Editor's Note:
The market is starting to see some profit taking but so far the pullback is pretty mild.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 10.54 change: -0.07

Stop Loss: 9.89
Target(s): 11.50
Current Gain/Loss: + 4.4%

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:
12/13/12: BAC continues to churn sideways just above the $10.50 level. If this short-term support breaks I would expect a dip back toward $10.00.

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: 30.25 change: +0.26

Stop Loss: 28.90
Target(s): 34.00
Current Gain/Loss: - 0.8%

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:
12/13/12: Good news! It looks like BANR is starting to edge higher. That might suggest that the breakout will resume the longer-term up trend. Readers could use a close above $30.50 as a new bullish entry point.

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: 44.55 change: +0.08

Stop Loss: 43.45
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:
12/13/12: Hmm... BLL rallied right to resistance near $45.00 and reversed again. The larger trend is up but BLL is definitely struggling here. 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: 33.51 change: -0.70

Stop Loss: 31.49
Target(s): 39.00
Current Gain/Loss: - 0.7%

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:
12/13/12: Cautious analyst comments may have exaggerated the pullback in CREE today. I cautioned readers to look for a dip near the $33.50 area. A bounce from here can be used 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: 15.25 change: -0.08

Stop Loss: 14.49
Target(s): 17.50
Current Gain/Loss: + 3.6%

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:
12/13/12: The rally in EA stalled a bit today. I would not be surprised to see a dip back to $15.00 or even the 10-dma. I am not suggesting new positions at this time.

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



ITT Educational Services - ESI - close: 19.59 change: +0.16

Stop Loss: 18.99
Target(s): 24.75
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 12, 2012
Time Frame: 2 to 6 weeks
Average Daily Volume = 500 thousand
New Positions: Yes, see below

Comments:
12/13/12: ESI continues to creep higher but it remains under major resistance at the $20.00 level. There is no change from my earlier comments.

Earlier Comments:
A breakout past this level could spark a significant short squeeze. The most recent data listed short interest at almost 200% of the very small 14.9 million share float. Yes, you read that right, 200% of the float. You'll notice the rally in early September. That looks like a short squeeze. We'd like to catch the next one.

I am suggesting a trigger to open small bullish positions at $20.15. If triggered our target is $24.75. I do consider this a more aggressive, higher-risk trade.

Trigger @ 20.15 *Small positions*

Suggested Position: buy ESI stock @ (trigger)



Granite Construction - GVA - close: 31.64 change: -0.19

Stop Loss: 29.90
Target(s): 34.50
Current Gain/Loss: + 1.3%

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:
12/13/12: Technically today's decline is confirmation of yesterday's bearish reversal candlestick pattern. Yet I am still looking for support near the $31.00 level. Wait for a dip to and bounce off $31.00 or the 10-dma before considering new positions.

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: 21.77 change: -0.33

Stop Loss: 20.49
Target(s): 24.00
Current Gain/Loss: + 2.4%

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:
12/13/12: I cautioned readers that the 50-dma could be overhead resistance for PEGA. Look for a dip into the $21.50-21.00 zone.

current Position: Long PEGA stock @ $21.25

12/12/12 new stop loss @ $20.49



Stamps.com Inc. - STMP - close: 25.17 change: -0.32

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:
12/13/12: STMP retreats for a second day. If the stock doesn't bounce off the $25.00 level we might drop it. There is no change from my earlier comments.

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: 32.40 change: -0.48

Stop Loss: 31.45
Target(s): 37.00
Current Gain/Loss: - 2.3%

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:
12/13/12: After yesterday's intraday reversal today's pullback is not very encouraging. Traders did buy the dip near $32.00 midday but the close under its 10-dma is short-term bearish. 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: 19.17 change: -0.11

Stop Loss: 18.75
Target(s): 19.85
Current Gain/Loss: + 5.3%

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:
12/13/12: VCLK tried to bounce but traders sold the rally this morning. There is no change from my prior comments. 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: 17.35 change: -0.27

Stop Loss: 18.25
Target(s): 16.40
Current Gain/Loss: + 3.1%

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:
12/13/12: CHKR's bounce failed at resistance near $18.00 and its 20-dma. Overall I don't see any changes from my earlier comments. 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: 40.93 change: -1.05

Stop Loss: 43.05
Target(s): 40.25
Current Gain/Loss: + 4.5%

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:
12/13/12: MCRS is definitely cooperating. The stock underperformed the market with a -2.5% decline and a breakdown from its recent sideways trading range. Our exit target is $40.25. I am lowering our stop loss to $43.05.

current Position: short MCRS stock @ $42.85

12/13/12 new stop loss @ 43.05
12/08/12 adjust exit target to $40.25
12/03/12 triggered at $42.85



Stone Energy Corp. - SGY - close: 20.05 change: -0.47

Stop Loss: 21.35
Target(s): 16.00
Current Gain/Loss: - 1.3%

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:
12/13/12: As expected the bounce is rolling over. SGY displayed relative weakness with a -2.2% decline. The stock is nearing prior support at $20.00. Readers can use a new drop under $20 as a bearish entry point.

current Position: short SGY stock @ $19.80

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