Editor's Note:
The major U.S. stock indices continued to slip on Tuesday as traders waited for the Q4 earnings season to start.

Our BANR trade has been closed. ENDP was stopped out.

Current Portfolio:


BULLISH Play Updates

Advanced Micro Devices - AMD - close: 2.67 change: +0.00

Stop Loss: 2.39
Target(s): 3.25
Current Gain/Loss: + 0.8%

Entry on January 07 at $2.65
Listed on January 05, 2012
Time Frame: to be determined
Average Daily Volume = 21.2 million
New Positions: Yes, see below

Comments:
01/08/13: AMD tagged a new multi-week high at $2.76 before paring its gains to settle unchanged on the session. I suspect we could see AMD dip back toward the $2.60 level again.

Earlier Comments:
It looks like AMD has finally found a bottom and all the selling has been exhausted. The stock could see a short squeeze. The most recent data listed short interest at almost 20% of the float.

Please note that this is a higher-risk, more aggressive trade. The 100-dma and the $3.00 level could prove to be resistance for this stock. I am suggesting readers keep their position size small. Don't go overboard just because the share price is cheap.

Keep in mind that normally we do not hold over a company's earnings report. Right now AMD is scheduled to report on January 22nd. If we choose to exit it could definitely limit how much time we have for this trade to work.

*Small Positions*

current Position: long AMD stock @ $2.65



Alpha Natural Resources - ANR - close: 10.30 change: -0.30

Stop Loss: 9.39
Target(s): 12.50
Current Gain/Loss: - 0.5%

Entry on January 04 at $10.35
Listed on January 03, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 16.2 million
New Positions: see below

Comments:
01/08/13: After a three-day rally ANR hit some profit taking today with a -2.8% decline. Traders did buy the dip near round-number support at $10.00. Readers can use this pullback as a new entry point.

Earlier Comments:
ANR could see a short squeeze. The most recent data listed short interest at 20% of the 218 million share float. This bullish breakout past resistance near $10.00 could inspire some short covering. Plus, the point & figure chart is bullish and suggesting a $16 target. Our target is $12.50. More aggressive traders could aim higher.

current Position: Long ANR stock @ $10.35

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

Long Mar $12 call (ANR1316c12) entry $0.53



Ball Corp. - BLL - close: 45.41 change: -0.68

Stop Loss: 44.40
Target(s): 48.40
Current Gain/Loss: + 3.6%

Entry on November 06 at $43.85
Listed on November 3, 2012
Time Frame: exit prior to earnings on Jan. 31st
Average Daily Volume = 687 thousand
New Positions: see below

Comments:
01/08/13: Ouch! An analyst downgrade pushed BLL to gap open lower and close with a -1.4% decline. The stock is hovering about what should be support near $45.00. Readers might want to raise their stops closer to the $45.00 level. I am not suggesting new positions at this time.

Please note that we do want to exit prior to the earnings report on January 31st.

current Position: Long BLL stock @ $43.85

01/05/13 adjusting the exit target to $48.40
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



Ctrip.com Intl. - CTRP - close: 23.36 change: -0.34

Stop Loss: 22.75
Target(s): 27.00
Current Gain/Loss: - 2.4%

Entry on January 07 at $23.93
Listed on January 05, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.1 million
New Positions: see below

Comments:
01/08/13: CTRP followed the market lower and ended the session with a -1.4% decline. Readers may want to wait for a new bounce off the simple 10-dma before considering new bullish positions. Or you could wait for a new rise past $24.00 as an entry point.

Earlier Comments:
CTRP could see another short squeeze. The most recent data listed short interest at 16% of the float. We do want to keep our position size small to limit our risk.

*Small Positions*

current Position: Long CTRP stock @ $23.93

01/07/13 trade opened on gap higher at $23.93. trigger was 23.85



Dunkin' Brand Group - DNKN - close: 34.11 change: -0.28

Stop Loss: 32.25
Target(s): 35.75
Current Gain/Loss: + 5.0%

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:
01/08/13: DNKN garnered some bullish analyst comments today but that failed to stop some profit taking. The stock pulled back -0.8% to hover near the $34.00 level. I am not suggesting new positions at this time.

FYI: DNKN will be presenting at an analyst conference on Wednesday, January 16th.

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

01/07/13 new stop loss @ 32.25
01/05/13 new stop loss @ 31.90
12/24/12 triggered @ $32.50



Coal ETF - KOL - close: 25.91 change: -0.42

Stop Loss: 24.40
Target(s): 29.85
Current Gain/Loss: - 0.7%

Entry on January 08 at $26.10
Listed on January 07, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 190 thousand
New Positions: see below

Comments:
01/08/13: After a three-day rally the KOL hit some profit taking with a -1.59% pullback. Shares of this ETF opened at $26.10. Readers may want to wait for a new bounce off $25.50 or a new rise past $26.50 as alternative entry points.

Our multi-week target is $29.85. More aggressive traders may want to aim higher. FYI: The Point & Figure chart for KOL is bullish with a $35.00 target.

Suggested Position: Long the KOL (etf) @ $26.10

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

Long APR $27 call (KOL1320D27) entry $1.03



Lennar Corp. - LEN - close: 41.17 change: -0.05

Stop Loss: 38.40
Target(s): 44.50
Current Gain/Loss: + 2.5%

Entry on January 03 at $40.15
Listed on January 02, 2012
Time Frame: exit before the Jan. 15th earnings report
Average Daily Volume = 4.0 million
New Positions: see below

Comments:
01/08/13: LEN tagged a new 52-week high on an intraday basis but closed virtually unchanged on the session. If the market continues to dip I would expect LEN to retest the $40.00 level.

NOTE: Our time frame for this trade has changed significantly! It looks like LEN is scheduled to report earnings on January 15th. We normally do not like holding over an earnings report.

*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: 10.14 change: -0.36

Stop Loss: 9.40
Target(s): 11.25
Current Gain/Loss: + 5.6%

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:
01/08/13: Uh-oh! Pandora underperformed the market with a -3.4% decline. Furthermore today's pullback has created a bearish engulfing candlestick reversal pattern. At the moment P is still above what could be round-number, psychological support at the $10.00 mark. If that fails then it's likely a drop back toward the $9.50 level. I am not suggesting new positions at this time.

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

01/05/13 new stop loss @ 9.40, adjust exit target to $11.25



Tenneco Inc. - TEN - close: 35.34 change: +0.42

Stop Loss: 33.75
Target(s): 36.85
Current Gain/Loss: + 6.6%

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:
01/08/13: Traders bought the dip at technical support on the 10-dma (again). TEN managed to outperform the market with a +1.2% gain. More conservative traders may want to exit now. 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


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

Banner Corp. - BANR - close: 31.40 change: +0.78

Stop Loss: 29.70
Target(s): 34.00
Current Gain/Loss: + 0.1%

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:
01/08/13: Sometimes the trading gods are a little bit sadistic. After patiently waiting for BANR to show strength day after day after day, we finally decide to give up because the stock isn't moving enough. Last night we decided to close our BANR position at the open this morning. Shares open at $30.52 and then rally to its biggest one-day gain in weeks.

*Small Positions*

closed Position: Long BANR stock @ $30.49 exit $30.52

01/08/13 scheduled exit
01/07/13 plan to exit at the open tomorrow morning
01/05/13 new stop loss @ 29.70
12/15/12 new stop loss @ 29.40
11/21/12 out trade opened on the gap higher.

chart:



CLOSED BEARISH PLAYS

Endo Health Solutions - ENDP - close: 26.67 change: +0.71

Stop Loss: 26.75
Target(s): 20.50
Current Gain/Loss: - 5.4%

Entry on January 04 at $25.39
Listed on December 29, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
01/08/13: The reversal in ENDP continued for a second day. Our play was triggered on Friday's bearish breakdown to new multi-year lows and below support at $25.50. Unfortunately there was no follow through and ENDP immediately reversed on Monday. The rebound continued today and ENDP hit our stop loss at $26.75.

closed Position: short ENDP stock @ $25.39 exit $26.75 (-5.4%)

01/08/13 stopped out
01/04/13 trade opened on gap down at $25.39. trigger was $25.40

chart: