Editor's Note:
Cisco Systems is due to report earnings on Wednesday after the closing bell. We want to exit positions at the close to avoid holding over the announcement.

Meanwhile I have removed our new candidate BZH. The stock ran away from us before our play was triggered.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 38.34 change: +0.59

Stop Loss: 35.75
Target(s): 39.90
Current Gain/Loss: + 5.0%
Time Frame: up to the late Feb. earnings report
New Positions: see below

Comments:
02/07 update: ADSK continues to show relative strength and finally broke through resistance near $38.00. I am raising our stop loss to $36.25. 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

02/07/12 new stop loss @ 36.25
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: 20.20 change: +0.01

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:
02/07 update: CSCO rebounded off support near $20.00 this morning. Tomorrow is our last day. We plan to exit on Wednesday at the closing bell to avoid holding over earnings. I am raising our stop loss to $19.75.

Long Position: Long CSCO stock @ 19.37

- or -

Long Feb $20 call (CSCO1218B20) Entry $0.43

02/07/12 new stop loss @ 19.75, exit tomorrow at the close
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: 28.94 change: +0.66

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

Comments:
02/07 update: Our DFS trade is still not open. Shares of DFS gapped open lower at $28.20, which negated our entry point strategy. The stock quickly recovered and outperformed the market with a +2.3% gain and a close at new highs. I would not chase it here.

We will adjust our entry point strategy to buy ca dip at $28.30 with a stop loss t $27.40. Our multi-week target is $31.50.

buy a dip trigger at $28.30

Suggested Position: buy DFS stock @ (entry trigger)

- or -

buy the MAR $28 call (DFS1217C28)

02/07/12 still not open. Adjust strategy to buy a dip at $28.30, stop loss at $27.40
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: 51.29 change: +0.20

Stop Loss: 48.40
Target(s): 54.75
Current Gain/Loss: + 2.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/07 update: Traders bought the dip in ETN this morning and shares rallied to a +0.3% gain. I am not suggesting new positions at current levels.

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: 6.97 change: -0.15

Stop Loss: 6.80
Target(s): 8.00
Current Gain/Loss: - 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/07 update: I cautioned readers that FLEX might see a dip toward $7.00 or its 10-dma. Shares did pull back and test their 10-dma this morning. FLEX spent the rest of the day in a narrow range under the $7.00 level. More conservative traders may want to inch up their stop toward $6.85 or $6.90. 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: 36.11 change: +0.27

Stop Loss: 33.75
Target(s): 37.00
Current Gain/Loss: + 5.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/07 update: GPOR rebounded off its morning lows near $35.00 and advanced to new ten-week highs. Readers may want to start taking profits now. Our exit target is $37.00.

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: 37.87 change: -0.27

Stop Loss: 36.90
Target(s): 42.50
Current Gain/Loss: - 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/07 update: Financials produced a lackluster session. JPM underperformed with a -0.7% decline and a close under what should be short-term support at $38.00. 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

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: 16.28 change: -0.06

Stop Loss: 15.40
Target(s): 19.00
Current Gain/Loss: - 0.7%
Time Frame: exit ahead of earnings on Feb. 23rd.
New Positions: see below

Comments:
02/07 update: MRVL dipped to its simple 10-dma this morning before rebounding. Shares settled with a -0.3% decline. I have been suggesting readers use a dip near $16.00 as a new entry point and we just got it today. 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: 20.26 change: -0.25

Stop Loss: 18.65
Target(s): 21.90 (or 23.75)
Current Gain/Loss: + 5.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/07 update: Upward momentum in MS is slowing. It might be time for a pull back. Don't be surprised to see a dip toward the 10-dma. More conservative traders may want to exit immediately to lock in gains.

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: 5.25 change: -0.06

Stop Loss: 4.90
Target(s): 5.60
Current Gain/Loss: + 8.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/07 update: SWHC dipped to its simple 10-dma and bounced. The intraday pull back is healthy. Shares were overbought. Of course they are arguably still overbought. 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: 31.76 change: +0.26

Stop Loss: 30.95
Target(s): 34.00
Current Gain/Loss: + 3.7%
Time Frame: exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
02/07 update: TGH was showing some relative strength this morning but gains faded. Shares still managed to outperform the major indices. I remain cautious here. Please note our new stop loss at $30.95. 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

02/07/12 new stop loss @ 30.95
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: 55.73 change: -0.85

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

Comments:
02/07 update: The XME trade is still not open. Shares gapped open lower this morning. The ETF traded under its 10-dma before paring its losses. 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)

02/07/12 not open yet. try again.
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: 29.38 change: -0.33

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:
02/07 update: ZUMZ continues to bounce around the $29-30 zone. I don't see any changes from my prior comments. 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

Beazer Homes USA - BZH - close: 3.93 change: +0.29

Stop Loss: 3.10
Target(s): 4.40
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
02/07 update: Wow! That wasn't exactly what we were expecting on BZH. We are bullish on the stock but we were hoping to catch a pull back in BZH first. Shares gapped open higher and surged to a +7.9% gain today. We don't want to chase it.

I am removing BZH from the play list but I'd keep an eye on it. The $4.00 level could be overhead resistance.

Our plan was to buy a dip at $3.45.

Trade did not open.

chart:

Entry on February xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on February 06, 2011