Editor's Note:
Many stocks saw a Friday morning rally but gains had faded by the closing bell.

-James

Current Portfolio:


BULLISH Play Updates

AirMedia Group Inc. - AMCN - close: 3.44 change: -0.02

Stop Loss: 3.30
Target(s): 4.90
Current Gain/Loss: - 7.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
12/17 update: Another day, another 10-cent range, another two-cent decline. AMCN is drifting sideways near the bottom of its prior trading range with support near $3.40 and its simple 200-dma. If you look at the weekly chart then shares may have just produced a top this past week. The failed rally on Tuesday and Wednesday does look ominous.

Remember, the rally to new relative highs was fueled by positive news that AMCN raised guidance but there was no follow through. More conservative traders may want to exit early now. 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

chart:

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: 35.77 change: -0.22

Stop Loss: 34.95
Target(s): 39.50
Current Gain/Loss: + 3.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/17 update: AN underperformed the market on Friday with a -0.6% decline. Shares reversed near their 100-dma and are nearing the bottom of its two-week trading range. If the market breaks down again this week then AN will likely drop toward $35.00 or lower. 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

12/15/11 new stop loss @ 34.95
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: 11.88 change: +0.02

Stop Loss: 11.69
Target(s): 13.45
Current Gain/Loss: - 3.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/17 update: ATVI has been churning sideways the last three days between technical support at its 200-dma and short-term resistance near $12.00. I am concerned that the two-week trend is down. Conservative traders may want to exit now to limit any losses. 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

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


BEARISH Play Updates

Broadcom Corp. - BRCM - close: 28.72 change: +0.56

Stop Loss: 30.25
Target(s): 26.00
Current Gain/Loss: + 5.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/17 update: It's been a volatile week for BRCM but shares have broken down from a two-week consolidation to hit new lows for the year. The larger pattern and the point & figure chart would suggest a much bigger decline yet to come. We're currently aiming for a drop to $26.00 but more aggressive traders may want to aim lower.

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.

chart:

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


Cash America Intl. - CSH - close: 46.98 change: +0.89

Stop Loss: 47.25
Target(s): 40.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
12/17 update: CSH is still bouncing from support near $45.00. The stock should hit some short-term resistance near $48.00. I would be tempted to open new bearish positions if we see CSH roll over near resistance around the $50 level and its 200-ema. Until then we'll wait for a breakdown with a trigger to open bearish positions at $44.75. Our target is $40.25.
FYI: The Point & Figure chart for CSH is bearish with a $33 target.

Trigger @ 44.75

Suggested Position: short CSH stock @ 44.75

- or -

buy the Jan $45 put (CSH1221M45)

chart:

Entry on December xx at $ xx.xx
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 331 thousand
Listed on December 14, 2011


Ctrip.com Intl. - CTRP - close: 23.10 change: +0.10

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: - 0.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/17 update: I am starting to worry that CTRP may be building a bottom in the $22.80-23.00 zone. The stock has been consolidating sideways with this level as support for over a week. Currently we have a stop at $25.05 but readers might want to just exit early or lower their stop toward the $24.00 level instead. I am not suggesting new positions at this time.

Earlier Comments:
I do consider this an aggressive trade. 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

chart:

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: 20.23 change: -0.70

Stop Loss: 22.05
Target(s): 18.05
Current Gain/Loss: + 2.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/17 update: ERTS has produced a new sell signal. The Friday morning rally reversed at technical resistance near the exponential 200-dma. The stock underperformed with a -3.3% decline and new relative low. I would still consider new positions now. More conservative traders might want to lower their stop toward today's high (21.52).

FYI: ERTS announced that its ticker symbol will change to "EA" starting on December 20th.

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

chart:

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: 36.22 change: -0.16

Stop Loss: 39.05
Target(s): 32.50
Current Gain/Loss: + 7.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/17 update: PCAR saw its Friday morning rally reverse. Shares closed at new relative lows. The trend is down but I am concerned that PCAR is growing oversold. We will lower our stop loss to $39.05. I am not suggesting new positions at this time.

NOTE: Our 2012Jan $36 puts are now $35.30 puts thanks to the recent dividend.

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 $35.30 PUT (PCAR1221M35.3) Entry $0.80

12/17/11 new stop loss @ 39.05
12/15/11 thanks to a 70-cent dividend our 2012Jan $36 puts are now 35.30 puts.

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: 28.85 change: +0.06

Stop Loss: 29.65
Target(s): 24.25 or 22.75
Current Gain/Loss: + 1.8%
Time Frame: 6 to 9 weeks or more
New Positions: see below

Comments:
12/17 update: Most of the market saw a rally attempt on Friday morning. AT&T was moving the opposite direction. The stock spike down toward $28.50 before bouncing. Midday the company announced they were raising their cash dividend from 43 cents to 44 cents a share. That puts AT&T's annual yield at 6.0%. It's an impressive yield, especially for a market where investors have been buying up high-yielding equities. Yet the high-yield does not seem to be helping shares of T. The stock is still building a bearish trend of lower highs and a multi-month bearish head-and-shoulders pattern.

We are lowering our stop loss to $29.65, so it's just above the simple 200-dma.

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

12/17/11 new stop loss @ 29.65

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


Vera Bradley, Inc. - VRA - close: 32.96 change: -0.21

Stop Loss: 36.05
Target(s): 27.50
Current Gain/Loss: +0.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/17 update: VRA saw a spike higher on Friday morning but the rally reversed near $34.50. Shares underperformed the market with a -0.6% decline. I don't see any changes from my Thursday night comments. I would still consider new bearish positions now. Traders need to keep in mind this is an aggressive, higher-risk trade. We want to keep our position size very small to limit risk. The most recent data listed short interest at almost 80% of VRA's very small 19.7 million share float. If there is some sort of unexpected rally in this stock it could spark a short squeeze and stops may not work very well in a fast market environment. I would suggest using put options in a situation like this to limit your risk but the spreads on the January puts are too wide. Our target is $27.50 although readers may want to take profits near $30.00 since it could prove to be round-number support. FYI: The Point & Figure chart for VRA is bearish with a $26 target.

(very small positions only!)

current Position: short VRA stock @ $33.17

12/15/11 this is an aggressive, higher-risk trade.

chart:

Entry on December 16 at $33.17
Earnings Date 12/07/11
Average Daily Volume = 796 thousand
Listed on December 15, 2011