Editor's Note:
Warning! Tomorrow could be challenging. Apple Inc. (AAPL) is only one stock but it is a very high-profile stock. Investors were not happy with the company's earnings report tonight and shares are down about minus -$50 in afterhours right now. That will definitely weigh on investor sentiment. Now add to this AAPL disaster that the Russell 2000 index is stalling at resistance near the 900 level and the S&P 500 index is just five points away from likely resistance at the 1500 mark, and we have plenty of excuses for traders to decide to do some profit taking.

If that wasn't enough we are seeing leadership in this market narrow significantly. The S&P 500, NASDAQ, and Dow Industrials have all posted gains today but fewer and fewer stocks are participating in the rally.

Please note that we want to close our CTRP, PPO, and THO trades at the open tomorrow.


Current Portfolio:


BULLISH Play Updates

Acorda Therapeutics - ACOR - close: 28.54 change: -0.27

Stop Loss: 27.25
Target(s): 31.00
Current Gain/Loss: + 0.1%

Entry on January 22 at $28.50
Listed on January 19, 2012
Time Frame: 3 to 4 weeks
Average Daily Volume = 417 thousand
New Positions: see below

Comments:
01/23/13: ACOR experienced a little bit of profit taking after yesterday's bullish breakout. If both ACOR and the S&P 500 open positive tomorrow I would still consider new bullish positions at current levels.

current Position: long ACOR stock @ $28.50



Autodesk Inc. - ADSK - close: 36.86 change: +0.31

Stop Loss: 35.95
Target(s): 39.95
Current Gain/Loss: -1.0%

Entry on January 18 at $37.25
Listed on January 17, 2012
Time Frame: Exit prior to earnings in late February
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
01/23/13: ADSK delivered a bounce after yesterday's unexplained reversal lower. More conservative traders might want to up their stop toward yesterday's low (36.19).

current Position: Long ADSK stock @ $37.25



Ball Corp. - BLL - close: 46.52 change: -0.02

Stop Loss: 44.80
Target(s): 48.40
Current Gain/Loss: + 6.1%

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:
01/23/13: BLL barely moved today. If the market does see a dip there should be short-term support near $46.00 and at $45.00. I am not suggesting new positions. We are planning 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: 42.05 change: -0.21

Stop Loss: 39.95
Target(s): 44.90
Current Gain/Loss: - 0.4%

Entry on January 22 at $42.60
Listed on January 15, 2012
Time Frame: Exit prior to earnings on Feb. 5th
Average Daily Volume = 1.4 million
New Positions: see below

Comments:
01/23/13: Our CSC trade opened yesterday but shares did not see much follow through on the bullish breakout above $42.00. Traders did buy the intraday dip, which is encouraging. If both CSC and the S&P 500 index open positive tomorrow I would still consider new bullish positions.

current Position: long CSC stock @ $42.60

01/22/13 trade opened on gap higher @ $42.60



Ctrip.com Intl. - CTRP - close: 23.59 change: -0.30

Stop Loss: 22.75
Target(s): 27.00
Current Gain/Loss: - 1.4%

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:
01/23/13: I am growing more concerned that our CTRP trade is in trouble. Shares underperformed the market two days in a row. I am suggesting we go ahead and exit positions immediately tomorrow morning.

*Small Positions*

current Position: Long CTRP stock @ $23.93

01/23/13 prepare to exit tomorrow morning
01/22/13 CTRP is displaying relative weakness and created a one-day bearish reversal pattern (that needs confirmation).
01/07/13 trade opened on gap higher at $23.93. trigger was 23.85



Changyou.com Ltd. - CYOU - close: 31.81 change: -0.53

Stop Loss: 29.95
Target(s): 34.75
Current Gain/Loss: + 5.2%

Entry on January 10 at $30.25
Listed on January 09, 2012
Time Frame: Exit PRIOR to earnings on Feb. 4th
Average Daily Volume = 166 thousand
New Positions: see below

Comments:
01/23/13: CYOU tagged a new relative high this morning but that was it for follow through on the bullish breakout above the $32.00 level. If the market corrects then CYOU may dip toward short-term support at the 10-dma or the $30.00 level.

Please note, if CYOU does not hit our exit target at $34.75 in time, we will plan on exiting prior to the company's earnings report on February 4th.

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

01/22/13 new stop loss @ 29.95
01/16/13 new stop loss @ 29.45
01/15/13 new stop loss @ 28.75



Gulfport Energy - GPOR - close: 41.26 change: -1.04

Stop Loss: 38.45
Target(s): 44.50
Current Gain/Loss: + 0.6%

Entry on January 22 at $41.02
Listed on January 19, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
01/23/13: Ouch! After yesterday's big gains in GPOR the stock gave most of it back with a -2.4% decline. Readers may want to wait for a new bounce from the $40.00 region before considering new bullish positions.

Earlier Comments:
Our multi-week target is $44.50. Keep in mind that GPOR doesn't move super fast and we will plan to exit prior to its late February earnings report.

current Position: long GPOR stock @ $41.02



Hartford Financial Services Group - HIG - close: 24.56 chg: -0.07

Stop Loss: 23.75
Target(s): 27.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 22, 2012
Time Frame: exit PRIOR to earnings on Feb. 4th
Average Daily Volume = 4.6 million
New Positions: Yes, see below

Comments:
01/23/13: Traders bought the dip in HIG this morning but we're still waiting on a bullish breakout. There is no change from my previous comments.

Earlier Comments:
There is short-term resistance near $24.70. I am suggesting a trigger to open bullish positions at $24.80. More conservative traders could wait for a close above potential round-number resistance at $25.00 as an alternative entry point.

We only have a couple of weeks for this trade to work as we do not want to hold over the Feb. 4th earnings report.

Trigger @ 24.80

Suggested Position: buy HIG stock @ (trigger)



Coal ETF - KOL - close: 25.56 change: -0.29

Stop Loss: 24.85
Target(s): 29.85
Current Gain/Loss: - 2.1%

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:
01/23/13: The KOL produced an "inside day" with today's range inside yesterday's range. Normally a move like that suggests indecision by market participants. Cautious traders could wait for a close above $26.00 or $26.50 as an alternative entry point.

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: 1.74 change: -0.03

Stop Loss: 1.35
Target(s): 2.45
Current Gain/Loss: + 5.5%

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:
01/23/13: PAL gapped open higher and hit new three-month highs before giving it back to close in the red. I am not suggesting new positions at current levels.

current Position: long PAL stock @ $1.65



Polypore Intl. - PPO - close: 40.12 change: -1.90

Stop Loss: 39.95
Target(s): 47.00
Current Gain/Loss: - 4.6%

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:
01/23/13: Ouch! What happened to PPO? I didn't see any company-specific news to explain today's -4.5% display of relative weakness. I suspect this is a reaction to headlines from one of PPO's rivals. The stock fell straight to support near $40.00.

I am suggesting we abandon ship and cut our losses now. Close positions at the opening bell tomorrow.

Earlier Comments:
I am suggesting small positions to limit our risk.

*Small Positions*

current Position: long PPO stock @ $42.06

01/23/13 prepare to exit at the open tomorrow



Sonic Corp. - SONC - close: 11.48 change: -0.05

Stop Loss: 10.45
Target(s): 12.75
Current Gain/Loss: + 3.0%

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:
01/23/13: SONC spent the day consolidating sideways in a narrow range. I would not be surprised to see a correction back to its simple 10-dma (near 11.16) if the market pulls back. Readers may want to start raising their stop loss.

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: 40.57 change: +0.05

Stop Loss: 38.85
Target(s): 44.50
Current Gain/Loss: + 1.0%

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:
01/23/13: THO eked out a minor gain today but I am disappointed with its poor performance. I am suggesting we close this trade tomorrow at the opening bell.

current Position: Long THO stock @ $40.15

01/23/13 prepare to exit at the open tomorrow
01/12/13 new stop loss @ 38.85



BEARISH Play Updates

K12, Inc. - LRN - close: 19.50 change: +0.27

Stop Loss: 20.60
Target(s): 16.25
Current OPTION Gain/Loss: -32.5%
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:
01/23/13: Our bearish play on LRN is outperforming the markets. That's not exactly what we had in mind. The stock's current short-term sideways consolidation could be just that, a temporary rest point before the stock resumes its down trend. I am not suggesting new positions at this time.

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: 25.57 change: -0.21

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:
01/23/13: QCOR is inching closer and closer to a bearish breakdown. There is no change from my prior comments on QCOR.

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)