Editor's Note:
Biotech stock HGSI continues to rally. Shares broke out past resistance near $10 and its simple 100-dma this past week. Readers may want to start thinking about taking profits in our HGSI trade.

Meanwhile I've adjusted our entry point strategy on HST.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 36.60 change: +0.05

Stop Loss: 34.75
Target(s): 39.90
Current Gain/Loss: + 0.2%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
01/28 update: ADSK bounced off its Friday morning lows but shares didn't make much progress. I am still concerned that Thursday's intraday move looks like a potential top.

Our target is $39.90 but more aggressive traders could definitely aim higher. We do not want to hold over the late February earnings report. FYI: The Point & Figure chart for ADSK is bullish with a long-term $49.00 target.

current Position: Long ADSK stock @ 36.50

- or -

Long Feb $37 call (ADSK1218B37) Entry $1.08

01/26/12 the action today looks like a potential top or bearish reversal. Be careful!

chart:

Entry on January 26 at $36.50
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on January 24, 2011


Cisco Systems Inc. - CSCO - close: 19.56 change: -0.27

Stop Loss: 18.95
Target(s): 21.75
Current Gain/Loss: + 0.9%
Time Frame: up to CSCO's February earnings
New Positions: see below

Comments:
01/28 update: CSCO underperformed on Friday with a -1.3% decline. Shares did close under their 10-dma, which is short-term bearish. You could argue that the stock is consolidating in a bull-flag type of pattern. The $20.00 level remains overhead resistance.

I am not suggesting new positions at this time.

Earlier Comments:
We want to ride the stock up to its early February earnings report but exit prior to the announcement. FYI: The Point & Figure chart for CSCO is bullish with a long-term $27.00 target.

Long Position: Long CSCO stock @ 19.37

- or -

Long Feb $20 call (CSCO1218B20) Entry $0.43

01/24/12 new stop loss @ 18.95, target adjusted to $21.75
01/18/12 trade opened on gap higher at $19.37

chart:

Entry on January 18 at $19.37
Earnings Date 02/08/12 (confirmed)
Average Daily Volume = 39.0 million
Listed on January 12, 2011


Walt Disney Company - DIS - close: 39.25 change: -0.10

Stop Loss: 37.90
Target(s): 42.50
Current Gain/Loss: - 0.8%
Time Frame: up to earnings on Feb. 7th
New Positions: see below

Comments:
01/28 update: Friday was a quiet day for DIS. Shares dipped toward $39 and its 20-dma and spent most of the session in a 50-cent range. More conservative traders might want to inch up their stops but if the market corrects I am expecting DIS to dip toward support near $38.00.

Earlier Comments:
Our bullish target might be a little optimistic given our time frame. We do not want to hold over DIS' earnings report on Feb 7th. Speaking of targets, we are aiming for $42.50 but the Point & Figure chart for DIS is bullish with a long-term $53 target.

(Small Positions)

Suggested Position: Long DIS stock @ 39.60

- or -

Long Feb $40 call (DIS1218B40) Entry $0.87

01/23/12 adjusted strategy. Use trigger @ 39.60
01/21/12 trade not open yet. try again.

chart:

Entry on January xx at $ xx.xx
Earnings Date 02/07/12 (confirmed)
Average Daily Volume = 7.7 million
Listed on January 19, 2011


Gulfport Energy - GPOR - close: 33.80 change: +0.30

Stop Loss: 31.40
Target(s): 37.00
Current Gain/Loss: - 1.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/28 update: GPOR rebounded off its Friday morning lows to post +0.8% gain and outperform the major indices. The trend of higher lows continues to work. I am tempted to raise our stop closer to the $32 level.

Our target is $37.00 but keep an eye on the $35.00 level, which could be resistance.

Current Position: long GPOR stock @ 34.15

- or -

Long FEB $35 call (GPOR1218B35) Entry $1.25

01/26/12 Trade finally opened. GPOR @ 34.15
01/25/12 trade did not open. try again.
01/24/12 trade did not open. try again.

chart:

Entry on January 26 at $34.15
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 522 thousand
Listed on January 23, 2011


Human Genome Sciences - HGSI - close: 10.53 change: +0.77

Stop Loss: 9.45
Target(s): 11.00
Current Gain/Loss: +16.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/28 update: Friday was another strong day for HGSI. The stock rallied past resistance near $10.00 and its 100-dma to close up +7.8%. The intraday high was $10.68. Conservative traders may want to take profits now. Our exit target is $11.00 but readers might want to think about aiming higher, maybe the $12.00-12.35 zone instead. The newsletter will exit at $11.00. Please note we are raising the stop loss to $9.45.

I am not suggesting new positions at this time.

Earlier Comments:
Keep in mind this is an aggressive trade and HGSI can be a volatile stock. Our target is $11.00 but readers should note that the $10.00 level and the simple 100-dma could act as overhead resistance. I am suggesting we keep our position size small to limit our risk.

(small positions)

current Position: Long HGSI stock @ $9.06

- or -

Long Feb $10 call (HGSI1218B10) Entry $0.59

01/28/12 new stop loss @ 9.45, readers may want to exit and lock in profits now.
01/26/12 new stop loss @ 8.49
01/25/12 readers may want to take profits now (HGSI @ $9.92)
01/19/12 HGSI gapped open higher at $9.06 on a new "buy" rating

chart:

Entry on January 19 at $9.06
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on January 18, 2011


Host Hotels & Resorts - HST - close: 16.52 change: +0.13

Stop Loss: 15.95
Target(s): 17.90
Current Gain/Loss: unopened
Time Frame: up to the Feb. 14th earnings report
New Positions: Yes, see below

Comments:
01/28 update: The momentum in HST continues. We keep waiting for a bigger dip and it's not happening. I am suggesting we adjust our entry point strategy. Before I continue let me label this an aggressive entry point. HST is overbought given its six-week rally but that doesn't mean it can't grow more overbought. We will open positions on Monday morning but only if both HST and the S&P 500 open positive. I am moving our stop loss up to $15.95 and we want to keep our position size very small. I am removing the call option and the newsletter will just use the stock. FYI: The Point & Figure chart for HST is bullish with a $24.00 target.

Do not enter position unless HST and the S&P500 are both positive at the open
(Small Positions!!)

Suggested Position: buy HST stock @ the open

01/28/12 adjusted entry strategy. Buy HST stock at the open but only if stock and S&P 500 open positive. New stop loss at $15.95. Small positions only!
01/24/12 trade not open yet. adjust strategy to buy the dip at $16.00.

chart:

Entry on January xx at $ xx.xx
Earnings Date 02/14/12 (confirmed)
Average Daily Volume = 7.5 million
Listed on January 21, 2011


J.P.Morgan Chase & Co - JPM - close: 37.21 change: -0.28

Stop Loss: 35.95
Target(s): 42.50
Current Gain/Loss: - 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/28 update: Nothing has changed for us. JPM is still consolidating sideways in the $38-37 zone. More conservative traders might want to inch up their stop loss. I would wait for a new relative high over $38.10 before considering new bullish positions.

Earlier Comments:
More conservative traders may want to wait for JPM to actually close over $38.00 before launching new positions. Our multi-week target is $42.50. FYI: The Point & Figure chart for JPM is bullish with a long-term $56 target.

Current Position: Long JPM stock @ $38.05

- or -

Long Feb $38 call (JPM1218B38) Entry $1.00

- or -

Long Mar $38 call (JPM1217C38) Entry $1.50

01/26/12 triggered at $38.05
01/24/12 still not open. adjust strategy to use a trigger @ 38.05
01/23/12 trade not open yet, S&P 500 opened negative. Try again.

chart:

Entry on January 26 at $38.05
Earnings Date 01/13/12
Average Daily Volume = 35.2 million
Listed on January 21, 2011


Marvell Technology - MRVL - close: 15.79 change: +0.03

Stop Loss: 15.40
Target(s): 19.00
Current Gain/Loss: unopened
Time Frame: exit ahead of earnings on Feb. 23rd.
New Positions: Yes, see below

Comments:
01/28 update: MRVL continues to display a lot of volatility. More conservative traders may want to avoid playing this stock. MRVL doesn't report earnings until Feb. 23rd but the company just warned on Friday morning. They now expect revenues below prior guidance and Wall Street's estimates. This news sent MRVL gapping lower on Friday morning but the stock reversed and actually rallied to a new relative high at $16.29 before rolling over.

Lack of a larger sell-off on this bad news is somewhat encouraging. Yet I am growing more cautious here. We will raise our trigger to open positions to $16.40. Let's keep our position size small.

If triggered our multi-week target is $19.00. However, keep an eye on the $18.00 area as potential overhead resistance. FYI: The Point & Figure chart for MRVL is bullish with a $21.00 target.

Trigger @ 16.40

Suggested Position: buy MRVL stock @ 16.40

- or -

buy the Feb $17 call (MRVL1218B17)

- or -

buy the May $17 call (MRVL1219E17)

01/28/12 adjusting our entry trigger to $16.40
01/27/12 MRVL issued an earnings warning

chart:

Entry on January xx at $ xx.xx
Earnings Date 03/23/12 (confirmed)
Average Daily Volume = 14.1 million
Listed on January 25, 2011


Smith & Wesson Holding Corp. - SWHC - close: 5.14 change: +0.07

Stop Loss: 4.65
Target(s): 5.65 or 6.40
Current Gain/Loss: + 6.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/28 update: SWHC continues to soar. Shares are up four days in a row and hitting new two-year highs. I am raising our stop loss up to $4.65. I am not suggesting new positions at this time.

Earlier Comments:
I do consider this a very aggressive trade and we want to keep our position size small. The $5.00 level could be resistance but we're going to aim higher. I am setting two different targets depending on your risk tolerance. I'd aim for $5.65 or $6.40. FYI: The Point & Figure chart for SWHC is bullish with a long-term $9.50 target.

(Small Positions)

Suggested Position: long SWHC stock @ $4.83

01/28/12 new stop loss @ 4.65
01/24/12 new stop loss @ 4.55

chart:

Entry on January 17 at $4.83
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 962 thousand
Listed on January 14, 2011


Teck Resources - TCK - close: 42.89 change: +0.15

Stop Loss: 40.75
Target(s): 49.00
Current Gain/Loss: - 0.4%
Time Frame: up to Feb 9 earnings report.
New Positions: see below

Comments:
01/28 update: TCK also rebounded off its Friday morning low but gains faded and shares spent the rest of the session drifting sideways. I am hesitant to launch new positions tonight but a new bounce off the simple 10-dma could work as an entry point.

Earlier Comments:
More aggressive traders might want to keep their stop under $40.00 instead. Our target is the $47.00 level. Our target is pretty optimistic given our time frame. We do not want to hold over the Feb. 9th earnings report. FYI: The Point & Figure chart for TCK is bullish with a long-term $61.00 target.

(small positions)

current Position: long TCK stock @ 43.10

- or -

Long Feb $43 call (TCK1218B43) entry $2.05

01/26/12 trade opened at $43.10
01/25/12 adjusted exit target to $47.00.

chart:

Entry on January 26 at $43.10
Earnings Date 02/09/12 (confirmed)
Average Daily Volume = 2.3 million
Listed on January 23, 2011


Textainer Group Holdings - TGH - close: 32.42 change: +0.31

Stop Loss: 30.60
Target(s): 34.00
Current Gain/Loss: + 5.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/28 update: TGH continues to show relative strength and closed at new multi-month highs. Readers may want to think about taking profits now. I am raising our stop loss up to breakeven at $30.60. I am not suggesting new positions at this time.

Earlier Comments:
A breakout could spark some short covering. The most recent data listed short interest at 11% of the very small 12.8 million share float. That raises the risk of a short squeeze. Plus, TGH should appeal to the high-yield crowd since shares sport a 4.7% yield. NOTE: TGH does have options but the spreads are a little wide.

current Position: Long TGH stock @ 30.60

01/28/12 new stop loss @ 30.60
01/25/12 new stop loss @ 29.90
01/19/12 new stop loss @ 29.40
01/13/12 TGH hit our trigger at $30.60 and reversed in less than one second. I am suggesting caution here.

chart:

Entry on January 13 at $30.60
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 172 thousand
Listed on January 11, 2011


BEARISH Play Updates

Superior Energy Services - SPN - close: 26.94 change: +1.16

Stop Loss: 26.25
Target(s): 22.50 or 20.50
Current Gain/Loss: unopened
Time Frame: up to the Feb. 23rd earnings report
New Positions: Yes, see below

Comments:
01/28 update: There was no follow through on Thursday's relative weakness. SPN outperformed the market with a big bounce (+4.4%) on Friday. Yet the overall trend remains bearish. Nimble traders might consider new bearish positions on a failed rally near $28.00. Currently our plan is to launch small bearish positions when SPN hits $24.75.

If triggered I'm setting an aggressive target at $20.50 but more conservative traders may want to exit near $22.50, which might be support near its October 2011 lows.

I do have to warn you that being short SPN seems pretty popular these days. The most recent data listed short interest at 33% of the 72.5 million-share float. That definitely raises the risk of a short squeeze. Readers may want to use put options to limit your risk.

FYI: The Point & Figure chart for SPN is bearish with an $18 target.

Trigger @ 24.75

Suggested Position: short SPN stock @ 24.75

- or -

buy the Feb $25 PUT (SPN1218N25)

chart:

Entry on January xx at $ xx.xx
Earnings Date 02/23/12 (confirmed)
Average Daily Volume = 2.8 million
Listed on January 26, 2011