Editor's Note:
The market was mixed on Monday with stocks drifting sideways, albeit with a slightly bullish bias.

Our PEGA trade was triggered. I have removed PAAS.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 10.57 change: -0.07

Stop Loss: 9.89
Target(s): 11.50
Current Gain/Loss: + 4.7%

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:
12/10/12: It was a quiet Monday for BAC. The stock drifted sideways. Shares are arguably short-term overbought so don't be surprised to see a pullback. 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



Banner Corp. - BANR - close: 29.81 change: -0.34

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 2.2%

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:
12/10/12: It was a down day for BANR. The stock underperformed the market's major indices with a -1.1% decline. Traders did buy the dip near $29.50 for the second day in a row. BANR 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.



Ball Corp. - BLL - close: 44.54 change: +0.39

Stop Loss: 43.25
Target(s): 48.00
Current Gain/Loss: + 1.6%

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:
12/10/12: BLL continues to rebound. Shares displayed some relative strength with a +0.88% gain today. The stock looks like it will be challenging resistance near $45.00 again soon. 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



Electronic Arts - EA - close: 14.82 change: -0.02

Stop Loss: 14.20
Target(s): 17.50
Current Gain/Loss: + 0.7%

Entry on December 10 at $14.72
Listed on December 08, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.5 million
New Positions: see below

Comments:
12/10/12: The early morning rally in EA faded and shares closed virtually unchanged on the session. Readers may want to look for a dip or a bounce near $14.60-14.50 as an alternative entry point.

Earlier Comments:
More conservative traders might want to wait and look for a rally past $15.00 before initiating positions. EA can be volatile so we'll keep our position size small to limit our risk. We will target a move to $17.50 over the next few weeks. FYI: The Point & Figure chart for EA is bullish with a $21 target.

*Small Positions*

current Position: Long EA stock @ $14.72



Granite Construction - GVA - close: 31.55 change: +0.36

Stop Loss: 29.90
Target(s): 34.50
Current Gain/Loss: + 1.0%

Entry on December 10 at $31.23
Listed on December 08, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 240 thousand
New Positions: Yes, see below

Comments:
12/10/12: The rally in GVA continues. The stock opened at $31.23 and posted a +1.1% gain by the close. This is a new two-year high for the stock. Our multi-week target is $34.50. FYI: The Point & Figure chart for GVA is bullish with a long-term $43.50 target.

Suggested Position: buy GVA stock @ (the open)



Pegasystems Inc. - PEGA - close: 21.35 change: +0.87

Stop Loss: 19.90
Target(s): 24.00
Current Gain/Loss: + 0.5%

Entry on December 10 at $21.25
Listed on December 04, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 257 thousand
New Positions: see below

Comments:
12/10/12: PEGA decided to join the party and shares displayed relative strength today. The +4.2% gain today produced a bullish breakout past resistance near $21.00. Our trigger to open bullish positions was hit at $21.25.

current Position: Long PEGA stock @ $21.25



Tenneco Inc. - TEN - close: 32.91 change: +0.12

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:
12/10/12: TEN is drifting closer and closer to resistance at the $33.00 level and its long-term trend line of lower highs. We are 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: 19.57 change: +0.10

Stop Loss: 18.45
Target(s): 19.85
Current Gain/Loss: + 7.5%

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:
12/10/12: VCLK continues to extend its gains. The stock is up four days in a row. Currently our target is $19.85. Readers may want to adjust their stop loss higher.

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



BEARISH Play Updates

Chesapeake Granite Wash Trust - CHKR - close: 17.02 change: -0.16

Stop Loss: 18.25
Target(s): 16.40
Current Gain/Loss: + 4.9%

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:
12/10/12: CHKR underperformed the market again with a -0.9% decline on Monday. The stock looks poised to breakdown under the $17.00 level soon. I am adjusting our stop loss down to $18.25.

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

*Small Positions*

current Position: short CHKR stock @ $17.90

12/10/12 new stop loss @ 18.25



MICROS Systems - MCRS - close: 41.80 change: +0.04

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:
12/10/12: MCRS spent the day churning sideways under the $42.00 level. There is no change from my weekend comments. 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



Stone Energy Corp. - SGY - close: 20.72 change: -0.10

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:
12/10/12: SGY briefly traded above short-term resistance at $21.00 on Monday morning. Fortunately shares did not hit our stop loss before reversing. Aggressive traders could use today's failed rally as a new entry point. For the rest of us 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.



CLOSED BEARISH PLAYS

Pan American Silver Corp - PAAS - close: 19.05 change: +0.70

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: see below

Comments:
12/10/12: PAAS is not cooperating. We were waiting for a breakdown to new relative lows with a trigger to open positions at $17.75. Yet PAAS has bounced two days in a row and is now back above $19 and back above its 200-dma. I am removing PAAS as a candidate.

trade did not open.

12/10/12 removed PAAS. Trade did not open.

chart: