Editor's Note:
The stock market continues to consolidate sideways, a theme that has been playing out all week.

We have removed GVA as a candidate.


Current Portfolio:


BULLISH Play Updates

Advanced Micro Devices - AMD - close: 2.72 change: +0.04

Stop Loss: 2.49
Target(s): 3.25
Current Gain/Loss: + 2.6%

Entry on January 07 at $2.65
Listed on January 05, 2012
Time Frame: to be determined
Average Daily Volume = 21.2 million
New Positions: see below

Comments:
01/16/13: The SOX semiconductor index was one of the market's best performers today with a +1.1% gain. Shares of AMD were outperforming its peers with a +1.5% gain. AMD is now testing what could be technical resistance at its simple 100-dma. I am not suggesting new positions at the moment.

I am still cautiously bullish on AMD but most traders will want to avoid holding over the company's earnings report on January 22nd.

Earlier Comments:
It looks like AMD has finally found a bottom and all the selling has been exhausted. The stock could see a short squeeze. The most recent data listed short interest at almost 20% of the float.

Please note that this is a higher-risk, more aggressive trade. The 100-dma and the $3.00 level could prove to be resistance for this stock. I am suggesting readers keep their position size small. Don't go overboard just because the share price is cheap.

Keep in mind that normally we do not hold over a company's earnings report. Right now AMD is scheduled to report on January 22nd. If we choose to exit it could definitely limit how much time we have for this trade to work.

*Small Positions*

current Position: long AMD stock @ $2.65

01/10/13 new stop loss @ 2.49, AMD's momentum might be stalling.



Ball Corp. - BLL - close: 45.51 change: -0.26

Stop Loss: 44.40
Target(s): 48.40
Current Gain/Loss: + 3.8%

Entry on November 06 at $43.85
Listed on November 3, 2012
Time Frame: exit prior to earnings on Jan. 31st
Average Daily Volume = 687 thousand
New Positions: see below

Comments:
01/16/13: BLL is still churning sideways inside the $45-46 range. I am not suggesting new positions at this time.

Please note that we do want to exit prior to the earnings report on January 31st.

current Position: Long BLL stock @ $43.85

01/05/13 adjusting the exit target to $48.40
01/02/13 new stop loss @ 44.40, adjust target to $47.00
12/20/12 new stop loss @ 43.85
12/12/12 new stop loss @ 43.45
11/24/12 new stop loss @ 43.25
11/17/12 new stop loss @ 42.55
11/06/12 triggered @ 43.85



Computer Sciences Corp. - CSC - close: 41.64 change: -0.37

Stop Loss: 39.95
Target(s): 44.90
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 15, 2012
Time Frame: Exit prior to earnings on Feb. 5th
Average Daily Volume = 1.4 million
New Positions: Yes, see below

Comments:
01/16/13: Wednesday was a very quiet day for shares of CSC. The stock is still hovering between resistance at $42.00 and support at its 10-dma.

I am suggesting a trigger to open bullish positions at $42.20. More conservative traders could wait for a rally past yesterday's high at $42.30 instead. If triggered our target is $44.90.

Trigger @ 42.20

Suggested Position: buy CSC stock @ (trigger)



Ctrip.com Intl. - CTRP - close: 24.34 change: -0.23

Stop Loss: 22.75
Target(s): 27.00
Current Gain/Loss: + 1.7%

Entry on January 07 at $23.93
Listed on January 05, 2012
Time Frame: Exit prior to earnings on Jan 31st
Average Daily Volume = 2.1 million
New Positions: see below

Comments:
01/16/13: Traders bought the dip in CTRP near $24.00 and its 10-dma. The up trend is still alive. Yet the stock underperformed the market today with a -0.9% decline.

Please note that we do not want to hold over the January 31st earnings report.

Earlier Comments:
CTRP could see another short squeeze. The most recent data listed short interest at 16% of the float. We do want to keep our position size small to limit our risk.

*Small Positions*

current Position: Long CTRP stock @ $23.93

01/07/13 trade opened on gap higher at $23.93. trigger was 23.85



Changyou.com Ltd. - CYOU - close: 31.98 change: +0.57

Stop Loss: 29.45
Target(s): 34.75
Current Gain/Loss: + 5.7%

Entry on January 10 at $30.25
Listed on January 09, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 166 thousand
New Positions: see below

Comments:
01/16/13: CYOU continues to show strength. The stock added another +1.8%. Yet the rally stalled at the $32.00 level and hovered under $32.00 most of the session. I am not suggesting new positions at this time. We will raise our stop loss to $29.45.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. CYOU can be a volatile stock. Thus we want to limit our position size to reduce our exposure.

*Small Positions*

current Position: Long CYOU stock @ $30.25

- (or for more adventurous traders, try this option) -

Long Feb $30 call (CYOU1316B30) entry $1.90

01/16/13 new stop loss @ 29.45
01/15/13 new stop loss @ 28.75



Dunkin' Brand Group - DNKN - close: 34.89 change: +0.87

Stop Loss: 32.75
Target(s): 35.75
Current Gain/Loss: + 7.4%

Entry on December 24 at $32.50
Listed on December 22, 2012
Time Frame: Exit prior to earnings on Jan 31st
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
01/16/13: DNKN surged back toward its recent highs with a +2.5% gain on news the company plans to expand. DNKN issued a press release this morning that said they plan to re-enter the southern California market in 2015. They expect to open between 150 to 200 locations in that region by the year 2020.

I am not suggesting new positions. More conservative traders may want to raise their stops.

Our call option has doubled (+100%). Readers might want to take profits now.

current Position: Long DNKN stock @ $32.50

- (or for more adventurous traders, try this option) -

Long 2013 Mar $35 call (DNKN1316c35) entry $0.65

01/09/13 new stop loss @ 32.75
01/07/13 new stop loss @ 32.25
01/05/13 new stop loss @ 31.90
12/24/12 triggered @ $32.50



Coal ETF - KOL - close: 25.38 change: -0.05

Stop Loss: 24.85
Target(s): 29.85
Current Gain/Loss: - 2.8%

Entry on January 08 at $26.10
Listed on January 07, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 190 thousand
New Positions: see below

Comments:
01/16/13: The KOL etf continues its slow drift lower. I don't see any changes from my prior comments. At this point readers may want to wait and see if KOL will bounce off the $25.00 level before considering new bullish positions.

Our multi-week target is $29.85. More aggressive traders may want to aim higher. FYI: The Point & Figure chart for KOL is bullish with a $35.00 target.

Suggested Position: Long the KOL (etf) @ $26.10

- (or for more adventurous traders, try this option) -

Long APR $27 call (KOL1320D27) entry $1.03

01/12/13 new stop loss @ 24.85



Pandora Media - P - close: 10.85 change: +0.05

Stop Loss: 10.35
Target(s): 11.25
Current Gain/Loss: +13.0%

Entry on January 03 at $9.60
Listed on January 02, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 5.8 million
New Positions: see below

Comments:
01/16/13: Thankfully there was no follow through on yesterday's bearish reversal on Pandora. I would stay cautious here. The reversal has not been negated, just not really confirmed. Readers may want to take profits now. We're aiming for $11.25. More aggressive traders could aim higher.

Earlier Comments:
Please note that I do consider this an aggressive, higher risk trade. If Pandora is able to breakout it could spark a short squeeze. The most recent data listed short interest at 60% of the 110.9 million-share float.

*Small Positions*

current Position: Long P stock @ $9.60

01/12/13 new stop loss @ 10.35
01/10/13 new stop loss @ 9.95
01/09/13 new stop loss @ 9.65
01/05/13 new stop loss @ 9.40, adjust exit target to $11.25



North American Palladium - PAL - close: 1.73 change: +0.00

Stop Loss: 1.35
Target(s): 2.45
Current Gain/Loss: + 4.8%

Entry on January 14 at $ 1.65
Listed on January 12, 2012
Time Frame: 8 to 9 weeks
Average Daily Volume = 2.8 million
New Positions: see below

Comments:
01/16/13: Hmm... PAL spiked up to $1.81 intraday only to reverse and close unchanged on the session. This move is short-term bearish. I would not be surprised to see a pullback tomorrow.

current Position: long PAL stock @ $1.65



Polypore Intl. - PPO - close: 41.77 change: -0.43

Stop Loss: 39.95
Target(s): 47.00
Current Gain/Loss: - 0.7%

Entry on January 16 at $42.06
Listed on January 15, 2012
Time Frame: exit prior to earnings on Feb. 20th
Average Daily Volume = 542 thousand
New Positions: see below

Comments:
01/16/13: PPO did not see a lot of movement today. Shares spent the session vacillating on either side of the $42.00 level. I would still consider new positions now or look to buy a dip near $41.00.

Earlier Comments:
I am suggesting small positions to limit our risk. Our multi-week target is $47.00.

current Position: long PPO stock @ $42.06



Sonic Corp. - SONC - close: 11.07 change: -0.03

Stop Loss: 10.45
Target(s): 12.75
Current Gain/Loss: - 0.7%

Entry on January 14 at $11.15
Listed on January 12, 2012
Time Frame: 8 to 9 weeks
Average Daily Volume = 658 thousand
New Positions: see below

Comments:
01/16/13: Early morning gains in SONC faded. Shares churned sideways like so much of the market today. I would still consider new positions now.

Earlier Comments:
Our multi-week target is $12.75. We may have to be patient to give SONC time to get that far. FYI: The Point & Figure chart for SONC is bullish with a $15.50 target.

current Position: Long SONC stock @ $11.15



Thor Industries - THO - close: 40.82 change: -0.63

Stop Loss: 38.85
Target(s): 44.50
Current Gain/Loss: + 1.7%

Entry on January 09 at $40.15
Listed on January 08, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 647 thousand
New Positions: see below

Comments:
01/16/13: Hmm... THO has been chopping back and forth the last few days. That could be a sign of a short-term top. I am not suggesting new positions at current levels. Nimble trades could by a dip or a bounce near $40.00.

Readers might want to raise their stops into the $39.40-39.90 zone.

current Position: Long THO stock @ $40.15

01/12/13 new stop loss @ 38.85



BEARISH Play Updates

K12, Inc. - LRN - close: 19.33 change: +0.13

Stop Loss: 20.60
Target(s): 16.25
Current OPTION Gain/Loss: -22.5%
Entry on January 15 at $18.90
Listed on January 14, 2012
Time Frame: Exit prior to earnings on Feb. 5th
Average Daily Volume = 221 thousand
New Positions: see below

Comments:
01/16/13: LRN spent most of the day hovering above the $19.00 level before a late day rebound pushed it to a +0.6% gain. The bigger picture is still bearish but readers may want to wait for a failed rally in the $19.50-20.00 zone before launching new positions.

long Feb $20 PUT (LRN1316n20) entry $2.00*

*01/15/13 our entry point on the option is an estimate. There were a few trades at $1.80 this morning before LRN hit our entry point.



CLOSED BULLISH PLAYS

Granite Construction - GVA - close: 34.48 change: -0.38

Stop Loss: 33.90
Target(s): 39.00
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 10, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 250 thousand
New Positions: , see below

Comments:
01/16/13: There was no follow through on yesterday's bounce in GVA. The stock remains stuck inside the $34-35 zone. Our trade has not opened yet. We are removing GVA as a candidate. Readers might want to keep GVA on their radar screen for a bullish breakout above resistance near $35.00.

Trade did not open.

01/16/13 removed GVA from the newsletter.

chart: