Editor's Note:
Weakness in tech stocks led the NASDAQ Composite to a -1.5% decline. We saw BRCD underperform and hit our stop loss closing our bullish trade. We've also dropping TRN as a potential trade. Meanwhile our bearish trade on ERTS has been opened.

-James

Current Portfolio:


BULLISH Play Updates

AirMedia Group Inc. - AMCN - close: 3.48 change: -0.23

Stop Loss: 3.30
Target(s): 4.90
Current Gain/Loss: - 5.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/14 update: AMCN could not escape the market's widespread declines today. After its outperformance yesterday the stock underperformed today with a -6.1% plunge. The close under $3.65 is bearish but AMCN should have additional support near $3.40, near the bottom of its recent trading range. I am not suggesting new positions at this time.

Earlier Comments:
Let's keep our position size small to limit our risk.

(small positions)

current Position: long AMCN stock @ 3.70

Entry on December 13 at $3.70
Earnings Date 03/05/12 (unconfirmed)
Average Daily Volume = 170 thousand
Listed on December 12, 2011


AutoNation Inc. - AN - close: 35.79 change: -0.99

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: + 3.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/14 update: AN held up pretty well today. The stock bounced of its morning lows near $35.33 and spent the rest of the day consolidating sideways to close down -0.1% versus a -1.1% drop in the S&P 500. I don't see any changes from my prior comments. Readers may want to exit early now to lock in a gain. 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: 11.76 change: -0.22

Stop Loss: 11.69
Target(s): 13.45
Current Gain/Loss: - 4.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/14 update: It was not a great day for video game stocks. ATVI spiked down at the open and spent the rest of the day hovering near technical support at its 200-dma. If the market continues to drop tomorrow we could see ATVI hit our stop loss at $11.69.

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.

Entry on November 30 at $12.30
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 14.9 million
Listed on November 28, 2011


BEARISH Play Updates

Broadcom Corp. - BRCM - close: 28.45 change: +0.26

Stop Loss: 30.25
Target(s): 26.00
Current Gain/Loss: + 6.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/14 update: This morning, before the opening bell, BRCM issued positive revenue guidance above Wall Street's estimates. The stock gapped higher near $30 but could hold on to most of its gains. Shares did settle up +0.9%.

I am not suggesting new positions at this time. The intraday high was $30.17. We will adjust our stop loss down to $30.25.

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

12/14/11 new stop loss @ 30.25
12/13/11 new stop loss @ 30.55
12/12/11 new stop loss @ 31.20
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


Ctrip.com Intl. - CTRP - close: 23.00 change: -0.61

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/14 update: CTRP finally succumbed to the market's weakness and the stock erased its two-day bounce with today's -2.5% decline. Readers could use this reversal lower as a new entry point but if you do I would consider a tighter stop loss. More conservative traders may want to lower their stops closer to the $24.00 level.

Earlier Comments:
I do consider this an aggressive trade because CTRP is arguably still short-term oversold here six-days of losses (prior to Friday's bounce). We will use a stop loss at $25.05. You may want to use a tighter stop loss. We are aiming for $20.25. FYI: The Point & Figure chart for CTRP is bearish with a $9.00 target. Note: We want to keep our position size small to limit our risk. CTRP can be a volatile stock and short interest is nearing 10% of the float.

*Small Positions*

current Position: short CTRP stock @ 23.00

- or -

Long 2012Jan $22.50 PUT (CTRP1221M22.5) entry $1.40

12/13/11 readers may want to exit early. CTRP is not cooperating.
12/12/11 CTRP gapped open lower @ 23.00

Entry on December 12 at $23.00
Earnings Date 02/13/12 (unconfirmed)
Average Daily Volume = 5.2 million
Listed on December 10, 2011


Electronic Arts - ERTS - close: 20.34 change: -0.52

Stop Loss: 22.05
Target(s): 18.05
Current Gain/Loss: + 1.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/14 update: Our new trade on ERTS has been opened. The stock fell -2.5% and hit our trigger at $20.65. I would still consider new positions now at current levels.

Earlier Comments:
Our multi-week target is $18.05. I would expect possible support at $20.00 and $19.00. This trade is going to take some patience. Let's keep our position size small.

(small positions)

current Position: short ERTS stock @ 20.65

- or -

Long 2012Jan $20 PUT (ERTS1221M20) entry $1.05

Entry on December 14 at $20.65
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 5.7 million
Listed on December 13, 2011


PACCAR Inc. - PCAR - close: 37.28 change: -0.32

Stop Loss: 40.55
Target(s): 32.50
Current Gain/Loss: + 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/14 update: PCAR traded just under its late November lows and bounced. I had cautioned readers to expect a rebound. If the market doesn't continue lower tomorrow then PCAR might be tempted to rebound back toward the $39.50-40.00 zone. I am not suggesting new positions at this time.

Earlier Comments:
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

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: 28.81 change: -0.23

Stop Loss: 30.05
Target(s): 24.25 or 22.75
Current Gain/Loss: + 2.0%
Time Frame: 6 to 9 weeks or more
New Positions: see below

Comments:
12/14 update: One of the big headlines today was the proposed nationwide ban on using your phone while driving your car. I'm not sure what the odds are of this plan actually getting passed into law. If it did it might produce a drop in phone sales. Yet I suspect that AT&T's -0.8% decline today was more market related than worries over any potential ban.

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

Brocade Communications - BRCD - close: 5.28 change: -0.16

Stop Loss: 5.25
Target(s): 6.45
Current Gain/Loss: + 0.0%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
12/14 update: The market wide decline and weakness in technology stocks pushed BRCD to a -4.0% drop this morning. Shares pared their losses to close down -2.9% but our stop loss had already been hit at $5.25.

closed Position: Long BRCD stock @ $5.25, exit 5.25 (+0.0%)

- or -

2012JAN $5.50 call (BRCD1221A5.5) Entry $0.37, exit 0.23 (-37.8%)

12/14/11 stopped out @ 5.25
12/13/11 new stop loss @ 5.25
12/12/11 new stop loss @ 5.17
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


Trinity Industries - TRN - close: 27.15 change: -0.69

Stop Loss: 28.75
Target(s): 34.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/14 update: Shares of TRN continue to retreat lower. Today the stock closed under technical support at its 50-dma. Our plan was to buy a breakout past $30.50 but that may not happen for a while. We're dropping this play unopened.

Trigger @ $30.55

Trade did not open.

chart:

Entry on December xx at $ xx.xx
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 703 thousand
Listed on December 10, 2011