Editor's Note:
The U.S. market delivered widespread gains with the S&P 500 at new multi-year highs and the small cap Russell 2000 at new record highs.

Our Pandora play was stopped out on some volatility this morning.


Current Portfolio:


BULLISH Play Updates

Advanced Micro Devices - AMD - close: 2.74 change: +0.02

Stop Loss: 2.49
Target(s): 3.25
Current Gain/Loss: + 3.4%

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:
01/17/13: AMD is still creeping higher but it's not quite past potential 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: 46.31 change: +0.80

Stop Loss: 44.80
Target(s): 48.40
Current Gain/Loss: + 5.6%

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:
01/17/13: It's about time we see some movement in BLL. Shares have broken out from its recent trading range. I am raising our stop loss to $44.80. 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

01/17/13 new stop loss @ 44.80
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: 41.76 change: +0.12

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:
01/17/13: Today looks a lot like yesterday for CSC. The stock is churning sideways in a narrow range between short-term support at the 10-dma and resistance at $42.00.

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: 24.00 change: -0.34

Stop Loss: 22.75
Target(s): 27.00
Current Gain/Loss: + 0.3%

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:
01/17/13: Upward momentum seems to be fading in CTRP. The stock did not participate in the market's widespread rally today. That is a warning signal. Readers may want to start raising their stop loss. I am not suggesting new positions.

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: 30.81 change: -1.17

Stop Loss: 29.45
Target(s): 34.75
Current Gain/Loss: + 1.9%

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:
01/17/13: Ouch! After a six-day rally shares of CYOU hit some profit taking today. The stock gave back -3.6%. Look for short-term support near $30.00 and its 10-dma. I am not suggesting new positions at this time.

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: 35.05 change: +0.16

Stop Loss: 32.75
Target(s): 35.75
Current Gain/Loss: + 7.8%

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:
01/17/13: DNKN spiked to a new relative high and hit $35.47 intraday. Shares did gave back most of its gains today. We are raising our stop loss to $33.75. I am not suggesting new positions.

current Position: Long DNKN stock @ $32.50

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

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

01/17/13 new stop loss @ 33.75
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: 25.52 change: +0.14

Stop Loss: 24.85
Target(s): 29.85
Current Gain/Loss: - 2.2%

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:
01/17/13: Has the pullback in the KOL finally ended? Shares of this coal ETF are up again and trading back above their simple 200-dma. Readers may want to consider new bullish positions on a close above its simple 10-dma (near 25.75).

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



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:
01/17/13: PAL's intraday gains faded and the stock closed unchanged on the session. I am still expecting a short-term pullback. Look for potential support near $1.60.

current Position: long PAL stock @ $1.65



Polypore Intl. - PPO - close: 41.60 change: -0.17

Stop Loss: 39.95
Target(s): 47.00
Current Gain/Loss: - 1.1%

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:
01/17/13: Yesterday I cautioned readers to look for a dip near $41.00. PPO fell to $41.25 before bouncing off its simple 50-dma. I would still consider new positions now at current levels.

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: 11.29 change: +0.22

Stop Loss: 10.45
Target(s): 12.75
Current Gain/Loss: + 1.3%

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:
01/17/13: Late this morning SONC announced they were increasing their stock buyback program from $40 million to $55 million. This may have helped fuel the +1.9% rally in the stock today.

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: 40.84 change: +0.02

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:
01/17/13: THO did see some volatility this morning. The stock bounced off its simple 10-dma and spent the rest of the session in a narrow range. I am not suggesting new positions at current levels.

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: 18.98 change: -0.35

Stop Loss: 20.60
Target(s): 16.25
Current OPTION Gain/Loss: -15.0%
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:
01/17/13: Shares of LRN continue to underperform the market. The stock spiked higher this morning but reversed at its 30-dma. By the closing bell LRN was down -1.8%. Today's move looks like a new bearish entry point.

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.



Questcor Pharmaceuticals - QCOR - close: 25.63 change: +0.10

Stop Loss: 26.25
Target(s): 20.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 15, 2012
Time Frame: exit prior to earnings in late February
Average Daily Volume = 1.8 million
New Positions: Yes, see below

Comments:
01/17/13: QCOR spent Thursday's session churning sideways. There is no change from my prior comments.

Earlier Comments:
QCOR has been underperforming the market. Now the stock is about to breakdown under short-term support in the $25.50-25.00 zone. Aggressive traders could launch positions on a new drop under Tuesday's low (25.47). I am suggesting a trigger to open bearish positions at $24.90. If triggered our target is $20.50.

Please note: that short interest on QCOR is significant. The most recent data listed short interest at 50% of the 54.7 million-share float. It might be easier and safer* to buy put options on QCOR instead of trying to short the stock.

*By using puts you can limit your risk to the cost of your initial investment of the put price.

Trigger @ 24.90

Suggested Position: short QCOR stock @ (trigger)

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

buy the Feb $25 PUT (QCOR1316n25) current ask $1.35



CLOSED BULLISH PLAYS

Pandora Media - P - close: 10.85 change: +0.00

Stop Loss: 10.35
Target(s): 11.25
Current Gain/Loss: + 7.8%

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:
01/17/13: Ouch! Some intraday volatility this morning killed our Pandora play. Just a few days ago Pandora was only 10 cents away from our exit target at $11.25. Unfortunately, the stock spiked lower this morning on worries that Pandora's royalties might be going up again (thanks to a New York Post headline) and concerns that Pandora might be seeing new competition from the likes of Amazon.com, who has been working on their "cloud player".

Shares of P spiked down to $10.10 before bouncing back to close unchanged. Our stop loss was hit at $10.35.

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*

closed Position: Long P stock @ $9.60 exit $10.35 (+7.8%)

01/17/13 stopped out at $10.35
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

chart: