Editor's Note:
The market gave back its early gains and closed near its lows for the session. We are seeing a number of intraday reversals. Traders will want to re-evaluate their stop loss placement.

Our TEN trade has been triggered.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 10.61 change: +0.10

Stop Loss: 9.89
Target(s): 11.50
Current Gain/Loss: + 5.0%

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:
12/12/12: I will confess that I am surprised by the strength in BAC today. Yesterday the stock looked ready for a pullback. Today traders were buying the dips near $10.50. BAC ended the session with a +0.9% gain.

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: 29.99 change: +0.04

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 1.6%

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:
12/12/12: The last couple of days have been quiet for BANR. Shares traded in a narrow range today. The stock is coiling for a breakout one way or the other. More conservative traders may want to raise their stops so it's closer to the simple 30-dma (currently at $29.50).

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: 44.47 change: -0.28

Stop Loss: 43.45
Target(s): 48.00
Current Gain/Loss: + 1.4%

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:
12/12/12: I am worried about BLL. Shares saw their rally roll over under the $45.00 level. Today's move has also created a bearish engulfing candlestick reversal pattern. I am raising our stop loss up to $43.45. More conservative traders may want to exit early instead. I am not suggesting new positions.

current Position: Long BLL stock @ $43.85

12/12/12 new stop loss @ 43.45
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: 34.21 change: -0.48

Stop Loss: 31.49
Target(s): 39.00
Current Gain/Loss: + 1.4%

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:
12/12/12: CREE just cut our unrealized gains in half with a -1.3% decline. After a sharp four-day rally I am not surprised to see a little profit taking. I would look for a bounce near the $33.65-33.50 zone as a new bullish 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: 15.33 change: +0.18

Stop Loss: 14.49
Target(s): 17.50
Current Gain/Loss: + 4.1%

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:
12/12/12: EA continues to extend its gains. The stock added +1.1% today and set a new multi-month closing high. I am raising our stop loss to $14.49.

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

12/12/12 new stop loss @ $14.49



Granite Construction - GVA - close: 31.83 change: -0.33

Stop Loss: 29.90
Target(s): 34.50
Current Gain/Loss: + 1.9%

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:
12/12/12: GVA had rallied to new two-year highs. I'm not surprised to see a little profit taking. However today's move has created a bearish engulfing candlestick reversal pattern. I would look for support near $31.00 and its 10-dma.

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: 22.10 change: +0.19

Stop Loss: 20.49
Target(s): 24.00
Current Gain/Loss: + 4.0%

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:
12/12/12: PEGA managed to outperform the market with a +0.8% gain. Yet the rally stalled under technical resistance at its 50-dma. I would expect a pullback soon. Look for a dip into the $21.50-21.00 zone. We will raise our stop loss to $20.49.

current Position: Long PEGA stock @ $21.25

12/12/12 new stop loss @ $20.49



Stamps.com Inc. - STMP - close: 25.49 change: -0.35

Stop Loss: 24.95
Target(s): 29.50
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 11, 2012
Time Frame: 4 to 8 weeks
Average Daily Volume = 250 thousand
New Positions: Yes, see below

Comments:
12/12/12: STMP did not see any follow through on yesterday's rally. Currently we are waiting for a breakout past resistance in the $26.00-26.20 zone.

I am suggesting a trigger to open bullish positions at $26.25. As you can tell from the chart, STMP is a volatile stock. Therefore I am suggesting we keep our position size small to limit our risk.

Trigger @ 26.25 *Small Positions*

Suggested Position: buy STMP stock @ (trigger)



Tenneco Inc. - TEN - close: 32.88 change: -0.00

Stop Loss: 31.45
Target(s): 37.00
Current Gain/Loss: - 0.8%

Entry on December 12 at $33.15
Listed on December 04, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 517 thousand
New Positions: Yes, see below

Comments:
12/12/12: TEN started the day on a strong note. Shares gapped open higher at $33.10. This was above resistance at $33.00 and its trend line of lower highs. However, the rally failed near $33.50 and TEN gave back all of its gains to close unchanged on the session. Our trade was triggered at $33.15. Yet I would not open positions at current levels. Today's action looks like a failed rally or bull trap pattern. Wait for a new rally past $33.15 before considering positions.

Earlier Comments:
If triggered our multi-week target is $37.00. This trade could take weeks.

*Small positions*

current Position: Long TEN stock @ $33.15



ValueClick, Inc. - VCLK - close: 19.28 change: -0.44

Stop Loss: 18.75
Target(s): 19.85
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:
12/12/12: After a multi-day rally VCLK was due for some profit taking, which was why I suggested yesterday that readers may want to take profits early. The stock opened weak and then plunged toward short-term support at its rising 10-dma. This produced a -2.2% pullback. Readers may want to exit now or raise their stop closer to $19.00. I am not suggesting new positions. Our stop remains at $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: 17.62 change: +0.54

Stop Loss: 18.25
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:
12/12/12: The bounce in CHKR today was definitely unexpected. The stock shot higher this morning but ran out of steam near its 10-dma. That didn't stop CHKR from posting a +3.1% bounce. The $18.00 level should be new resistance. 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: 41.98 change: +0.06

Stop Loss: 44.05
Target(s): 40.25
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:
12/12/12: MCRS is trying to bounce but it was struggling with its 10-dma today. I don't see any changes 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: 20.52 change: +0.03

Stop Loss: 21.35
Target(s): 16.00
Current Gain/Loss: - 3.6%

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:
12/12/12: SGY is still churning sideways under resistance near $21.00. Readers may want to wait for a new drop under $20.00 before initiating new positions.

current Position: short SGY stock @ $19.80

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