Editor's Note:
The S&P 500 snapped a five-day losing streak with a big bounce on Friday. The bounce was so big it came close to erasing the entire five-day decline.

We want to exit our EXH trade on Monday morning.


Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 46.42 change: +0.48

Stop Loss: 44.90
Target(s): 50.00
Current Gain/Loss: - 0.3%

Entry on December 05 at $46.55
Listed on December 04, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.0 million
New Positions: see below

Comments:
12/07/13: ADSK gapped open higher on Friday but spent the rest of the session drifting sideways. Shares managed a +1.0% gain and a new 52-week closing high.

Our short-term target is $50.00. More aggressive investors may want to aim higher.
FYI: The Point & Figure chart for ADSK is bullish with a $56.00 target.

current Position: long ADSK stock @ $46.55

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

Long 2014 Jan $47 call (ADSK1418a47) entry $1.35

chart:



Comerica Inc. - CMA - close: 45.85 change: +0.89

Stop Loss: 44.40
Target(s): 49.90
Current Gain/Loss: + 0.2%

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:
12/07/13: The financial sector was one of the market's best performers on Friday. CMA managed to outperform its peers with a +1.9% gain. The stock is once again near short-term resistance near the $46.00 level. A breakout past $46.00 could be used as a new bullish entry point.

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.

chart:



Exterran Holdings, Inc. - EXH - close: 32.15 change: -0.42

Stop Loss: 31.90
Target(s): 36.50
Current Gain/Loss: - 3.6%

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:
12/07/13: Warning! EXH has almost completely erased its recent bounce from support near $32.00. Friday's move looks like a bearish reversal and shares are once again poised to test and possibly breakdown below the $32.00 mark. We are suggesting an immediate exit on Monday morning.

current Position: long EXH stock @ $33.35

12/07/13 prepare to exit on Monday morning

chart:



Gentium S.p.A. - GENT - close: 50.82 change: -1.22

Stop Loss: 49.95
Target(s): 59.00
Current Gain/Loss: - 2.3%

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:
12/07/13: Hmm... GENT did not participate in the market's widespread bounce on Friday. That is a potential warning signal. The stock underperformed with a -2.3% drop back toward support near $50.00. The combination of GENT's pullback from its Monday, December 2nd highs and its closing on its lows on Friday has created a bearish engulfing candlestick reversal pattern on GENT's weekly chart. More conservative traders will want to seriously consider an early exit immediately. 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

12/07/13 GENT's performance on Friday is a potential warning.
investors may want to exit now to avoid or limit their losses
11/30/13 new stop loss @ 49.95

chart:




Iconix Brand - ICON - close: 39.46 change: -0.33

Stop Loss: 38.45
Target(s): 44.00
Current Gain/Loss: - 0.1%

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:
12/07/13: ICON's performance on Friday was not very inspiring. The stock spiked higher at the open but almost immediately reversed. Shares underperformed the market with a -0.8% decline. The lack of participation in the market's rally on Friday is a potential warning signal. I am not suggesting new positions at this time.

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

12/05/13 new stop loss @ $38.45

chart:



Isis Pharmaceuticals - ISIS - close: 39.12 change: -0.13

Stop Loss: 37.65
Target(s): 47.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 05, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Comments:
12/07/13: ISIS' performance on Friday was a surprise. Instead of spiking higher at the open like most of the market shares spiked lower. Traders bought the dip near short-term support around the $38 level and its 10-dma. Yet ISIS was unable to bounce back into positive territory in spite of the market's bullish session. Friday's action makes me cautious but our plan is unchanged. If shares can breakout past round-number resistance at $40.00 the stock might see another sprint higher.

I am suggesting small bullish positions if ISIS can trade at $40.25. If triggered our target is $47.50.

Biotech Stock Warning
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). We want to keep our position size small to limit our risk. If options are available then investors may want to buy an option to limit your risk to the cost of the option.

Trigger @ 40.25

Suggested Position: buy ISIS stock @ (trigger)

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

buy the 2014 Jan $42 call (ISIS1418a42) current ask $2.10

chart:



Voxeljet AG - VJET - close: 40.45 change: -1.45

Stop Loss: 39.25
Target(s): 54.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 03, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: Yes, see below

Comments:
12/07/13: Friday proved to be a disappointing session for VJET. Both the German stock market and the U.S. stock market posted gains. Yet shares of VJET underperformed them both with a -3.4% decline. VJET dipped down to $39.50 intraday before settling back above round-number support at $40.00.

Currently we are still on the sidelines waiting for a new relative high. I am suggesting a trigger to open small bullish positions at $44.00. We considered removing VJET as an active candidate tonight given its relative weakness on Friday but we're willing to give the stock another day to recover. I will adjust the stop loss from $37.75 to $39.25 (if triggered).

Earlier Comments:
VJET is involved in the growing 3-D printing industry. Before I go any further I want to warn you that VJET has been a very, very volatile stock. The month of November saw VJET surge from $35 to $70 and back again to $35.

If you are interested in the 3-D printing industry you could also look at stocks like DDD, SSYS, and XONE. These are also volatile stocks but not quite as volatile as VJET. I would consider all of them, including VJET, to be higher-risk, more aggressive trades.

Right now 3-D printing is a hot topic and there is already speculation that these companies could be takeover targets. Of the four listed above, VJET has the small market cap at $675 million.

Tuesday's high was $43.85. I am suggesting a trigger to open small bullish positions at $44.00. Our target is $54.50.

Trigger @ $44.00 *small positions*

Suggested Position: buy VJET stock @ (trigger)

chart:



VeriSign, Inc. - VRSN - close: 57.20 change: +0.31

Stop Loss: 55.95
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:
12/07/13: VRSN spiked to a new multi-year high on Friday morning but shares pared their gains by the closing bell. I am adjusting our stop loss to $55.95. 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

12/07/13 new stop loss @ 55.95
12/02/13 new stop loss @ 55.65
11/30/13 new stop loss @ 54.90
11/23/13 new stop loss @ 54.40

chart:



BEARISH Play Updates

Digital Realty Trust Inc. - DLR - close: 46.01 change: -0.28

Stop Loss: 47.25
Target(s): 40.25
Current Gain/Loss: - 2.5%

Entry on December 03 at $44.90
Listed on December 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
12/07/13: After a two-day bounce DLR almost hit our stop loss with Friday's spike higher. The stock's rally stalled below the $47.00 level. I am not suggesting new positions at this time.

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

chart: