Editor's Note:
Is it time for traders to take profits? The U.S. market didn't see much follow through on yesterday's rally. Readers might want to consider taking profits now on some of our bullish trades.

FYI: Our LEN and P trades were triggered. AOL was stopped out.

Current Portfolio:


BULLISH Play Updates

Banner Corp. - BANR - close: 31.24 change: +0.09

Stop Loss: 29.40
Target(s): 34.00
Current Gain/Loss: + 2.5%

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:
01/03/13: The slow drift higher in BANR continues. Shares managed a +0.2% 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: 46.44 change: +0.39

Stop Loss: 44.40
Target(s): 47.00
Current Gain/Loss: + 5.9%

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:
01/03/13: BLL displayed some relative strength today with a +0.8% gain and a new multi-year high. Readers may want to start taking profits now. 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: 33.80 change: +0.34

Stop Loss: 31.25
Target(s): 35.75
Current Gain/Loss: + 4.0%

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:
01/03/13: DNKN rallied to a new five-month high midday before paring its gains. Shares still produced a +1.0% gain for the session. 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



Lennar Corp. - LEN - close: 39.91 change: +0.03

Stop Loss: 38.40
Target(s): 44.50
Current Gain/Loss: - 0.6%

Entry on January 03 at $40.15
Listed on January 02, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.0 million
New Positions: see below

Comments:
01/03/13: Today was not the most convincing rally from LEN. The stock broke through major resistance at $40.00 and rallied to $40.82 before reversing course and giving it all back. Our trigger was hit at $40.15. However, I would not launch new positions with LEN below the $40.00 mark. At the moment today is potentially a bull-trap pattern.

*Small Positions*

current Position: Long LEN stock @ $40.15

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

Long Feb $40 call (LEN1316B40) entry $1.95



Pandora Media - P - close: 10.00 change: +0.51

Stop Loss: 8.95
Target(s): 10.75
Current Gain/Loss: + 4.2%

Entry on January 03 at $9.60
Listed on January 02, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 5.8 million
New Positions: see below

Comments:
01/03/13: Our new Pandora play is off to an impressive start. Shares hovered under resistance near $9.50 for about an hour this morning. Then shares broke free and rushed past its 200-dma to stalled at round-number resistance near the $10.00 mark. Our trigger to enter bullish positions was hit at $9.60.

Earlier Comments:
Please note that I do consider this an aggressive, higher risk trade. Not only is P a somewhat volatile stock but in addition to resistance at $9.50 there is also potential resistance at the 200-dma (near 9.65), the exponential 200-dma (near $10.00) and the $10.00 level itself. If Pandora is able to breakout it could spark a short squeeze. The most recent data listed short interest at 60% of the 110.9 million-share float.

*Small Positions*

current Position: Long P stock @ $9.60



SouFun Holdings - SFUN - close: 26.50 change: +0.51

Stop Loss: 23.75
Target(s): 26.85
Current Gain/Loss: + 9.5%

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:
01/03/13: SFUN is also showing relative strength. Traders bought the dip this morning and the stock rallied to a +1.9% gain. Readers may want to raise their stops again. The high today was $26.79. Our exit target is currently $26.85. More aggressive traders may want to aim higher.

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: 36.20 change: -0.30

Stop Loss: 33.75
Target(s): 36.85
Current Gain/Loss: + 9.2%

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:
01/03/13: TEN came super close to hitting our exit target. The high today was $36.82. Our exit target is $36.85. More conservative traders may want to just exit now and lock in a profit. 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

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

Endo Health Solutions - ENDP - close: 26.25 change: -0.12

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:
01/03/13: The first half of the day was pretty quiet. ENDP started showing some volatility in the last few hours. There is no change from my prior comments. we are waiting for a breakdown.

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: 37.63 change: +0.44

Stop Loss: 38.05
Target(s): 35.10
Current Gain/Loss: - 1.2%

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:
01/03/13: Just before the opening bell this morning TEVA announced it was launching its ProAir(r) HFA asthma inhaler, which now comes with a dose counter. This news may have produced the rebound in TEVA today. The stock outperformed with a +1.1% gain. Yet TEVA remains below resistance near $38.00. I am not suggesting new positions at this time.

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 BEARISH PLAYS

AOL Inc. - AOL - close: 30.15 change: -0.14

Stop Loss: 30.51
Target(s): 25.50
Current Gain/Loss: - 3.2%

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:
01/03/13: Our AOL trade has been stopped out at $30.51. I cautioned readers yesterday that our trade was in trouble with the breakout above $30.00.

closed Position: short AOL stock @ $29.55 exit $30.51 (-3.2%)

01/03/13 stopped out at $30.51

chart: