Editor's Note:
Relative strength in both BMRN and HGSI was enough to hit our exit targets. Meanwhile our relatively new ACOM trade displayed significant volatility and hit our stop loss.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 37.76 change: -0.10

Stop Loss: 35.75
Target(s): 39.90
Current Gain/Loss: + 3.4%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
02/06 update: ADSK gapped down at the open and spent the rest of the session consolidating sideways. The stock remains under resistance near 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!

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: 20.09 change: +0.29

Stop Loss: 19.60
Target(s): 21.75
Current Gain/Loss: + 4.2%
Time Frame: exit ahead of the Feb. 8th earnings report
New Positions: see below

Comments:
02/06 update: CSCO displayed relative strength with a +0.49% gain and a new multi-month high. We only have two days left. We'll plan to exit on Wednesday at the closing bell (Feb. 8th) to avoid holding over earnings later that evening. Please note I am raising our stop loss up to $19.60.

Long Position: Long CSCO stock @ 19.37

- or -

Long Feb $20 call (CSCO1218B20) Entry $0.43

02/06/12 new stop loss @ 19.60, Two days left, exit Feb. 8th at the close
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

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


Discover Financial Services - DFS - close: 28.28 change: +0.06

Stop Loss: 26.95
Target(s): 31.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
02/06 update: Our new DFS trade is not open yet. Both the stock and the S&P 500 opened lower. I am suggesting we try again. We want to launch new bullish positions at the open tomorrow but only if both DFS and the S&P 500 open positive. We'll use a stop loss at $26.95. Our multi-week target is $31.50.

Do not enter position unless DFS and the S&P 500 are both positive at the open

Suggested Position: buy DFS stock @ the open

- or -

buy the MAR $28 call (DFS1217C28)

02/06/12 not open yet. try again.

Entry on February xx at $ xx.xx
Earnings Date 03/22/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on February 04, 2011


Eaton Corp. - ETN - close: 51.09 change: +0.16

Stop Loss: 48.40
Target(s): 54.75
Current Gain/Loss: + 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/06 update: ETN displayed some relative strength today. Shares rebounded off their morning weakness to close higher. I would still consider new positions on a dip near $50.00. Please note I am raising our stop loss to $48.40.

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

02/06/12 new stop loss @ 48.40

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: 7.12 change: -0.02

Stop Loss: 6.80
Target(s): 8.00
Current Gain/Loss: +1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/06 update: FLEX spent Monday drifting sideways to post a very small loss. If the market corrects we should expect a drop to $7.00 or its 10-dma. I am not suggesting new positions at this time.

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.

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: 35.84 change: +0.61

Stop Loss: 33.75
Target(s): 37.00
Current Gain/Loss: + 4.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/06 update: Energy stocks were showing relative strength today. GPOR managed to outperform its peers with a +1.7% gain. More conservative traders may want to start taking money off the table. Our exit target is $37.00. I am raising our stop loss up to $33.75.

Current Position: long GPOR stock @ 34.15

- or -

Long FEB $35 call (GPOR1218B35) Entry $1.25

02/06/12 new stop loss @ 33.75
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.

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


J.P.Morgan Chase & Co - JPM - close: 38.14 change: -0.14

Stop Loss: 36.90
Target(s): 42.50
Current Gain/Loss: + 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/06 update: Financial stocks lagged behind the major indices today. Yet JPM managed to stay above resistance at the $38.00 level. 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.

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: 16.34 change: -0.30

Stop Loss: 15.40
Target(s): 19.00
Current Gain/Loss: - 0.3%
Time Frame: exit ahead of earnings on Feb. 23rd.
New Positions: see below

Comments:
02/06 update: After big gains last week MRVL hit some profit taking today with a -1.8% decline. Today's dip or a dip near $16.00 could be used as a new bullish entry point. More conservative traders may want to raise their stops closer to the $15.75-16.00 area.

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

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: 20.51 change: +0.20

Stop Loss: 18.65
Target(s): 21.90 (or 23.75)
Current Gain/Loss: + 6.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/06 update: MS bucked the down trend in financials and posted a +0.9% gain instead. The stock remains short-term overbought.

If you're holding the Feb. $20 calls I would consider an early exit now to lock in gains (+154%).

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

02/06/12 readers may want to take profits on the Feb. 20 calls (+154%)
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

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: 5.31 change: -0.01

Stop Loss: 4.90
Target(s): 5.60
Current Gain/Loss: + 9.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/06 update: SWHC spent the day consolidating sideways to close virtually unchanged. 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. 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

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: 31.50 change: -0.17

Stop Loss: 30.80
Target(s): 34.00
Current Gain/Loss: + 2.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/06 update: I don't see any changes from my weekend comments on TGH.

I am growing cautious on this trade. We plan to exit prior to earnings on Feb. 14th. 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.

Entry on January 13 at $30.60
Earnings Date 02/14/12 (confirmed)
Average Daily Volume = 172 thousand
Listed on January 11, 2011


Metals & Mining ETF - XME - close: 56.58 change: -0.19

Stop Loss: 53.95
Target(s): 64.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
02/06 update: Our new trade on the XME is not open yet. Both the ETF and the S&P 500 opened lower. The XME didn't see that much profit taking. I am suggesting we try again.

The plan is to open small bullish positions at the start of trading tomorrow but only if both XME and the S&P 500 open positive. I do consider this an aggressive, higher-risk trade. The XME could still have resistance at its simple 200-dma near $58.50 and price resistance near the $60.00 level.

We will need some patience for this trade to pay off. Our multi-week target is $64.75. FYI: The Point & Figure chart for XME is bullish with a long-term $76 target.

Do not enter position unless XME and the S&P 500 are both positive at the open

(small positions)

Suggested Position: buy XME @ the open

- or -

buy the MAR $60 call (XME1217C60)

02/06/12 not open yet. try again.

Entry on February xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 3.2 million
Listed on February 04, 2011


Zumiez Inc. - ZUMZ - close: 29.71 change: -0.01

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:
02/06 update: ZUMZ rebounded off its intraday lows. The recent action remains neutral. I'm suggesting readers way to for a rise past $30.30 before considering new bullish positions.

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

None. We do not have any active bearish trades.


CLOSED BULLISH PLAYS

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

Stop Loss: 29.90
Target(s): 36.00
Current Gain/Loss: - 6.7%
Time Frame: exit prior to the Feb. 15th earnings report
New Positions: see below

Comments:
02/06 update: Ouch! ACOM is suddenly showing WAY too much volatility. Shares plunged -10% intraday only to bounce back before fading again. I couldn't find any news to account for the extreme volatility and relative weakness. The $30 level and the 10-dma and the 200-dma should have all acted as potential support. They all failed. Our stop loss was hit at $29.90.

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.

closed Position: Long ACOM stock @ 32.05 exit 29.90 (-6.7%)

- or -

Feb $32.50 call (ACOM1218B32.5) Entry $1.35, exit $0.60 (-55.5%)

02/06/12 ACOM displayed significant volatility with a -10% intraday drop and hit our stop loss at $29.90

chart:

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


BioMarin Pharma. - BMRN - close: 38.27 change: +0.74

Stop Loss: 35.85
Target(s): 38.50
Current Gain/Loss: + 6.3%
Time Frame: up to the Feb. 16th earning report
New Positions: see below

Comments:
02/06 update: Target achieved. BMRN broke out to new highs and hit $38.66 intraday. Our exit target was $38.50. Readers may want to keep BMRN on their watch list but I would not hold over the earnings report on Feb. 16th.

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, exit 38.50 (+6.3%)

- or -

Feb. $35 call (BMRN1218B35) Entry $1.90 exit $3.40*(+78.9%)

02/06/12 exit target hit at $38.50
*exit price on option is an estimate. option did not trade at time of our exit.
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


Human Genome Sciences - HGSI - close: 10.77 change: +0.61

Stop Loss: 9.75
Target(s): 11.00
Current Gain/Loss: +21.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/06 update: Target achieved.

As expected HGSI broke out from its mini-pennant formation. Shares rallied to exactly $11.00 this afternoon. Our exit target was $11.00. The overall trend is still bullish. Readers may want to keep an eye on this stock.

Earlier Comments:
Keep in mind this is an aggressive trade and HGSI can be a volatile stock.

(small positions)

current Position: Long HGSI stock @ $9.06 exit $11.00 (+21.4%)

- or -

Feb $10 call (HGSI1218B10) Entry $0.59 exit $1.15 (+94.9%)

02/06/12 exit target hit at $11.00
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