Editor's Note:
Instead of selling off on news that the Federal Reserve will taper its QE program the market rallied. The Fed upgraded their outlook on the economy and promised to keep interest low for an extended period of time.

JCI has been removed. MU hit our stop loss. VNET hit our entry trigger.
We want to exit our FNP trade at the opening bell tomorrow.


Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 48.27 change: +0.77

Stop Loss: 46.40
Target(s): 49.85
Current Gain/Loss: + 3.7%

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:
12/18/13: ADSK spiked down to short-term technical support at its rising 10-dma before bouncing to a new multi-year closing high. I am raising our stop loss to $46.40. I am not suggesting new positions at this time.

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

12/18/13 new stop loss @ 46.40
12/14/13 adjust exit target to $49.85



Comerica Inc. - CMA - close: 46.36 change: +0.87

Stop Loss: 44.90
Target(s): 49.90
Current Gain/Loss: + 1.3%

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:
12/18/13: The financial sector was one of the market's best performers today. Shares of CMA tried to keep up with a +1.9% gain. More importantly today's rally in CMA is a bullish breakout to a new 52-week high. Tonight we are moving the stop loss to $44.90. 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*

12/18/13 new stop loss @ 44.90
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: 32.95 change: -0.02

Stop Loss: 31.95
Target(s): 38.50
Current Gain/Loss: - 3.2%

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:
12/18/13: FNP bounced off its intraday lows but shares did not truly participate in the market's broad-based rally today. We are suggesting an immediate exit.

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

*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*

12/18/13 prepare to exit immediately
12/12/13 we are adjusting the stop loss to $31.95
*option entry price is an estimate since the option did not trade at the time our play was opened.



Groupon, Inc. - GRPN - close: 11.27 change: +0.60

Stop Loss: 9.95
Target(s): 12.50
Current Gain/Loss: + 5.3%

Entry on December 17 at $10.70
Listed on December 12, 2013
Time Frame: to 8 weeks
Average Daily Volume = 18.4 million
New Positions: see below

Comments:
12/18/13: The stock market produced a big rally today but GRPN was already in rally mode before the market started to move thanks to new bullish analyst comments this morning. GRPN outperformed the major indices with a +5.6% gain.

I am moving our stop loss to $9.95.

Earlier Comments:
Our target is $12.50. A rally past $11.00 will create a new buy signal on GRPN's point & figure chart.

current Position: Long GRPN stock @ $10.70

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

Long 2014 FEB $12 call (GRPN1422b12) entry $0.67

12/18/13 new stop loss @ 9.95
12/17/13 triggered at $10.70




21Vianet Group, Inc. - VNET - close: 21.85 change: +1.37

Stop Loss: 19.45
Target(s): 24.90
Current Gain/Loss: + 3.1%

Entry on December 18 at $21.20
Listed on December 17, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 614 thousand
New Positions: see below

Comments:
12/18/13: VNET was a strong performer on Wednesday. The stock was in rally mode well before the market started to move. Shares hit our entry point at $21.20 before the market's post-Fed meeting surge higher.

After today's +6.6% gain I would not be surprised to see a little bit of profit taking tomorrow morning.

Earlier Comments:
We want to keep our position size small for a reason. First, VNET has obviously been very volatile over the last couple of months. That could make it tough to trade. Second, the post-IPO high from back in 2011 is $22.33 and that could be significant overhead resistance. I am not listing the options on VNET because the spreads are a bit too wide to trade. However, using the options could limit your risk.

*small positions*

current Position: Long VNET stock @ $21.20

12/18/13 triggered @ 21.20



WageWorks, Inc. - WAGE - close: 60.45 change: +1.06

Stop Loss: 57.75
Target(s): 67.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 347 thousand
New Positions: Yes, see below

Comments:
12/18/13: WAGE set a new closing high today. Yet the intraday high was only $60.54. That was one cent away from our suggested entry point at $60.55. Thus we are still sitting on the sidelines. Odds are very good that WAGE will hit our entry point at $60.55 tomorrow morning and the stock might actually see a gap open higher.

Earlier Comments:
I am suggesting a trigger to launch bullish positions at $60.55. If triggered our multi-week target is $67.50.

Trigger @ 60.55

Suggested Position: buy WAGE stock @ (trigger)



BEARISH Play Updates

AECOM Technology - ACM - close: 28.20 change: +0.36

Stop Loss: 28.60
Target(s): 24.25
Current Gain/Loss: - 1.9%

Entry on December 16 at $27.68
Listed on December 14, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 525 thousand
New Positions: see below

Comments:
12/18/13: The market's post-Fed meeting rally gave shares of ACM a boost but the rally stalled at resistance near the 10-dma. I am concerned that if the market accelerates higher we could see ACM follow. More conservative traders may want to lower their stop loss. I am not suggesting new positions.

Earlier Comments:
Technically ACM has a bleak outlook. The stock has created a huge bearish head-and-shoulders pattern over the last year. The recent breakdown below support at $28.00 also breaks the neckline to this H&S pattern. The pattern is forecasting a drop toward $21.00. The Point & Figure chart is also bearish and forecasting a drop toward $23.00. Our target is $24.25 since the $24 level could be support.

*Small positions *

current Position: short ACM stock @ $27.68

12/16/13 trade opened on gap higher at $27.68



Cisco Systems - CSCO - close: 21.00 change: +0.08

Stop Loss: 21.55
Target(s): 17.00
Current Gain/Loss: - 1.3%

Entry on December 17 at $20.74
Listed on December 14, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 50 million
New Positions: see below

Comments:
12/18/13: Gains in CSCO were mild with shares underperforming the broader market. The NASDAQ added +1.1% but CSCO only added +0.3%. Yet even with CSCO's underperformance I am concerned. The market appears to be in rally mode and CSCO looks poised to breakout past resistance near $21.00. More conservative investors might want to exit early or lower their stop loss. I am not suggesting new positions.

current Position: short CSCO stock @ $20.74

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

Long Feb $20 PUT (CSCO1422n20) entry $0.63

12/18/13 CSCO is not cooperating and traders may want to exit early or lower their stop loss.
12/17/13 trade opens. CSCO @ $20.74
12/16/13 New entry point strategy: launch bearish positions at the opening bell on Tuesday, Dec. 17th. Prior entry point was a trigger at $19.85



CLOSED BULLISH PLAYS

Johnson Controls Inc. - JCI - close: 51.34 change: +0.02

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: see below

Comments:
12/18/13: JCI dipped to support near $50.00 and bounced yet the stock failed to really participate in the market's widespread rally today. We are removing JCI as an active candidate. Our trade did not open. Readers might want to keep JCI on their watch list for a bullish breakout past resistance near $52.00.

Trade did not open.

12/18/13 removed from the newsletter. suggested trigger was $52.10

chart:



Micron Technology - MU - close: 21.81 change: -1.11

Stop Loss: 21.90
Target(s): TBD
Current Gain/Loss: - 5.5%

Entry on December 16 at $23.17
Listed on December 14, 2013
Time Frame: exit PRIOR to earnings on Jan. 7th
Average Daily Volume = 44 million
New Positions: see below

Comments:
12/18/13: Shares of MU were a significant underperformer today over worries about competition. Multiple news sources quoted a story found in the South Korean newspaper Chosun Ilbo that SK Hynix, one of MU's main rivals, would build a new DRAM memory chip facility next year. If this is true the new plant would not start churning out DRAM chips until 2015. Yet worries that additional DRAM supply would hurt prices sent shares of MU plunging.

The stock gapped down at $22.49 and then fell to $20.81 before paring its losses. Our stop was hit at $21.90.

Earlier Comments:
Investors may want to limit their position size to reduce risk.

*Small positions *

closed Position: long MU stock @ $23.17 exit $21.90 (-5.5%)

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

Jan $23 call (MU1418A23) entry $1.57 exit $0.91* (-42.0%)

12/18/13 stopped out
*option exit price is an estimate since due to how fast shares of MU were trading at the opening bell.
12/16/13 trade opened on Monday with MU at $23.17

chart: