Editor's Note:
A number of energy-related stocks surged following headlines that FCX was buying PXP and MMR this morning. The news did not help our SGY trade.

I am suggesting we exit our AFFY trade immediately. BAC has been triggered. EZCH stopped out. CIT has been removed.

Current Portfolio:


BULLISH Play Updates

Affymax - AFFY - close: 23.11 change: -1.37

Stop Loss: 22.65
Target(s): 27.50
Current Gain/Loss: - 4.1%

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:
12/05/12: AFFY has suddenly taken a turn for the worse. Shares underperformed the market with a -5.5% plunge and the stock broke down under its 50-dma. I am suggesting we exit immediately tomorrow morning.

*Small Positions*

current Position: long AFFY stock @ $24.10

12/05/12 prepare to exit immediately at the open tomorrow



Bank of America - BAC - close: 10.46 change: +0.56

Stop Loss: 9.65
Target(s): 11.50
Current Gain/Loss: + 3.6%

Entry on December 05 at $10.10
Listed on December 01, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 150 million
New Positions: see below

Comments:
12/05/12: Wednesday proved to be a big day for shares of BAC. The stock started the day with strength and kept it up nearly all session long. The breakout past resistance at $10.00 is very bullish. Shares soared to a +5.6% gain. Our trigger to open positions was hit at $10.10. If you missed our entry point you may want to wait for a dip. Broken resistance at $10.00 should now be new support.

Earlier Comments:
If triggered our target is $11.50. More aggressive traders could aim for $12.00. This is a multi-week trade.

current Position: Long BAC stock @ $10.10

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

Long 2013 Jan $10 call (BAC1319a10) entry $0.51



Banner Corp. - BANR - close: 30.34 change: -0.13

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 0.5%

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:
12/05/12: BANR saw some volatility this morning. Fortunately the stock recovered and is once again testing the $30.50 level. I am not suggesting new positions at this time.

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.



Ball Corp. - BLL - close: 43.61 change: -0.09

Stop Loss: 43.25
Target(s): 48.00
Current Gain/Loss: - 0.5%

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:
12/05/12: BLL spiked lower this morning but has not hit our stop loss at $43.25 yet. I do remain very cautious here and readers may want to exit early.

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



Pegasystems Inc. - PEGA - close: 20.37 change: -0.42

Stop Loss: 19.90
Target(s): 24.00
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 04, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 257 thousand
New Positions: Yes, see below

Comments:
12/05/12: There was no follow through on yesterday's surge higher in PEGA. I was concerned about that and that's why we listed a trigger. Shares gapped down at the open and lost -2.0% by the close. Shares remain above $20.00 and it still looks like a potential bottom for PEGA.

I am suggesting a trigger to launch positions at $21.25. If triggered our target is $24.00 although more conservative traders may want to exit as PEGA nears potential resistance at its simple 50-dma instead.

Trigger @ 21.25

Suggested Position: buy PEGA stock @ (trigger)



PerkinElmer Inc. - PKI - close: 31.10 change: -0.16

Stop Loss: 29.70
Target(s): 35.75
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 01, 2012
Time Frame: 6 to 9 weeks
Average Daily Volume = 661 thousand
New Positions: Yes, see below

Comments:
12/05/12: PKI is down three days in a row. If the stock doesn't recover soon I'm going to drop it as a bullish candidate. The week isn't over yet but the weekly chart is forming a new bearish engulfing candlestick reversal pattern. At the moment we're still on the sidelines.

I am suggesting a trigger to open bullish positions at $32.00. Our multi-week target is $35.75 as the $36.00 level looks like resistance. We will need to be patient as PKI doesn't move very fast.

Trigger @ 32.00

Suggested Position: buy PKI stock @ (trigger)



Tenneco Inc. - TEN - close: 32.31 change: -0.25

Stop Loss: 31.45
Target(s): 37.00
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 04, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 517 thousand
New Positions: Yes, see below

Comments:
12/05/12: TEN spiked up toward resistance near $33.00 and its long-term trend line of lower highs only to reverse lower. That's why we're using a trigger.

Earlier Comments:
I am suggesting we keep our position size small to limit our risk. We will use a trigger to open bullish positions at $33.15. More conservative traders may want to wait for TEN to actually close above the $33.00 level and then open positions the next morning. If triggered our multi-week target is $37.00. This trade could take weeks.

Trigger @ 33.15 *Small positions*

Suggested Position: buy TEN stock @ (trigger)



ValueClick, Inc. - VCLK - close: 19.12 change: +0.34

Stop Loss: 17.85
Target(s): 20.75
Current Gain/Loss: + 5.1%

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:
12/05/12: VCLK displayed relative strength today with a +1.8% gain. The stock also set a new multi-month closing high. Readers may want to start raising their stop losses.

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



BEARISH Play Updates

Chesapeake Granite Wash Trust - CHKR - close: 17.61 change: -0.62

Stop Loss: 18.75
Target(s): 16.40
Current Gain/Loss: + 1.6%

Entry on December 04 at $17.90
Listed on November 26, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 226 thousand
New Positions: see below

Comments:
12/05/12: Yesterday's intraday bounce in CHKR has already failed. The stock reversed and posted a -3.4% decline today. The 10-dma has fallen to $18.44. Readers might want to cinch down their stops toward $18.50. Today's close under $18 looks like a new bearish entry point.

Earlier Comments:
Our initial target is $16.40 but we might reconsider and aim lower.

*Small Positions*

current Position: short CHKR stock @ $17.90



Cliffs Natural Resources - CLF - close: 29.53 change: +0.13

Stop Loss: 30.55
Target(s): 25.25
Current Gain/Loss: + 0.3%

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:
12/05/12: Shares of CLF were downgraded this morning but that didn't stop the stock from spiking higher above resistance at $30.00. Fortunately the rally quickly ran out of steam and CLF reversed. Our trade is still in jeopardy here and a sudden rally could hit our stop at $30.55. I am not suggesting new positions.

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

12/03/12 new stop loss @ $30.55
11/28/12 triggered on gap down at $29.62



MICROS Systems - MCRS - close: 41.61 change: -0.53

Stop Loss: 44.05
Target(s): 40.10
Current Gain/Loss: + 2.9%

Entry on December 03 at $42.85
Listed on November 28, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 542 thousand
New Positions: see below

Comments:
12/05/12: MCRS continues to underperform and fell to new 2012 lows. I am not suggesting new positions at this time.

current Position: short MCRS stock @ $42.85

12/03/12 triggered at $42.85



Stone Energy Corp. - SGY - close: 20.72 change: +1.10

Stop Loss: 21.35
Target(s): 16.00
Current Gain/Loss: - 4.6%

Entry on December 04 at $19.80
Listed on December 03, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 719 thousand
New Positions: see below

Comments:
12/05/12: Ouch! Our SGY was looking pretty good yesterday. Yet news this morning that FCX was buying both PXP and MMR sparked a widespread rally in some of the energy names. Traders were buying energy names on speculation (or fear) of further M&A deals. SGY gapped open higher at $20.02 and spiked up toward $21.00 before gains stalled. More conservative traders may want to abandon ship. I am not suggesting new positions at this time.

current Position: short SGY stock @ $19.80

12/05/12 SGY surges following M&A news with peers.



CLOSED BULLISH PLAYS

EZchip Semiconductor - EZCH - close: 36.95 change: -0.48

Stop Loss: 36.40
Target(s): 44.00
Current Gain/Loss: - 5.1%

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:
12/05/12: EZCH underperformed this morning with a plunge from $37.30 to $36.00. Shares hit our stop loss at $36.40 along the way. Traders did buy the dip and EZCH is now sitting on its 200-dma.

closed Position: Long EZCH stock @ $38.35 exit $36.40 (-5.1%)

chart:



CLOSED BEARISH PLAYS

CIT Group - CIT - close: 37.35 change: +0.75

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: see below

Comments:
12/05/12: I am cutting CIT loose. We've been waiting for a breakdown but it's not happening. Today's show of relative strength has produced a bullish breakout from its recent trading range. Our trade never opened.

Trade never opened.

12/05/12 removed CIT. trade did not open.

chart: