Editor's Note:
Shares of banking giant BAC delivered a strong week while most of the market chopped sideways.

Shares of SWHC cratered in spite of a very bullish earnings report.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 10.64 change: +0.18

Stop Loss: 9.89
Target(s): 11.50
Current Gain/Loss: + 5.3%

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:
12/08/12: It was a big week for shares of BAC. The stock burst through major resistance near $10.00 and kept climbing. I probably would not chase it here. BAC will probably see a dip soon. Broken resistance at $10.00 should now be new support so we are raising our stop loss to $9.89.

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

12/08/12 new stop loss @ 9.89

chart:



Banner Corp. - BANR - close: 30.15 change: +0.26

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 1.1%

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:
12/08/12: BANR is little changed for the week. The stock has been consolidating sideways. It remains inside the bullish channel. We should see a rebound off the bottom of the channel soon.

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: 44.15 change: -0.04

Stop Loss: 43.25
Target(s): 48.00
Current Gain/Loss: + 0.7%

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:
12/08/12: It was not a great week for shares of BLL. The stock reversed at resistance near $45.00 on Monday. Shares almost hit our stop loss midweek. Yet traders bought the dip near its rising 40-dma. I remain cautious on this trade. I am not suggesting new positions.

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:



Pegasystems Inc. - PEGA - close: 20.48 change: -0.01

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:
12/08/12: PEGA spent the week chopping sideways. The stock seems to be developing a new short-term bullish trend of higher lows. However, we are waiting for a new relative high.

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)

chart:



Tenneco Inc. - TEN - close: 32.79 change: +0.30

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:
12/08/12: TEN is still marching higher. The stock is getting closer and closer to resistance at its long-term trend line of lower highs (see chart below). 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)

chart:



ValueClick, Inc. - VCLK - close: 19.47 change: +0.19

Stop Loss: 18.45
Target(s): 19.85
Current Gain/Loss: + 7.0%

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:
12/08/12: VCLK continues to show relative strength. The stock has extended its gains to three weeks in a row. The strength is encouraging but I am worried that the $20.00 level might be round-number resistance and too much of a temptation for traders to sell and take profits. Therefore I am suggesting we adjust our exit target down to $19.85 and take profits early. We will raise our stop loss to $18.45.

Earlier Comments:
I would keep our position size small. VCLK has been volatile in the past.

current Position: Long VCLK stock @ $18.20

12/08/12 new stop loss @ 18.45, adjust target down to $19.85
11/28/12 new stop loss @ 17.85

chart:



BEARISH Play Updates

Chesapeake Granite Wash Trust - CHKR - close: 17.18 change: +0.08

Stop Loss: 18.75
Target(s): 16.40
Current Gain/Loss: + 4.0%

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:
12/08/12: The sell-off in CHKR paused on Friday. Shares bounced off the $17.00 level but pared its gains by the closing bell. There is no change from my prior comments. 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

chart:



MICROS Systems - MCRS - close: 41.76 change: -0.24

Stop Loss: 44.05
Target(s): 40.25
Current Gain/Loss: + 2.5%

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:
12/08/12: MCRS continues to underperform the market. The stock did trim its losses on Friday but the path of least resistance appears to be down. If the stock were to bounce I would look for resistance near broken support at $43.00.

Please note that I am adjusting our exit target to $40.25.

current Position: short MCRS stock @ $42.85

12/08/12 adjust exit target to $40.25
12/03/12 triggered at $42.85

chart:



Pan American Silver Corp - PAAS - close: 18.35 change: +0.30

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:
12/08/12: Silver prices managed a bounce on Friday and shares of PAAS followed. Shares are bouncing off support near $18.00. We are waiting for a bearish breakdown.

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)

chart:



Stone Energy Corp. - SGY - close: 20.82 change: +0.37

Stop Loss: 21.35
Target(s): 16.00
Current Gain/Loss: - 5.2%

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:
12/08/12: It was a volatile week for SGY. The stock broke down under key support at $20.00 on Monday and Tuesday. Then surged higher on M&A news in the energy sector. Since then SGY has been consolidating sideways under the $21.00 level. I would wait for a new drop under $20.00 before considering new bearish positions.

current Position: short SGY stock @ $19.80

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

chart:



CLOSED BULLISH PLAYS

Smith & Wesson - SWHC - close: 9.92 change: -0.93

Stop Loss: 10.15
Target(s): 12.85
Current Gain/Loss: - 8.2%

Entry on December 07 at $11.06
Listed on December 06, 2012
Time Frame: 9 to 12 weeks
Average Daily Volume = 2.8 million
New Positions:

Comments:
12/08/12: Shares of SWHC produced a huge misfire! On Thursday night, after the closing bell, the company reported earnings. Wall Street was expecting a profit of 24 cents with revenues of $134 million for the quarter. SWHC beat with earnings of 31 cents and revenues of $137 million. Their Q2 sales surged +48%. If that wasn't good enough management announced a stock buyback program and raised their Q3 estimates into the 19-21 cent range compared to analysts estimates of only 16 cents. Shares of SWHC should have exploded higher on Friday. Instead the stock cratered. Unfortunately, SWHC did gap open higher on Friday morning at $11.06 and rallied to $11.25 before collapsing to a -8.5% plunge.

Our trade was triggered on Friday morning at $11.06 and stopped out at $10.15.

closed Position: long SWHC stock @ $11.06 exit $10.15 (-8.2%)

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

2013 Mar $12 call (SWHC1316c12) entry $1.00 exit $0.55 (-45.0%)

12/07/12 stopped out at $10.15
12/07/12 triggered on gap higher at $11.06

chart: