Editor's Note:
Shares of Autodesk Inc. (ADSK) hit our bullish target on Friday. CYOU was stopped out. We have removed DFT.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 34.41 change: +0.19

Stop Loss: 33.40
Target(s): 38.50
Current Gain/Loss: - 2.4%

Entry on January 24 at $35.25
Listed on January 23, 2012
Time Frame: Exit PRIOR to earnings on Feb. 19th
Average Daily Volume = 275 thousand
New Positions: see below

Comments:
01/26/13: With the market still in rally mode, traders bought the dip in ABG at its rising 10-dma. Readers can use this intraday rebound as a new bullish entry point.

We are planning to exiting prior to the Feb. 19th earnings report.

Please note that we do want to keep our position size small to limit our risk.

*Small positions*

current Position: Long ABG stock @ $35.25

chart:



Acorda Therapeutics - ACOR - close: 29.43 change: -0.03

Stop Loss: 27.25
Target(s): 31.00
Current Gain/Loss: + 3.3%

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:
01/26/13: The last few days have seen ACOR produce a pattern of rally, then rest, rally, then rest. Friday was a rest day. There is no change from my prior comments. The stock is nearing what could be round-number resistance at the $30.00 level. Do not be surprised to see an initial pullback on the first test of the $30.00 mark.

current Position: long ACOR stock @ $28.50

chart:



Ball Corp. - BLL - close: 46.52 change: +0.00

Stop Loss: 45.40
Target(s): 48.40
Current Gain/Loss: + 6.3%

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:
01/26/13: Readers may want to abandon ship and lock in gains now. The upward momentum in BLL has stalled with the stock stuck under resistance near $47.00 these last few days. We only have a few days left. BLL is due to report earnings on January 31st. If BLL does not hit our exit target at $48.40 soon then we will plan to exit on January 30th at the closing bell.

I am raising our stop loss to $45.40.

current Position: Long BLL stock @ $43.85

01/26/13 new stop loss @ 45.40, prepare to exit on Jan. 30th at the closing bell if BLL doesn't hit our target by then
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

chart:



Computer Sciences Corp. - CSC - close: 42.44 change: +0.02

Stop Loss: 39.95
Target(s): 44.90
Current Gain/Loss: + 0.6%

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:
01/26/13: Traders bought the dip again. CSC dipped toward its simple 20-dma on Friday but rebounded midday. Readers might want to adjust their stops to it's closer to the $41.00 level.

Don't forget that we plan to exit prior to earnings on Feb. 5th.

current Position: long CSC stock @ $42.60

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

chart:



Gulfport Energy - GPOR - close: 41.71 change: +0.45

Stop Loss: 38.45
Target(s): 44.50
Current Gain/Loss: + 2.0%

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:
01/26/13: GPOR continues to consolidate sideways following Tuesday's big rally higher. If you're feeling optimistic the consolidation does seem to have a bullish tilt to it. GPOR looks like it's coiling for another breakout higher. A rally past $42.50 could be used as a new entry point but you may want to aim higher than our $44.50 target.

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

chart:



Hartford Financial Services Group - HIG - close: 24.82 chg: +0.43

Stop Loss: 23.75
Target(s): 27.50
Current Gain/Loss: + 0.1%

Entry on January 23 at $24.80
Listed on January 22, 2012
Time Frame: exit PRIOR to earnings on Feb. 4th
Average Daily Volume = 4.6 million
New Positions: see below

Comments:
01/26/13: HIG was showing relative strength on Friday. The stock added +1.7% and closed at its high for the day. I would use Friday's advance as a new bullish entry point or you could wait for a breakout past the $25.00 mark.

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.

current Position: Long HIG stock @ $24.80

chart:



Coal ETF - KOL - close: 25.16 change: -0.09

Stop Loss: 24.85
Target(s): 29.85
Current Gain/Loss: - 3.6%

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:
01/26/13: KOL started underperforming again on Wednesday and the weakness continued on Friday. This coal ETF is on the verge of breaking down below the $25.00 mark and hitting our stop loss. More conservative traders may want to just exit early now. I am not suggesting new positions.

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

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

Long APR $27 call (KOL1320D27) entry $1.03

01/26/13 KOL is not performing. Readers may want to just exit early now.
01/12/13 new stop loss @ 24.85

chart:



North American Palladium - PAL - close: 1.70 change: +0.07

Stop Loss: 1.35
Target(s): 2.45
Current Gain/Loss: + 3.0%

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:
01/26/13: It was a volatile week for shares of PAL. The stock churned between $1.57 and $1.83. Traders might want to raise their stop loss. I am not suggesting new positions at this time.

Readers might want to consider raising their stops toward the $1.45 level.

current Position: long PAL stock @ $1.65

chart:



Sonic Corp. - SONC - close: 11.22 change: -0.16

Stop Loss: 10.80
Target(s): 12.75
Current Gain/Loss: + 0.6%

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:
01/26/13: On Thursday night I suggested that SONC might see additional weakness and look for support near $11.00. Sure enough the stock fell to $10.98 before paring its losses. The drop was due to news that SONC's president would resign soon.

I remain bullish on the stock and readers can use the Friday afternoon bounce from the $11.00 level as a new bullish entry point. I am raising our stop loss up to $10.80.

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

01/26/13 new stop loss @ $10.80

chart:



BEARISH Play Updates

K12, Inc. - LRN - close: 19.17 change: -0.33

Stop Loss: 20.60
Target(s): 16.25
Current OPTION Gain/Loss: -12.5%
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:
01/26/13: Good news! After almost two weeks of consolidating sideways shares of LRN have resumed their down trend. The stock failed to participate in the market's rally on Friday and broke down to a new relative low.

I am lowering our stop loss down to $20.05. Friday's move can be used as a new bearish entry point.

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

01/26/13 new stop loss @ 20.05
*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.

chart:



Multi-Fineline Electronix - MFLX - close: 15.59 change: +0.20

Stop Loss: 15.55
Target(s): 12.65
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 23, 2012
Time Frame: exit PRIOR to earnings on Feb. 7th
Average Daily Volume = 108 thousand
New Positions: Yes, see below

Comments:
01/26/13: MFLX managed a bounce on Friday. After a multi-day decline that's not too surprising. Right now we are waiting for a breakdown under the next level of support. I am suggesting a trigger to open bearish positions at $14.85. If triggered our target is $12.65.

NOTE: We may have to abandon this play early, since we normally do not hold over a company's earnings report and MFLX is scheduled to report on Feb. 7th.

Trigger @ 14.85 *Small Positions*

Suggested Position: short MFLX stock @ (trigger)

chart:



Questcor Pharmaceuticals - QCOR - close: 25.96 change: +0.45

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:
01/26/13: QCOR managed a bounce on Friday. If this rebound continues we will probably drop QCOR as a bearish candidate. Right now we are waiting on a breakdown below support.

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)

chart:



CLOSED BULLISH PLAYS

Autodesk Inc. - ADSK - close: 38.99 change: +1.39

Stop Loss: 35.95
Target(s): 39.95
Current Gain/Loss: +7.2%

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:
01/26/13: Target achieved.

News that Goldman Sachs had upgraded ADSK from a "sell" to a "buy" and added it to their conviction buy list produced a big move on Friday morning. ADSK gapped open higher at $39.50 and spiked to $40.00 before paring its gains. Our exit target was hit at $39.95.

closed Position: Long ADSK stock @ $37.25 exit $39.95 (+7.2%)

01/25/13 target hit

chart:



Changyou.com Ltd. - CYOU - close: 29.92 change: -1.82

Stop Loss: 29.95
Target(s): 34.75
Current Gain/Loss: - 1.0%

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:
01/26/13: Ouch! I can't find a real reason for CYOU's underperformance on Friday. Shares underperformed with a -5.7% plunge and our stop loss was hit at $29.95. I did notice that CTRP was a big underperformer on Friday but not all Chinese Internet stocks were down on Friday. Plus, CYOU and CTRP have very different businesses.

Whatever the reason, our play has been stopped out.

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*

closed Position: Long CYOU stock @ $30.25 exit $29.95 (-1.0%)

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

Feb $30 call (CYOU1316B30) entry $1.90 exit $1.35 (-28.9%)

01/25/13 stopped out
01/22/13 new stop loss @ 29.95
01/16/13 new stop loss @ 29.45
01/15/13 new stop loss @ 28.75

chart:



CLOSED BEARISH PLAYS

DuPont Fabros Tech. - DFT - close: 24.31 change: +0.65

Stop Loss: 24.15
Target(s): 21.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 24, 2012
Time Frame: exit PRIOR to earnings on Feb. 6th
Average Daily Volume = 753 thousand
New Positions: see below

Comments:
01/26/13: There was no follow through on Thursday's decline in DFT. I am removing the stock as a bearish candidate. Nimble traders may want to keep DFT on their watch list for a breakdown below $23.50.

Trade did not open.

01/26/13 removed from the newsletter

Annotated chart: