Editor's Note:
The rally is not over yet with traders buying the dip and lifting the market almost across the board on Tuesday.

Our CONN trade has been triggered. GPRN has been stopped out.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 37.11 change: +1.73

Stop Loss: 34.40
Target(s): 38.50
Current Gain/Loss: + 5.3%

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:
02/05/13: ABG displayed relative strength today. The stock soared to a new record high with a +4.8% gain on Tuesday's session. I couldn't find any specific news to account for the relative strength but I'm not complaining. We will raise our stop loss to $34.40.

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

02/05/13 new stop loss @ 34.40



Acorda Therapeutics - ACOR - close: 29.32 change: +0.66

Stop Loss: 28.25
Target(s): 31.00
Current Gain/Loss: + 2.9%

Entry on January 22 at $28.50
Listed on January 19, 2013
Time Frame: 2 to 4 weeks
Average Daily Volume = 417 thousand
New Positions: see below

Comments:
02/05/13: ACOR has been chopping sideways the last few days. Traders bought the dip today and the stock outperformed the major indices with a +2.3% gain. I am not suggesting new positions.

Please note our new stop loss at $28.25.

current Position: long ACOR stock @ $28.50

02/05/13 new stop loss @ 28.25
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:
02/05/13: Shares of Citigroup managed to outperform many of its peers in the financial sector with a +1.6% gain today. The stock remains below resistance in the $43.00-43.50 area.

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: 41.54 change: +0.79

Stop Loss: 39.85
Target(s): 44.00
Current Gain/Loss: +3.5%

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:
02/05/13: CGNX has extended its gains with a +1.9% surge today. These are new multi-month highs for the stock. I am raising our stop loss up to $39.85.

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

current Position: Long CGNX stock @ $40.15

02/05/13 new stop loss @ 39.85
02/04/13 new stop loss @ $39.25



Conns Inc. - CONN - close: 29.52 change: +0.18

Stop Loss: 27.85
Target(s): 33.50
Current Gain/Loss: - 0.1%

Entry on February 05 at $29.55
Listed on February 4, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 416 thousand
New Positions: Yes, see below

Comments:
02/05/13: The rally continues for CONN as well and the stock hit our trigger to launch bullish positions at $29.55 today. More conservative traders may want to wait for a rally past the $30.00 mark as an alternative entry point.

Our target is $33.50. More aggressive traders could aim higher. FYI: The Point & Figure chart for CONN is bullish with a long-term $48.00 target.

current Position: Long CONN stock @ $29.55



Morgan Stanley - MS - close: 23.40 change: +0.52

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: + 1.1%

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:
02/05/13: Traders bought the dip in MS at its rising 10-dma. The stock managed to recoup most of yesterday's declines. Readers can use this bounce as a new bullish entry point.

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: 1.78 change: +0.05

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: + 7.9%

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:
02/05/13: PAL appears to be breaking out higher from its recent consolidation pattern. Shares are now approaching prior resistance near $1.80. There is also potential resistance at its simple 200-dma near $1.85.

current Position: long PAL stock @ $1.65

01/30/13 new stop loss @ 1.55



Synopsys Inc. - SNPS - close: 33.90 change: +0.07

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:
02/05/13: SNPS is still hovering near resistance at the $34.00 level. I am suggesting a trigger to open positions at $34.25.

Trigger @ 34.25

Suggested Position: buy SNPS stock @ (trigger)



Sonic Corp. - SONC - close: 11.28 change: +0.26

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:
02/05/13: Great news! SONC almost completely erased yesterday's decline with a big +2.3% bounce off support near the $11.00 mark. The high today was $11.35. I would wait for a rise past $11.35 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


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

Groupon, Inc. - GRPN - close: 5.12 change: -0.11

Stop Loss: 5.15
Target(s): 7.50
Current Gain/Loss: - 8.8%

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:
02/05/13: Our aggressive trade on GPRN did not pan out. A couple of days ago shares were pushing past resistance and hitting new five-month highs. Unfortunately the rally reversed yesterday and the weakness continued today. Our stop loss was hit at $5.15.

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 exit $5.15 (-8.8%)

02/05/13 stopped out

chart: