Editor's Note:
The S&P 500, NASDAQ composite, and Russell 2000 indices all plunged toward short-term support. The S&P settled near 1780, the NASDAQ near 4,000, and the $RUT near 1100.

DLR was closed this morning as planned.
We have removed CFN and ISIS as potential trades.


Current Portfolio:


BULLISH Play Updates

Archer Daniels Midland - ADM - close: 41.71 change: -0.65

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:
12/11/13: ADM retreated lower with the market and posted a -1.5% decline. Currently we are still on the sidelines. If shares don't bounce soon we'll likely remove ADM as a candidate. 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)



Autodesk, Inc. - ADSK - close: 45.75 change: -1.04

Stop Loss: 44.90
Target(s): 50.00
Current Gain/Loss: - 1.7%

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:
12/11/13: Uh-oh! ADSK displayed relative weakness with a -2.2% decline. Today's move also created a bearish engulfing candlestick reversal pattern. More conservative traders may want to raise their stops. I am not suggesting new positions at this time.

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



Comerica Inc. - CMA - close: 44.85 change: -0.74

Stop Loss: 44.40
Target(s): 49.90
Current Gain/Loss: - 2.0%

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:
12/11/13: It was a rough day for CMA with shares underperforming the market thanks to a -1.6% decline. The stock looks poised to retest recent support near the $44.50 area. If it drops any lower CMA will hit our stop at $44.40. I am not suggesting new positions at this time.

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: 32.30 change: -0.61

Stop Loss: 31.99
Target(s): 38.50
Current Gain/Loss: - 5.1%

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:
12/11/13: FNP also underperformed the market with a -1.8% decline. The last week of November and the first week of December saw shares of FNP find support near $32.20. The low today was $32.23. More conservative traders might want to raise their stop loss closer to the $32.20 level. I am not suggesting 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: 38.73 change: -0.62

Stop Loss: 38.45
Target(s): 44.00
Current Gain/Loss: - 1.9%

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:
12/11/13: Warning! ICON's close below short-term support at $39.00 is bearish. If there is any follow through lower tomorrow we will likely see ICON hit our stop loss at $38.45. 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



Johnson Controls Inc. - JCI - close: 50.16 change: -1.29

Stop Loss: 49.75
Target(s): 57.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 10, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.7 million
New Positions: Yes, see below

Comments:
12/11/13: The stock market's broad-based decline on Wednesday pushed JCI toward the $50.00 area and short-term support at its rising 20-dma. If the stock doesn't rebound soon we'll remove it as a candidate. At the moment I don't see any changes from my prior comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $52.10. If triggered our multi-week target is $57.50.

NOTE: JCI will begin trading ex-dividend on December 12th. The quarterly cash dividend should be 22 cents.
FYI: The Point & Figure chart for JCI is bullish with a long-term $80.00 target.

Trigger @ 52.10

Suggested Position: buy JCI stock @ (trigger)

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

Buy the 2014 April $55 call (JCI1419D55)



VeriSign, Inc. - VRSN - close: 56.29 change: -1.06

Stop Loss: 55.95
Target(s): 59.50
Current Gain/Loss: +1.9%

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:
12/11/13: VRSN has been slowly showing relative strength with a steady climb higher for weeks. That upward momentum seems to be in jeopardy today with a -1.8% decline. VRSN should have short-term support near $56.00. Our stop loss is currently at $55.95. I am not suggesting new positions at this time.

NOTE: If you're trading the 2014 Jan $55 call you might be able to avoid any losses if you exit immediately. Current bid is $2.08.


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

CGI Group, Inc. - GIB - close: $34.20 change: -0.78

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:
12/11/13: GIB bounced up to technical resistance near its 50-dma and then reversed lower this morning. More aggressive traders may want to launch new bearish positions now and use a stop just above today's high (maybe in the $35.60 area). I am suggesting the rest of us wait for a new relative low and use a trigger at $32.80 to open positions.

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)



CLOSED BULLISH PLAYS

CareFusion Corp. - CFN - close: 38.61 change: -0.86

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: see below

Comments:
12/11/13: CFN is not cooperating. Shares continued to sink on Wednesday with a -2.1% decline and a breakdown below its 50-dma. Our trade is not open yet. The suggested entry point was $40.50 but that now seems unlikely. We are removing CFN as a candidate.

Trade did not open.

12/11/13 removed from the newsletter, suggested entry trigger was $40.50

chart:



Isis Pharmaceuticals - ISIS - close: 36.65 change: -1.11

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: see below

Comments:
12/11/13: Shares of ISIS are not working for us. The stock failed at resistance near $40.00 four days ago and the stock has been down every day since. ISIS has now broken down from its recent $38-40 trading range. Our trade has not opened yet. We're removing ISIS as an active candidate. Our suggested trigger was $40.25.

Trade did not open.

12/11/13 removed from the newsletter, suggested trigger was not hit at $40.25

chart:



CLOSED BEARISH PLAYS

Digital Realty Trust Inc. - DLR - close: 45.48 change: -0.48

Stop Loss: 47.25
Target(s): 40.25
Current Gain/Loss: - 2.4%

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:
12/11/13: DLR has not been cooperating. In last night's newsletter we decided to exit positions immediately. Fortunately for us shares of DLR gapped open lower at $46.00 this 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*

closed Position: short DLR stock @ $44.90 exit $46.00 (-2.4%)

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

2014 Jan $45 PUT (DLR1418m45) entry $2.20 exit $1.20 (-45.4%)

12/10/13 prepare to exit tomorrow morning

chart: