Editor's Note:
The stock market's widespread gains on Wednesday helped trip some entry points. Our BMRN, MS, and ZUMZ trades were all opened. I am removing P from the play list.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 37.00 change: +1.00

Stop Loss: 35.25
Target(s): 39.90
Current Gain/Loss: + 1.3%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
02/01 update: ADSK displayed some relative strength today with a +2.7% gain. Our position went from -1.3% to +1.3%. Please note that I am raising the stop loss to $35.25. I am not suggesting new positions at this time.

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

02/01/12 new stop loss @ 35.25
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: 37.74 change: +2.10

Stop Loss: 35.40
Target(s): 38.50
Current Gain/Loss: + 4.2%
Time Frame: up to the Feb. 16th earning report
New Positions: see below

Comments:
02/01 update: Wow! BMRN was a strong performer today with a +5.8% gain. This could be short covering. The stock's breakout past short-term resistance at $36.00 is bullish. Our trade was triggered at $36.20. BMRN has closed right under its early 2012 highs. I would expect a little profit taking tomorrow. We are raising our stop loss up to $35.40. I am not suggesting new positions at this time.

Earlier Comments:
We want to keep our position size small. 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.

(small positions)

current Position: long BMRN stock @ 36.20

- or -

Long Feb. $35 call (BMRN1218B35) Entry $1.90

02/01/12 new stop loss @ 35.40

Entry on February 01 at $36.60
Earnings Date 02/16/12 (confirmed)
Average Daily Volume = 1.0 million
Listed on January 28, 2011


Cisco Systems Inc. - CSCO - close: 19.80 change: +0.15

Stop Loss: 18.95
Target(s): 21.75
Current Gain/Loss: + 2.2%
Time Frame: exit ahead of the Feb. 8th earnings report
New Positions: see below

Comments:
02/01 update: CSCO's +0.7% gain lagged behind the NASDAQ's +1.2% gain. Shares of CSCO did close back above their 10-dma but the stock remains under resistance at the $20.00 mark.

Keep in mind we only have a few days left. We plan 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: 39.33 change: +0.43

Stop Loss: 37.90
Target(s): 42.50
Current Gain/Loss: - 0.6%
Time Frame: up to earnings on Feb. 7th
New Positions: see below

Comments:
02/01 update: DIS rallied +1.1% but the stock has stalled near the top of its two-week trading range. 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: 49.82 change: +0.79

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

Comments:
02/01 update: ETN outperformed the major indices with a +1.6% gain. Yet the stock remains stuck under resistance near the $50.00 level. The intraday high was $50.15. (Note: I changed our April $50 call for a March $50 call).

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 MAR $50 call (ETN1221C50)

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: 32.93 change: +0.07

Stop Loss: 31.40
Target(s): 37.00
Current Gain/Loss: - 3.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/01 update: GPOR's failure to participate in the market's widespread rally is disappointing. If shares do not improve soon we might drop it as an active candidate. You could argue that GPOR is consolidating in a bull flag pattern. If that's the case then a rally past $33.50 could be used as a new bullish entry point.

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: 10.15 change: +0.32

Stop Loss: 9.45
Target(s): 11.00
Current Gain/Loss: +12.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/01 update: HGSI rallied off new short-term support near $9.80 this morning. More conservative traders may want to raise their stops closer to the $9.80 level. 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: 16.54 change: +0.12

Stop Loss: 15.95
Target(s): 17.90
Current Gain/Loss: + 0.6%
Time Frame: up to the Feb. 14th earnings report
New Positions: see below

Comments:
02/01 update: HST is still drifting higher. I don't see any changes from my prior comments.

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: 37.60 change: +0.30

Stop Loss: 35.95
Target(s): 42.50
Current Gain/Loss: - 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/01 update: The financial sector displayed some relative strength today but JPM lagged behind its peers. Shares rallied toward resistance near $38.00 and stalled. I would consider new bullish positions if JPM can trade at $38.15 or higher.

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: 15.94 change: +0.40

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:
02/01 update: MRVL displayed some relative strength with a +2.5% gain. Yet we're still 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: 19.39 change: +0.74

Stop Loss: 17.75
Target(s): 21.90 (or 23.75)
Current Gain/Loss: + 1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/01 update: Hmm... I would be cautious with MS. The stock is not trading as expected. Shares did show relative strength today. The stock gapped open higher above resistance and opened at $19.19. Our trigger to open bullish positions was $19.05 so the play opened this morning. MS rallied to $20.09 (a +7.7% move) before trimming its gains to just +3.9%. The breakout past resistance near $19.00 and its simple and exponential 200-dma is bullish but the reversal at $20.00 looks bearish.

At this point I would wait for a new bounce off the $19.00 area before considering new positions. So look for a dip first. Our multi-week target $21.90 but more aggressive traders can aim for the $24.00 area instead.

current Position: Long MS stock @ $19.19

- or -

Long FEB $20 call (MS1218B20) Entry $0.35

- or -

Long APR $20 call (MS1221D20) Entry $1.16

02/01/12 Trade opened on MS' gap open higher at $19.19, above our trigger of $19.05

Entry on February 01 at $19.19
Earnings Date 04/23/12 (unconfirmed)
Average Daily Volume = 25.5 million
Listed on January 28, 2011


Smith & Wesson Holding Corp. - SWHC - close: 5.19 change: +0.05

Stop Loss: 4.65
Target(s): 5.65 or 6.40
Current Gain/Loss: + 7.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/01 update: Another day, another new relative high for SWHC. I am not suggesting new positions at this time. More conservative traders may want to take profits now.

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: 42.34 change: +0.02

Stop Loss: 40.75
Target(s): 49.00
Current Gain/Loss: - 1.7%
Time Frame: up to Feb 9 earnings report.
New Positions: see below

Comments:
02/01 update: The action in TCK today is disappointing. The stock did not join in the market's widespread rally. Instead TCK merely drifted sideways and closed virtually unchanged on the session. This is troubling. More conservative traders may want to exit early now. If we do not see some improvement in TCK soon we might close the play early. 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: +0.00

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

Comments:
02/01 update: Hmm... TGH is another stock that did not participate in the market rally today. This is worrisome. Readers may want to just go ahead and exit early 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


Zumiez Inc. - ZUMZ - close: 29.38 change: +0.82

Stop Loss: 27.40
Target(s): 32.25 or 34.50
Current Gain/Loss: + 2.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/01 update: Our new trade on ZUMZ is open. Both the stock and the S&P 500 met our entry point requirements. ZUMZ gapped open higher at $28.75 and rallied toward $30 before trimming gains and settling with a +2.8% gain. The relative strength is encouraging.

Earlier Comments:
I am setting two different targets. Conservative traders can exit at $32.25. More aggressive traders can exit at $34.50.

current Position: Long ZUMZ stock @ 28.75

- or -

Long Feb. $30 call (ZUMZ1218B30) Entry $1.00

02/01/12 Trade opened with ZUMZ gapping higher at $28.75

Entry on February 01 at $28.75
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 627 thousand
Listed on January 31, 2011


BEARISH Play Updates

Portfolio Recovery Associates - PRAA - close: 67.03 change: +2.08

Stop Loss: 68.05
Target(s): 60.50
Current Gain/Loss: - 1.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/01 update: I am suggesting readers trade cautiously here. The stock market's widespread gains fueled a sharp oversold bounce in PRAA (+3.2%). Shares are testing a short-term trend line of lower highs. A breakout higher could spark some short covering.

We have a stop loss at $68.05. More conservative traders may want to lower their stop closer to the $67.50 area. I am not suggesting new positions at this time.

Earlier Comments:
Our target is $60.50. More aggressive trades could aim lower. FYI: The Point & Figure chart for PRAA is bearish with a $56.00 target.

current Position: short PRAA stock @ $65.83

Entry on February 01 at $65.83
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 156 thousand
Listed on January 31, 2011


CLOSED BULLISH PLAYS

Pandora Media, Inc. - P - close: 12.89 change: -0.30

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:
02/01 update: Uh-oh! Pandora did not participate in the market's rally today. That's not a good sign. I warned readers yesterday that if Pandora closed under $13.00 we'd remove it as a bullish candidate.

Trigger @ $14.25

Trade did not open.

02/01/12 removed from the play list, unopened.

chart:

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