Editor's Note:
Traders are still buying the dips but momentum seems to be slowing down.

NTGR was stopped out today. We have removed MFLX. Prepare to exit a few trades prior to earnings in the next few days.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 34.77 change: +0.32

Stop Loss: 33.40
Target(s): 38.50
Current Gain/Loss: - 1.4%

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:
01/29/13: For the third day in a row ABG has dipped to and bounced from short-term technical support at its rising 10-dma. The stock outperformed the market with a +0.9% gain on the session. 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



Acorda Therapeutics - ACOR - close: 29.68 change: +0.09

Stop Loss: 27.25
Target(s): 31.00
Current Gain/Loss: + 4.1%

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:
01/29/13: There is no change from my prior comments on ACOR. 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. More conservative traders may want to exit early and take profits near the $30.00 mark instead.

current Position: long ACOR stock @ $28.50



Ball Corp. - BLL - close: 46.22 change: +0.12

Stop Loss: 45.80
Target(s): 48.40
Current Gain/Loss: + 5.4%

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:
01/29/13: This is it. Tomorrow is our last day. We plan to exit this trade tomorrow at the closing bell to avoid holding over earnings. I am raising our stop loss to $45.80.

current Position: Long BLL stock @ $43.85

01/29/13 new stop loss @ 45.80, exit tomorrow at the close
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



Cognex Corp. - CGNX - close: 39.75 change: -0.15

Stop Loss: 38.80
Target(s): 44.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 26, 2012
Time Frame: Exit PRIOR to earnings on Feb. 11th
Average Daily Volume = 192 thousand
New Positions: Yes, see below

Comments:
01/29/13: CGNX is coiling for a bullish breakout past resistance at $40.00. There is no change from my prior comments.

I am suggesting a trigger to open bullish positions at $40.15. If triggered our target is $44.00. However, we do not want to hold over the Feb. 11th earnings report.
FYI: The Point & Figure chart for CGNX is bullish with a $57.00 target.

Trigger @ 40.15

Suggested Position: buy CGNX stock @ (trigger)



Computer Sciences Corp. - CSC - close: 42.59 change: -0.01

Stop Loss: 40.90
Target(s): 44.90
Current Gain/Loss: + 0.9%

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:
01/29/13: Traders bought the dip near $42.00 this morning. I am raisin our stop loss to $40.90. I am not suggesting new positions.

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

current Position: long CSC stock @ $42.60

01/29/13 new stop loss @ $40.90
01/22/13 trade opened on gap higher @ $42.60



FLIR Systems - FLIR - close: 24.28 change: +0.10

Stop Loss: 23.45
Target(s): 26.25
Current Gain/Loss: + 0.3%

Entry on January 28 at $24.20
Listed on January 26, 2012
Time Frame: exit PRIOR to earnings on Feb. 7th
Average Daily Volume = 952 thousand
New Positions: Yes, see below

Comments:
01/29/13: The dip-buying continues in shares of FLIR. The stock did close near its highs for the session, which should bode well for tomorrow.

Earlier Comments:
This is a short-term trade. I am suggesting small bullish positions at the open on Monday. We will exit prior to the earnings report on February 7th. Our target is $26.25.
FYI: The Point & Figure chart for FLIR is bullish with a $34.50 target.

*Small Positions*

Suggested Position: Long FLIR stock @ $24.20



Gulfport Energy - GPOR - close: 42.60 change: +0.64

Stop Loss: 39.65
Target(s): 44.50
Current Gain/Loss: + 3.9%

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:
01/29/13: Good news! In just the last few minutes of trading GPOR managed to breakout past resistance near $42.00 and close at a new all-time high. I am raising our stop loss to $39.65.

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

01/29/13 new stop loss @ 39.65



Hartford Financial Services Group - HIG - close: 24.89 chg: +0.10

Stop Loss: 23.95
Target(s): 27.50
Current Gain/Loss: + 0.4%

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:
01/29/13: We only have a few days left for this trade to work and HIG needs to pick up the pace. The stock is trending higher but it's been stuck under round-number resistance at $25.00 the last few days. The company is scheduled to report earnings on Monday, Feb. 4th after the closing bell. We do not want to hold over the report. Therefore we will plan to either exit this coming Friday at the close or on Monday at the closing bell.

I am adjusting our stop loss to $23.95.

current Position: Long HIG stock @ $24.80

01/29/13 new stop loss @ 23.95. We only have a few days left.



Coal ETF - KOL - close: 25.35 change: +0.42

Stop Loss: 24.85
Target(s): 29.85
Current Gain/Loss: - 2.9%

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:
01/29/13: I am honestly surprised that KOL did not hit our stop loss today. Shares gapped open higher and outperformed the market with a +1.6% gain. It could just be a little oversold bounce after a four-day decline. I would not open 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



North American Palladium - PAL - close: 1.70 change: +0.02

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:
01/29/13: PAL spent the day churning sideways in a narrow range. 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



Sonic Corp. - SONC - close: 11.17 change: -0.02

Stop Loss: 10.80
Target(s): 12.75
Current Gain/Loss: + 0.2%

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:
01/29/13: SONC also spent Tuesday's session drifting sideways in a narrow range. A move past $11.25 or its 10-dma could be used as a new bullish entry point.

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



BEARISH Play Updates

K12, Inc. - LRN - close: 18.44 change: -0.20

Stop Loss: 20.05
Target(s): 16.25
Current OPTION Gain/Loss: -10.0%
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:
01/29/13: LRN continues to sink. The stock underperformed the market again today. Yet we need LRN to pick up the pace. We only have a few days left. The company is scheduled to report earnings on Feb. 5th. We will plan on exiting on Feb. 4th if shares don't hit our target by then.

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.



Questcor Pharmaceuticals - QCOR - close: 25.59 change: -0.06

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:
01/29/13: There is no change from my prior comments on QCOR. 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)



CLOSED BULLISH PLAYS

Netgear Inc. - NTGR - close: 36.38 change: -4.45

Stop Loss: 38.90
Target(s): 44.50
Current Gain/Loss: - 0.6%

Entry on January 29 at $39.13
Listed on January 28, 2012
Time Frame: Exit prior to earnings on Feb. 12th
Average Daily Volume = 218 thousand
New Positions: see below

Comments:
01/29/13: NTGR is another great example of why you have to play with stop losses. Last night NTGR announced they were buying the assets of the Sierra Wireless' AirCard business for $144.5 million. NTGR is a company with $1.27 billion in annual revenues. It was not a big acquisition. However, buried deep inside the acquisition press release NTGR's management also issued an earnings warning and lowered guidance. Now add on top of that the headlines out this morning from the U.S. government about how networking gear was at risk to hackers. They were not picking on NTGR but all the networking gear available. Of course the government warning didn't help the mood for NTGR.

The stock gapped open lower at $39.13 and quickly hit our stop loss at $38.90 before plunging to a -10.8% decline on the session. Thankfully the gap down at the open minimized our losses to just -0.6%.

*Small Positions*

closed Position: long NTGR stock @ $39.13 exit $38.90 (-0.6%)

01/29/13 stopped out at $38.90
01/29/13 opened on gap down at $39.13

Annotated chart:



CLOSED BEARISH PLAYS

Multi-Fineline Electronix - MFLX - close: 16.06 change: +0.19

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:
01/29/13: The oversold bounce in MFLX continues. The stock is up three days in a row and unlikely to hit our bearish entry point at $14.85 before the company reports earnings on Feb. 7th.

I am removing MFLX as a candidate. Our play never opened.

Trade did not open.

01/29/13 removed from the newsletter

chart: