Editor's Note:
With only a few days left in 2012 investors continue to worry about the fiscal cliff and that's putting pressure on stocks. Oddly enough our bearish trade on CHKR was stopped out today. We closed our SGY trade on Monday morning.

Current Portfolio:


BULLISH Play Updates

Banner Corp. - BANR - close: 30.29 change: -0.14

Stop Loss: 29.40
Target(s): 34.00
Current Gain/Loss: - 0.7%

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:
12/26/12: BANR delivered a disappointing session. The stock probably hit a few stops today with an intraday dip beneath the $30.00 level and the bottom of its bullish channel. Fortunately BANR bounced of its 30-dma. The low today was $29.87. More conservative traders may want to raise their stop closer to this level. I am not suggesting new positions at this time.

Earlier Comments:
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: 44.91 change: -0.11

Stop Loss: 43.85
Target(s): 48.00
Current Gain/Loss: + 2.4%

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:
12/26/12: BLL has spent the last three days churning sideways and all inside of the daily range of its rally from Dec. 20th. The larger trend is up but momentum has stalled. I am not suggesting new positions at this time.

current Position: Long BLL stock @ $43.85

12/20/12 new stop loss @ 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: 33.55 change: -0.44

Stop Loss: 32.45
Target(s): 39.00
Current Gain/Loss: - 0.6%

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:
12/26/12: Readers may want to reconsider their stop loss placement with CREE. Today's rally attempt failed at its simple 10-dma and the stock looks poised to correct lower. You might want to raise your stop loss. 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



Dunkin' Brand Group - DNKN - close: 32.35 change: -0.55

Stop Loss: 31.25
Target(s): 35.75
Current Gain/Loss: - 0.5%

Entry on December 24 at $32.50
Listed on December 22, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
12/26/12: Our DNKN trade was triggered on Dec. 24th with a dip to our trigger at $32.50. It looks like we should have set our trigger lower. Today's rally failed at the $33 level and DNKN underperformed with a -1.6% decline and a close under its 10-dma. I would expect a drop toward $32.00 and potentially toward the 200-dma near $31.50.

FYI: The Point & Figure chart for DNKN is bullish with a long-term $64 target.

current Position: Long DNKN stock @ $32.50

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

Long 2013 Mar $35 call (DNKN1316c35) entry $0.65

12/24/12 triggered @ $32.50



Fortune Brands Home & Security - FBHS - close: 28.99 change: -0.80

Stop Loss: 29.25
Target(s): 34.00
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 20, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Comments:
12/26/12: FBHS displayed relative weakness on Wednesday with a -2.6% decline. Shares are now testing technical support near its 50-dma. If we see FBHS close beneath its 50-dma we'll probably drop it as a candidate. Right now we are still on the sidelines waiting for a breakout higher. I am suggesting a trigger to open bullish positions at $30.60. If triggered our multi-week target is $34.00.

Trigger @ 30.60

Suggested Position: buy FBHS stock @ (trigger)



Juniper Networks, Inc. - JNPR - close: 19.89 change: -0.12

Stop Loss: 19.25
Target(s): 23.50
Current Gain/Loss: - 1.3%

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:
12/26/12: I am concerned about our JNPR trade. The stock did see some follow through on Monday's intraday bounce but the rally reversed pretty quickly this morning. Monday's low was $19.42. Our stop loss is at $19.25. I am not suggesting new positions at this time.

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



Nuance Communications - NUAN - close: 22.16 change: -0.05

Stop Loss: 22.40
Target(s): 25.75
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 19, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: Yes, see below

Comments:
12/26/12: NUAN is still churning sideways between $21.50 and resistance near $23.00.

Currently the plan calls for a breakout past resistance. I am suggesting small bullish positions with a trigger to initiate a trade at $23.20. If triggered our target is $25.75. NUAN can be a volatile stock so I am suggesting we keep our position size small to limit our risk.

Trigger @ 23.20

Suggested Position: buy NUAN stock @ (trigger)



Pegasystems Inc. - PEGA - close: 22.80 change: -0.40

Stop Loss: 22.40
Target(s): 23.75
Current Gain/Loss: + 7.3%

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:
12/26/12: Be careful here. Our PEGA trade could be in trouble. The stock is down two days in a row on profit taking. It's currently sitting on short-term support at its 10-dma. If there is any follow through lower we will probably see PEGA hit our stop at $22.40. Readers may want to exit early now. I am not suggesting new positions at current levels.

current Position: Long PEGA stock @ $21.25

12/22/12 new stop loss @ 22.40
12/20/12 new stop loss @ 21.90
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



SouFun Holdings - SFUN - close: 23.58 change: -0.32

Stop Loss: 22.85
Target(s): 27.25
Current Gain/Loss: - 2.5%

Entry on December 24 at $24.19
Listed on December 22, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 357 thousand
New Positions: see below

Comments:
12/26/12: Our new play on SFUN is not working very well. The traded opened on Monday morning at $24.19 and eventually closed Monday's shortened session with a loss. The profit taking continued today. Today's high was $24.24. I would wait for a new rally past $24.25 before considering new positions.

Earlier Comments:
There is a growing chance that SFUN could see a short squeeze. The most recent data listed short interest at nearly 19% of the very small 14.2 million share float.

I do consider this an aggressive, higher-risk trade. Therefore I am suggesting we keep our position size small to limit our risk.

*Small Positions*

current Position: Long SFUN stock @ $24.19



Stamps.com Inc. - STMP - close: 25.16 change: -0.21

Stop Loss: 24.80
Target(s): 29.50
Current Gain/Loss: - 4.2%

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:
12/26/12: STMP has been underperforming these last two days. Yet so far it seems that support at the $25.00 level is holding for now. I am suggesting we adjust our stop loss and move it down to $24.80 so it is beneath the simple 50-day moving average.

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

12/26/12 adjust the stop loss to $24.80



Suntech Power - STP - close: 1.27 change: +0.09

Stop Loss: 0.97
Target(s): 1.48
Current Gain/Loss: +14.4%

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:
12/26/12: Continued strength in the Chinese stock market is giving shares of STP, a Chinese company, a boost. The stock rallied +7.6% today. More conservative traders might want to adjust their stops higher. I am not suggesting new positions at this time.

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: 34.10 change: +0.10

Stop Loss: 32.45
Target(s): 37.00
Current Gain/Loss: + 2.9%

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:
12/26/12: TEN is still consolidating sideways near the $34.00 level. Readers may want to start inching up their stop loss again. 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

12/22/12 new stop loss @ 32.45
12/15/12 new stop loss @ $31.85



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BEARISH PLAYS

Chesapeake Granite Wash Trust - CHKR - close: 17.97 change: +1.00

Stop Loss: 18.05
Target(s): 16.40
Current Gain/Loss: - 0.8%

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:
12/26/12: Our CHKR came close to hitting our exit target and then reversed with a big move higher late in the day to hit our stop loss at $18.05. We have been aiming for $16.40. CHKR dipped to $16.51 by lunchtime today. Something happened to produce a sharp spike higher from $16.50 to over $18.00 in just a couple of hours. I didn't see any specific news on CHKR so it may have been news elsewhere in the industry.

*Small Positions*

current Position: short CHKR stock @ $17.90 closed $18.05 (-0.8%)

12/26/12 stopped out at $18.05
12/17/12 new stop loss @ 18.05
12/10/12 new stop loss @ 18.25

chart:



Stone Energy Corp. - SGY - close: 20.48 change: +0.26

Stop Loss: 20.75
Target(s): 16.00
Current Gain/Loss: - 3.1%

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:
12/26/12: SGY has not been cooperating. Over the weekend we decided it was time to close positions and exit early. The plan was to exit on Monday morning. SGY opened on Dec. 24th at $20.42.

closed Position: short SGY stock @ $19.80 exit $20.42 (-3.1%)

12/24/12 closed this morning
12/22/12 prepare to exit positions on Monday morning
12/17/12 new stop loss @ 20.75
12/05/12 SGY surges following M&A news with peers.

chart: