Editor's Note:
Traders could be suffering a case of vertigo with the market hanging on the edge of the fiscal cliff. The U.S. market accelerated lower into the closing bell ahead of the weekend.

I am suggesting we close our CREE trade on Monday morning. We have removed FBHS as a candidate.

Current Portfolio:


BULLISH Play Updates

Banner Corp. - BANR - close: 30.62 change: +0.09

Stop Loss: 29.40
Target(s): 34.00
Current Gain/Loss: + 0.4%

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:
12/29/12: BANR seems to be growing more volatile. The stock has been wrestling with support near the bottom of its long-term bullish channel and technical support at its 30 and 40-dma(s). BANR managed to tag a new relative high on Friday before immediately reversing. The stock did manage to post a gain (+0.2%) which outperformed the major indices on Friday. 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.

chart:



Ball Corp. - BLL - close: 44.29 change: -0.35

Stop Loss: 43.85
Target(s): 48.00
Current Gain/Loss: + 1.0%

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:
12/29/12: BLL is down for a third day in a row. Shares have pulled back to short-term technical support at its rising 40-dma. BLL has bounced the last three times it has tested this moving average. The trend is up but the market itself looks vulnerable. 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

chart:



Cree, Inc. - CREE - close: 33.20 change: -0.29

Stop Loss: 32.45
Target(s): 39.00
Current Gain/Loss: - 1.6%

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:
12/29/12: The SOX semiconductor index has closed below support near 380 and its 150-dma. The sector seems to have created a bearish reversal. That does not bode well for our CREE trade. Shares of CREE also appear to be slowly reversing lower. The stock is down five out of the last six trading days. We are giving up on it. I am suggesting an early exit immediately on Monday morning.

current Position: long CREE stock @ $33.75

12/29/12 prepare to exit on Monday morning
12/15/12 new stop loss @ 32.45

chart:



Dunkin' Brand Group - DNKN - close: 32.35 change: -0.04

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:
12/29/12: The selling pressure in DNKN was pretty mild on Friday. Nimble traders could buy a bounce off the $32.00 level or look for a new rally above its 10-dma (near 32.60) as a new entry point.

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

chart:



Juniper Networks, Inc. - JNPR - close: 19.38 change: -0.41

Stop Loss: 19.25
Target(s): 23.50
Current Gain/Loss: - 3.8%

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:
12/29/12: Our JNPR trade is in trouble. The stock closed below recent support near $19.40 (actually 19.42) and JNPR underperformed the market with a -2.0% decline on Friday. If the stock market opens weak on Monday odds are very high that we will see JNPR hit our stop at $19.25 or potentially even gap open below our stop, which would immediately close this trade. 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

12/29/12 JNPR looks weak and could hit our stop loss soon.

chart:



SouFun Holdings - SFUN - close: 23.82 change: -0.12

Stop Loss: 22.85
Target(s): 27.25
Current Gain/Loss: - 1.5%

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:
12/29/12: Traders bought the dip near $23.00 on Friday morning. SFUN managed to pare its losses to just -0.5%. A new rally above $24.20 should break the short-term trend of lower highs and could be used as a new bullish entry point.

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

chart:



Suntech Power - STP - close: 1.40 change: +0.07

Stop Loss: 1.17
Target(s): 1.48
Current Gain/Loss: +26.1%

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:
12/29/12: This solar-energy stock continues to surge. The stock rallied again on Friday with a +5.2% gain and a new multi-month high. Readers may want to start taking profits now. The newsletter is aiming to exit at $1.48. The high on Friday was $1.45. We are raising our stop loss to $1.17.

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

12/29/12 new stop loss @ 1.17
12/27/12 new stop loss @ $1.09

chart:



Tenneco Inc. - TEN - close: 33.99 change: -0.21

Stop Loss: 32.90
Target(s): 37.00
Current Gain/Loss: + 2.5%

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:
12/29/12: There is nothing new to say about TEN. Shares continue to churn sideways on either side of the $34.00 level. 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

12/27/12 new stop loss @ 32.90
12/22/12 new stop loss @ 32.45
12/15/12 new stop loss @ $31.85

chart:



BEARISH Play Updates

Teva Pharmaceuticals - TEVA - close: 37.20 change: +0.25

Stop Loss: 38.05
Target(s): 35.10
Current Gain/Loss: + 0.0%

Entry on December 27 at $37.20
Listed on December 22, 2012
Time Frame: 2 to 4 weeks
Average Daily Volume = 6.9 million
New Positions: see below

Comments:
12/29/12: I couldn't find any news to explain TEVA's show of relative strength on Friday (+0.6%). It could be bargain hunting or it could have been shorts closing positions ahead of the weekend. There is certainly a risk that if some sort of fiscal cliff deal gets done over the weekend the entire market would likely rally. Overall TEVA still looks bearish but readers may want to wait for a failed rally near the 10-dma (currently 37.85) before launching new positions.

Earlier Comments:
This is somewhat of an aggressive trade. Short interest has probably increased over the last few days. The $35.00 level could be support as it was back in the year 2011. We will set a short-term target at $35.10 to cover. Readers will want to seriously consider using the put options to limit your risk.

*Small Positions*

current Position: short TEVA stock @ $37.20

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

Long 2013Jan $37.50 PUT (TEVA1319m37.5) entry $0.80

chart:



CLOSED BULLISH PLAYS

Fortune Brands Home & Security - FBHS - close: 28.85 change: -0.28

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: see below

Comments:
12/29/12: The long-term trend for FBHS still seems to be higher. Yet short-term its upward momentum is struggling. We were waiting for a breakout to new highs but the stock has continued to pullback instead. Our trade has not opened yet and we are removing FBHS from the newsletter. Readers may want to keep FBHS on their watch list for a close above $30.50 as a potential entry point.

Trade did not open. Trigger was $30.60.

12/29/12 removed from the newsletter

chart: