Editor's Note:
We had a number of bullish candidates breakout to new highs on Friday.

CGNX, GPRN, and MS were all triggered.
HIG was closed. QCOR was stopped out.
We want to exit our CSC, FLIR, and LRN trades on Monday.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 35.91 change: +0.35

Stop Loss: 33.40
Target(s): 38.50
Current Gain/Loss: + 1.9%

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:
02/02/13: It proved to be a bullish week for ABG with the stock climbing to new all-time highs. The breakout past potential resistance at $35.00 is certainly bullish. Readers may want to start raising their stop loss.

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: 29.01 change: +0.13

Stop Loss: 27.95
Target(s): 31.00
Current Gain/Loss: + 1.8%

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:
02/02/13: ACOR is still trying to recover from Wednesday's decline. Shares only managed a +0.45% gain on Friday. I am still cautious here. We're not suggesting new positions.

current Position: long ACOR stock @ $28.50

01/30/13 new stop loss @ 27.95

chart:



Cognex Corp. - CGNX - close: 40.54 change: +0.88

Stop Loss: 38.80
Target(s): 44.00
Current Gain/Loss: +1.0%

Entry on February 01 at $40.15
Listed on January 26, 2012
Time Frame: Exit PRIOR to earnings on Feb. 11th
Average Daily Volume = 192 thousand
New Positions: see below

Comments:
02/02/13: We have been patiently waiting for CGNX to breakout past resistance at the $40.00 level. The market's widespread rally on Friday helped CGNX finally cross this barrier. Our trigger to open positions was hit at $40.15. I would still consider new positions now or nimble traders could buy a dip near $40.00.

NOTE: We do not want to hold positions over the Feb. 11th earnings report.

current Position: Long CGNX stock @ $40.15

chart:



Computer Sciences Corp. - CSC - close: 42.70 change: +0.90

Stop Loss: 41.90
Target(s): 44.90
Current Gain/Loss: + 0.2%

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:
02/02/13: CSC looked like it was about to breakdown but shares reversed to a +2.1% gain on Friday. The stock actually tagged a new 52-week high on an intraday basis. Our trade is almost over. We are planning to exit positions on Monday, Feb. 4th, at the closing bell to avoid holding over the earnings report due out Feb. 5th. I am raising our stop loss to $41.90.

current Position: long CSC stock @ $42.60

02/02/13 new stop loss @ 41.90, exit on Monday, Feb. 4th, at the closing bell
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

chart:



FLIR Systems - FLIR - close: 23.62 change: -0.15

Stop Loss: 23.45
Target(s): 26.25
Current Gain/Loss: - 2.4%

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: see below

Comments:
02/02/13: Our FLIR trade is not work. I am suggesting we exit immediately on Monday morning.

Wednesday's session looks like a failed rally and bearish reversal. The Thursday-Friday drop appears to confirm the reversal.

*Small Positions*

Suggested Position: Long FLIR stock @ $24.20

02/02/13 prepare to exit on Monday morning at the open

chart:



Groupon, Inc. - GRPN - close: 5.65 change: +0.13

Stop Loss: 5.15
Target(s): 7.50
Current Gain/Loss: + 0.0%

Entry on February 01 at $ 5.65
Listed on January 31, 2012
Time Frame: exit PRIOR to earnings on Feb. 27th
Average Daily Volume = 12 million
New Positions: Yes, see below

Comments:
02/02/13: Our new trade on GRPN is open. The stock has continued to rally and Friday saw a breakout past resistance to new multi-month highs. Our trigger to open small bullish positions was hit at $5.65. There is no change from my prior comments.

Earlier Comments:
GRPN was one of the first big players in the discounted daily deal on the Internet or in your email business. Nowadays the company has a lot of competition, which helps explain the stock's plunge from $30 to less than $3.00. Yet since its November lows GRPN has rebounded. Now shares are poised to breakout past resistance in the $5.50-5.60 area. Further gains could spark a short squeeze. The most recent data listed short interest at 18% of the 189 million share float.

I do consider this an aggressive, higher-risk play. GRPN can be a volatile stock. Thus we want to keep our position size small.

*Small Positions*

current Position: Long GRPN stock @ $5.65

chart:



Morgan Stanley - MS - close: 23.51 change: +0.71

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: + 1.6%

Entry on February 01 at $23.15
Listed on January 30, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 27 million
New Positions: see below

Comments:
02/02/13: The market's widespread rally on Friday also helped shares of MS breakout from its $22-23 trading range. Our trigger to open small bullish positions was hit at $23.15. The stock displayed relative strength with a +3.1% gain on the session. If you missed our entry point I would consider waiting for a dip back toward $23.00, which should be new support.

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

Small Positions*

current Position: Long MS stock @ $23.15

chart:



North American Palladium - PAL - close: 1.68 change: +0.02

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: + 1.8%

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:
02/02/13: The sideways consolidation in shares of PAL is narrowing. The stock should see a breakout one way or the other pretty soon. Nimble traders could use a rally past $1.75 as a new entry point.

current Position: long PAL stock @ $1.65

01/30/13 new stop loss @ 1.55

chart:



Sonic Corp. - SONC - close: 11.30 change: +0.14

Stop Loss: 10.80
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:
02/02/13: After almost a week of churning sideways above support near $11.00 it looks like SONC is starting to move again. Friday's bounce could be used as a new bullish entry point. Or more conservative traders could wait for a rally past $11.35 as an alternative 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

chart:



BEARISH Play Updates

K12, Inc. - LRN - close: 18.60 change: +0.14

Stop Loss: 19.05
Target(s): 16.25
Current OPTION Gain/Loss: -22.5%
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:
02/02/13: LRN is not cooperating with us, at least not within our time frame. After a multi-day decline shares started to bounce on Thursday. The market's widespread rally on Friday helped LRN post another gain although the stock did seem to stall at short-term technical resistance at its 10-dma. The overall trend remains down. However, we are out of time. The company is due to report earnings on Feb 5th. We are planning to exit positions on Feb. 4th (Monday) at the closing bell. I am lowering our stop loss down to $19.05.

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

02/02/13 new stop loss @ 19.05, prepare to exit at the close on Monday
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.

chart:



CLOSED BULLISH PLAYS

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

Stop Loss: 23.95
Target(s): 27.50
Current Gain/Loss: + 1.7%

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:
02/02/13: We had planned to exit our HIG position on Friday at the closing bell. Fortunately for us the stock broke through resistance at $25.00 and closed with a +1.6% gain. (We closed positions to avoid holding over earnings)

closed Position: Long HIG stock @ $24.80 exit $25.21 (+1.7%)

02/01/13 exited position at the closing bell
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.

chart:



CLOSED BEARISH PLAYS

Questcor Pharmaceuticals - QCOR - close: 26.40 change: +0.92

Stop Loss: 26.25
Target(s): 20.50
Current Gain/Loss: - 5.4%

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:
02/02/13: QCOR did not want to play nice with our bearish designs on the stock. We were triggered on a very short-lived, intraday spike down on Thursday. Then Friday's market-wide rally fueled some short covering and QCOR outperformed with a +3.6% gain. Our stop loss was hit at $26.25.

Earlier Comments:
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.

closed Position: short QCOR stock @ $24.90 exit $26.25 (-5.4%)

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

Feb $25 PUT (QCOR1316n25) entry $0.95 exit $0.50 (-47.3%)

chart: