Editor's Note:
Stocks close the year 2013 on an up note with a widespread rally across the U.S. market.

AMTD and HCI hit our entry triggers.
We want to exit our CMA and WAGE trades immediate (Thursday morning, January 2nd).


Current Portfolio:


BULLISH Play Updates

TD Ameritrade Holding Corp. - AMTD - close: 30.64 change: +0.44

Stop Loss: 29.45
Target(s): 33.85
Current Gain/Loss: + 0.0%

Entry on December 31 at $30.65
Listed on December 21, 2013
Time Frame: exit PRIOR to earnings on January 21st
Average Daily Volume = 1.9 million
New Positions: Yes, see below

Comments:
12/31/13: After consolidating sideways for over a week shares of AMTD are finally showing strength again. Traders bought the dip near its rising 10-dma and the stock outperformed the market with a +1.45% gain on Tuesday. AMTD also hit our suggested entry point to open bullish positions at $30.65.

current Position: long AMTD stock @ $30.65

12/31/13 triggered at $30.65



Comerica Inc. - CMA - close: 47.54 change: -0.09

Stop Loss: 46.45
Target(s): 49.90
Current Gain/Loss: + 3.9%

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:
12/31/13: I am starting to worry about our CMA trade. The market is hitting new highs but CMA has been stuck drifting sideways. We're suggesting an immediate exit to lock in gains.

current Position: Long CMA stock @ $45.76

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

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

12/31/13 prepare to exit immediate (Thursday morning, Jan. 2nd)
12/30/13 new stop loss @ 46.45
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.



DreamWorks Animation - DWA - close: 35.50 change: -0.24

Stop Loss: 34.45
Target(s): 39.50
Current Gain/Loss: + 0.4%

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:
12/31/13: Tuesday proved to be a disappointing session for DWA. The stock underperformed the market with a -0.6% loss. More conservative traders might want to consider adjusting their stop loss closer to the simple 10-dma (currently near $35.00). I am not suggesting new positions at this time.

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.



General Electric - GE - close: 28.03 change: +0.14

Stop Loss: 26.95
Target(s): 31.50
Current Gain/Loss: + 1.0%

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:
12/31/13: GE spent the last few days hovering under the $28.00 level. In the last few minutes of trading the stock managed a small breakout higher. I am not suggesting new positions at this time.

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



HCI Group, Inc. - HCI - close: 53.50 change: +1.04

Stop Loss: 51.15
Target(s): 58.00
Current Gain/Loss: +0.8%

Entry on December 31 at $53.05
Listed on December 28, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 205 thousand
New Positions: Yes, see below

Comments:
12/31/13: HCI has been steadily inching higher from its post-Christmas low. Today saw shares display relative strength with a +1.98% gain and a breakout to new highs. Our trigger to open bullish positions was hit at $53.05.

Earlier Comments:
The most recent data listed short interest at 23% of the very, very small 9.6 million share float. Additional gains from here could spark more short covering.

Our target is $58.00. If you're patient you could try aiming higher. The Point & Figure chart for HCI is bullish with a long-term $74 target.

current Position: long HCI stock @ $53.05

12/31/13 triggered @ 53.05




Spirit Aero Systems - SPR - close: 34.08 change: +0.23

Stop Loss: 32.95
Target(s): 38.50
Current Gain/Loss: + 0.1%

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:
12/31/13: Good news! Even though shares produced a bearish reversal a couple of days ago there was no follow through today. Shares added +0.6%. I would hesitate to launch 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*

12/30/13 new stop loss @ 32.95
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.



Tempur Sealy Intl. - TPX - close: 53.96 change: -0.23

Stop Loss: 51.75
Target(s): 57.50
Current Gain/Loss: + 2.0%

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:
12/31/13: TPX produced a sleepy session. Shares gave back about a quarter of yesterday's gains. I am not suggesting new positions at current levels.

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*

12/30/13 new stop loss @ 51.75
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.



21Vianet Group, Inc. - VNET - close: 23.52 change: +0.43

Stop Loss: 21.40
Target(s): 24.75
Current Gain/Loss: +10.9%

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:
12/31/13: The rally in VNET continued on Tuesday. Shares outperformed the market with a +1.8% gain and the stock closed at a new all-time high. Tonight we're adjusting our stop loss to $21.40.

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

12/31/13 new stop loss @ 21.40
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



WageWorks, Inc. - WAGE - close: 59.44 change: -0.40

Stop Loss: 58.85
Target(s): 67.50
Current Gain/Loss: -1.8%

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:
12/31/13: WAGE is not cooperating. The stock is down three days in a row. Shares settled on potential technical support at its 20-dma today. The larger trend is still higher. However, I am suggesting an immediate exit to cut our losses early.

current Position: long WAGE stock @ $60.55

12/31/13 prepare to exit immediate (Thursday morning, Jan 2nd)
12/30/13 warning! Today's decline looks bearish. Readers may want to exit immediately
12/26/13 new stop loss @ 58.85
12/19/13 triggered at $60.55



Walter Energy, Inc. - WLT - close: 16.63 change: -0.15

Stop Loss: 15.45
Target(s): 19.25
Current Gain/Loss: - 1.8%

Entry on December 30 at $16.93
Listed on December 28, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 6.0 million
New Positions: see below

Comments:
12/31/13: WLT was garnering bullish analyst comments on CNBC's Fast Money show tonight. Tim Seymour was suggesting that the worst was behind it for WLT. Traders may want to adjust their entry point strategy and look for a dip into the $16.30-16.00 zone as a potential entry point.

Earlier Comments:
If this rally continues WLT could see a short squeeze. The most recent data listed short interest at 37% of the 62.2 million share float. I am labeling this trade as an aggressive, higher-risk trade because WLT can be so volatile. We're suggesting small positions to limit our risk. FYI: The Point & Figure chart for WLT is bullish with a $21.00 target.

* small positions *

current Position: Long WLT stock @ $16.93

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

Long Feb $17 call (WLT1422B17) entry $1.70

12/30/13 trade opens at $16.93



Western Refining, Inc. - WNR - close: 42.41 change: +1.27

Stop Loss: 39.75
Target(s): 46.00
Current Gain/Loss: + 2.6%

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:
12/31/13: WNR shot higher this morning. The stock pushed past its recent highs and outperformed the market with a +3.0% gain. I didn't see any company specific news behind today's display of relative strength but the other major refining stocks were also showing strength today. I am raising our stop loss to $39.75.

Earlier Comments:
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*

12/31/13 new stop loss @ 39.75
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.



BEARISH Play Updates

Ecopetrol SA - EC - close: 38.45 change: +0.45

Stop Loss: 39.05
Target(s): 31.00
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 716 thousand
New Positions: Yes, see below

Comments:
12/31/13: EC managed an oversold bounce on Tuesday with shares gaining +1.1%. The stock remains below short-term technical resistance at its 10-dma. I don't see any changes from my Monday night new play description.

Earlier Comments:
EC is a Columbian oil and gas company. The stock has been struggling most of the year. Shares just recently broke down below support at $40.00 on big volume. There has been very little oversold bounce. Now the stock looks poised to break down below the next level of key support near $37.50.

I am suggesting a trigger to launch bearish positions at $37.35. If triggered our target is $31.00. Once it's below $37.50 the next level of support appears to be the $30.00 level.

Trigger @ 37.35

Suggested Position: short EC stock @ (trigger)



Nationstar Mortgage Holdings - NSM - close: 36.96 change: +0.80

Stop Loss: 37.75
Target(s): 31.00
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: Yes, see below

Comments:
12/31/13: NSM also produced a bounce today (+2.2%) but today's move was inside of yesterday's range. This sort of "inside day" does not suggest anything pivotal taking place in the stock. I don't see any changes from my Monday night new play description.

Earlier Comments:
NSM is in the financial sector. The company is a mortgage loan servicer. Back in November the company missed earnings estimates by a wide margin and lowered its 2014 outlook. The oversold bounce failed at technical resistance. Now shares are poised to breakdown below support, which could spark the next leg lower.

I am labeling this an aggressive, higher-risk trade. There is already a lot of bears in this trade. The most recent data listed short interest at 39% of the very small 20.4 million share float. That is a risk of a short squeeze. Thus I am suggesting small positions. Traders may want to use put options to limit their risk.

I am suggesting a trigger to launch small bearish positions at $35.65. If triggered our target is $31.00.

Trigger @ 35.65 *small positions*

Suggested Position: short NSM stock @ (trigger)

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

Buy the Feb $35 PUT (NSM1422N35)