Editor's Note:
The market's upward momentum has stalled. We had more than one candidate close unchanged today. CAR has been removed. GPOR was stopped out. KOL was closed. QCOR has been triggered. We want to exit HIG tomorrow.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 35.56 change: +1.26

Stop Loss: 33.40
Target(s): 38.50
Current Gain/Loss: + 0.9%

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:
01/31/13: ABG's rival AutoNation (AN) delivered a bullish earnings report today. That helped fuel a +3.6% rally and a new high in shares of ABG.

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: 28.88 change: +0.06

Stop Loss: 27.95
Target(s): 31.00
Current Gain/Loss: + 1.3%

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:
01/31/13: Traders bought the dip in ACOR this morning and the stock reversed to close in positive territory. I remain cautious on this stock following Wednesday's decline. I am not suggesting new positions.

current Position: long ACOR stock @ $28.50

01/30/13 new stop loss @ 27.95



Cognex Corp. - CGNX - close: 39.66 change: +0.14

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:
01/31/13: CGNX is still churning sideways inside the $39-40 range. We are waiting for a breakout past resistance.

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: 41.80 change: -0.43

Stop Loss: 41.25
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:
01/31/13: I think our CSC trade is in trouble. If the market sells off on the jobs report tomorrow we will probably see CSC hit our stop loss at $41.25. I am not suggesting new positions at this time.

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

current Position: long CSC stock @ $42.60

01/30/13 new stop loss @ 41.25
01/29/13 new stop loss @ $40.90
01/22/13 trade opened on gap higher @ $42.60



FLIR Systems - FLIR - close: 23.77 change: -0.49

Stop Loss: 23.45
Target(s): 26.25
Current Gain/Loss: - 1.8%

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:
01/31/13: FLIR underperformed the market today with a -2.0% decline. The combination of yesterday's intraday failed rally and today's decline looks bearish for the stock. I am concerned that we could see FLIR hit our stop loss at $23.45 tomorrow. I am not suggesting new positions.

Earlier Comments:
This is a short-term trade. 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



Hartford Financial Services Group - HIG - close: 24.80 chg: +0.19

Stop Loss: 23.95
Target(s): 27.50
Current Gain/Loss: + 0.0%

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:
01/31/13: HIG dipped to its 20-dma before bouncing back and closing with a +0.7% gain. We are right back to where we started at $24.80. I am suggesting we plan to exit tomorrow (Friday) at the closing bell.

current Position: Long HIG stock @ $24.80

01/31/13 prepare to exit tomorrow (Friday) at the closing bell
01/29/13 new stop loss @ 23.95. We only have a few days left.



Morgan Stanley - MS - close: 22.85 change: -0.13

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 30, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 27 million
New Positions: Yes, see below

Comments:
01/31/13: MS is hovering just below resistance at the $23.00 level. We are waiting on a bullish breakout.

I am suggesting a trigger to open small bullish positions at $23.15. If triggered our target is $26.00. We will start with a stop loss at $21.95.

FYI: MS has a five-cent dividend payable on Feb. 15, 2013 and will begin trading ex-dividend on Friday, Feb. 1st.

Trigger @ 23.15 *Small Positions*

Suggested Position: buy MS stock @ (trigger)



North American Palladium - PAL - close: 1.66 change: +0.00

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: + 0.6%

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:
01/31/13: PAL hovered near the $1.65 level and closed unchanged on the session. I am not suggesting new positions at this time.

current Position: long PAL stock @ $1.65

01/30/13 new stop loss @ 1.55



Sonic Corp. - SONC - close: 11.16 change: +0.00

Stop Loss: 10.80
Target(s): 12.75
Current Gain/Loss: + 0.1%

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:
01/31/13: Shares of SONC also spent the session churning sideways in a very narrow range. The stock closed unchanged on the day. I would wait for a rally past $11.30 before launching new positions.

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: 18.46 change: +0.51

Stop Loss: 19.55
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:
01/31/13: LRN produced an oversold bounce and erased yesterday's decline. The overall trend is still down but we're running out of time.

We will be exiting soon. 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*

01/30/13 new stop loss @ 19.55
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: 25.48 change: +0.16

Stop Loss: 26.25
Target(s): 20.50
Current Gain/Loss: - 2.3%

Entry on January 31 at $24.90
Listed on January 15, 2012
Time Frame: exit prior to earnings in late February
Average Daily Volume = 1.8 million
New Positions: see below

Comments:
01/31/13: Our bearish QCOR trade has finally opened. Unfortunately the move today looks like a bear-trap pattern. Shares were hovering above support near $25.00 then there was a sudden spike lower to $24.75 that just as quickly reversed higher. Our trade was triggered at $24.90. I am not suggesting new positions again until we see a new drop below $24.75.

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.

current Position: short QCOR stock @ $24.90

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

Long Feb $25 PUT (QCOR1316n25) entry $0.95



CLOSED BULLISH PLAYS

Avis Budget Group - CAR - close: 21.53 change: -0.18

Stop Loss: 21.40
Target(s): 24.75
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 29, 2012
Time Frame: Exit prior to earnings on Feb. 13th
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
01/31/13: The larger trend is up but short-term CAR posted another loss. Our trade has not opened yet. We are removing CAR as a candidate. However, I would keep the stock on my radar screen for a potential entry point down the road.

Trade did not open.

01/31/13 removed from the newsletter

chart:



Gulfport Energy - GPOR - close: 41.27 change: +0.07

Stop Loss: 40.75
Target(s): 44.50
Current Gain/Loss: - 0.7%

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:
01/31/13: GPOR dipped under what should have been support at $41.00 and hit our stop loss at $40.75.

closed Position: long GPOR stock @ $41.02 exit $40.75 (-0.7%)

01/31/13 stopped out
01/30/13 new stop loss @ 40.75
01/29/13 new stop loss @ 39.65

chart:



Coal ETF - KOL - close: 25.11 change: +0.13

Stop Loss: 24.85
Target(s): 29.85
Current Gain/Loss: - 3.8%

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:
01/31/13: The coal ETF has been underperforming. Last night we decided to abandon ship and exit this morning at the open. Shares of KOL gapped open higher at $25.10.

closed Position: Long the KOL (etf) @ $26.10 exit $25.10 (-3.8%)

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

APR $27 call (KOL1320D27) entry $1.03 exit $0.25 (-75.7%)

01/31/13 closed this morning
01/30/13 prepare to exit at the opening bell tomorrow
01/26/13 KOL is not performing. Readers may want to just exit early now.
01/12/13 new stop loss @ 24.85

chart: