Editor's Note:
If the stock market resumes the rally we are ready with several trades yet to be triggered.

HST was opened today. We have removed SPN as a bearish candidate. Our trade never opened.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 36.00 change: +0.09

Stop Loss: 34.75
Target(s): 39.90
Current Gain/Loss: - 1.3%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
01/31 update: Today looked a lot like yesterday with ADSK moving sideways in a very narrow range. If the market continues to climb we can look for ADSK to bounce from its 10-dma. 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: 35.64 change: +0.04

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:
01/31 update: The consolidation in BMRN continues to narrow. Odds are growing that the stock will see a bullish breakout higher.

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: 19.65 change: +0.09

Stop Loss: 18.95
Target(s): 21.75
Current Gain/Loss: + 1.4%
Time Frame: exit ahead of the Feb. 8th earnings report
New Positions: see below

Comments:
01/31 update: After the volatility this morning CSCO spent the afternoon drifting sideways. 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: 38.90 change: -0.09

Stop Loss: 37.90
Target(s): 42.50
Current Gain/Loss: - 1.7%
Time Frame: up to earnings on Feb. 7th
New Positions: see below

Comments:
01/31 update: It was a relatively quiet session for DIS. We plan to exit prior to the Feb. 7th earnings announcement. 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: 49.03 change: -0.63

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

Comments:
01/31 update: ETN tried to rally this morning but reversed at resistance near $50.00. Shares spent most of the day moving sideways in a narrow range near $49.00.

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: 32.86 change: -0.50

Stop Loss: 31.40
Target(s): 37.00
Current Gain/Loss: - 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/31 update: GPOR is down almost a dollar in the last two sessions but the stock is still trading above the bullish trend of higher lows. I am not suggesting new positions at this time.

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: 9.83 change: -0.57

Stop Loss: 9.45
Target(s): 11.00
Current Gain/Loss: + 8.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/31 update: Ouch! HGSI hit some profit taking today. The morning pop higher didn't last very long and shares plunged back under the $10 level. The stock posted a -5.4% decline for the session. The close under $10.00 is short-term bearish. Readers may want to seriously consider an early exit right now. 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

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: 16.42 change: +0.09

Stop Loss: 15.95
Target(s): 17.90
Current Gain/Loss: - 0.1%
Time Frame: up to the Feb. 14th earnings report
New Positions: see below

Comments:
01/31 update: Our HST trade was opened with the market's strength this morning. HST gapped higher at $16.44 but struggled getting past the $16.50 level.

The plan was to keep our position size very small. We're using a stop loss at $15.95. More conservative traders may want to put their stop closer to the simple 10-dma instead. FYI: The Point & Figure chart for HST is bullish with a $24.00 target.

(Small Positions!!)

current Position: Long HST stock @ $16.44

01/31/12 trade opened on gap higher
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 31 at $16.44
Earnings Date 02/14/12 (confirmed)
Average Daily Volume = 7.5 million
Listed on January 21, 2011


J.P.Morgan Chase & Co - JPM - close: 37.30 change: +0.29

Stop Loss: 35.95
Target(s): 42.50
Current Gain/Loss: - 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/31 update: Financial stocks displayed some relative strength on Tuesday. Yet I am not suggesting new positions in JPM at this time. A breakout past resistance near $38.00 might change my mind.

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: 15.54 change: -0.20

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:
01/31 update: MRVL failed to make any progress today. Actually today's move is technically a bearish engulfing candlestick pattern, which is a potential reversal signal.

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: 18.65 change: +0.45

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:
01/31 update: MS closed near its highs for the day but is still struggling with technical resistance at its simple and exponential 200-dma. Our plan has not changed.

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


Pandora Media, Inc. - P - close: 13.19 change: -0.47

Stop Loss: 13.25
Target(s): 15.90 or 17.75
Current Gain/Loss: unopened
Time Frame: 6 to 12 weeks
New Positions: Yes, see below

Comments:
01/31 update: Shares of Pandora underperformed the market with a -3.4% decline. If we see shares close under $13.00 I will most likely drop it as a bullish candidate.

Currently I am suggesting a trigger to open small bullish positions at $14.25. We'll use a stop loss at $13.25. I am listing two different targets based on your time frame and risk tolerance ($15.90 or $17.75).

FYI: The Point & Figure chart for P is bullish with a long-term $23.00 target.

Trigger @ $14.25

Suggested Position: buy P stock @ $14.25

- or -

buy the Feb $15 call (P1218B15)

Entry on January xx at $ xx.xx
Earnings Date 03/01/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on January 30, 2011


Smith & Wesson Holding Corp. - SWHC - close: 5.14 change: +0.09

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:
01/31 update: SWHC displayed some relative strength today with a +1.7% gain. The stock essentially reversed yesterday's nine-cent loss. There is no change from my prior comments. 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: 42.32 change: -0.21

Stop Loss: 40.75
Target(s): 49.00
Current Gain/Loss: - 1.8%
Time Frame: up to Feb 9 earnings report.
New Positions: see below

Comments:
01/31 update: TCK retreated from its morning gap higher but shares bounced near short-term technical support at the 10-dma. I am not suggesting new positions at this time.

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: 31.59 change: -0.28

Stop Loss: 30.60
Target(s): 34.00
Current Gain/Loss: + 3.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/31 update: I'm not surprised to see some profit taking in TGH. Yesterday I suggested readers do just that, take some money off the table. TGH should find some short-term support in the $31-30 zone. We have our stop loss at $30.60.

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

None. We do not have any active bearish trades.


CLOSED BEARISH PLAYS

Superior Energy Services - SPN - close: 28.51 change: +0.90

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:
01/31 update: SPN is not cooperating. The stock is up three days in a row. Today's outperformance (+3.2%) left shares breaking out past several key moving averages. I am removing SPN as a bearish candidate. Our trade never opened. I would not consider it a potential bullish candidate until shares closed over $31.50.

Trigger @ 24.75

Trade did not open.

01/31/12 removed SPN from the newsletter.

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