Editor's Note:
Shares of Bank of America (BAC) and Granite Construction (GVA) hit our bullish targets today. AMD and STP were triggered. EA was stopped out.

Current Portfolio:


BULLISH Play Updates

Advanced Micro Devices - AMD - close: 2.52 change: +0.00

Stop Loss: 2.37
Target(s): 2.98
Current Gain/Loss: - 1.2%

Entry on December 19 at $2.5
Listed on December 18, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 27.5 million
New Positions: see below

Comments:
12/19/12: I am suggesting caution on our new AMD trade. The plan was to open small bullish positions at $2.55. The stock gapped open higher at $2.55 but failed to hold these gains. AMD closed unchanged on the day. The move feels a little bit like a failed rally pattern. Readers may want to wait and see if the pullback continues. We could use a dip or a bounce near $2.45 as an alternative entry point.

We want to keep our position size small to limit our risk.

*Small Positions*

current Position: Long AMD stock @ $2.55



Banner Corp. - BANR - close: 30.74 change: -0.01

Stop Loss: 29.40
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:
12/19/12: Traders bought the dip in BANR today and the stock closed almost unchanged on the session. 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: 44.57 change: +0.37

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:
12/19/12: BLL displayed some relative strength today with a +0.8% gain. Yet the stock remains under resistance at the $45.00 level. 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: 34.66 change: +0.21

Stop Loss: 32.45
Target(s): 39.00
Current Gain/Loss: + 2.7%

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:
12/19/12: The semiconductor sector managed to outperform the major indices. This helped CREE to a +0.6% gain. The stock failed at round-number resistance near $35.00. I am not suggesting new positions at this time.

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



ITT Educational Services - ESI - close: 19.45 change: -0.60

Stop Loss: 18.99
Target(s): 24.75
Current Gain/Loss: - 3.5%

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:
12/19/12: Uh-oh! ESI gave back two thirds of yesterday's gains. The bearish reversal back under the $20.00 level is not a good sign. Readers may want to abandon ship right now and exit early. I am not suggesting new positions.

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

12/19/12 today's bearish reversal is worrisome. Readers may want to exit early now!



Juniper Networks, Inc. - JNPR - close: 20.16 change: -0.10

Stop Loss: 19.25
Target(s): 23.50
Current Gain/Loss: + 0.0%

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:
12/19/12: JNPR spiked to a new multi-month high this morning (20.67) only to reverse course. Shares closed with a 10-cent loss. Odds are good we'll see JNPR retest the $20.00 level soon.

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: 23.27 change: +0.33

Stop Loss: 21.40
Target(s): 23.75
Current Gain/Loss: + 9.5%

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:
12/19/12: PEGA managed to extend its gains with a +1.4% advance today. Shares are up four days in a row. More conservative traders may want to start taking profits now. 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: 25.98 change: -0.52

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:
12/19/12: I warned you that shares of STMP were volatile. After yesterday's bullish breakout the stock reversed today and is testing prior resistance and what should be support near $26.00 now.

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



Suntech Power - STP - close: 1.26 change: +0.19

Stop Loss: 0.97
Target(s): 1.48
Current Gain/Loss: +13.5%

Entry on December 19 at $1.11
Listed on December 18, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.8 million
New Positions: see below

Comments:
12/19/12: STP is off to a strong start. The stock opened at $1.07 and quickly pushed through resistance near $1.10. Our trigger to open positions was hit at $1.11. STP's closed above potential resistance at $1.20 and its 100-dma is technically bullish.

Earlier Comments:
This can be a volatile stock. I am suggesting we keep our position size small to limit our risk.

*Small Positions*

current Position: long STP stock @ $1.11



Tenneco Inc. - TEN - close: 34.29 change: +0.22

Stop Loss: 31.85
Target(s): 37.00
Current Gain/Loss: + 3.4%

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: , see below

Comments:
12/19/12: TEN displayed relative strength today with a +0.6% gain and a new multi-month high. 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: 17.39 change: -0.02

Stop Loss: 18.05
Target(s): 16.40
Current Gain/Loss: + 2.8%

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:
12/19/12: CHKR is still churning sideways. 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: 20.15 change: +0.09

Stop Loss: 20.75
Target(s): 16.00
Current Gain/Loss: - 1.8%

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:
12/19/12: SGY spent Wednesday consolidating sideways. I don't see any changes from my prior comments. 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

Bank of America - BAC - close: 11.19 change: -0.17

Stop Loss: 10.65
Target(s): 11.45
Current Gain/Loss: +13.4%

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:
12/19/12: Target achieved.

BAC is performing as expected. The rally continued and shares climbed up to but failed to breakout at resistance near $11.50. Our exit target was hit at $11.45. The stock reversed at $11.50 and today's move has created a bearish engulfing candlestick reversal pattern. Fortunately our play is closed.

FYI: We had decided last night to exit our call positions at the open this morning. The gap open higher in BAC was another boost for the calls.

closed Position: Long BAC stock @ $10.10 exit $11.45 (+13.4%)

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

2013 Jan $10 call (BAC1319a10) entry $0.51 exit $1.42 (+178.4%)

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

chart:



Electronic Arts - EA - close: 14.40 change: -0.51

Stop Loss: 14.49
Target(s): 17.50
Current Gain/Loss: - 1.6%

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:
12/19/12: Video game stocks were underperforming today. There was speculation that this may have been a reaction to the White House and their new committee to look at gun violence including violent content in video games. Shares of EA lost -3.4% and hit our stop loss at $14.49.

Earlier Comments:
EA can be volatile so we'll keep our position size small to limit our risk. FYI: The Point & Figure chart for EA is bullish with a $21 target.

*Small Positions*

closed Position: Long EA stock @ $14.72 exit $14.49 (-1.6%)

12/19/12 stopped out
12/12/12 new stop loss @ $14.49

chart:



Granite Construction - GVA - close: 34.43 change: +0.27

Stop Loss: 31.40
Target(s): 34.35
Current Gain/Loss: +10.0%

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:
12/19/12: Target achieved.

GVA's rally continued with another new high. The stock hit our exit target at $34.35.

closed Position: buy GVA stock @ $31.23 exit $34.35 (+10.0%)

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

chart: