Editor's Note:
The market's bounce has reached two weeks in a row. Momentum stalled a bit on Friday but the short-term trend is still up.

Our IMPV trade was stopped out.

Current Portfolio:


BULLISH Play Updates

Affymax - AFFY - close: 24.44 change: -0.33

Stop Loss: 22.65
Target(s): 27.50
Current Gain/Loss: + 1.4%

Entry on November 26 at $24.10
Listed on November 21, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 678 thousand
New Positions: , see below

Comments:
12/01/12: After a three-day rally shares of AFFY found a little profit taking on Friday. If the market sees a dip we can look for potential support in AFFY near $23.50. I am not suggesting new positions at this time.

*Small Positions*

current Position: long AFFY stock @ $24.10

chart:



Banner Corp. - BANR - close: 30.05 change: +0.22

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 1.4%

Entry on November 21 at $30.49
Listed on November 20, 2012
Time Frame: 8 to 10 weeks
Average Daily Volume = 157 thousand
New Positions: see below

Comments:
12/01/12: BANR is still inside its multi-month bullish channel. Yet the stock is having a hard time escaping the gravitational pull of the $30.00 mark.

NOTE: BANR doesn't move very fast. This trade could take a couple of months.

*Small Positions*

current Position: Long BANR stock @ $30.49

11/21/12 out trade opened on the gap higher.

chart:



Ball Corp. - BLL - close: 44.69 change: -0.05

Stop Loss: 43.25
Target(s): 48.00
Current Gain/Loss: + 1.9%

Entry on November 06 at $43.85
Listed on November 3, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 687 thousand
New Positions: see below

Comments:
12/01/12: It was a pretty quiet week for BLL. The stock has essentially churned sideways but you'll notice on the daily chart that traders were buying dips near the rising 10-dma.

More conservative traders may want to tighten stops closer to the $44 level.

current Position: Long BLL stock @ $43.85

11/24/12 new stop loss @ 43.25
11/17/12 new stop loss @ 42.55
11/06/12 triggered @ 43.85

chart:



EZchip Semiconductor - EZCH - close: 37.91 change: -0.94

Stop Loss: 36.40
Target(s): 44.00
Current Gain/Loss: - 1.1%

Entry on November 27 at $38.35
Listed on November 26, 2012
Time Frame: 6 to 12 weeks
Average Daily Volume = 414 thousand
New Positions: see below

Comments:
12/01/12: EZCH snapped a six-day winning streak with a -2.4% decline on Friday. So far the simple 10-dma should be short-term support. Below that is the 200-dma. If the 200-dma fails then EZCH will probably hit our stop at $36.40. More aggressive traders may want to keep their stop loss under the $36.00 level instead and give EZCH more room to maneuver.

Our multi-week target is $44.00. I would expect a pullback on the first test of potential resistance at $40.00.

current Position: Long EZCH stock @ $38.35

chart:



Skullcandy, Inc. - SKUL - close: 8.62 change: -0.04

Stop Loss: 8.45
Target(s): 11.50
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 29, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 702 thousand
New Positions: Yes, see below

Comments:
12/01/12: The rally continued on Friday morning. Unfortunately it ran out of steam at resistance near $9.00 and SKUL reversed. Nimble traders might want to try and buy a dip or a bounce in the $8.25-8.00 zone and use a tight stop loss (just under $8.00). Currently the newsletter is suggesting readers wait for a bullish breakout past $9.00. Our trigger to open positions is at $9.05.

Earlier Comments:
It looks like SKUL may have found a bottom. The stock could see a short squeeze. The most recent data listed short interest at 42% of the very small 15.6 million-share float.

If triggered I am setting our multi-week target at $11.50.

Trigger @ 9.05

Suggested Position: buy SKUL stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the 2013 Jan $10 call (SKUL1319a10)

chart:



Tesla Motors - TSLA - close: 33.82 change: +0.13

Stop Loss: 30.90
Target(s): 34.90
Current Gain/Loss: + 4.9%

Entry on November 19 at $32.25
Listed on November 15, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
12/01/12: TSLA continues to outperform and extended its gains for another week. Shares are now up five weeks in a row. If the market retreats we can look for potential support near $32.00.

We are currently aiming for $34.90. More aggressive traders could aim for the $36.00 level instead.

Earlier Comments:
There is a good chance that TSLA could see a short squeeze. The most recent data listed short interest at 62% of the 76 million-share float.

current Position: Long TSLA stock @ $32.25

- (or for more adventurous traders, try this option) -

Long Dec $33 call (TSLA1222L33) entry $0.90

11/24/12 new stop loss @ 30.90

chart:



ValueClick, Inc. - VCLK - close: 18.87 change: -0.04

Stop Loss: 17.85
Target(s): 20.75
Current Gain/Loss: + 3.7%

Entry on November 20 at $18.20
Listed on November 19, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 666 thousand
New Positions: see below

Comments:
12/01/12: VCLK has rallied to new seven-month highs. We're looking for shares to fill the gap dating back to early May. Nimble traders could try and buy another dip near short-term support at the rising 10-dma.

Earlier Comments:
I will point out that VCLK could see potential resistance at $19.50 and the $20.00 mark. I would keep our position size small. VCLK has been volatile in the past.

current Position: Long VCLK stock @ $18.20

11/28/12 new stop loss @ 17.85

chart:



BEARISH Play Updates

Chesapeake Granite Wash Trust - CHKR - close: 18.66 change: +0.07

Stop Loss: 18.75
Target(s): 16.40
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 26, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 226 thousand
New Positions: Yes, see below

Comments:
12/01/12: CHKR keeps trying to bounce but it's struggling with the 20-dma and the trend of lower highs. Right now we are waiting for a breakdown under $18.00.

Earlier Comments:
The current trend of lower highs and lower lows would suggest CHKR is poised to new hit new lows. I am suggesting a trigger to open small bearish positions at $17.90. Our initial target is $16.40 but we might reconsider and aim lower.

Trigger @ 17.90 *Small Positions*

Suggested Position: short CHKR stock @ (trigger)

chart:



CIT Group - CIT - close: 37.05 change: +0.05

Stop Loss: 37.05
Target(s): 33.25
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 21, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Comments:
12/01/12: CIT is still consolidating sideways. There is support near $36.00 and resistance at the short-term trend line of lower highs (see chart).

We are waiting for a breakdown under $36 as our entry point. I am suggesting we use a trigger at $35.90 to launch small bearish positions. Our target is $33.25.

Trigger @ 35.90

Suggested Position: short CIT stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the 2013 Jan $35 PUT (CIT1319m35)

chart:



Cliffs Natural Resources - CLF - close: 28.75 change: -0.14

Stop Loss: 31.05
Target(s): 25.25
Current Gain/Loss: + 2.9%

Entry on November 28 at $29.62
Listed on November 27, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 7.7 million
New Positions: see below

Comments:
12/01/12: CLF continues to underperform the broader market. The stock broke down under round-number support at $30.00 this past week. The stock is now trading at multi-year lows. The next level of support looks like the $25.00 level. I would still consider new positions now at current levels.

Earlier Comments:
I would classify this as a higher-risk trade because so many investors are bearish on CLF. The most recent data listed short interest at almost 20% of the 141 million-share float. That does raise the risk of a short squeeze but the trend is clearly down. We want to keep our position size small to limit our risk. You may want to use the put option to limit your risk.

*small positions*

current Position: short CLF stock @ $29.62

- (or for more adventurous traders, try this option) -

Long DEC $30 PUT (CLF1222x30) entry $1.60

11/28/12 triggered on gap down at $29.62

chart:



MICROS Systems - MCRS - close: 43.46 change: -0.16

Stop Loss: 44.05
Target(s): 40.10
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 28, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 542 thousand
New Positions: Yes, see below

Comments:
12/01/12: Thursday's bounce continues to fade. Yet MCRS remains inside its trading range with support near $43.00.

The November low was $42.95. I am suggesting a trigger to open bearish positions at $42.85. If triggered our target is $40.10. More aggressive traders could aim for the 2011 lows (near $38.50).

Trigger @ 42.85

Suggested Position: short MCRS stock @ (trigger)

chart:



CLOSED BEARISH PLAYS

Imperva Inc. - IMPV - close: 30.76 change: +1.40

Stop Loss: 30.65
Target(s): 25.50
Current Gain/Loss: - 3.5%

Entry on November 13 at $29.60
Listed on November 12, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 221 thousand
New Positions: see below

Comments:
12/01/12: Our IMPV trade has been stopped out at $30.65. We've been cautious on this trade since it closed above the 10-dma back on Nov. 26th. On Thursday night I was suggesting that readers may want to exit early. I did not see any news on Friday to explain the relative strength. Shares gapped open higher and then surged past resistance near $30.00. The rally stalled near technical resistance at its 100-dma and exponential 200-dma.

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

closed Position: short IMPV stock @ $29.60 exit $30.65 (-3.5%)

11/30/12 stopped out at $30.65
11/19/12 new stop loss @ 30.65

chart: