Editor's Note:
The U.S. stock market delivered widespread gains on Tuesday in spite of the gridlock in Washington on the fiscal cliff issue.

Our CREE trade was triggered.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 10.51 change: -0.06

Stop Loss: 9.89
Target(s): 11.50
Current Gain/Loss: + 4.1%

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:
12/11/12: BAC is still hovering near its recent highs. Yet today's session has created a bearish engulfing candlestick reversal pattern. I would not be surprised to see a pullback soon. 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

12/08/12 new stop loss @ 9.89



Banner Corp. - BANR - close: 29.95 change: +0.14

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 1.8%

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:
12/11/12: BANR continues to churn sideways. I am not suggesting new positions at this time. 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: 44.75 change: +0.21

Stop Loss: 43.25
Target(s): 48.00
Current Gain/Loss: + 2.1%

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:
12/11/12: The rebound in BLL continues with the stock up three out of the last four sessions. Shares are nearing prior resistance at $45.00. 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



Cree, Inc. - CREE - close: 34.69 change: +1.17

Stop Loss: 31.49
Target(s): 39.00
Current Gain/Loss: + 2.8%

Entry on December 11 at $33.75
Listed on December 10, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
12/11/12: Our new bullish trade on CREE is off to a strong start. Shares opened at $33.55 and then surged toward $35.00. Our trigger to open positions was hit at $33.75. If you missed it I would look for a dip as our next entry point.

Earlier Comments:
If this rally continues CREE could see a short squeeze. The most recent data listed short interest at 17% of the 113 million-share float. If triggered our multi-week target is $39.00. FYI: The Point & Figure chart for CREE is bullish with a $42 target.

current Position: long CREE stock @ $33.75



Electronic Arts - EA - close: 15.15 change: +0.33

Stop Loss: 14.20
Target(s): 17.50
Current Gain/Loss: + 2.9%

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:
12/11/12: EA was also showing relative strength today. Most of the rally was all in the first 30 minutes of trading. EA spent the rest of the session drifting sideways. The next hurdle is the late November high at $15.32. I am not suggesting new positions at current levels.

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: 32.16 change: +0.61

Stop Loss: 29.90
Target(s): 34.50
Current Gain/Loss: + 3.0%

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: see below

Comments:
12/11/12: GVA is showing relative strength as well. The stock posted a +1.9% gain and is now up four days in a row (and four weeks in a row if anyone's counting). I am not suggesting new positions at current levels.

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: 21.91 change: +0.56

Stop Loss: 19.90
Target(s): 24.00
Current Gain/Loss: + 3.1%

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:
12/11/12: PEGA displayed relative strength with a +2.6% gain. The stock will soon be challenging potential resistance in the $22.50-23.00 zone. Do not be surprised to see a pullback. Our target is $24.00.

current Position: Long PEGA stock @ $21.25



Tenneco Inc. - TEN - close: 32.88 change: -0.03

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:
12/11/12: TEN is hovering just under resistance near $33.00. There is no change from my prior comments.

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: 19.72 change: +0.15

Stop Loss: 18.75
Target(s): 19.85
Current Gain/Loss: + 8.4%

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:
12/11/12: VCLK continues to march higher and just added another +0.7%. The stock is starting to look overbought here. Our exit target is $19.85 but readers may want to exit early now! I am raising the stop loss to $18.75.

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

current Position: Long VCLK stock @ $18.20

12/11/12 new stop loss @ 18.75
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: 17.08 change: +0.06

Stop Loss: 18.25
Target(s): 16.40
Current Gain/Loss: + 4.6%

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:
12/11/12: CHKR continues to hover along the $17.00 level. Downward momentum has stalled with the wider market moving higher. I am not suggesting new positions at this time.

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: 41.92 change: +0.12

Stop Loss: 44.05
Target(s): 40.25
Current Gain/Loss: + 2.2%

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:
12/11/12: MCRS is still consolidating sideways and managed a minor +0.2% gain. There is no change from my prior comments. Readers might want to tighten their stops closer to the $43 level.

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: 20.49 change: -0.23

Stop Loss: 21.35
Target(s): 16.00
Current Gain/Loss: - 3.5%

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:
12/11/12: Good news! It looks like the bounce in SGY is rolling over under the $21.00 level (again). There is no change from my prior comments. 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.