Editor's Note:
Stocks pared their losses with a decent bounce off the Monday morning lows but can the rebound continue? The major indices were (still are) arguably overbought and due for some profit taking. Yet after hours tonight the S&P 500 futures were climbing higher.

We have several unopened candidates that could get triggered if the market rallies tomorrow.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 35.91 change: -0.69

Stop Loss: 34.75
Target(s): 39.90
Current Gain/Loss: - 1.6%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
01/30 update: ADSK gapped open lower with the rest of the market but failed to recover much. The stock underperformed with a -1.8% decline. The simple 10-dma near $35.30 might offer some short-term support. I am not suggesting new positions at this time. 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!

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


BioMarin Pharma. - BMRN - close: 35.59 change: -0.26

Stop Loss: 34.49
Target(s): 38.50
Current Gain/Loss: unopened
Time Frame: up to the Feb. 16th earning report
New Positions: Yes, see below

Comments:
01/30 update: BMRN did not make any progress on Monday. We are waiting for a breakout past resistance.

We want to open small bullish positions if BMRN can trade at $36.20 or higher. We'll use a stop loss at $34.49. Our target is $38.50. More aggressive traders could aim higher but we do not want to hold over the Feb. 16th earnings report.

FYI: The Point & Figure chart for BMRN is bullish with a long-term $47.50 target.

Breakout Trigger to buy @ $36.20 (small positions)

Suggested Position: buy stock @ 36.20

- or -

buy the Feb. $35 call (BMRN1218B35)

Entry on January xx at $ xx.xx
Earnings Date 02/16/12 (confirmed)
Average Daily Volume = 1.0 million
Listed on January 28, 2011


Cisco Systems Inc. - CSCO - close: 19.56 change: -0.00

Stop Loss: 18.95
Target(s): 21.75
Current Gain/Loss: + 0.9%
Time Frame: exit ahead of the Feb. 8th earnings report
New Positions: see below

Comments:
01/30 update: CSCO fell toward its rising 20-dma this morning. The stock managed to bounce back and closed unchanged on the session. Nimble traders could buy a dip in the $19.25-19.00 zone but keep in mind we're planning to exit prior to the Feb. 8th earnings report.

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

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: 38.99 change: -0.26

Stop Loss: 37.90
Target(s): 42.50
Current Gain/Loss: - 1.5%
Time Frame: up to earnings on Feb. 7th
New Positions: see below

Comments:
01/30 update: DIS fell to $38.38 thanks to the market's widespread declines but shares pared their losses by the close. If the market continues to correct we can expect DIS to test the $38.00 level. I am not suggesting new positions at this time.

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.

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


Eaton Corp. - ETN - close: 49.66 change: +0.09

Stop Loss: 47.45
Target(s): 54.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/30 update: ETN gapped open lower and hit $48.75 before climbing back into positive territory. I don't see any changes from my weekend comments.

I am suggesting bullish positions if ETN can trade at $50.25 or higher. We'll use a stop loss at $47.45 to start. Our multi-week target is $54.75.

FYI: The Point & Figure chart for ETN is bullish with a long-term $67 target.

Breakout Trigger to buy @ $50.25

Suggested Position: stock @ $50.25

- or -

buy the FEB $50 call (ETN1218B50)

- or -

buy the APR $50 call (ETN1221D50)

Entry on January xx at $ xx.xx
Earnings Date 01/26/12
Average Daily Volume = 3.7 million
Listed on January 28, 2011


Gulfport Energy - GPOR - close: 33.36 change: -0.44

Stop Loss: 31.40
Target(s): 37.00
Current Gain/Loss: - 2.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/30 update: It was a volatile morning for GPOR but traders bought the dip near $32.15. The strong intraday bounce is encouraging. If both GPOR and the S&P 500 open positive tomorrow morning I would be tempted to launch new positions.

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.

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: 10.40 change: -0.13

Stop Loss: 9.45
Target(s): 11.00
Current Gain/Loss: +14.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/30 update: HGSI held up reasonably well on Monday only giving back -1.2%. I am not suggesting new positions at this time. Conservative traders may want to take profits now. Our exit target is $11.00.

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

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: 16.33 change: -0.19

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:
01/30 update: Our HST is still not open. The stock gapped open lower, as did much of the market today. HST found short-term support at its rising 10-dma. I am suggesting we try again. The plan is to launch small positions tomorrow but only if both HST and the S&P 500 open positive. We want to keep our position size very small. 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

01/30/12 still not open. try again.
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.

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: 37.01 change: -0.20

Stop Loss: 35.95
Target(s): 42.50
Current Gain/Loss: - 2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/30 update: JPM traded under its 10-dma and simple 200-dma this morning but managed to bounce back above both of these moving averages. The stock's up trend is in jeopardy. I am not suggesting new positions at this time.

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.

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: 15.74 change: -0.05

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:
01/30 update: MRVL ended the session down -0.3%. We are still on the sidelines waiting for a breakout to new relative highs. Currently our plan is to open bullish positions when MRVL trades at $16.40 or higher. 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 (small positions)

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

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


Morgan Stanley - MS - close: 18.20 change: -0.36

Stop Loss: 17.75
Target(s): 21.90 (or 23.75)
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/30 update: Most of the market gapped open lower this morning. MS actually gapped higher but shares failed to breakout past resistance and eventually lost -1.9% on the session. Nimble traders might consider buying a dip near $18.00 or the 10-dma.

I am suggesting we open bullish positions if MS can trade at $19.05 of higher. Our multi-week target $21.90 but more aggressive traders can aim for the $24.00 area instead.

Breakout trigger to buy @ $19.05

Suggested Position: buy MS stock @ $19.05

- or -

buy the FEB $20 call (MS1218B20)

- or -

buy the APR $20 call (MS1221D20)

Entry on January xx at $ xx.xx
Earnings Date 04/23/12 (unconfirmed)
Average Daily Volume = 25.5 million
Listed on January 28, 2011


Smith & Wesson Holding Corp. - SWHC - close: 5.05 change: -0.09

Stop Loss: 4.65
Target(s): 5.65 or 6.40
Current Gain/Loss: + 4.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/30 update: After four up days in a row SWHC hit some profit taking with a -1.7% decline. More conservative traders may want to take profits now. 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

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: 42.53 change: -0.36

Stop Loss: 40.75
Target(s): 49.00
Current Gain/Loss: - 1.3%
Time Frame: up to Feb 9 earnings report.
New Positions: see below

Comments:
01/30 update: TCK dipped to technical support at its 10-dma and bounced. Yet shares still lost -0.8% on the session. If both TCK and the S&P 500 open positive tomorrow I would use it as a new bullish 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.

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: 31.87 change: -0.55

Stop Loss: 30.60
Target(s): 34.00
Current Gain/Loss: + 4.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/30 update: After a strong multi-day rally TGH was due for some profit taking. The stock gave up -1.7% today. Readers may want to think about taking profits now. 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.

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: 27.61 change: +0.67

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:
01/30 update: SPN continues to bounce. Shares outperformed the market today with a +2.4% gain. The stock is nearing resistance in the $28.00 area. 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)

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