Editor's Note:
The major indices all reversed from their morning highs. Today's session has created a lot of bearish engulfing candlestick reversal patterns in the market. Will there be any follow through lower or will investors jump in to buy the dip again?

ANIK hit our entry trigger.


Current Portfolio:


BULLISH Play Updates

Anika Therapeutics - ANIK - close: 31.00 change: -0.25

Stop Loss: 29.75
Target(s): 38.00
Current Gain/Loss: - 3.3%

Entry on November 18 at $32.05
Listed on November 12, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 275 thousand
New Positions: see below

Comments:
11/18/13: I am urging caution on our ANIK trade. The stock shot higher this morning but failed to hold its gains. The move above $32.00 did hit our suggested entry point at $32.05. Unfortunately the market's widespread plunge this afternoon pulled ANIK back down toward short-term support at its 10-dma. More conservative traders may want to raise their stops. I am not suggesting new positions at this time.

Earlier Comments:
I do consider biotech stocks to be higher-risk, more aggressive trades. We never know when a headline about some clinical trial or FDA approval process could spark a big gap down or gap higher in the stock. I am suggesting small positions to limit our risk.

*small positions*

current Position: long ANIK stock @ $32.05



CBOE holdings - CBOE - close: 51.13 change: -0.45

Stop Loss: 49.25
Target(s): 57.50
Current Gain/Loss: - 1.2%

Entry on November 11 at $51.75
Listed on November 09, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 530 thousand
New Positions: see below

Comments:
11/18/13: CBOE underperformed the major indices with a -0.8% decline. The next challenge for the bullish is pushing through its prior highs near $52.00.

current Position: long CBOE stock @ $51.75

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

Long 2014 Jan $50 call (CBOE1418a50) entry $2.85



Cliffs Natural Resources - CLF - close: 27.50 change: -0.01

Stop Loss: 25.85
Target(s): 34.00
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on November 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 9.2 million
New Positions: Yes, see below

Comments:
11/18/13: CLF delivered a relatively quiet days. Shares didn't really participate in the market's afternoon decline. I don't see any changes from my weekend new play comments.

I am suggesting a trigger to launch bullish positions at $28.00. If triggered our target is $34.00. More aggressive investors could aim higher. The Point & Figure chart for CLF is bullish with a $45.00 target.

If it possible that the $30.00 level could prove to be round-number resistance. Don't be surprised to see a pullback there.

Trigger @ 28.00

Suggested Position: buy CLF stock @ (trigger)

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

buy the 2014 Jan $30 call (CLF1418a30)



Charles River Labs Intl. - CRL - close: 51.10 change: -0.63

Stop Loss: 49.40
Target(s): 55.00
Current Gain/Loss: - 0.8%

Entry on November 14 at $51.50
Listed on November 13, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 418 thousand
New Positions: see below

Comments:
11/18/13: CRL hit some profit taking today. Shares were fading lower all day long and today's session has created a bearish engulfing candlestick reversal pattern. If shares don't bounce at their 10-dma (near 50.70) then look for a drop to $50.00.

Our plan was to keep our position size small to limit our risk. FYI: The Point & Figure chart for CRL is bullish with a $58.00 target.

*small positions*

current Position: long CRL stock @ $51.50



Brinker Intl. Inc. - EAT - close: 45.74 change: -0.27

Stop Loss: 44.75
Target(s): 49.75
Current Gain/Loss: + 0.0%

Entry on November 06 at $45.75
Listed on November 05, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.4 million
New Positions: see below

Comments:
11/18/13: EAT's early morning gains faded but shares still managed to hold support at its rising 10-dma. Unfortunately I am concerned that this time the 10-dma won't hold on much longer. I am inching our stop loss up to $44.95. More conservative investors may want to raise their stop even higher. If you're holding the 2014 calls I would consider an early exit now.

Earlier Comments:
The latest data listed short interest at 10% of the 65.5 million share float. If this rally continues it could spark some short covering. Our target is $49.75. More aggressive traders could aim higher. The Point & Figure chart for EAT is bullish with a $67.50 target.

I want to urge a little caution if you plan to use the call options. EAT's January options have some relatively wide spreads. The 2014 January $45s seem to be the exception for now but that doesn't mean the spread will stay this narrow (it could get worse).

current Position: long EAT stock @ $45.75

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

Long 2014 Jan $45 call (EAT1418a45) entry $1.70*

11/18/13 new stop loss @ 44.95
11/13/13 new stop loss @ 44.75
*option entry price is an estimate since the option did not trade at the time our play was opened.



eHealth, Inc. - EHTH - close: 43.66 change: -1.93

Stop Loss: 43.75
Target(s): 49.75
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on November 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 427 thousand
New Positions: Yes, see below

Comments:
11/18/13: EHTH started the day on a down note. Shares plunged to short-term support near $44.00 and traded there most of the day. Then EHTH finally caved in below the $44 level in the last hour. Even with a -4.2% decline today the larger trend is still a bullish one. That could change if we see EHTH close below its rising 20-dma (currently near 42.50). At the moment we are on the sidelines with a suggested trigger at $46.25. We will probably re-evaluate our entry point strategy tomorrow night.

We do want to keep our position size small to limit our risk.

Trigger @ 46.25

Suggested Position: buy EHTH stock @ (trigger)



Evercore Partners - EVR - close: 52.81 change: +0.20

Stop Loss: 49.95
Target(s): 59.00
Current Gain/Loss: + 0.6%

Entry on November 07 at $52.50
Listed on November 06, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 439 thousand
New Positions: see below

Comments:
11/18/13: Shares of EVR surged higher late this morning. I couldn't find any news to explain the rally. The advance ran out of steam near resistance at $54.00. EVR gave back almost all of its gains, which is not a very bullish signal for tomorrow's trading. I am not suggesting new positions at this time.

Our multi-week target is $59.00. More aggressive investors could aim higher since the Point & Figure chart for EVR is bullish with a $69 target.

current Position: Long EVR stock @ $52.50



Five Below, Inc. - FIVE - close: 52.67 change: -1.66

Stop Loss: 51.45
Target(s): 58.50
Current Gain/Loss: + 0.8%

Entry on November 12 at $52.25
Listed on November 11, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 694 thousand
New Positions: see below

Comments:
11/18/13: Monday proved to be a volatile day for FIVE. Shares tagged new highs this morning and then plunged toward its 10-dma and the $52.00 level. From its high to its low FIVE slid -5.9% before bouncing. Technically today's session has created a bearish engulfing candlestick reversal pattern. More conservative traders may want to tighten their stop loss.

Earlier Comments:
There are plenty of investors who believe FIVE's valuation is too rich. That has led to a rise in short interest. The most recent data listed short interest at 19% of the 46.6 million share float. If FIVE continues to rally it could see a lot more short covering. The recent breakout past round-number resistance at $50.00 should have the bears in a panic. The Point & Figure chart for FIVE is bullish with a $68.00 target.

current Position: long FIVE stock @ $52.25

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

Long DEC $55 call (FIVE1322L55) entry $1.91

11/16/13 new stop loss @ 51.45



Halliburton Co. - HAL - close: 54.33 change: -1.90

Stop Loss: 53.65
Target(s): 57.50
Current Gain/Loss: + 0.3%

Entry on November 06 at $54.15
Listed on November 04, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.8 million
New Positions: see below

Comments:
11/18/13: Shares of HAL garnered a downgrade this morning. That helped kick off a day long slide that shaved off -3.3%. If this sell off continues we could see HAL hit our stop at $53.65 tomorrow. I am not suggesting new positions at this time.

Earlier Comments:
Currently our target is $57.50 but we're debating whether to raise that target to $59.50. The Point & Figure chart for HAL is bullish with a $62.00 target.

current Position: long HAL stock @ $54.15

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

Long 2014 Jan $55 call (HAL1418a55) entry $1.78

11/14/13 new stop loss @ 53.65
11/13/13 new stop loss @ 53.25



VeriSign, Inc. - VRSN - close: 55.65 change: -0.16

Stop Loss: 53.75
Target(s): 59.50
Current Gain/Loss: +0.4%

Entry on November 14 at $55.25
Listed on November 13, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
11/18/13: VRSN held up reasonably well most of the session but eventually closed on its lows as it followed the market lower. Today's session is technically a bearish engulfing candlestick reversal pattern. I cautioned readers over the weekend to look for a dip toward $55.00, which should be support.


FYI: The Point & Figure chart for VRSN is bullish with a long-term $76.00 target.

current Position: long VRSN stock @ $55.25

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

Long 2014 Jan $55 call (VRSN1418a55) entry $2.01



Consumer Staples ETF - XLP - close: 43.20 change: -0.14

Stop Loss: 41.65
Target(s): 47.50
Current Gain/Loss: + 1.0%

Entry on October 29 at $42.75
Listed on October 28, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 7.0 million
New Positions: see below

Comments:
11/18/13: The XLP really didn't see that much profit taking today. Yet technically today's session has created a bearish engulfing candlestick reversal pattern. On a short-term basis I would look for possible support at $43.00 and $42.50.

current Position: long the XLP @ $42.75

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

Long 2014 Jan $43 call (XLP1418a43) entry $0.71*

11/16/13 new stop loss @ 41.95
11/06/13 new stop loss @ 41.65
10/30/13 FYI: today's session has created a bearish reversal pattern. Look for a dip back toward $42.00.
*option entry price is an estimate since the option did not trade at the time our play was opened.



BEARISH Play Updates


None. We do not have any active bearish trades.