Editor's Note:
Shares of Kodiak Oil & Gas (KOG) produced a big bounce on Friday. Readers may want to consider locking in gains with an early exit in our KOG trade.

Meanwhile I have adjusted our entry point strategy on FSYS and NVDA.

Don't forget that normal December options expire after this coming Friday (16th).

-James

Current Portfolio:


BULLISH Play Updates

AutoNation Inc. - AN - close: 36.90 change: +1.19

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

Comments:
12/10 update: AN saw a big bounce on Friday with shares gaining +3.3%. The strong close on Friday afternoon should bode well for Monday. More conservative traders may want to lock in a gain now or raise their stop loss toward last week's low (near $35.50). 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

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: 12.24 change: +0.31

Stop Loss: 11.69
Target(s): 13.45
Current Gain/Loss: - 0.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/10 update: ATVI almost completely recovered Thursday's big loss with a +2.6% gain on Friday. I am somewhat reluctant to chase it but readers could buy Friday's bounce and use a tight stop under Thursday's low. The newsletter is raising our stop loss to $11.69 instead.

current Position: Long ATVI stock @ $12.30

- or -

Long FEB $13 call (ATVI1218B13) Entry $0.42

12/10/11 new stop loss @ 11.69
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: 5.55 change: +0.20

Stop Loss: 5.12
Target(s): 6.45
Current Gain/Loss: + 5.7%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
12/10 update: The stock market's widespread gains on Friday helped BRCD recover Thursday's decline. Shares rallied +3.6% on Friday to close just under resistance near $5.60 (again). I am not suggesting new positions at this time. Please note our new stop loss at $5.12.

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

12/10/11 new stop loss @ 5.12
12/05/11 new stop loss @ 4.98
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


Fuel Systems Solutions, Inc. - FSYS - close: 17.58 change: +0.61

Stop Loss: 16.85
Target(s): 20.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
12/10 update: FSYS delivered a +3.6% bounce on Friday but shares remain inside Thursday's trading range. This is an inside day and suggests indecision by traders. I am suggesting we open small bullish positions if FSYS can trade at $18.10 or higher. We'll use a stop loss under Thursday's low. Our target remains $20.50.

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

Trigger @ 18.10 (small positions)

Suggested Position: buy FSYS stock @ $18.10

- or -

buy the 2012Jan $20 call (FSYS1221A20)

chart:

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: 16.68 change: +0.03

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:
12/10 update: The IAU gold ETF barely moved on Friday and closed on its 50-dma. I am still expecting a bullish breakout from this triangular consolidation but it's not guaranteed. More nimble traders may want to consider bearish positions on a break down below $16.25.

The newsletter is 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.

NOTE: If you're an option trader you may want to consider a market-neutral strategy like a straddle or a strangle.

Trigger @ 17.25 (small positions)

Suggested Position: buy the IAU @ 17.25

- or -

buy the April $18 call (IAU1221D18)

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

chart:

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: 9.18 change: +0.66

Stop Loss: 8.45
Target(s): 9.45
Current Gain/Loss: +22.2%
Time Frame: two to three months
New Positions: see below

Comments:
12/10 update: Friday's positive tone provided a fertile environment for KOG, which really outperformed the major indices. The stock surged +7.7% to set a new closing high. More conservative traders may want to exit now to lock in a gain. Officially the newsletter is aiming for an exit at $9.45. Please note our new stop loss at $8.45.

We are not suggesting new positions at this time.

current Position: Long the stock @ 7.51

12/10 new stop loss @ 8.45
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.

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


NVIDIA Corp. - NVDA - close: 14.90 change: +0.21

Stop Loss: 14.35
Target(s): 15.95 or 16.95
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks,
New Positions: Yes, see below

Comments:
12/10 update: New entry point!

After a four-day sell-off NVDA produced a perfect bounce off its trendline of higher lows Friday morning. The stock should be poised for a rally back to resistance at $16.00. We are adjusting our strategy and taking a more aggressive approach given the market's widespread gains on Friday.

I am suggesting we open small bullish positions on Monday morning but only if both NVDA and the S&P 500 index open positive. We'll use a stop loss at $14.35, just under Friday's low. Readers have to decide, do you exit at $15.95 (just under resistance at $16.00) or do you exit at $16.95.

Earlier Comments:
We want to keep our position size small because NVDA can be a volatile stock.

*See Entry Details Above (small positions)

Suggested Position: buy NVDA stock @ the open

- or -

buy the 2012Jan $15 call (NVDA1221A15) ask $0.98

12/10/11 Adjusting our entry strategy. Open small bullish positions on Monday morning if NVDA meets our entry criteria. New stop loss @ 14.35.

chart:

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: 21.82 change: +0.83

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

Comments:
12/10 update: Financials were some of the best performers on Friday. PJC delivered a +3.9% gain and shares rallied right back to resistance near $22.00.

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)

chart:

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: 30.29 change: +0.52

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: + 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/10 update: BRCM spiked down to a new 2011 low before bouncing back and closing up +1.7% on Friday. The larger trend is still very bearish but BRCM has spent two weeks now churning sideways in the $29.50ish-31.00 zone. I am not suggesting new bearish positions on this bounce.

Readers may want to consider an early exit soon. BRCM is scheduled to hold their "analyst day" on December 14th. Conservative traders might want to exit prior to this event to avoid any unnecessary headline risk.

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.

chart:

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


PACCAR Inc. - PCAR - close: 40.10 change: +1.36

Stop Loss: 40.55
Target(s): 32.50
Current Gain/Loss: - 2.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10 update: Friday was not a great day for the bears. Shares of PCAR completely erased Thursday's losses. The stock opened higher at $39.11 and rallied to $40.26 intraday. The close over $40.00 and its 50-dma is short-term bullish. If the stock market's widespread rally continues on Monday I would expect PCAR to hit our stop loss at $40.55.

I am not suggesting new positions at this time.

Earlier Comments:
while more aggressive traders could place their stop above $41.30 instead. There is possible support near $36.75, near its November low, but we're aiming for $32.50.

(Small Positions)

current Position: short PCAR stock @ $39.11

- or -

Long 2012Jan $36 PUT (PCAR1221M36) Entry $0.80

chart:

Entry on December 09 at $39.11
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on December 08, 2011


AT&T Inc. - T - close: 29.03 change: +0.17

Stop Loss: 30.05
Target(s): 24.25 or 22.75
Current Gain/Loss: + 1.2%
Time Frame: 6 to 9 weeks or more
New Positions: see below

Comments:
12/10 update: AT&T managed a bounce off short-term technical support on Friday. Yet the +0.5% gain underperformed the broader market. Readers can watch for a new failed rally near $29.40 or resistance near $29.50 as a new entry point for bearish positions.

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

chart:

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