Editor's Note:
Thursday's session was pretty mild. Stocks did bounce off their midday lows.

AFFY has been closed. PKI removed. CLF stopped out.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 10.46 change: -0.01

Stop Loss: 9.65
Target(s): 11.50
Current Gain/Loss: + 3.5%

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:
12/06/12: It would have been normal to see some profit taking after yesterday's big rally higher. Yet traders bought the dip today and BAC closed virtually unchanged. 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: 29.89 change: -0.45

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 2.0%

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:
12/06/12: BANR underperformed the market with a -1.48% decline. Shares are back under the $30.00 level and look headed for the 30-dma near $29.25. 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: 44.19 change: +0.58

Stop Loss: 43.25
Target(s): 48.00
Current Gain/Loss: + 0.8%

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:
12/06/12: We were about to give up on BLL but shares turned around on Thursday. The stock rallied off yesterday's lows and posted a +1.3% gain. I remain cautious.

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: 20.49 change: +0.12

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:
12/06/12: PEGA is still consolidating sideways between $20 and $21.

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)



Tenneco Inc. - TEN - close: 32.49 change: +0.18

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:
12/06/12: Traders bought the dip in TEN near its rising 10-dma this morning. We are still waiting for a breakout past resistance.

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: 19.28 change: +0.16

Stop Loss: 17.85
Target(s): 20.75
Current Gain/Loss: + 5.9%

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:
12/06/12: VCLK extended its gains and added another +0.8%. 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: 17.10 change: -0.51

Stop Loss: 18.75
Target(s): 16.40
Current Gain/Loss: + 4.5%

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:
12/06/12: The sell-off in CHKR continues. The stock underperformed the market again with a -2.8% decline. Readers may want to start inching down their stops toward the 10-dma.

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

*Small Positions*

current Position: short CHKR stock @ $17.90



MICROS Systems - MCRS - close: 42.00 change: +0.39

Stop Loss: 44.05
Target(s): 40.10
Current Gain/Loss: + 2.0%

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:
12/06/12: After a multi-day decline MCRS finally produced a little oversold bounce. Look for resistance near broken support at $43.00.

current Position: short MCRS stock @ $42.85

12/03/12 triggered at $42.85



Pan American Silver Corp - PAAS - close: 18.05 change: -0.02

Stop Loss: 18.80
Target(s): 15.55
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 05, 2012
Time Frame: 3 to 4 weeks
Average Daily Volume = 1.6 million
New Positions: Yes, see below

Comments:
12/06/12: The morning bounce attempt in PAAS ran out of steam. Shares fell back to support near $18.00.

The November low for PAAS was $17.79. I am suggesting a trigger to open small bearish positions in PAAS at $17.75. If triggered our target is $15.55 but more conservative traders may want to exit near $16.00 instead.

We want to keep our position size small to limit our risk.

Trigger @ 17.75 *Small Positions*

Suggested Position: short PAAS stock @ (trigger)

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

buy the 2013 Jan $17.50 PUT (PAAS1319m17.5)



Stone Energy Corp. - SGY - close: 20.45 change: -0.27

Stop Loss: 21.35
Target(s): 16.00
Current Gain/Loss: - 3.3%

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:
12/06/12: There was no follow through on yesterday's bounce in SGY. Readers could use a new drop under $20.00 as a new bearish entry point.

current Position: short SGY stock @ $19.80

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



CLOSED BULLISH PLAYS

Affymax - AFFY - close: 23.25 change: +0.14

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:
12/06/12: AFFY has not been cooperating. Last night we decided to abandon ship and exit this morning. The stock opened at $23.11.

*Small Positions*

closed Position: long AFFY stock @ $24.10 exit $23.11 (-4.1%0

12/06/12 closed this morning
12/05/12 prepare to exit immediately at the open tomorrow

chart:



PerkinElmer Inc. - PKI - close: 30.89 change: -0.21

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: see below

Comments:
12/06/12: PKI is moving the wrong direction. The stock created a bearish engulfing candlestick reversal pat tern on Dec. 3rd and it's been down every day since. Our trade has not opened yet. I am removing PKI as a candidate.

Trade did not open.

12/06/12 removed PKI from the newsletter

chart:



CLOSED BEARISH PLAYS

Cliffs Natural Resources - CLF - close: 29.19 change: -0.34

Stop Loss: 30.55
Target(s): 25.25
Current Gain/Loss: - 3.1%

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:
12/06/12: We labeled CLF as a more aggressive trade. Shares displayed some volatility this morning with a spike up to $30.65 before reversing lower. Our stop loss was hit at $30.55.

*small positions*

closed Position: short CLF stock @ $29.62 exit $30.55 (-3.1%)

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

DEC $30 PUT (CLF1222x30) entry $1.60 exit $1.15 (-28.1%)

12/06/12 stopped out
12/03/12 new stop loss @ $30.55
11/28/12 triggered on gap down at $29.62

chart: