Editor's Note:
The U.S. markets surged on news of a fiscal cliff deal in Washington.

NOTE: The closed plays in today's update are from Monday.

Current Portfolio:


BULLISH Play Updates

Banner Corp. - BANR - close: 31.15 change: +0.43

Stop Loss: 29.40
Target(s): 34.00
Current Gain/Loss: + 2.2%

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:
01/02/13: BANR rallied to new multi-year highs today. Unfortunately shares pared their gains and only settled with a +1.3% gain. The larger trend is still up but BANR doesn't move very fast. 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: 46.05 change: +1.30

Stop Loss: 44.40
Target(s): 47.00
Current Gain/Loss: + 5.0%

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:
01/02/13: The widespread rally in stocks today helped push BLL to a new all-time high with a +2.9% gain on the session. I would not chase it. We are raising our stop loss to $44.40. Readers may want to start taking profits now. I am lowering our exit target down to $47.00. I am not suggesting new positions at this time.

current Position: Long BLL stock @ $43.85

01/02/13 new stop loss @ 44.40, adjust target to $47.00
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



Dunkin' Brand Group - DNKN - close: 33.46 change: +0.28

Stop Loss: 31.25
Target(s): 35.75
Current Gain/Loss: + 3.0%

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:
01/02/13: The rally in DNKN today was a little disappointing. Shares hit new relative highs only to reverse course. The stock only added +0.8% versus a +3.0% gain in the NASDAQ and a +2.5% gain in the S&P 500. The trend for DNKN is still up. Readers may want to raise their stops toward the $32 area.

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



SouFun Holdings - SFUN - close: 25.99 change: +0.99

Stop Loss: 23.75
Target(s): 26.85
Current Gain/Loss: + 7.4%

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:
01/02/13: SFUN has seen a strong three-day rally from the $23.00 level at last Friday's low to almost $27.00 today. SFUN did pare its gains and the stock closed with a +3.9% gain today.

Please note that I am adjusting our exit target down from $27.25 to $26.85 and I am moving our stop loss up to $23.75.

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

01/02/13 new stop loss @ 23.75, adjust the exit target down to $26.85



Tenneco Inc. - TEN - close: 36.50 change: +1.39

Stop Loss: 33.75
Target(s): 36.85
Current Gain/Loss: +10.1%

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:
01/02/13: TEN has been showing lots of strength this week. The stock surged on Monday and rushed higher again today with a +3.9% gain. I am adjusting our exit target down to $36.85. More aggressive traders may want to aim higher for the $40.00 area instead. We are moving the stop loss up to $33.75. I am not suggesting new positions at this time. Readers may want to go ahead and take profits now.

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

01/02/13 new stop loss @ 33.75, adjust target to $36.85
12/27/12 new stop loss @ 32.90
12/22/12 new stop loss @ 32.45
12/15/12 new stop loss @ $31.85



BEARISH Play Updates

AOL Inc. - AOL - close: 30.29 change: +0.68

Stop Loss: 30.51
Target(s): 25.50
Current Gain/Loss: - 2.5%

Entry on December 31 at $29.55
Listed on December 29, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
01/02/13: Hmm... our new AOL trade could be in trouble. Shares still looked bearish on Monday but today's market rally produced a gap higher in AOL. The stock is now above round-number resistance at $30.00 and above technical resistance at the 200-dma. The high today was $30.50 and our stop is at $30.51. It doesn't get any closer than that.

I am not suggesting new positions at this time.

current Position: short AOL stock @ $29.55



Endo Health Solutions - ENDP - close: 26.37 change: +0.14

Stop Loss: 26.75
Target(s): 20.50
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 29, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: Yes, see below

Comments:
01/02/13: Is ENDP reversing higher? The stock reversed on Monday with a big gain. Today saw ENDP gap open higher. Yet the rally stalled at $26.71. Thus, ENDP remains inside the $25.50-26.70 trading range for now.

Currently I am suggesting a trigger to open bearish positions at $25.40. If triggered our target is $20.50.

Trigger @ 25.40

Suggested Position: short ENDP stock @ (trigger)



Teva Pharmaceuticals - TEVA - close: 37.19 change: -0.15

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:
01/02/13: I have been somewhat worried about TEVA since the stock had not see any follow through lower on Friday or Monday. Today's gap open higher failed at short-term resistance at the 10-dma, which helps reaffirm the stock's down trend. Readers could use today's move as a new bearish entry point.

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



CLOSED BULLISH PLAYS

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

Stop Loss: 32.45
Target(s): 39.00
Current Gain/Loss: - 2.2%

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:
01/02/13: Last week the pullback in CREE was getting worse with breaks below technical support and failed rallies. We decided over the weekend to close positions on Monday morning. CREE opened at $33.01 before bouncing on Monday. Today CREE has rallied back toward its 2012 highs and looks poised to breakout higher.

closed Position: long CREE stock @ $33.75 exit $33.01 (-2.2%)

12/31/12 closed this morning
12/29/12 prepare to exit on Monday morning
12/15/12 new stop loss @ 32.45

chart:



Juniper Networks, Inc. - JNPR - close: 20.55 change: +0.88

Stop Loss: 19.25
Target(s): 23.50
Current Gain/Loss: - 4.5%

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:
01/02/13: JNPR experienced a little volatility on Monday morning and the stock dipped low enough to hit our stop loss at $19.25 on Dec. 31st before bouncing back and closing with a gain. The rally continued today thanks to the market's big move higher. Now JNPR is poised to hit new relative highs. Readers may want to reconsider adding new bullish positions on a rise past $20.75.

Earlier Comments:
The stock can be somewhat volatile so I am suggesting we keep our position size small.

closed Position: Long JNPR stock @ $20.15 exit $19.25 (-4.5%)

12/31/12 stopped out @ $19.25
12/29/12 JNPR looks weak and could hit our stop loss soon.

chart:



Suntech Power - STP - close: 1.60 change: +0.07

Stop Loss: 1.17
Target(s): 1.48
Current Gain/Loss: +33.3%

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:
01/02/13: STP has been a very strong performer in recent days. The stock is up six out of the last seven weeks. Our exit target of $1.48 was hit on Monday, Dec. 31st. Shares continued to rally today and hit a high of $1.70. STP is definitely short-term overbought here. I would wait for a significant correction before considering new positions.

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

*Small Positions*

closed Position: long STP stock @ $1.11 exit $1.48 (+33.3%)

12/31/12 target hit @ 1.48
12/29/12 new stop loss @ 1.17
12/27/12 new stop loss @ $1.09

chart: