Editor's Note:
We are trimming a few candidates from our active trade list and booting ELX and YHOO with both trades unopened. FLEX was also closed.

ZUMZ looks bullish with a big bounce off support.

Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 38.79 change: +0.42

Stop Loss: 36.50
Target(s): 39.90
Current Gain/Loss: + 6.2%
Time Frame: exit prior to the Feb 23rd earnings announcement
New Positions: see below

Comments:
02/14 update: ADSK displayed some relative strength today with a +1.0% rally toward last week's highs. If the market cooperates we could see ADSK breakout to new six-month highs tomorrow. More conservative traders may want to go ahead and take profits now.

I am not suggesting new positions at this time.

current Position: Long ADSK stock @ 36.50

02/10/12 closed Feb. $37 calls, bid @ $1.02 (-0.5%)
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: 28.48 change: -0.20

Stop Loss: 27.25
Target(s): 31.50
Current Gain/Loss: + 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/14 update: DFS lost 20 cents on the session. Shares seem a little direction-less as they drift sideways in the $28-29 zone. I'd wait for another bounce off the $28.00 level before considering new bullish positions.

Current Position: Long DFS stock @ $28.15

- or -

Long MAR $28 call (DFS1217C28) Entry $1.10

02/10/12 triggered at $28.15
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 10 at $28.15
Earnings Date 03/22/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on February 04, 2011


Digital River - DRIV - close: 17.97 change: -0.31

Stop Loss: 17.45
Target(s): 21.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
02/14 update: DRIV drifted lower this morning and underperformed the major indices with a -1.7% decline. Nimble traders might want to consider buying a bounce off the simple 10-dma (currently near $17.70). The newsletter is suggesting readers wait for a breakout higher.

DRIV can definitely see some volatility so we want to keep our position size small to limit our risk. I am suggesting bullish positions if DRIV can trade at $18.50 or higher. There potential price resistance at $20.00. There is potential technical resistance at the 150-dma and exponential 200-dma (see chart below).

Trigger @ $18.50 (small positions)

Suggested Position: buy DRIV stock @ (trigger)

- or -

buy the Mar $18 call (DRIV1217c18)

Entry on February xx at $ xx.xx
Earnings Date 04/30/12 (unconfirmed)
Average Daily Volume = 727 thousand
Listed on February 13, 2011


Eaton Corp. - ETN - close: 51.74 change: -0.31

Stop Loss: 49.75
Target(s): 54.75
Current Gain/Loss: + 2.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/14 update: ETN slowly drifted lower toward short-term technical support at its rising 10-dma before bouncing late in the session. The trend is up but I am not suggesting new positions at this time. More conservative traders might want to tighten their stop loss.

current Position: Long ETN stock @ $50.25

- or -

Long MAR $50 call (ETN1221C50) Entry $1.70

02/10/12 exited Feb $50 calls at the open. Bid @ $1.10 (+10%)
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


Jos. A. Bank Clothiers - JOSB - close: 51.76 change: +0.50

Stop Loss: 49.75
Target(s): 55.00
Current Gain/Loss: + 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/14 update: The rally continues in JOSB with another +0.9% added today. Shares are nearing what could be short-term resistance in the $52.25-52.50 area. It's probably time we expect a dip. Broken resistance near $50.00 should be new support. I am raising our stop loss up to $49.75.

Earlier Comments:
Further gains could spark a short squeeze. The most recent data listed short interest at 19.8% of the 27.5 million-share float.

current Position: long JOSB stock @ $50.75

- or -

Long Mar $50 call (JOSB1217C50) Entry $1.90

02/14/12 new stop loss @ 49.75

Entry on February 13 at $50.75
Earnings Date 03/29/12 (unconfirmed)
Average Daily Volume = 301 thousand
Listed on February 11, 2011


KB Home - KBH - close: 12.42 change: +0.03

Stop Loss: 10.75
Target(s): 13.50
Current Gain/Loss: +11.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/14 update: The rally in shares of KBH took a day off to rest. The stock traded lower this morning but investors bought the dip near $12.00. KBH managed to bounce back and close just above breakeven on the session. I don't see any changes from my prior comments. Readers may want to start taking profits now. I am not suggesting new positions at this time.

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

02/13/12 readers may want to start taking profits now (+11.6%). The call option is +122%
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


Smith & Wesson Holding Corp. - SWHC - close: 5.31 change: +0.05

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

Comments:
02/14 update: Traders also bought the dip in SWHC this morning. Shares outperformed the major indices with a +0.9% gain. The stock looks poised to move higher if the market will cooperate. More conservative traders may want to up their stop loss or take profits now. I am not suggesting new positions at this time.

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 $10.25 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


Zumiez Inc. - ZUMZ - close: 31.01 change: +0.98

Stop Loss: 28.45
Target(s): 32.25 or 34.50
Current Gain/Loss: + 7.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/14 update: It was a bullish day for ZUMZ with shares breaking out from its short-term consolidation sideways and surging off support near the bottom of its bullish channel. The stock outperformed the market with a +3.2% gain.

We only have three days left before February options expire. I am suggesting we exit our Feb. $30 calls at the closing bell tomorrow.

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

02/14/12 prepare to exit Feb. $30 calls at the close tomorrow
02/11/12 new stop loss @ 28.45
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.


CLOSED BULLISH PLAYS

Emulex Corp. - ELX - close: 10.53 change: -0.29

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

Comments:
02/14 update: ELX continues to underperform. The stock is moving farther and farther away from our breakout trigger at $11.15. Shares accelerated lower with a -2.6% decline on Tuesday. The next level of support looks like the $10.00 area.

I am removing ELX from the play list. Our trade did not open.

Trigger @ $11.15 (small positions)

Trade did not open.

02/14/12 removed ELX from the play list.

chart:

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


Flextronics Intl. Ltd. - FLEX - close: 6.98 change: +0.00

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

Comments:
02/14 update: FLEX slowly dipped to $6.87 before bouncing back to close unchanged on the session. Last night I suggested we exit positions at the open this morning since FLEX has been underperforming.

(small positions)

closed Position: Long FLEX stock @ $7.03 exit $6.94 (- 1.2%)

- or -

Feb $7.00 call (FLEX1218B7) Entry $0.22 exit $0.06 (-72.7%)

02/14/12 planned early exit at the open this morning
02/13/12 prepare to exit at the open tomorrow morning
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.

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


Yahoo! Inc. - YHOO - close: 16.12 change: -0.02

Stop Loss: 15.35
Target(s): 18.75
Current Gain/Loss: unopened
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
02/14 update: Looks like trouble for the new Yahoo CEO Scott Thompson. Word has spread that YHOO has encountered trouble in its efforts to sell some of its most valuable assets, which are YHOO's stake in Chinese company Alibaba and Yahoo Japan. Now YHOO management is facing pressure from angered shareholders. Shares of YHOO plunged with a drop under $15.00 intraday.

Our plan was to launch bullish positions on a breakout with a trigger at $16.35. That's unlikely to happen any time soon so we're dropping YHOO as a candidate.

Trigger @ $16.35

Trade did not open.

02/14/12 removed YHOO from the play list.

chart:

Entry on February xx at $ xx.xx
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 17.2 million
Listed on February 11, 2011