Editor's Note:
A market-wide bounce of close to +3% for the major indices put bearish traders on the defensive.

-James

Current Portfolio:


BULLISH Play Updates

Oxford Industries Inc. - OXM - close: 43.44 change: +1.40

Stop Loss: 40.65
Target(s): 44.90
Current Gain/Loss: + 2.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/20 update: OXM soared to new multi-year highs with today's +3.3% gain. I don't see any changes from my prior comments. Nimble traders can buy dips near the rising 10-dma (currently $41.65).

Earlier Comments:
If our trade is opened we'll use a tight stop loss at $40.65 and we want to keep positions small to limit our risk. Our target is $44.90. FYI: The Point & Figure chart for OXM is bullish with a $62 target.

(small positions)

current Position: long OXM stock @ $42.32

- or -

Long Jan $45 call (OXM1221A45) entry $0.85

Entry on December 19 at $42.32
Earnings Date 03/29/12 (unconfirmed)
Average Daily Volume = 220 thousand
Listed on December 17, 2011


United Continental Holdings - UAL - close: 20.67 change: +0.37

Stop Loss: 20.35
Target(s): 24.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/20 update: Hmm... today's performance in UAL was not very inspiring. Shares gained +1.8% versus a +2.9% rally in the S&P 500. UAL's bounce failed to breakout past its 200-dma. We'll give it a couple more days. If UAL doesn't improve soon then we'll drop it as a candidate.

Currently our plan is to open small bullish positions when UAL trades at $21.55.

Earlier Comments:
I see potential resistance near $21.50 so the newsletter is suggesting a trigger to open small bullish positions at $21.55. We'll use a stop loss at $20.35. We'll set our exit target at $24.75.
FYI: The Point & Figure chart for UAL is bullish with a $31.50 target.

Trigger @ $21.55 (small positions)

Suggested Position: buy UAL stock @ 21.55

- or -

buy the 2012Jan $22.50 call (1221A22.5)

Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on December 17, 2011


BEARISH Play Updates

Broadcom Corp. - BRCM - close: 29.05 change: +1.31

Stop Loss: 30.25
Target(s): 26.00
Current Gain/Loss: + 4.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/20 update: After sinking to new 52-week lows yesterday BRCM took a big chunk out of our gains with a +4.7% oversold bounce today. BRCM should find resistance near the $30 level. I am not suggesting new positions at this time.

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


Cash America Intl. - CSH - close: 46.34 change: +0.52

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

Comments:
12/20 update: CSH underperformed the market today with a +1.1% gain. The stock essentially drifted sideways near $46.00. The newsletter is still waiting for a breakdown under support. We have a trigger 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)

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: 23.44 change: +0.91

Stop Loss: 24.25
Target(s): 20.25
Current Gain/Loss: - 1.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/20 update: The market's big bounce today fueled some short covering in CTRP and the stock gained +4.0%. I am not suggesting new positions at this time but nimble traders could be ready for a failed rally near $24.00.

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

12/19/11 new stop loss @ 24.25
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 - EA - close: 20.57 change: +0.73
(symbol changed from ERTS)

Stop Loss: 22.05
Target(s): 18.05
Current Gain/Loss: + 0.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/20 update: Shares of EA (previously ERTS) gained +3.6% on Tuesday. Look for resistance near $21 and its 10-dma. I am not suggesting new positions at this time.

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

12/19/11 ERTS will start trading as EA starting on the 20th

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: 37.29 change: +1.81

Stop Loss: 38.25
Target(s): 32.50
Current Gain/Loss: + 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/20 update: After a sharp two-week sell-off PCAR is seeing a big bounce with a +5.1% gain today. Look for resistance near $38.00. I am not suggesting new positions at this time. More conservative traders may want to exit early now.

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

12/19/11 new stop loss @ 38.25
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.

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


SunTrust Banks, Inc. - STI - close: 16.87 change: +1.07

Stop Loss: 17.15
Target(s): 11.00
Current Gain/Loss: - 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/20 update: Now that's perfect timing! STI breaks down to new two-year lows on Monday and then gaps higher and surges +6.7% today. The stock is nearing resistance at the $17.00 level. Wait for this bounce to stall or reverse before considering new positions.

current Position: short STI stock @ $16.12

- or -

Long 2012Jan $15 PUT (STI1221M15) entry $0.41

Entry on December 20 at $16.12
Earnings Date 01/20/12 (unconfirmed)
Average Daily Volume = 7.6 million
Listed on December 19, 2011


AT&T Inc. - T - close: 29.12 change: +0.38

Stop Loss: 29.55
Target(s): 24.25 or 22.75
Current Gain/Loss: + 0.9%
Time Frame: 6 to 9 weeks or more
New Positions: see below

Comments:
12/20 update: I am very surprised that shares of AT&T were not weaker today. Last night the company gave up on plans to acquire T-Mobile and will pay its parent company a $4 billion break up fee. Yet shares of AT&T bounced off this morning's low and rallied +1.3% by the closing bell.

I am not suggesting new positions at this time. We will inch our stop loss down to $29.55.

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

12/20/11 new stop loss @ 29.55
12/19/11 after hours, T announces it will give up on plans to acquire T-Mobile, will pay $4 billion break up fee
12/17/11 new stop loss @ 29.65

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: 30.50 change: -0.32

Stop Loss: 35.25
Target(s): 27.50
Current Gain/Loss: + 8.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/20 update: VRA continues to show relative weakness. Today would have been the perfect day for shorts to panic and send VRA up +10% on short covering. Yet that didn't happen. The morning bounce failed and shares slipped toward round-number support at $30.00.

Readers may want to go ahead and take profits now with VRA down -8% from our entry point. I am not suggesting new positions at this time. Officially our exit target is $27.50.

Earlier Comments:
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

12/19/11 new stop loss @ 35.25
12/15/11 this is an aggressive, higher-risk trade.

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