Editor's Note:
The U.S. market slowly sank lower on Tuesday's session with the small cap Russell 2000 index underperforming.

FNP hit our entry trigger. We want to exit our DLR trade tomorrow morning.


Current Portfolio:


BULLISH Play Updates

Archer Daniels Midland - ADM - close: 42.36 change: -0.12

Stop Loss: 40.85
Target(s): 47.00
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 09, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.8 million
New Positions: Yes, see below

Comments:
12/10/13: ADM held up reasonably well today. Traders quickly bought the spike down this morning but the rally failed near yesterday's high around $42.50. I don't see any changes from my earlier comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $42.65. If triggered our target is $47.00. More aggressive traders may want to aim higher since the Point & Figure chart for ADM is bullish with a $67.00 target.

Please note that traders in ADM should be aware that any stocks related to the farming industry could be volatile this week. The current U.S. government farm bill is due to expire on January 1st, 2014. Right now the democrats and republicans have not agreed on a new one. Congress plans to adjourn for their Christmas break after this Friday, December 13th. Investors may want to use small positions to limit their risk.

Trigger @ 42.65

Suggested Position: buy ADM stock @ (trigger)

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

Buy the 2014 Jan $42 call (ADM1418a42) current ask $1.90



Autodesk, Inc. - ADSK - close: 46.79 change: +0.01

Stop Loss: 44.90
Target(s): 50.00
Current Gain/Loss: + 0.5%

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:
12/10/13: ADSK also rebounded off its morning lows. The stock managed to climb all the way back and tag a new high before closing virtually unchanged.

The broader market looks a little weak. I would hesitate to launch new positions here.

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



CareFusion Corp. - CFN - close: 39.47 change: -0.77

Stop Loss: 38.90
Target(s): 44.00
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 09, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.35 million
New Positions: Yes, see below

Comments:
12/10/13: CFN did not see any follow through on yesterday's rally. The stock opened lower and continued to sink all day long, closing on its lows for the session. We are currently on the sidelines.

I am suggesting a trigger to open bullish positions at $40.50. If triggered our multi-week target is $44.00.

Trigger @ 40.50

Suggested Position: buy CFN stock @ (trigger)



Comerica Inc. - CMA - close: 45.76 change: -0.31

Stop Loss: 44.40
Target(s): 49.90
Current Gain/Loss: + 0.0%

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:
12/10/13: The morning rally in CMA faded and shares closed right where we started this trade at $45.76. Today's high was $46.25. Readers may want to wait for CMA to rally above this level before initiating 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.



Fifth & Pacific Companies, Inc. - FNP - close: 32.91 change: -0.21

Stop Loss: 31.99
Target(s): 38.50
Current Gain/Loss: - 3.3%

Entry on December 10 at $34.05
Listed on December 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
12/10/13: It was a bit of a volatile day for FNP. Shares spiked down to hit its low for the day at $32.80 and then immediately shot higher and traded above $34.00 all within the first two and a half hours of trading. Unfortunately FNP reversed again and closed with a loss on the session.

The volatility might have been a reaction to news out this morning that FNP was selling its Lucky Brand denim business. That really should not have been a surprise since it was widely expected. That leaves FNP with its last major business the Kate Spade brand. Many believe that Kate Spade is also a takeover/acquisition target.

Our bullish trade was triggered at $34.05 this morning. Unfortunately the sharp pullback has produced a bearish engulfing candlestick reversal pattern. More conservative traders may want to immediately raise their stop loss. I would wait for a new relative high (above $34.10) before initiating new positions.

Earlier Comments:
We want to keep our position size small to limit our risk.

NOTE: I am listing the 2014 January call but if you're an option trader you may want to use the April calls instead.

*small positions*

current Position: long FNP stock @ $34.05

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

Long 2014 Jan $35 call (FNP1418a35) entry $1.15*

*option entry price is an estimate since the option did not trade at the time our play was opened.




Iconix Brand - ICON - close: 39.35 change: -0.18

Stop Loss: 38.45
Target(s): 44.00
Current Gain/Loss: - 0.4%

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:
12/10/13: ICON tested short-term support near $39.00 this afternoon. 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



Isis Pharmaceuticals - ISIS - close: 37.76 change: -0.64

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:
12/10/13: It was not a good day for ISIS. The stock underperformed the broader market with a -1.6% decline and a breakdown below the bottom of its $38-40 trading range. If shares do not recover tomorrow then we will likely remove ISIS as an active candidate.

Earlier Comments:
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)



VeriSign, Inc. - VRSN - close: 57.34 change: +0.57

Stop Loss: 55.95
Target(s): 59.50
Current Gain/Loss: +3.8%

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:
12/10/13: VRSN displayed some relative strength tonight with a +1.0% gain and a new multi-year closing high. Keep in mind that we have less than six weeks before our 2014 January calls expire. Currently the calls closed with a bid at $2.82.

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



BEARISH Play Updates

Digital Realty Trust Inc. - DLR - close: 46.74 change: +1.11

Stop Loss: 47.25
Target(s): 40.25
Current Gain/Loss: - 4.1%

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:
12/10/13: DLR is not cooperating. Friday's intraday pullback looked like a new lower high. Yet today saw DLR outperform the market with a +2.4% surge higher. We are suggesting an immediate exit tomorrow morning.

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.

*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

12/10/13 prepare to exit tomorrow morning



CGI Group, Inc. - GIB - close: $34.98 change: +1.23

Stop Loss: 35.25
Target(s): 28.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 327 thousand
New Positions: Yes, see below

Comments:
12/10/13: Shares of GIB shot higher this morning. The rally initially stalled near $35.00 but traders bought the midmorning dip and GIB pushed back toward round-number resistance near $35.00 by the closing bell. Today's move (+3.6%) definitely outperformed the major indices. I don't see any news to account for today's display of relative strength. Currently we are still on the sidelines.

I do not see any changes from my weekend new play description on GIB.

Why We Like It:
GIB is in the technology sector. They are now infamous as the tech company that built the seriously flawed and "glitch" filled healthcare.gov website. The federal government healthcare website fiasco is a PR nightmare that could negatively impact GIB's ability to garner new business, especially new government contracts.

The stock is up about +50% for the year but shares have plunged in the last two weeks. Traders were quick to sell any rally attempt on Friday morning and GIB underperformed the market with a -1.7% decline in spite of the market's broad-based rally. GIB is now on the verge of breaking down below its longer-term trend of higher lows.

There is a decent amount of short interest in this name and thus GIB could be volatile. I am suggesting small positions to limit risk. We will use a trigger at $32.80 to launch bearish positions. GIB does have options but the spreads are too wide to trade them. If triggered at $32.80 we'll start with a stop loss at $35.25. Our target is $28.50.

Trigger @ $32.80 *small positions*

Suggested Position: short GIB stock @ (trigger)