Editor's Note:
The market's major indices posted new highs this past week. On a short-term basis they are starting to look a little bit overbought.

NLNK has been removed.


Current Portfolio:


BULLISH Play Updates

TD Ameritrade Holding Corp. - AMTD - close: 30.20 change: -0.02

Stop Loss: 29.45
Target(s): 33.85
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: Yes, see below

Comments:
12/28/13: AMTD just spent the last week consolidating sideways in the $30.00-30.50 zone. More aggressive traders might want to consider buying a dip or a bounce near the $30.00 mark. I am suggesting we wait for a breakout higher.

Earlier Comments:
The recent high was $30.58. I am suggesting a trigger to open bullish positions at $30.65. If triggered our target is $33.85 as the $34.00 level looks like potential resistance.

Trigger @ 30.65

Suggested Position: buy AMTD stock @ (trigger)

chart:



Comerica Inc. - CMA - close: 47.47 change: -0.04

Stop Loss: 45.76
Target(s): 49.90
Current Gain/Loss: + 3.7%

Entry on November 25 at $45.76
Listed on November 21, 2013
Time Frame: Exit PRIOR to earnings on January 17th
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
12/28/13: Shares of CMA spent Friday's session drifting sideways in a narrow range. If the current rally starts to correct lower we can watch for support near the $46.00 area. I am not suggesting new positions at this time. We will plan to exit prior to CMA's earnings report on January 17th.

More conservative traders with the January options may want to take profits now. Current bid on the option is $2.64 (+53.4%).

current Position: Long CMA stock @ $45.76

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

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

12/26/13 new stop loss @ 45.76
12/24/13 new stop loss @ 45.40
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.

chart:



DreamWorks Animation - DWA - close: 35.23 change: -0.24

Stop Loss: 34.45
Target(s): 39.50
Current Gain/Loss: - 0.3%

Entry on December 20 at $35.35
Listed on December 19, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 702 thousand
New Positions: see below

Comments:
12/28/13: The rally in DWA seems to be stalling under the $36.00 level. Shares underperformed the broader market on Friday. We are going to try and reduce our risk by raising the stop loss to $34.45. More aggressive traders will want to keep their stop below the $34.00 level instead.

current Position: long DWA stock @ $35.35

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

Long Mar $35 call (DWA1422c35) entry $2.65*

12/28/13 new stop loss @ 34.45
12/20/13 triggered @ 35.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



General Electric - GE - close: 27.83 change: +0.00

Stop Loss: 26.95
Target(s): 31.50
Current Gain/Loss: + 0.3%

Entry on December 26 at $27.75
Listed on December 24, 2013
Time Frame: Exit PRIOR to earnings on January 17th
Average Daily Volume = 37 million
New Positions: see below

Comments:
12/28/13: GE delivered a quiet session on Friday. It was so quiet that the stock closed unchanged. I would still consider new positions now at current levels. However, if you're patient, GE might provide a better entry point on a dip near $27.60 soon.

Our short-term target is $31.50 but we will plan on exiting prior to GE's earnings report in mid January. Odds are our $31.50 target is a bit too optimistic. We may end up exiting closer to $30.00.

current Position: long GE stock @ $27.75

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

Long Feb $28 call (GE1422B28) entry $0.58

12/26/13 triggered @ 27.75

chart:



Groupon, Inc. - GRPN - close: 11.71 change: -0.28

Stop Loss: 11.25
Target(s): 12.50
Current Gain/Loss: + 9.4%

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:
12/28/13: After an impressive December rally shares of GRPN hit some profit taking on Friday with a -2.3% decline. I've been warning readers that the stock looked overbought and due for a dip. The low on Friday was $11.52. We are raising the stop loss to $11.25. More conservative traders may want to just take profits early and exit now.

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

12/28/13 new stop loss @ 11.25
12/26/13 new stop loss @ 10.70
12/23/13 more conservative traders may want to take some money off the table with GRPN hovering below the $12.00 level.
12/19/13 new stop loss @ 10.40
12/18/13 new stop loss @ 9.95
12/17/13 triggered at $10.70

chart:




Spirit Aero Systems - SPR - close: 33.97 change: -0.21

Stop Loss: 32.75
Target(s): 38.50
Current Gain/Loss: - 0.2%

Entry on December 24 at $34.05
Listed on December 21, 2013
Time Frame: Exit PRIOR to earnings in February.
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
12/28/13: I have to wave the caution flag on our SPR trade. Friday's performance has created a bearish engulfing candlestick reversal pattern. These patterns need to see confirmation but it's still a warning signal. More conservative traders may want to raise their stop loss. I am not suggesting new positions.

Earlier Comments:
Our multi-week target is $38.50 but we will plan on exiting positions prior to SPR's earnings report in February.

current Position: long SPR stock @ $34.05

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

Long Apr $35 call (SPR1419D35) entry $2.50*

12/24/13 triggered @ 34.05
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Tempur Sealy Intl. - TPX - close: 53.31 change: -0.13

Stop Loss: 50.95
Target(s): 57.50
Current Gain/Loss: + 0.8%

Entry on December 24 at $52.91
Listed on December 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 757 thousand
New Positions: see below

Comments:
12/28/13: Traders bought the dip in TPX late Friday morning and shares pared their losses by the close. If the market were to see a significant down day I would expect TPX to retest the $52.00 level, which should be new support.

Earlier Comments:
If this rally continues the stock could see some short covering. The most recent data listed short interest at 17% of the 50 million share float. Our multi-week target is $57.50. More aggressive traders, with enough patience, may want to aim higher since the Point & Figure chart for TPX is bullish with a long-term $66.00 target.

current Position: long TPX stock @ $52.91

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

Long Mar $55 call (TPX1422c55) entry $3.50*

12/26/13 new stop loss @ 50.95
12/24/13 trade opens at $52.91
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



21Vianet Group, Inc. - VNET - close: 22.65 change: -0.17

Stop Loss: 20.75
Target(s): 24.75
Current Gain/Loss: + 6.8%

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:
12/28/13: VNET saw a little more profit taking on Friday with a -0.74% decline. More conservative traders may want to raise their stop loss again. I am not suggesting new positions at this time.

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

12/24/13 new stop loss @ 20.75, adjust exit target to $24.75
12/21/13 new stop loss @ 19.90
12/18/13 triggered @ 21.20

chart:



WageWorks, Inc. - WAGE - close: 61.02 change: -1.37

Stop Loss: 58.85
Target(s): 67.50
Current Gain/Loss: +0.8%

Entry on December 19 at $60.55
Listed on December 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 347 thousand
New Positions: see below

Comments:
12/28/13: Ouch! WAGE is struggling to build any upward momentum. The stock underperformed on Friday with a -2.19% decline that almost erased Thursday's gains. I didn't see any news to explain Friday's display of relative weakness. Traders did buy the dip near short-term support at $60.00 and its 10-dma. In spite of Friday's sell off WAGE still posted a gain for the week. The stock is now up nine weeks in a row. I am not suggesting new positions at this time.

More conservative traders may want to raise their stop loss again. Technically speaking Friday's decline has produced a bearish engulfing candlestick reversal pattern. These patterns need to see confirmation.

current Position: long WAGE stock @ $60.55

12/26/13 new stop loss @ 58.85
12/19/13 triggered at $60.55

chart:



Western Refining, Inc. - WNR - close: 41.16 change: -0.06

Stop Loss: 38.95
Target(s): 46.00
Current Gain/Loss: - 0.5%

Entry on December 24 at $41.35
Listed on December 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
12/28/13: WNR bounced right on cue with shares dipping to $40.45 and then rebounding. On Thursday I suggested buying a dip near $40.50. I would still consider new positions now at current levels. More conservative investors may want to raise their stop closer to the $40.00 level.

Earlier Comments:
More nimble traders may want to look for a dip back into the $40.50-40.75 zone as an alternative entry point. I would keep in mind that there is a lot of short interest. The most recent data listed short interest at about 28% of the 50.6 million share float. That could fuel a short squeeze in WNR. I am suggesting small positions to limit our risk just in case there is a worker strike at the NTI plant and retail gas stations. Our short-term target is $46.00. More aggressive traders could aim higher since the Point & Figure chart for WNR is bullish with a $50.00 target.

*Small positions *

current Position: Long WNR stock @ $41.35

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

Long Mar $42 call (WNR1422c42) entry $2.70*

12/24/13 trade opened this morning at $41.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

NewLink Genetics - NLNK - close: 22.75 change: -0.75

Stop Loss: 21.90
Target(s): 27.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 26, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 219 thousand
New Positions: see below

Comments:
12/28/13: Our brand new trading candidate NLNK is not cooperating. We were expecting a breakout to new highs. Instead shares have reversed sharply with a -3.19% decline on Friday. Our trade has not opened yet. We are removing NLNK as an active candidate.

Trade did not open.

12/28/13 removed from the newsletter. suggested entry trigger was $23.80

chart: