Editor's Note:
Better than expected jobs data fueled widespread gains on Friday. We had three trades opened on Friday and we closed three trades. PRAA was stopped out.

Current Portfolio:


BULLISH Play Updates

Ancestry.com - ACOM - close: 33.09 change: +1.51

Stop Loss: 29.90
Target(s): 36.00
Current Gain/Loss: + 3.2%
Time Frame: exit prior to the Feb. 15th earnings report
New Positions: see below

Comments:
02/04 update: Our new ACOM play is off to a strong start. Shares gapped higher at $31.86 on Friday and rallied to a +4.7% gain. Our trigger to open positions was hit at $32.05. At this point I'd look for a dip before considering new positions.

Earlier Comments:
The most recent data listed short interest at 22.9% of the small 30 million-share float. That's definitely enough fuel for a short squeeze. Our target is $36.00. FYI: The Point & Figure chart for ACOM is bullish with a $52.00 target.

current Position: Long ACOM stock @ 32.05

- or -

Long Feb $32.50 call (ACOM1218B32.5) Entry $1.35

chart:

Entry on February 03 at $32.05
Earnings Date 02/15/12 (confirmed)
Average Daily Volume = 905 thousand
Listed on February 02, 2011


Autodesk, Inc. - ADSK - close: 37.85 change: +1.03

Stop Loss: 35.75
Target(s): 39.90
Current Gain/Loss: + 3.7%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
02/04 update: ADSK displayed relative strength on Friday with a +2.7% gain. Yet shares remain stuck under resistance at the $38.00 level. 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

02/02/12 new stop loss @ 35.75
02/01/12 new stop loss @ 35.25
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


BioMarin Pharma. - BMRN - close: 37.53 change: +0.24

Stop Loss: 35.85
Target(s): 38.50
Current Gain/Loss: + 3.6%
Time Frame: up to the Feb. 16th earning report
New Positions: see below

Comments:
02/04 update: BMRN is not seeing a lot of follow through on Wednesday's rally higher. More conservative traders may want to exit now and lock in gains. I am not suggesting new positions at this time. We will raise our stop loss to $35.85.

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

02/04/12 new stop loss @ 35.85
02/01/12 new stop loss @ 35.40

chart:

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: 20.09 change: +0.29

Stop Loss: 19.25
Target(s): 21.75
Current Gain/Loss: + 3.7%
Time Frame: exit ahead of the Feb. 8th earnings report
New Positions: see below

Comments:
02/04 update: CSCO has finally broken out past resistance at the $20.00 level. If we had more time this would look like a new bullish entry point. Unfortunately we only have a few days left. The plan is to exit prior to the Feb 8th earnings report. I am raising our stop loss to $19.25.

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

02/04/12 new stop loss @ 19.25
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


Eaton Corp. - ETN - close: 50.93 change: +1.60

Stop Loss: 47.45
Target(s): 54.75
Current Gain/Loss: + 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/04 update: Our ETN trade is finally open. Shares of ETN gapped open higher at $50.15, hit our trigger to launch positions at $50.25, and kept climbing. The stock outperformed the major indices with a +3.2% gain. If you're looking for a new entry consider waiting for a dip close to $50.

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

current Position: Long ETN stock @ $50.25

- or -

Long FEB $50 call (ETN1218B50) Entry $1.00

- or -

Long MAR $50 call (ETN1221C50) Entry $1.70

chart:

Entry on February 03 at $50.25
Earnings Date 01/26/12
Average Daily Volume = 3.7 million
Listed on January 28, 2011


Flextronics Intl. Ltd. - FLEX - close: 7.14 change: +0.15

Stop Loss: 6.80
Target(s): 8.00
Current Gain/Loss: +1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/04 update: Our aggressive, momentum trade on FLEX has been opened. The stock gapped open higher at $7.03. Shares traded to $7.22 before trimming its gains. I am raising our stop loss to $6.80.

Our multi-week target is $8.00. FYI: The Point & Figure chart for FLEX is bullish with a $9.00 target.

(small positions)

current Position: Long FLEX stock @ $7.03

- or -

Long Feb $7.00 call (FLEX1218B7) Entry $0.22

02/04/12 new stop loss @ 6.80
02/03/12 trade opened. FLEX opened at $7.03
02/02/12 not open yet. try again.

chart:

Entry on February 03 at $7.03
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on February 01, 2011


Gulfport Energy - GPOR - close: 35.23 change: +0.86

Stop Loss: 31.85
Target(s): 37.00
Current Gain/Loss: + 3.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/04 update: Energy stocks were showing strength on Friday and GPOR outperformed with a +2.5% gain. I am not suggesting new positions at this time. Our target remains $37.00.

Current Position: long GPOR stock @ 34.15

- or -

Long FEB $35 call (GPOR1218B35) Entry $1.25

02/02/12 new stop loss @ 31.85
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: 10.16 change: +0.02

Stop Loss: 9.75
Target(s): 11.00
Current Gain/Loss: +12.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/04 update: Caution! HGSI did not participate in the market's rally on Friday. Shares were content to consolidate sideways. The stock seems to be consolidating in a pennant pattern of lower highs and higher lows. The stock should see a breakout soon.

I am not suggesting new positions at this time. More conservative traders will want to seriously consider an early exit now. I am raising or stop loss to $9.75.

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

02/04/12 new stop loss @ 9.75
02/02/12 new stop loss @ 9.65
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 02/27/12 (confirmed)
Average Daily Volume = 7.1 million
Listed on January 18, 2011


J.P.Morgan Chase & Co - JPM - close: 38.28 change: +0.73

Stop Loss: 36.90
Target(s): 42.50
Current Gain/Loss: + 0.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/04 update: Financial stocks were big winners on Friday. JPM lagged the sector indices but still posted a +1.9% gain. More importantly JPM broke out and closed above resistance near the $38.00 level. I am raising our stop loss to $36.90. If both JPM and the S&P 500 open positive on Monday we can use this as a new entry point.

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

02/04/12 new stop loss @ 36.90
02/02/12 new stop loss @ 36.45
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: 16.64 change: +0.13

Stop Loss: 15.40
Target(s): 19.00
Current Gain/Loss: + 1.4%
Time Frame: exit ahead of earnings on Feb. 23rd.
New Positions: see below

Comments:
02/04 update: MRVL gapped higher on Friday morning and spent the rest of the day consolidating sideways. Shares might be a little bit overbought. Look for a dip back toward the $16.25 area before considering new bullish positions.

Earlier Comments:
Let's keep our position size small. 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.

(small positions)

current Position: Long MRVL stock @ 16.40

- or -

Long Feb $17 call (MRVL1218B17) Entry $0.25

- or -

Long May $17 call (MRVL1219E17) Entry $1.06

02/02/12 triggered at $16.40
01/28/12 adjusting our entry trigger to $16.40
01/27/12 MRVL issued an earnings warning

chart:

Entry on February 02 at $16.40
Earnings Date 03/23/12 (confirmed)
Average Daily Volume = 14.1 million
Listed on January 25, 2011


Morgan Stanley - MS - close: 20.31 change: +0.79

Stop Loss: 18.65
Target(s): 21.90 (or 23.75)
Current Gain/Loss: + 5.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/04 update: MS is a good example of financial-sector strength on Friday. The stock gapped higher and rallied to a +4.0% gain. The close over $20.00 is technically bullish. The simple 200-dma is at $18.76. I am raising our stop loss to $18.65. I am not suggesting new positions at this time. 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

02/04/12 new stop loss @ 18.65
02/02/12 new stop loss @ 18.25
02/01/12 Trade opened on MS' gap open higher at $19.19, above our trigger of $19.05

chart:

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: 5.32 change: +0.08

Stop Loss: 4.90
Target(s): 5.60
Current Gain/Loss: +10.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/04 update: SWHC continues to grow more and more overbought every day. Shares hit new two-year highs on Friday. I am raising our stop loss to $4.90. I am not suggesting new positions at this time. More conservative traders may want to take profits now.

NOTE: I am adjusting our exit strategy to close positions at $5.60.

Earlier Comments:
I do consider this a very aggressive trade and we want to keep our position size small. 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

02/04/12 new stop loss @ 4.90, adjust exit to $5.60
02/02/12 new stop loss @ 4.75
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


Textainer Group Holdings - TGH - close: 31.67 change: +0.28

Stop Loss: 30.80
Target(s): 34.00
Current Gain/Loss: + 3.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/04 update: The early morning Friday strength faded but TGH managed to close with a +0.8% gain. I am growing cautious on this trade. We plan to exit prior to earnings on Feb. 14th. Please note our new stop loss at $30.80. 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

02/04/12 new stop loss @ 30.80, exit prior to earnings (Feb 14th)
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 02/14/12 (confirmed)
Average Daily Volume = 172 thousand
Listed on January 11, 2011


Zumiez Inc. - ZUMZ - close: 29.72 change: +1.17

Stop Loss: 27.40
Target(s): 32.25 or 34.50
Current Gain/Loss: + 3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/04 update: The volatility in ZUMZ continues. Shares gapped open higher and rallied to $30.28 before trimming gains. ZUMZ settled with a +4.0% gain. There was no follow through on Friday's potential bearish reversal pattern. Yet at the same time Friday's move is an "inside day", which suggests trader indecision.

If you're looking for a new entry point I'd wait for a new dip or a bounce off the 50-dma near $28.20 or a new rally past $30.30 as your signal.

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

chart:

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

None. We do not have any active bearish trades.


CLOSED BULLISH PLAYS

Walt Disney Company - DIS - close: 40.00 change: +1.09

Stop Loss: 37.90
Target(s): 42.50
Current Gain/Loss: - 0.4%
Time Frame: up to earnings on Feb. 7th
New Positions: see below

Comments:
02/04 update: We have been expecting DIS to rally higher for days. Shares finally broke out from its trading range thanks to the market's reaction to the jobs data. Unfortunately we had already decided to exit on Friday morning at the open.

Readers may want to keep DIS on their watch list. A close over $40.00 or a rally past $40.25 could be a new bullish entry point.

(Small Positions)

Suggested Position: Long DIS stock @ 39.60 exit $39.43 (-0.4%)

- or -

Feb $40 call (DIS1218B40) Entry $0.87 exit $0.72 (-17.2%)

02/03/12 exit at the opening bell
02/02/12 prepare to exit tomorrow at the open
01/25/12 trade opened at $39.60
01/23/12 adjusted strategy. Use trigger @ 39.60
01/21/12 trade not open yet. try again.

chart:

Entry on January 25 at $39.60
Earnings Date 02/07/12 (confirmed)
Average Daily Volume = 7.7 million
Listed on January 19, 2011


Host Hotels & Resorts - HST - close: 16.91 change: +0.63

Stop Loss: 15.95
Target(s): 17.90
Current Gain/Loss: + 0.3%
Time Frame: up to the Feb. 14th earnings report
New Positions: see below

Comments:
02/04 update: HST finally displayed some relative strength. The stock gapped open higher at $16.50 and surged to a +3.8% gain by Friday's closing bell. Unfortunately we had already decided to close HST at the open on Friday for lack of movement. The plan was to keep our position size very small.

(Small Positions!!)

closed Position: Long HST stock @ $16.44 exit $16.50 (+0.3%)

02/03/12 closed at the open on Friday
02/02/12 prepare to exit at the open tomorrow.
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.

chart:

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


Teck Resources - TCK - close: 43.68 change: +1.05

Stop Loss: 40.75
Target(s): 49.00
Current Gain/Loss: - 0.1%
Time Frame: up to Feb 9 earnings report.
New Positions: see below

Comments:
02/04 update: TCK gapped open higher on Friday at $43.02 and rallied to a +2.4% gain. It was our plan to close positions early at the open. Investors with a longer-term time horizon may want to reconsider and stay long or wait for a close over $45.00 as a bullish entry point.

(small positions)

current Position: long TCK stock @ 43.10, exit $43.02 (-0.1%)

- or -

Feb $43 call (TCK1218B43) entry $2.05 exit $1.40 (-31.7%)

02/03/12 closed at the opening bell
02/02/12 prepare to exit tomorrow at the open.
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


CLOSED BEARISH PLAYS

Portfolio Recovery Associates - PRAA - close: 69.77 change: +2.49

Stop Loss: 68.05
Target(s): 60.50
Current Gain/Loss: - 4.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/04 update: Ouch! PRAA gapped open higher a $68.63 and rallied to resistance near $70 and its 100-dma on Friday. Shares opened above our stop loss at $68.05 so the play was closed immediately.

closed Position: short PRAA stock @ $65.83 exit 68.63 (-4.2%)

02/03/12 stopped out. PRAA gapped open above our stop loss.

chart:

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