Editor's Note:
Investors were disappointed with ORCL's earnings report and the stock plunged -11.6%. The report and ORCL's weakness cast a shadow across the technology sector.

-James

Current Portfolio:


BULLISH Play Updates

Oxford Industries Inc. - OXM - close: 44.07 change: +0.63

Stop Loss: 40.65
Target(s): 44.90
Current Gain/Loss: + 4.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/21 update: OXM continues to extend its gains. Shares rallied +1.4% to new relative highs. Look for short-term support at the rising 10-dma. Our exit target is $44.90.

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


Rackspace Hosting - RAX - close: 44.05 change: -1.11

Stop Loss: 43.45
Target(s): 49.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
12/21 update: RAX was rebuffed at resistance. The pull back was probably a reaction to Oracle's (ORCL) disappointing earnings report. Shares of RAX opened lower and spike down toward $43 and its 20-dma before paring its losses.

We have a trigger to open bullish positions at $45.55 with a stop at $43.45. More conservative traders may want to wait for RAX to close over $46.00 instead since the spring 2011 highs may still be resistance.
FYI: The Point & Figure chart for RAX is bullish with a $65 target.

Trigger @ 45.55

Suggested Position: buy RAX stock @ 45.55

- or -

buy the Jan $45 call (RAX1221A45)

Entry on December xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on December 20, 2011


Ross Stores Inc. - ROST - close: 47.81 change: -0.05

Stop Loss: 45.75
Target(s): 52.50
Current Gain/Loss: - 0.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/21 update: ROST spent almost the entire day in a 75-cent range under the $48.00 level but shares did see a very brief spike above $48.00 this morning. The move was enough to hit our trigger at $48.05 so the trade is open.

Readers may want to wait for a new high over $48.15 or nimble traders could try and buy dips near $46.00 instead.

current Position: long ROST stock @ 48.05

- or -

Long 2012Jan $50 call (ROST1221A50) entry $0.45

Entry on December 21 at $48.05
Earnings Date 03/19/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on December 20, 2011


United Continental Holdings - UAL - close: 20.30 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:
12/21 update: UAL continues to drift sideways between resistance at $21.00 and support near $20.00. 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: 28.89 change: -0.16

Stop Loss: 30.25
Target(s): 26.00
Current Gain/Loss: + 5.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/21 update: BRCM failed to see any follow through on yesterday's bounce. The stock lost -0.5% today but it did seem to find support near $28.40 intraday. Readers may want to consider taking profits now. 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: 45.84 change: -0.50

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

Comments:
12/21 update: CSH continues to drift lower under a bearish trend of lower highs. Yet the stock bounced near support at $45 again. We're still waiting for a breakdown. 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: 22.52 change: -0.92

Stop Loss: 24.25
Target(s): 20.25
Current Gain/Loss: + 2.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/21 update: It's been a volatile couple of days of CTRP. Yesterday's 91-cent gain (+4.0%) was reversed with today's -92 cent drop (-3.9%). CTRP hit new relative lows this afternoon. 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

12/19/11 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: 20.30 change: -0.27
(symbol changed from ERTS)

Stop Loss: 22.05
Target(s): 18.05
Current Gain/Loss: + 1.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/21 update: The bounce in EA reversed at short-term resistance near the simple 10-dma. Shares underperformed the market with a -1.3% decline. Readers could use this move as a new entry point but if you do you may want to lower your stop loss.

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: 37.05 change: -0.24

Stop Loss: 38.25
Target(s): 32.50
Current Gain/Loss: + 5.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/21 update: PCAR's bounce stalled at the 10-dma and shares faded to a -0.6% loss. The oversold bounce might not be over yet. 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

12/19/11 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: 16.95 change: +0.08

Stop Loss: 17.15
Target(s): 11.00
Current Gain/Loss: - 5.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/21 update: Banks were still bouncing today. The rebound in STI did slow down. Shares are inching closer and closer to resistance near $17.00. I suspect a breakout past $17.00 would produce a rally toward the $18.50 area or its 100-dma. I am not suggesting new positions at this time.

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: 29.30 change: +0.18

Stop Loss: 29.55
Target(s): 24.25 or 22.75
Current Gain/Loss: + 0.3%
Time Frame: 6 to 9 weeks or more
New Positions: see below

Comments:
12/21 update: Bears need to be careful here. AT&T has rallied toward resistance in the $29.30-29.35 zone. There is additional resistance near $29.50 but a rally past $29.35 could be a signal for us to exit. I'm leaving our stop loss at $29.55 for the moment.

I am not suggesting new positions at this time.

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: 31.13 change: +0.63

Stop Loss: 35.25
Target(s): 27.50
Current Gain/Loss: + 6.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/21 update: Warning! We need to be careful here. VRA spike down to $28.43 but rebounded to close up with a +2.0% gain. This move looks like a potential bullish reversal pattern. More conservative traders may want to exit now to lock in a gain.

The 10-dma should offer some resistance near $33.85. We will lower our stop loss down to $34.05.

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

12/21/11 new stop loss @ 34.05, readers may want to exit early now to lock in a gain.
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