Editor's Note:
It looks like the market has a post-Super Bowl hangover. All the major sector indices turned lower today.

We closed CSC, FLIR, and LRN today.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 35.38 change: -0.53

Stop Loss: 33.40
Target(s): 38.50
Current Gain/Loss: + 0.4%

Entry on January 24 at $35.25
Listed on January 23, 2013
Time Frame: Exit PRIOR to earnings on Feb. 19th
Average Daily Volume = 275 thousand
New Positions: see below

Comments:
02/04/13: ABG followed the market lower and posted a -1.4% decline. Look for short-term support at $35.00 or at the 10-dma near $34.70. 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



Acorda Therapeutics - ACOR - close: 28.66 change: -0.35

Stop Loss: 27.95
Target(s): 31.00
Current Gain/Loss: + 0.6%

Entry on January 22 at $28.50
Listed on January 19, 2013
Time Frame: 3 to 4 weeks
Average Daily Volume = 417 thousand
New Positions: see below

Comments:
02/04/13: ACOR also succumbed to some profit taking on Monday with a -1.2% decline. The stock looks poised to retest the $28.00 level soon. I am not suggesting new positions.

current Position: long ACOR stock @ $28.50

01/30/13 new stop loss @ 27.95



Citigroup - C - close: 42.21 change: -0.81

Stop Loss: 41.49
Target(s): 48.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 2, 2013
Time Frame: 6 to 9 weeks
Average Daily Volume = 35 million
New Positions: Yes, see below

Comments:
02/04/13: Hmm... Citigroup almost completely erased Friday's gain with today's pullback. I am expecting a bounce near the trend of higher lows. However, we are currently sitting on the sidelines waiting for a breakout higher.

I am suggesting a trigger to open bullish positions at $43.55. If triggered our multi-week target is $48.50. More aggressive traders may want to play the call options on C.
FYI: The Point & Figure chart for C is bullish with a long-term $56.00 target.

Trigger @ 43.55

Suggested Position: buy C stock @ (trigger)



Cognex Corp. - CGNX - close: 40.75 change: +0.21

Stop Loss: 39.25
Target(s): 44.00
Current Gain/Loss: +1.5%

Entry on February 01 at $40.15
Listed on January 26, 2013
Time Frame: Exit PRIOR to earnings on Feb. 11th
Average Daily Volume = 192 thousand
New Positions: see below

Comments:
02/04/13: Traders bought the dip twice intraday and shares of CGNX rallied to a new relative high. I am raising our stop loss to $39.25.

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

current Position: Long CGNX stock @ $40.15

02/04/13 new stop loss @ $39.25



Groupon, Inc. - GRPN - close: 5.23 change: -0.42

Stop Loss: 5.15
Target(s): 7.50
Current Gain/Loss: - 7.4%

Entry on February 01 at $ 5.65
Listed on January 31, 2013
Time Frame: exit PRIOR to earnings on Feb. 27th
Average Daily Volume = 12 million
New Positions: see below

Comments:
02/04/13: Ouch! It was not a good day for shares of GRPN. I could not find any specific news to account for the stock's relative weakness today. After a strong two-day rally late last week GRPN erased those gains with a -7.35% plunge today. The stock settled right on its simple 20-dma and is less than a dime away from our stop loss at $5.15. If there is any follow through lower tomorrow we'll be stopped out.

Earlier Comments:
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



Morgan Stanley - MS - close: 22.88 change: -0.63

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: - 1.2%

Entry on February 01 at $23.15
Listed on January 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 27 million
New Positions: see below

Comments:
02/04/13: MS underperformed both the market's major indices and its peers in the financial sector with a -2.6% decline. Shares gapped open lower and settled on short-term support at the simple 10-dma. More conservative traders may want to raise their stop loss. Today's high was $23.14. I would wait for a new rise above $23.15 before considering new positions.

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



North American Palladium - PAL - close: 1.73 change: +0.05

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: + 4.8%

Entry on January 14 at $ 1.65
Listed on January 12, 2013
Time Frame: 8 to 9 weeks
Average Daily Volume = 2.8 million
New Positions: see below

Comments:
02/04/13: Shares of PAL bounced off short-term technical support at its rising 20-dma this morning and rallied to a +2.9% gain. 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



Synopsys Inc. - SNPS - close: 33.83 change: -0.09

Stop Loss: 33.45
Target(s): 37.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 2, 2013
Time Frame: exit prior to the late February earnings report
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Comments:
02/04/13: SNPS spiked up to $34.07 intraday before rolling over. We are still on the sidelines waiting for a new relative high.

I am suggesting a trigger to open positions at $34.25.

Trigger @ 34.25

Suggested Position: buy SNPS stock @ (trigger)



Sonic Corp. - SONC - close: 11.02 change: -0.28

Stop Loss: 10.80
Target(s): 12.75
Current Gain/Loss: - 1.2%

Entry on January 14 at $11.15
Listed on January 12, 2013
Time Frame: 8 to 9 weeks
Average Daily Volume = 658 thousand
New Positions: see below

Comments:
02/04/13: Warning! There was no follow through on the recent bounce in shares of SONC. Shares underperformed today with a -2.4% decline. The stock is sitting on support at the $11.00 mark. If there is any follow through lower tomorrow we could see SONC hit our stop at $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



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

Computer Sciences Corp. - CSC - close: 41.91 change: -0.79

Stop Loss: 41.90
Target(s): 44.90
Current Gain/Loss: - 1.6%

Entry on January 22 at $42.60
Listed on January 15, 2013
Time Frame: Exit prior to earnings on Feb. 5th
Average Daily Volume = 1.4 million
New Positions: see below

Comments:
02/04/13: This morning shares of CSC tried to rally but reversed at the $43.00 level. The stock gave up -1.8% by the closing bell. It was our plan to exit positions at the close to avoid holding over earnings due out tomorrow. Unfortunately, CSC hit our stop loss at $41.90 first.

closed Position: long CSC stock @ $42.60 exit $41.90 (-1.6%)

02/04/13 stopped out @ 41.90
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: 23.31 change: -0.31

Stop Loss: 23.45
Target(s): 26.25
Current Gain/Loss: - 2.5%

Entry on January 28 at $24.20
Listed on January 26, 2013
Time Frame: exit PRIOR to earnings on Feb. 7th
Average Daily Volume = 952 thousand
New Positions: see below

Comments:
02/04/13: I cautioned readers that FLIR appeared to have created a bearish reversal last week. We decided to exit immediately on Monday morning. FLIR opened at $23.59 today.

*Small Positions*

closed Position: Long FLIR stock @ $24.20 exit $23.59 (-2.5%)

02/04/13 planned exit this morning
02/02/13 prepare to exit on Monday morning at the open

chart:



CLOSED BEARISH PLAYS

K12, Inc. - LRN - close: 18.53 change: -0.07

Stop Loss: 19.05
Target(s): 16.25
Current OPTION Gain/Loss: -17.5%
Entry on January 15 at $18.90
Listed on January 14, 2013
Time Frame: Exit prior to earnings on Feb. 5th
Average Daily Volume = 221 thousand
New Positions: see below

Comments:
02/04/13: We gave run out of time on our LRN trade. Shares recently bounced back to short-term resistance at its descending 10-dma and the stock sits right below this level today. Our plan was to exit positions at the closing bell tonight to avoid holding over earnings.

long Feb $20 PUT (LRN1316n20) entry $2.00* exit $1.65 (-17.5%)

02/04/13 scheduled exit
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: