesting a trigger to open positions at $22.55, which is just above the late October highs. There is potential resistance at $24.00 but we're setting our multi-week target at $25.75. FYI: The Point & Figure chart for PJC is bullish with a $31.50 target.

I would keep position size small to limit our risk.

Trigger @ 22.55 (small positions)

Suggested Position: buy PJC stock @ $22.55

- or -

buy the Jan $22.50 call (PJC1221A22.5)

Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 207 thousand
Listed on December 07, 2011


BEARISH Play Updates

Broadcom Corp. - BRCM - close: 29.77 change: -1.05

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: + 2.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/08 update: There was no follow through on BRCM's bullish reversal from yesterday. The stock spiked to $31.14 this morning and then reversed to close down -3.4%. I would consider new positions here.

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: 28.86 change: -0.54

Stop Loss: 30.05
Target(s): 24.25 or 22.75
Current Gain/Loss: + 1.8%
Time Frame: 6 to 9 weeks or more
New Positions: Yes, see below

Comments:
12/08 update: Our new bearish play on T is off to a good start. I would still consider new positions now.

current Position: short T stock @ 29.40

- or -

Long 2012Jan $27.50 PUT (T1221M27.5) Entry $0.31

- or -

Long Mar $26 PUT (T1217O26) Entry $0.42

Entry on December 07 at $29.40
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 23.4 million
Listed on November 26, 2011


CLOSED BULLISH PLAYS

Expedia Inc. - EXPE - close: 28.04 change: -1.17

Stop Loss: 27.90
Target(s): 32.00
Current Gain/Loss: - 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/08 update: EXPE underperformed the market today thanks to an analyst downgrade. Shares closed down -4.0% yet the stock saw an intraday dip to $27.71. Our stop loss was hit at $27.90.

(Small Positions)

closed Position: long EXPE stock @ $29.00, exit $27.90 (- 3.7%)

- or -

2012Jan $30 call (EXPE1221A30) Entry 0.95 exit $0.45 (-52.6%)

12/08/11 EXPE hit our stop loss at $27.90

chart:

Entry on December 06 at $29.00
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on December 05, 2011


Ipath Copper ETN - JJC - close: 44.80 change: -0.90

Stop Loss: 44.75
Target(s): 48.90
Current Gain/Loss: - 1.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/08 update: Copper prices followed stocks lower and the JJC lost -1.9%. This ETF hit an intraday low of $44.73 and our stop loss happened to be $44.75.

closed Position: Long JJC (ETF) @ $45.30, exit $44.75 (-1.2%)

- or -

JAN $45 call (JJC1221A45) Entry $3.30, exit $2.15 (-34.8%)

12/08/11 stopped out at $44.75
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