Editor's Note:
The market's upward momentum is slowing. The market could see a pull back soon. It might be time to double check our stop loss placement.

I am suggesting we exit our GPOR and TGH positions tomorrow. We want to close some of our February call positions tomorrow.

Our KBH and XME trades have been opened.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 38.40 change: +0.04

Stop Loss: 36.50
Target(s): 39.90
Current Gain/Loss: + 5.2%
Time Frame: exit prior to the Feb 23rd earnings announcement
New Positions: see below

Comments:
02/09 update: ADSK managed to eke out another gain. It seems like the rally is losing steam. I am suggesting we exit our Feb. $37 calls at the opening bell tomorrow. 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

02/09/12 prepare to exit Feb. $37 calls, current bid $1.65 (+52.7%)
02/08/12 new stop loss @ 36.50
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


Discover Financial Services - DFS - close: 28.89 change: +0.11

Stop Loss: 27.25
Target(s): 31.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
02/09 update: DFS is still quietly consolidating under resistance near $29.00. We have a buy-the-dip entry point at $28.15. Our multi-week target is $31.50.

buy a dip trigger at $28.15

Suggested Position: buy DFS stock @ (entry trigger)

- or -

buy the MAR $28 call (DFS1217C28)

02/08/12 new trigger @ 28.15, stop loss 27.25
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


Emulex Corp. - ELX - close: 10.85 change: -0.14

Stop Loss: 10.59
Target(s): 12.10
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
02/09 update: Hmm... the rally in ELX seems to be losing some momentum. Shares faded lower after failing to breakout to new highs this morning. I do not see any changes from my prior comments.

Shares of ELX are without a doubt overbought given its surge from $7.00 in early January to $11.00. I do consider this an aggressive trade and we want to keep our position size small to limit our risk.

I am suggesting a trigger to open positions at $11.15 with a stop loss at $10.59. Our exit target is $12.10. The Point & Figure chart for ELX is bullish with a long-term $19.50 target.

Trigger @ $11.15 (small positions)

Suggested Position: buy ELX stock @ (trigger)

- or -

buy the Mar $11 call (ELX1217C11)

Entry on February xx at $ xx.xx
Earnings Date 04/25/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on February 07, 2011


Eaton Corp. - ETN - close: 51.80 change: +0.15

Stop Loss: 49.75
Target(s): 54.75
Current Gain/Loss: + 3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: ETN managed to deliver another gain but momentum is slowing. Readers may want to think about taking profits now. I am raising our stop loss to $49.75. Please note that we will exit our February $50 calls at the opening bell tomorrow. The current bid on these calls is at $1.95 (+95%).

I am not suggesting new positions at this time.

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

02/09/12 new stop loss @ 49.75
02/09/12 exit the Feb $50 calls at the open tomorrow, current bid is $1.95 (+95%).
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: +0.18

Stop Loss: 6.85
Target(s): 8.00
Current Gain/Loss: + 1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: FLEX produced a nice reversal today with a +2.5% gain. The move today looks like a new bullish entry point just remember this is an aggressive trade. I am adjusting our stop loss to $6.85.

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

02/09/12 new stop loss @ 6.85
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: 35.91 change: -0.25

Stop Loss: 34.75
Target(s): 37.00
Current Gain/Loss: + 5.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/09 update: Upward momentum in GPOR is slowing. I am suggesting we go ahead and exit early on Friday at the closing bell. We'll up our stop loss to $34.75 just in case the market is down tomorrow.

Current Position: long GPOR stock @ 34.15

- or -

Long FEB $35 call (GPOR1218B35) Entry $1.25

02/09/12 prepare to exit positions at the close tomorrow
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: 37.86 change: -0.44

Stop Loss: 37.39
Target(s): 42.50
Current Gain/Loss: - 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: Uh-oh! Not only did JPM completely erase yesterday's gains but today's move has painted a bearish engulfing candlestick pattern, which can be a one-day bearish reversal signal. I am raising our stop loss up to $37.39. We want to exit our February $38 calls at the closing bell tomorrow (assuming we're not stopped out first). I am not suggesting new positions at this time.

Earlier Comments:
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

02/09/12 new stop loss @ 37.39
02/09/12 prepare to exit Feb $38 calls at the close tomorrow
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


KB Home - KBH - close: 11.98 change: +1.06

Stop Loss: 10.75
Target(s): 13.50
Current Gain/Loss: + 7.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: Wow! KBH is moving a lot faster than expected. Shares opened at $10.91 but quickly rallied past the $11.00 level. The stock soared to new seven-month highs near $12.00. Our trigger to open positions at $11.10 was hit this morning. I am raising our stop loss up to $10.75.

Earlier Comments:
A breakout higher could produced another short squeeze. The most recent data listed short interest at 41% of the 65 million-share float. Bear in mind that KBH can be a volatile stock. Readers may want to keep their position size small. Our exit target is $13.50. FYI: The Point & Figure chart for KBH is bullish with a long-term $20.00 target.

current Position: Long KBH stock @ $11.10

- or -

Long Mar $12 call (KBH1217C12) Entry $0.50

02/09/12 new stop loss @ 10.75

Entry on February 09 at $11.10
Earnings Date 04/05/12 (unconfirmed)
Average Daily Volume = 7.8 million
Listed on February 08, 2011


Marvell Technology - MRVL - close: 16.43 change: +0.00

Stop Loss: 15.75
Target(s): 19.00
Current Gain/Loss: + 0.1%
Time Frame: exit ahead of earnings on Feb. 23rd.
New Positions: see below

Comments:
02/09 update: MRVL continues to churn sideways on less and less volume. The stock closed unchanged today. I am growing cautious here and we will raise our stop loss to $15.75. I'm not suggesting new positions at this time.

More conservative traders holding the February calls will want to seriously consider an early exit some time tomorrow. February options expire in six trading days.

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

02/09/12 new stop loss @ 15.75
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: 20.34 change: -0.10

Stop Loss: 19.75
Target(s): 21.25
Current Gain/Loss: + 5.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: The early morning rally attempt in MS failed. Shares spent the rest of the day churning sideways. I am suggesting we exit our February $20 calls at the opening bell tomorrow. The current bid is $0.67 (+91%).

We will raise our stop loss to $19.75 for the rest of our positions. I am not suggesting new positions at this time. Our exit target is $21.25.

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

02/09/12 new stop loss @ 19.75, prepare to exit Feb. $20 calls tomorrow at the opening bell. Current bid is $0.67
02/08/12 new stop loss @ 19.25 . adjusted exit target to $21.25
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: 5.26 change: +0.01

Stop Loss: 4.90
Target(s): 5.60
Current Gain/Loss: + 8.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: After yesterday's volatility today was pretty quiet 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. 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

02/08/12 big intraday dip and bounce, low was $4.93
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: 31.53 change: -0.19

Stop Loss: 30.95
Target(s): 34.00
Current Gain/Loss: + 3.0%
Time Frame: exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
02/09 update: The upward momentum in TGH has stalled. The stock has been stuck in a trading range for the last several days. I am suggesting we exit positions at the closing bell tomorrow.

current Position: Long TGH stock @ 30.60

02/09/12 prepare to exit at the close tomorrow
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: 55.24 change: -0.23

Stop Loss: 53.95
Target(s): 64.75
Current Gain/Loss: - 0.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: Our XME trade is finally open but the stock has continued to show relative weakness. The S&P 500 opened positive by a very, very small margin while the XME gapped open higher at $55.55. That was enough to trigger bullish positions here. Unfortunately the XME proceeded to fall to new lows for the week. I am expecting support near $54.00. Readers may want to wait for a bounce off the $54.00 area before considering new bullish positions.

Earlier Comments:
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 want to keep our position size small to limit our risk. 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.

(small positions)

current Position: Long XME @ $55.55

- or -

Long MAR $60 call (XME1217C60) Entry $0.51

02/09/12 trade opened this morning @ 55.55
02/08/12 not open yet. try again.
02/07/12 not open yet. try again.
02/06/12 not open yet. try again.

Entry on February 09 at $55.55
Earnings Date --/--/--
Average Daily Volume = 3.2 million
Listed on February 04, 2011


Zumiez Inc. - ZUMZ - close: 29.86 change: +0.45

Stop Loss: 27.90
Target(s): 32.25 or 34.50
Current Gain/Loss: + 3.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/09 update: ZUMZ displayed some relative strength today. Traders bought the dip near technical support at the rising 50-dma and ZUMZ closed up +1.5%. I'm suggesting readers way to for a rise past $30.30 before considering new bullish positions.

More conservative traders might want to raise their stop loss toward the $28.25-28.50 area.

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

02/08/12 new stop loss @ 27.90
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.