Editor's Note:
The U.S. market continued to retreat lower for a third day.

CRL, NXST, and SAVE hit our stop loss.

DLR hit our entry trigger.


Current Portfolio:


BULLISH Play Updates

Comerica Inc. - CMA - close: 45.61 change: +0.26

Stop Loss: 44.40
Target(s): 49.90
Current Gain/Loss: - 1.8%

Entry on November 25 at $45.76
Listed on November 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
12/03/13: The financial sector underperformed the market today and CMA was no exception. Shares broke down below the $45.00 level and almost hit our stop loss before paring its losses. More conservative traders may want to abandon ship right now. I am not suggesting new positions.

current Position: Long CMA stock @ $45.76

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

Long 2014 Jan $45 call (CMA1418a45) entry $1.72*

11/25/13 trade opened on gap higher at $45.76. suggested trigger was $45.65
*option entry price is an estimate since the option did not trade at the time our play was opened.



Brinker Intl. Inc. - EAT - close: 46.77 change: +0.02

Stop Loss: 45.75
Target(s): 49.75
Current Gain/Loss: + 2.2%

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:
12/03/13: EAT gapped down this morning but traders bought the dip twice. Shares managed to bounce back to unchanged by the closing bell. I am not suggesting new positions at this time. More conservative traders with the call options may want to take profits 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*

11/23/13 new stop loss @ 45.75
11/21/13 new stop loss @ 45.40
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.



Evercore Partners - EVR - close: 54.44 change: -0.25

Stop Loss: 52.40
Target(s): 59.00
Current Gain/Loss: + 3.7%

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:
12/03/13: EVR flirted with a breakdown below short-term support at the $54.00 level but managed to bounce back late in the day. 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

11/30/13 new stop loss @ 52.40
11/21/13 new stop loss @ 51.90
11/19/13 new stop loss @ 51.40



Exterran Holdings, Inc. - EXH - close: 32.82 change: +0.13

Stop Loss: 31.90
Target(s): 36.50
Current Gain/Loss: - 1.6%

Entry on November 20 at $33.35
Listed on November 19, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 900 thousand
New Positions: see below

Comments:
12/03/13: EXH displayed a little relative strength today with a +0.39% gain. Shares found support at the rising 20-dma and closed on its high for the session.

current Position: long EXH stock @ $33.35



Gentium S.p.A. - GENT - close: 53.87 change: +1.07

Stop Loss: 49.95
Target(s): 59.00
Current Gain/Loss: + 3.6%

Entry on November 25 at $52.00
Listed on November 23, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 235 thousand
New Positions: see below

Comments:
12/03/13: GENT spent most of the session churning sideways before a late afternoon rally pushed shares to a +2.0% gain. I am not suggesting new positions at current levels.

Earlier Comments:
Regular readers know that I label most biotech stocks as higher-risk, more aggressive trades. We never know when a headline might surface about some approval process or clinical trial that could send the stock gapping lower (or higher). The stock has been volatile this past month. That might be a reflection of GENT's very small float of only 9.23 million shares. We want to keep our position size small to limit our risk.

*small positions*

current Position: long GENT stock @ $52.00

11/30/13 new stop loss @ 49.95



HollyFrontier Corp. - HFC - close: 48.25 change: -0.92

Stop Loss: 45.90
Target(s): 54.00
Current Gain/Loss: + 1.0%

Entry on November 27 at $47.75
Listed on November 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.8 million
New Positions: see below

Comments:
12/03/13: The volatility in HFC stock continues. Shares gapped open higher this morning as the market reacted to news that HFC had been upgraded to a "buy". Traders sold the rally and HFC reversed into a -0.9% decline. I am not suggesting new positions at this time.

Earlier Comments:
FYI: The Point & Figure chart for HFC is bullish with a $60.00 target.

NOTE for option traders: Our option strike changed a few days ago due to HFC's special dividend of 50 cents. Most of HFC's options were adjusted lower by 50 cents on November 26th, 2013. That means our 2014 January $49.50 call became the $49.00 call.

current Position: long HFC stock @ $47.75

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

Long 2014 Jan $49.00 call (HFC1418a49) entry $1.50*

11/27/13 triggered @ 47.75
*option entry price is an estimate since the option did not trade at the time our play was opened.
11/26/13 option strike adjusted down 50 cents from $49.50 to $49.00



Iconix Brand - ICON - close: 39.92 change: -0.21

Stop Loss: 37.90
Target(s): 44.00
Current Gain/Loss: + 1.1%

Entry on November 27 at $39.50
Listed on November 26, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 728 thousand
New Positions: see below

Comments:
12/03/13: ICON found support midday near $39.50 and bounced. Given a little bit more time shares would have probably made it into positive territory. If the market's major indices open positive tomorrow I would be tempted to launch new positions in ICON here.

Earlier Comments:
It is possible that the $40.00 level could be round-number resistance. Therefore more conservative traders may want to wait for ICON to trade over $40.00 before initiating positions. If we are triggered at $39.50 our multi-week target is $44.00.

current Position: long ICON stock @ $39.50



VeriSign, Inc. - VRSN - close: 57.17 change: +0.31

Stop Loss: 55.65
Target(s): 59.50
Current Gain/Loss: +3.5%

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:
12/03/13: VRSN was not immune to the market's widespread profit taking today. Shares gave up -0.89%. I am not suggesting new positions at this time.


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

12/02/13 new stop loss @ 55.65
11/30/13 new stop loss @ 54.90
11/23/13 new stop loss @ 54.40



BEARISH Play Updates

Best Buy Co. - BBY - close: 42.00 change: +0.92

Stop Loss: 42.25
Target(s): 35.25
Current Gain/Loss: - 2.8%

Entry on December 03 at $40.84
Listed on November 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.3 million
New Positions: Yes, see below

Comments:
12/03/13: The rally in BBY is perplexing. Shares should be sinking. ShopperTrak came out with some new data on the four-day Black Friday shopping weekend. According to their research overall retail traffic was down -4.0% compared to last year. If that wasn't bad enough traffic for electronics stores was down -6.5%. So why are shares of BBY climbing? Not only that but BBY was outperforming the rest of the market today. Shares ended the session right at the $42.00 level and its 30-dma. If there is any follow through higher tomorrow BBY will likely hit our stop loss at $42.25. I am not suggesting new positions.

Earlier Comments:
The plan was to use small positions to limit our risk.

*small positions*

current Position: short BBY stock @ $40.84

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

Long 2014 Jan $40 PUT (BBY1418m40) entry $1.97

12/03/13 trade opens. BBY @ $40.84
12/02/13 strategy change. Instead of a trigger, launch bearish positions at the opening bell tomorrow. Use a new stop loss at $42.25.



Digital Realty Trust Inc. - DLR - close: 44.53 change: -1.40

Stop Loss: 47.25
Target(s): 40.25
Current Gain/Loss: + 0.8%

Entry on December 03 at $44.90
Listed on December 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
12/03/13: The weakness in DLR continued on Tuesday. The stock gapped open lower at $44.98 and then spiked down to $43.04 before paring its losses. The weakness today was due to headlines from Google (GOOG). I mentioned yesterday that DLR was focused on tech-related real estate. A lot of their business is data centers and the associated businesses with them. GOOG came out today and said they were cutting their prices on GOOG's cloud computing services. This put pressure on a lot of cloud computing and data-center focused stocks.

Our trigger to open bearish positions was hit early this morning at $44.90.

Earlier Comments:
I do consider DLR a more aggressive trade because there are already a lot of shorts. The most recent data listed short interest at 25% of the 128 million share float. Readers may want to try and limit their risk and buy puts options instead of shorting DLR stock.

Our target is $40.25. More aggressive traders may want to aim lower since the point & figure chart is bearish with a $33 target.

*small positions*

current Position: short DLR stock @ $44.90

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

Long 2014 Jan $45 PUT (DLR1418m45) entry $2.20



CLOSED BULLISH PLAYS

Charles River Labs Intl. - CRL - close: 51.65 change: -0.42

Stop Loss: 51.40
Target(s): 55.00
Current Gain/Loss: - 0.2%

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:
12/03/13: After yesterday's intraday reversal lower the profit taking continued today. CRL broke down below its 10-dma and hit our new stop loss at $51.40 (exactly).

Our plan was to keep our position size small to limit our risk.

*small positions*

closed Position: long CRL stock @ $51.50 exit $51.40 (-0.2%)

12/03/13 stopped out
12/02/13 new stop loss @ 51.40
11/30/13 new stop loss @ 50.75
11/20/13 new stop loss @ 49.90

chart:



Nexstar Broadcasting Group - NXST - close: 47.74 change: -0.44

Stop Loss: 47.75
Target(s): 57.50
Current Gain/Loss: -5.4%

Entry on December 02 at $50.50
Listed on November 30, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 430 thousand
New Positions: see below

Comments:
12/03/13: NXST is definitely not cooperating. Shares underperformed the major indices with a -0.9% decline. It's unfortunate that NXST rallied just enough yesterday to hit our entry trigger. Today shares hit our stop loss at $47.75.

closed Position: long NXST stock @ $50.50 exit $47.75 (-5.4%)

12/03/13 stopped out
12/02/13 triggered at $50.50

chart:



Spirit Airlines, Inc. - SAVE - close: 44.58 change: -0.66

Stop Loss: 44.75
Target(s): 54.00
Current Gain/Loss: -4.5%

Entry on November 29 at $46.84
Listed on November 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 929 thousand
New Positions: see below

Comments:
12/03/13: A big bounce in oil prices today may have pressured the airline stocks. The XAL airline index is down three days in a row and accelerated with a -2.1% drop today. SAVE is also down three days in a row. Shares fell to $43.52 before paring their losses. Our stop loss was hit early this morning at $44.75.

closed Position: long SAVE stock @ $46.84 exit $44.75 (-4.5%)

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

2014 Jan $50 call (SAVE1418a50) entry $1.15 exit $0.35* (-69.5%)

12/03/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
11/29/13 trade opened on gap higher at $46.84
suggested entry trigger was $46.75

chart: