Editor's Note:

The U.S. market has not seen a string of five declines in a row since 1996. The odds of a bounce should be rising.

HBI and WLP hit our stop loss. We want to exit our CTRP trade at the open tomorrow.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.46 change: -0.01

Stop Loss: 79.85
Target(s): 85.00
Current Option Gain/Loss: -14.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/05/13: AON bounced off short-term support near $81.00 again this morning. The stock eventually settled nearly unchanged just below its 10-dma. I am not suggesting new positions at this time.

- Suggested Positions -

Long 2014 Jan $82.50 call (AON1418a82.5) entry $1.70

11/23/13 new stop loss @ 79.85
11/18/13 new stop loss @ 79.45
11/13/13 new stop loss @ 78.75

Entry on November 08 at $80.50
Average Daily Volume = 2.3 million
Listed on November 06, 2013


The Walt Disney Co. - DIS - close: 70.23 change: +0.26

Stop Loss: 68.45
Target(s): 77.50
Current Option Gain/Loss: - 4.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/05/13: DIS saw a small gap higher and managed to hold on tom most of its gains. Shares outperformed the market with a +0.3% gain.

Our multi-week target is $77.50. More aggressive investors could aim higher. The Point & Figure chart for DIS is bullish with an $83 target.

- Suggested Positions -

Long 2014 Jan $70 call (DIS1418a70) entry $1.66

11/30/13 new stop loss @ 68.45
11/26/13 new stop loss @ 67.95

Entry on November 22 at $70.25
Average Daily Volume = 6.6 million
Listed on November 14, 2013


Endo Health Solutions - ENDP - close: 65.95 change: -0.50

Stop Loss: 64.75
Target(s): 74.00
Current Option Gain/Loss: -39.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/05/13: Hmm... after holding at support near $66.00 all week shares are starting to breakdown below this level. If $66.00 fails then $65.00 is the next line of defense for the bulls. I am not suggesting new positions at this time. I am adjusting our stop loss to $64.75.

Earlier Comments:
This is a momentum play. Our target is $74.00. Can the $70.00 level be overhead, round-number resistance? Yes, it could so traders may want to limit their position size.

- Suggested Positions -

Long 2014 Jan $70 call (ENDP1418a70) entry $2.40

12/05/13 new stop loss @ 64.75

Entry on November 27 at $67.35
Average Daily Volume = 4.6 million
Listed on November 26, 2013


FleetCor Technologies - FLT - close: 122.19 change: +0.20

Stop Loss: 119.70
Target(s): 128.50
Current Option Gain/Loss: - 16.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/05/13: FLT managed another small bounce off its rising 10-dma. Shares did eke out a +0.1% gain versus another decline for the major indices. I don't see any changes from my prior comments.

Earlier Comments:
Our target is $128.50. More aggressive traders may want to aim higher since the Point & Figure chart for FLT is bullish with a $145 target.

- Suggested Positions -

Long 2014 Jan $125 call (FLT1418a125) entry $3.30*

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

Entry on November 29 at $122.50
Average Daily Volume = 936 thousand
Listed on November 27, 2013


Russell 2000 ETF - IWM - close: 111.61 change: +0.08

Stop Loss: 109.95
Target(s): 116.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to January option expiration
New Positions: Yes, see below

Comments:
12/05/13: The small cap index and ETF managed to scratch out a very small gain but the IWM failed to breakout past the $112.00 level.

I am suggesting a trigger to buy calls at $112.55. If triggered our multi-week target is $116.00.

Trigger @ 112.55

- Suggested Positions -

Buy the 2014 Jan $112 call (IWM1418a112) current ask $2.21

Entry on December -- at $---.--
Average Daily Volume = 40.6 million
Listed on December 04, 2013


Michael Kors - KORS - close: 80.76 change: +0.00

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: -24.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/05/13: Several stores reported their November same-store sales numbers today. Analysts were expecting overall same-store sales to rise +2.9% but the results came out to only +1.9%. That's less than half of October's +4% gain, according to Investors Business Daily. The retail sector sank while shares of KORS managed to buck the trend and close unchanged today.

More conservative traders may want to raise their stop loss closer to the $79.00 level. I am not suggesting new positions at this time.

- Suggested Positions -

Long 2014 Jan $85 call (KORS1418a85) entry $1.85

11/22/13 trigger hit at $81.05
11/21/13 adjust entry strategy. Instead of buying a dip at $76.50, move the entry trigger to $81.05. Adjust the stop loss to $77.75. Adjust the option strike to 2014 Jan. $85 call.

Entry on November 22 at $81.05
Average Daily Volume = 7.2 million
Listed on November 20, 2013


Starbucks Corp. - SBUX - close: 79.72 change: +0.22

Stop Loss: 78.75
Target(s): 87.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/05/13: SBUX tried to bounce from support at its 50-dma. Unfortunately the rally ran out of steam at $80.25. There is no change from yesterday's update.

We want to buy calls if SBUX can trade at $81.00 or higher.

Earlier Comments:
If triggered our multi-week target is $87.50. However, that might be a little bit optimistic so we'll need to be nimble with our exit strategy.

Trigger @ 81.00

- Suggested Positions -

Buy the 2014 Jan $82.50 call (SBUX1418a82.5)

12/04/13 adjust entry trigger from $82.75 to $81.00
adjust the stop loss from $79.75 to $78.75
adjust the option strike to the 2014 Jan. $82.50 call

Entry on November -- at $---.--
Average Daily Volume = 4.5 million
Listed on November 30, 2013


Constellation Brands Inc. - STZ - close: 70.08 change: -1.20

Stop Loss: 69.40
Target(s): 74.75
Current Option Gain/Loss: -22.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/05/13: Ouch! What happened to STZ today? I can't find any company-specific news to account for today's relative weakness. I blame my overly bullish comments last night for today's sell off. Technically today's drop has created a bearish engulfing candlestick reversal pattern. I am not suggesting new positions at this time.

Earlier Comments:
Our plan was to limit our risk by using small positions.

*small positions* - Suggested Positions -

Long 2014 Jan $72.50 call (STZ1418a72.5) entry $1.75

12/03/13 new stop loss at $69.40

Entry on November 25 at $70.55
Average Daily Volume = 1.3 million
Listed on November 23, 2013



Universal Health Services - UHS - close: 82.21 change: -0.60

Stop Loss: 80.75
Target(s): 88.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Comments:
12/05/13: UHS is still consolidating sideways inside the $82-83 area.

We are suggesting a trigger to buy calls at $83.60. If triggered our target is $88.50.

Trigger @ 83.60

- Suggested Positions -

buy the 2014 Jan $85 call (UHS1418a85)

Entry on December -- at $---.--
Average Daily Volume = 912 thousand
Listed on December 03, 2013


United Parcel Service - UPS - close: 101.63 change: -0.09

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: -27.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/05/13: UPS held up reasonably well and only posted a minor decline today. I would not be surprised to see another spike down into the $101.00-100.75 zone. I am not suggesting new positions at this time.

- Suggested Positions -

Long 2014 Jan $105 call (UPS1418a105) entry $0.98

11/23/13 new stop loss @ 99.75
11/20/13 new stop loss @ 98.95

Entry on November 14 at $101.25
Average Daily Volume = 3.8 million
Listed on November 13, 2013


Western Digital Corp. - WDC - close: 76.78 change: -0.79

Stop Loss: 74.75
Target(s): 79.75
Current Option Gain/Loss: +20.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/05/13: WDC gave back some of yesterday's gains with a steady fade lower toward the $76.25 area. I am not suggesting new positions at this time.

Our target is $79.75 but more aggressive traders may want to aim higher. The Point & Figure chart for WDC is bullish with a $91 target.

- Suggested Positions -

Long 2014 Jan $80 call (WDC1418a80) entry $1.46

12/04/13 new stop loss @ 74.75
11/27/13 new stop loss @ 73.40

Entry on November 22 at $75.25
Average Daily Volume = 2.4 million
Listed on November 21, 2013


PUT Play Updates

Ctrip.com Intl. - CTRP - close: 47.52 change: +0.08

Stop Loss: 49.25
Target(s): 42.00
Current Option Gain/Loss: - 9.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/05/13: The stock market is down five days in a row. Yet CTRP continues to churn sideways in the $46-47 range. I am suggesting an immediate exit tomorrow morning due to lack of movement in this stock.

- Suggested Positions -

Long 2014 Jan $45 PUT (CTRP1418m45) entry $2.10

12/05/13 prepare to exit tomorrow morning at the open
12/02/13 triggered @ 47.25

Entry on December 02 at $47.25
Average Daily Volume = 3.7 million
Listed on November 30, 2013


SPDR Gold ETF - GLD - close: 118.30 change: -1.66

Stop Loss: 121.25
Target(s): 115.50
Current Option Gain/Loss: + 0.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/05/13: Normally a weak U.S. dollar is bullish for gold but not today. The market is worried that a strong jobs report out tomorrow will hasten the Fed's QE taper and that would be bullish for the dollar and bad for gold. The GLD gapped open lower and posted a -1.3% drop by the closing bell.

Tonight we are adjusting the stop loss to $121.25.

I am not suggesting new positions at this time.

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

Our target is $115.50. More aggressive traders may want to aim lower since the Point & Figure chart for GLD is bearish with a $110 target.

- Suggested Positions -

Long 2014 Jan $115 PUT (GLD1418m115) entry $1.80

12/05/13 new stop loss @ 121.25
11/30/13 new stop loss @ 122.55

Entry on November 20 at $121.00
Average Daily Volume = 7.0 million
Listed on November 12, 2013


Intl. Business Machines - IBM - close: 176.08 change: +0.34

Stop Loss: 181.25
Target(s): 170.25
Current Option Gain/Loss: +12.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/05/13: It was a quiet day for IBM. Yesterday the stock lost 34 cents. Today shares gained 34 cents.

Earlier Comments:
Our target is $170.25, a new lower low. However, more conservative traders may want to exit near the October lows near $172.50 since they could be potential support.

- Suggested Positions -

Long 2014 Jan $175 PUT (IBM1418m175) entry $3.15

Entry on December 03 at $176.90
Average Daily Volume = 5.1 million
Listed on December 02, 2013


The St. Joe Company - JOE - close: 17.65 change: -0.30

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -61.5%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
12/05/13: It looks like the multi-day bounce in JOE might finally be over. Shares underperformed the broader market with a -1.6% decline today. Traders could use today's pullback as a new entry point.

Remember, this is a lottery ticket style of trade.

I don't see any changes from last weekend's new play description.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. Not everyone agrees with Einhorn. There are some big names in the stock on the bullish side. Plus, there are so many bears that any good news can produce these massive spikes higher. The most recent data listed short interest at 35% of the 92.1 million share float.

I am going to label this one a lottery ticket trade. We'll buy a cheap, out of the money option. If JOE continues to sink like we expect it to then great! We expect to more than double our money. If not, then we did not have that much invested. We definitely want to limit our position size to reduce our risk. I am not listing a stop loss because shares of JOE can be so volatile.

Our long-term target is $11.00 although we'll seriously consider exiting near the 2011 lows around $13.00.

*Small Positions* - Suggested Positions -

Long 2014 March $15 PUT (JOE1422o15) entry $0.52

Entry on November 25 at $17.50
Average Daily Volume = 627 thousand
Listed on November 23, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.03 change: -0.31

Stop Loss: 54.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +16.6%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
12/05/13: European markets continued to sink and the U.S. market posted its fifth decline in a row. The VGK reacted with a bounce attempt that failed at its 50-dma this morning. That's not a good sign. More conservative investors may want to abandon ship now to lock in a small gain.

Earlier Comments:
Don't forget that we have two exit targets for this trade!

We are taking a multi-month time frame with this trade. FYI: The Point & Figure chart for VGK is bullish with a $63 target.

- Suggested Positions -

Long 2014 Mar $55 call (VGK1422C55) entry $1.80*

11/30/13 new stop loss @ 54.90
10/22/13 Strategy Update: Plan to exit half @ $58.00 and exit the rest at $63.00. New stop loss @ 53.90
10/19/13 new stop loss @ 52.75
09/11/13 trade opens. VGK @ 53.60
*option entry @ 1.80 is an estimate. Ask closed at $1.75 yesterday
09/10/13 entry trigger met. open positions tomorrow.
09/10/13 new stop loss @ 50.95
08/24/13 adjust the option strike from 2013 Dec $55 to $2014 Mar $55.

Entry on September 11 at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013


CLOSED BULLISH PLAYS

Hanesbrands Inc. - HBI - close: 70.95 change: +1.16

Stop Loss: 68.90
Target(s): 74.75
Current Option Gain/Loss: -48.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/05/13: As investors we are supposed to remove emotion from our trading. Yet days like today in HBI can be extremely frustrating. The stock spiked down this morning, hit our stop loss, and then soared to a new high.

Our trade has been closed at $68.90 but I would seriously consider launching new positions if HBI can trade above (or close above) $71.00.

- Suggested Positions -

2014 Jan $70 call (HBI1418a70) entry $2.74 exit $1.40* (-48.9%)

12/05/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
11/25/13 adjust the stop loss from $69.25 to $68.90

chart:

Entry on November 25 at $70.65
Average Daily Volume = 681 thousand
Listed on November 23, 2013


WellPoint Inc. - WLP - close: 89.78 change: -1.81

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: -32.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/05/13: The profit taking in WLP accelerated today. Shares underperformed the market with a -1.5% decline. The breakdown below what should have been support at $90.00 is bearish. Our stop was hit at $89.75.

- Suggested Positions -

2014 Jan $95 call (WLP1418a95) entry $1.15 exit $0.78 (-32.1%)

12/05/13 stopped out
11/23/13 new stop loss @ 89.75

chart:

Entry on November 18 at $90.50
Average Daily Volume = 2.6 million
Listed on November 16, 2013