Editor's Note:

The stock market's recent bounce is already fading. Is it tax-loss selling before the end of the year or has the rally run out of gas? Overall the pullback was pretty mild.

NUS hit our entry trigger. GLD was stopped out.


Current Portfolio:


CALL Play Updates

Allergan, Inc. - AGN - close: 97.41 change: -0.63

Stop Loss: 94.95
Target(s): 102.50
Current Option Gain/Loss: -30.0%
Time Frame: Exit prior to January option expiration
New Positions: see below

Comments:
12/10/13: Shares of AGN are slowly drifting lower. I've been cautioning readers that the stock could see a "fill the gap" move and that would mean a dip back toward the $96.50-96.75 area. Nimble traders might want to consider waiting for a dip to launch new positions.

Our multi-week target is $102.50. More aggressive traders could aim higher. The Point & Figure chart for AGN is bullish with a $110 target.

- Suggested Positions -

Long 2014 Jan $100 call (AGN1418a100) entry $2.00

12/06/13 triggered on gap higher at $98.02, suggested trigger was $97.00

Entry on December 06 at $98.02
Average Daily Volume = 1.9 million
Listed on December 05, 2013


Aon Plc. - AON - close: 83.07 change: +0.17

Stop Loss: 80.75
Target(s): 85.00
Current Option Gain/Loss: +26.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/10/13: AON gapped down this morning but traders almost immediately bought the dip. The stock rallied sharply this afternoon to close up +0.2%, outperforming the broader market. I am not suggesting new positions at this time.

- Suggested Positions -

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

12/07/13 new stop loss @ 80.75
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: 71.57 change: +0.46

Stop Loss: 68.95
Target(s): 77.50
Current Option Gain/Loss: +25.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/10/13: DIS also rallied off its weak opening print this morning. Shares outperformed the market with a +0.6% gain and another new all-time high.

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

12/07/13 new stop loss @ 68.95
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


Illumina Inc. - ILMN - close: 99.97 change: -1.36

Stop Loss: 97.75
Target(s): 109.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to 2014 January option expiration
New Positions: Yes, see below

Comments:
12/10/13: ILMN did not see any follow through on yesterday's breakout to new highs. The market's widespread pullback today pulled ILMN down to its simple 10-dma before bouncing. More aggressive traders may want to use today's afternoon rebound as a new bullish entry point. I am suggesting the rest of us to wait for a new high. Use a trigger to buy calls at $102.00.

Earlier Comments:
Further gains could spark some short covering since the most recent data listed short interest at 26% of the 125 million-share float.

Today's high was $101.80. I am suggesting a trigger at $102.00 to buy calls. If triggered our target is $109.00. More aggressive traders may want to aim higher since the point & figure chart is bullish with a $146 target. P&F chart readers will also notice that ILMN is about to produce a new triple-top breakout buy signal.

NOTE: Biotech stocks can be volatile and the wrong headline could send shares gapping lower. Investors may want to limit their position size.

Trigger @ 102.00

- Suggested Positions -

buy the 2014 Jan $105 call (ILMN1418a105)

Entry on December -- at $---.--
Average Daily Volume = 931 thousand
Listed on December 09, 2013


Russell 2000 ETF - IWM - close: 111.43 change: -1.02

Stop Loss: 109.95
Target(s): 116.00
Current Option Gain/Loss: -27.8%
Time Frame: exit prior to January option expiration
New Positions: see below

Comments:
12/10/13: The market's widespread decline today ended with the IWM losing -0.9%. Shares look poised to retest the $110.50-110.00 zone. I would wait for a bounce before considering new positions.

- Suggested Positions -

Long 2014 Jan $112 call (IWM1418a112) entry $2.62

12/06/13 trade opened on gap higher at $112.62, suggested trigger was $112.55

Entry on December 06 at $112.62
Average Daily Volume = 40.6 million
Listed on December 04, 2013


Michael Kors - KORS - close: 81.81 change: +1.20

Stop Loss: 78.49
Target(s): 89.00
Current Option Gain/Loss: -13.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/10/13: KORS displayed relative strength again for the second day in a row. Shares outperformed the broader market with a +1.48% gain. The next challenge could be short-term resistance near the $83.00 level.

- Suggested Positions -

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

12/07/13 new stop loss @ 78.49, readers may want to consider an early exit right here
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


Nike Inc. - NKE - close: 79.22 change: -0.56

Stop Loss: 78.45
Target(s): 84.75
Current Option Gain/Loss: - 22.0%
Time Frame: Exit PRIOR to earnings on Dec. 19th
New Positions: see below

Comments:
12/10/13: NKE slowly drifted lower on Tuesday. Unfortunately shares underperformed the major indices with a -0.7% decline. The past two months have seen NKE bounce at its rising 20-dma, which is currently at $78.80. Nimble traders could buy calls on a dip or a bounce near this level. Otherwise it might pay off to wait for a new rally past $80.30 before initiating positions.

Earlier Comments:
This is a short-term trade. NKE is due to report earnings on December 19th and we do not want to hold over the announcement. Plan to exit prior to the report.

FYI: NKE will begin trading ex-dividend on December 12th. The quarterly cash dividend should be 24 cents.

- Suggested Positions -

Long 2014 Jan $80 call (NKE1418a80) entry $2.59

Entry on December 09 at $80.25
Average Daily Volume = 2.6 million
Listed on December 07, 2013


Nu Skin Enterprises - NUS - close: 129.55 change: -1.97

Stop Loss: 127.40
Target(s): 139.50
Current Option Gain/Loss: - 25.0%
Time Frame: Exit PRIOR to January expiration
New Positions: see below

Comments:
12/10/13: NUS opened at $131.01 this morning. Yet in moments NUS had spiked up to the $131.75 mark. The rally only last a few seconds and NUS fell back into the $129-131 zone. Our suggested entry point to buy calls just happened to be $131.75 so our play is open. If you're looking for an entry point now then nimble traders may want to buy calls on a dip near the simple 10-dma at $128.50. Otherwise I am suggesting readers wait for a new relative high above $131.75 to initiate positions.

Earlier Comments:
More conservative traders might want to wait for NUS to trade above the recent December high at $132.67 as an alternative entry point. Our target is $139.50 but more aggressive traders could aim a lot higher. The Point & Figure chart for NUS is bullish with a $167 target.

- Suggested Positions -

Long 2014 Jan $135 call (NUS1418a135) entry $4.80*
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on December 10 at $131.75
Average Daily Volume = 1.1 million
Listed on December 09, 2013


QUALCOMM Inc. - QCOM - close: 73.38 change: +0.01

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/10/13: QCOM bounced from short-term support near $73.00 again and essentially closed unchanged on the session. It sounded like after the closing bell tonight that Citigroup initiated coverage on QCOM with a "buy" rating. The stock could see strength tomorrow morning in reaction to this "upgrade".

Earlier Comments:
Currently QCOM has been consolidating sideways and actually weathered the market's recent five-day decline pretty well. Shares are now poised to breakout past resistance at $74.00. I am suggesting a trigger to buy calls at $74.25. If triggered our target is $79.50. More aggressive traders may want to aim higher since the Point & Figure chart for QCOM is bullish with a $93 target.

FYI: Don't forget that QCOM does significant amount of business with Apple (AAPL) and if AAPL has any bad headlines it could impact QCOM shares.

Trigger @ 74.25

- Suggested Positions -

Buy the 2014 Jan $75 call (QCOM1418a75)

- or -

Buy the 2014 Feb $75 call (QCOM1422b75)

Entry on December -- at $---.--
Average Daily Volume = 11.5 million
Listed on December 07, 2013


Constellation Brands Inc. - STZ - close: 70.98 change: +0.37

Stop Loss: 69.40
Target(s): 74.75
Current Option Gain/Loss: - 5.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/10/13: STZ bounced off its morning spike lower but shares continue to struggle with resistance near the $71.30-71.40 area. 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: 83.12 change: +0.12

Stop Loss: 81.45
Target(s): 88.50
Current Option Gain/Loss: -40.1%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
12/10/13: UHS managed to display a little bit of strength today with a +0.14% gain versus the market's widespread decline. The stock is not seeing a lot of follow through on any rally attempts. That is making me more cautious. Tonight we are raising the stop loss to $81.45.

NOTE: The option spread on UHS suddenly widened today with a bid/ask at $1.00/1.60. A spread that wide really isn't tradable. If you're looking for an entry point then consider using a limit order with a price inside the spread (there is no guarantee you'll get filled).

- Suggested Positions -

Long 2014 Jan $85 call (UHS1418a85) entry $1.67*

12/10/13 new stop loss @ 81.45
12/06/13 triggered at $83.60
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on December 06 at $83.60
Average Daily Volume = 912 thousand
Listed on December 03, 2013


United Parcel Service - UPS - close: 101.73 change: -0.61

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: -35.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/10/13: UPS slipped back toward its simple 20-dma with a -0.59% decline. That was slightly better than the transportation average's -0.72% drop. More conservative traders may want to raise their stop loss closer to last week's low near $100.75. 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




PUT Play Updates

Intl. Business Machines - IBM - close: 177.12 change: -0.34

Stop Loss: 178.65
Target(s): 170.25
Current Option Gain/Loss: -11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/10/13: Shares of IBM are not really moving much this week. Shares appear to be drifting sideways below short-term resistance at the $178.00 level. I am not suggesting new positions at this time.

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

12/09/13 new stop loss @ 178.65

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


The St. Joe Company - JOE - close: 17.61 change: -0.37

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -51.9%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
12/10/13: Shares of JOE gave up -2.0% today. That was enough to almost erase yesterday's bounce. Traders might want to wait for a new relative low before initiating new positions.

We do not currently have a stop loss but you may want to add a stop in the $18.50-19.00 area.

Remember, this is a lottery ticket style of trade.

I don't see any changes from JOE'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


Kansas City Southern - KSU - close: 119.03 change: -0.85

Stop Loss: 120.50
Target(s): 114.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
12/10/13: Tuesday proved to be a bit of a volatile session for shares of KSU. The stock rallied up to its 30-dma this morning (a +1.8% gain) and then reversed to give back all of its gains and more. The stock closed on its low for the day, which does not bode well for tomorrow morning. More aggressive traders may want to use today's intraday bearish reversal as a new entry point to buy puts now.

I am suggesting a trigger to buy puts at $117.75. If triggered our target is $114.00. More aggressive traders may want to aim lower for the simple 200-dma instead.

Trigger @ 117.75

- Suggested Positions -

buy the 2014 Jan $115 PUT (KSU1418m115)

Entry on December -- at $---.--
Average Daily Volume = 486 thousand
Listed on December 07, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.41 change: -0.19

Stop Loss: 54.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +33.3%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
12/10/13: It was another relatively quiet session for the VGK. I am not suggesting new positions at this time.

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 BEARISH PLAYS

SPDR Gold ETF - GLD - close: 121.82 change: +2.10

Stop Loss: 121.25
Target(s): 115.50
Current Option Gain/Loss: -53.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/13: Our GLD put play has been stopped out with the ETF's gap open higher at $122.14. Our stop loss was $121.25. Odds are that today's pop in gold was a reaction to another down day in the U.S. dollar. It would appear that the traditional relationship of weaker dollar/stronger gold has reasserted itself.

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

- Suggested Positions -

2014 Jan $115 PUT (GLD1418m115) entry $1.80 exit $0.84 (-53.3%)

12/10/13 stopped out on gap open higher at $122.14
12/05/13 new stop loss @ 121.25
11/30/13 new stop loss @ 122.55

chart:

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