Editor's Note:
Shares of Polypore Intl. (PPO) and Valueclick (VCLK) both hit our bullish targets today. Meanwhile JNPR and STMP hit our entry triggers. I am removing TDS as a candidate. Plus, I am suggesting we exit our BAC calls at the open tomorrow.

Current Portfolio:


BULLISH Play Updates

Bank of America - BAC - close: 11.36 change: +0.36

Stop Loss: 10.65
Target(s): 11.45
Current Gain/Loss: +12.5%

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:
12/18/12: It was another big day for BAC with shares gapping higher and closing with a +3.2% gain. Shares continue to rally on yesterday's positive analyst comments, that were reiterated today. Readers may want to go ahead and take profits now. I am adjusting our exit target down to $11.45. More aggressive traders may want to aim for the $11.90-12.00 zone instead. The bid on our 2013 Jan $10 call has risen to $1.40 and I am suggesting we go ahead and close our call positions at the opening bell tomorrow to lock in gains.

We will adjust our stop loss to $10.65.

current Position: Long BAC stock @ $10.10

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

Long 2013 Jan $10 call (BAC1319a10) entry $0.51

12/18/12 new stop loss @ 10.65, adjust exit target to $11.45,
prepare to exit our call position at the open tomorrow
12/17/12 new stop loss @ 10.40
12/08/12 new stop loss @ 9.89



Banner Corp. - BANR - close: 30.75 change: +0.38

Stop Loss: 29.40
Target(s): 34.00
Current Gain/Loss: + 0.9%

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:
12/18/12: BANR is slowly making progress and added +1.25% today. A breakout past the $30.75 level might help the rally accelerate higher. I am not suggesting new positions at this time.

NOTE: BANR doesn't move very fast. This trade could take a couple of months.

*Small Positions*

current Position: Long BANR stock @ $30.49

12/15/12 new stop loss @ 29.40
11/21/12 out trade opened on the gap higher.



Ball Corp. - BLL - close: 44.20 change: +0.00

Stop Loss: 43.45
Target(s): 48.00
Current Gain/Loss: + 0.8%

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:
12/18/12: BLL closed unchanged on the session and on a day like today that is disappointing news. There is no change from my prior comments. The relative weakness is a concern. We have our stop loss at $43.45. More conservative traders may want to inch their stops higher. 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: 34.45 change: +0.41

Stop Loss: 32.45
Target(s): 39.00
Current Gain/Loss: + 2.1%

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:
12/18/12: CREE saw a small gap open higher and managed a +1.2% gain by the closing bell. There is no change from my prior comments but readers might want to raise their stops closer to the $33 level.

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

12/15/12 new stop loss @ 32.45



Electronic Arts - EA - close: 14.91 change: -0.51

Stop Loss: 14.49
Target(s): 17.50
Current Gain/Loss: + 1.3%

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:
12/18/12: Ouch! EA underperformed the market with a -3.3% decline. The best explanation for the decline seems to be one analyst who downgraded his earnings estimates on EA for next year. The stock broke down under what should have been short-term support near $15.00 and its 10-dma. Today's move definitely put a dent in our potential gains. More conservative traders may want to exit early. I am not suggesting new positions at this time.

Earlier Comments:
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: 20.05 change: +0.93

Stop Loss: 18.99
Target(s): 24.75
Current Gain/Loss: - 0.5%

Entry on December 14 at $20.15
Listed on December 12, 2012
Time Frame: 2 to 6 weeks
Average Daily Volume = 500 thousand
New Positions: see below

Comments:
12/18/12: Good news! ESI has reversed higher and shares actually closed above round-number resistance at the $20.00 mark. Granted a close at $20.05 isn't super convincing but shares did outperform the market today with a +4.8% gain. Readers may want to use a new rise to $20.16 as a new bullish entry point.

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 do consider this a more aggressive, higher-risk trade.

*Small positions*

current Position: Long ESI stock @ $20.15



Granite Construction - GVA - close: 34.16 change: +0.42

Stop Loss: 31.40
Target(s): 34.35
Current Gain/Loss: + 9.4%

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:
12/18/12: GVA has extended its gains to three days in a row and seven out of the last nine sessions. GVA is starting to look overbought here. I am adjusting our exit target down from $34.50 to $34.35.

Suggested Position: buy GVA stock @ (the open)

12/18/12 adjust exit target to $34.35
12/17/12 new stop loss @ 31.40
12/15/12 new stop loss @ $30.75



Juniper Networks, Inc. - JNPR - close: 20.26 change: +0.48

Stop Loss: 19.25
Target(s): 23.50
Current Gain/Loss: + 0.5%

Entry on December 18 at $20.15
Listed on December 17, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.8 million
New Positions: see below

Comments:
12/18/12: Our new play on JNPR has been triggered. The stock broke through resistance at $20.00 and hit our entry point at $20.15. I don't see any changes from my prior comments.

Earlier Comments:
The stock can be somewhat volatile so I am suggesting we keep our position size small. FYI: The Point & Figure chart for JNPR is bullish with a $26.00 target.

current Position: Long JNPR stock @ $20.15



Pegasystems Inc. - PEGA - close: 22.94 change: +0.31

Stop Loss: 21.40
Target(s): 23.75
Current Gain/Loss: + 8.0%

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:
12/18/12: PEGA almost kept pace with the NASDAQ's rally today. The stock added +1.3% and is nearing the $23.00 level. I am adjusting our exit target and moving it down from $24.00 to $23.75. I am not suggesting new positions at current levels.

current Position: Long PEGA stock @ $21.25

12/18/12 adjust exit target to $23.75
12/17/12 new stop loss @ $21.40
12/15/12 new stop loss @ $20.95
12/12/12 new stop loss @ $20.49



Stamps.com Inc. - STMP - close: 26.50 change: +1.27

Stop Loss: 24.95
Target(s): 29.50
Current Gain/Loss: + 1.0%

Entry on December 18 at $26.25
Listed on December 11, 2012
Time Frame: 4 to 8 weeks
Average Daily Volume = 250 thousand
New Positions: see below

Comments:
12/18/12: STMP has come alive again. The stock was in rally mode throughout much of the session and STMP produced a +5.0% gain. In the process STMP broke out past resistance near $26.00 and hit our trigger at $26.25.

Earlier Comments:
Don't forget that STMP can be a volatile stock and we want to keep our position size small to limit our risk.

*Small Positions*

current Position: Long STMP stock @ $26.25



Tenneco Inc. - TEN - close: 34.07 change: +1.11

Stop Loss: 31.85
Target(s): 37.00
Current Gain/Loss: + 2.8%

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:
12/18/12: It looks like our patience with TEN might get rewarded. The stock took off with a rally that lasted all day. Shares closed the session with a +3.3% gain. I am not suggesting new positions at this time.

Earlier Comments:
We need to be patient with TEN. The stock does not move very fast.

*Small positions*

current Position: Long TEN stock @ $33.15

12/15/12 new stop loss @ $31.85



BEARISH Play Updates

Chesapeake Granite Wash Trust - CHKR - close: 17.41 change: +0.12

Stop Loss: 18.05
Target(s): 16.40
Current Gain/Loss: + 2.7%

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:
12/18/12: It was a relatively quiet day for CHKR. The overall trend remains bearish but if the market continues to rally CHKR could suddenly decide to participate. I am not suggesting new positions at this time.

*Small Positions*

current Position: short CHKR stock @ $17.90

12/17/12 new stop loss @ 18.05
12/10/12 new stop loss @ 18.25



Stone Energy Corp. - SGY - close: 20.06 change: +0.26

Stop Loss: 20.75
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:
12/18/12: A broad-based rally across the market helped fuel a bounce in SGY. Yet the rebound failed at the $20.50 level. If there is any follow through tomorrow then look for SGY to hit our stop loss at $20.75. I am not suggesting new positions at this time.

The next major support is all the way down near $15.00. We will target a drop to $16.00. FYI: The Point & Figure chart is bearish and forecasting at long-term $12 target.

current Position: short SGY stock @ $19.80

12/17/12 new stop loss @ 20.75
12/05/12 SGY surges following M&A news with peers.



CLOSED BULLISH PLAYS

Polypore Intl. - PPO - close: 45.04 change: +0.83

Stop Loss: 39.95
Target(s): 46.00
Current Gain/Loss: +10.8%

Entry on December 17 at $41.50
Listed on December 15, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 389 thousand
New Positions: see below

Comments:
12/18/12: Target achieved. Our PPO trade has moved a lot more quickly than expected but we're not complaining. The stock climbed again this morning and hit $46.06 by midday before paring its gains. Our exit target was hit at $46.00.

closed Position: Long PPO stock @ $41.50 exit $46.00 (+10.8%)

12/18/12 target hit at $46.00
12/17/12 new stop loss @ 39.95
12/17/12 triggered @ 41.50

chart:



ValueClick, Inc. - VCLK - close: 19.80 change: +0.10

Stop Loss: 18.95
Target(s): 19.85
Current Gain/Loss: + 9.1%

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:
12/18/12: Target achieved.

VCLK continued to rally and the stock surged to $20.15 before trimming its gains. Our exit target was hit at $19.85. If you're still in this trade I am suggesting caution as today's move looks like a failed rally at the resistance near $20.00.

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

closed Position: Long VCLK stock @ $18.20 exit $19.85 (+9.1%)

12/18/12 target hit
12/15/12 new stop loss @ 18.95
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

chart:



CLOSED BEARISH PLAYS

Telephone & Data Systems - TDS - close: 22.88 change: +0.14

Stop Loss: 22.55
Target(s): 20.15
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 15, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 561 thousand
New Positions: Yes, see below

Comments:
12/18/12: TDS is not cooperating with our bearish plans on the stock. Our trade has not opened yet so we're dropping TDS as a candidate.

Trade did not open.

12/18/12 removed TDS from the newsletter.

chart: