Editor's Note:
Stocks managed a rebound off their midday lows with a widespread afternoon bounce.

Our BTU trade was triggered today.

Prepare to exit or CGNX trade tomorrow.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 35.96 change: -0.49

Stop Loss: 34.40
Target(s): 38.50
Current Gain/Loss: + 2.0%

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:
02/07/13: ABG continues to see profit taking after Tuesday's big rally. The stock lost -1.3% today. Shares look poised to test technical support at the 10-dma soon.

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: 29.00 change: -0.32

Stop Loss: 28.25
Target(s): 31.00
Current Gain/Loss: + 1.8%

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:
02/07/13: The trading in ACOR looks bearish. Technically the stock has created a bearish engulfing candlestick reversal pattern. More conservative traders may want to exit early now. I am not suggesting new positions.

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: 42.87 change: -0.18

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:
02/07/13: Shares of Citigroup tried to rally this morning but the stock reversed at the $43.50 level. There is no change from my earlier comments.

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: 42.30 change: +0.06

Stop Loss: 41.25
Target(s): 44.00
Current Gain/Loss: +5.4%

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:
02/07/13: CGNX is looking pretty overbought at current levels. I am suggesting we go ahead and exit positions tomorrow at the closing bell. More conservative traders can exit at the opening bell instead. We'll raise our stop loss to $41.25.

current Position: Long CGNX stock @ $40.15

02/07/13 new stop loss @ 41.25, prepare to exit tomorrow (Friday) at the closing bell
02/05/13 new stop loss @ 39.85
02/04/13 new stop loss @ $39.25



Conns Inc. - CONN - close: 30.47 change: +0.49

Stop Loss: 27.85
Target(s): 33.50
Current Gain/Loss: + 3.1%

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:
02/07/13: Shares of CONN rallied on news that their same-store sales rose +7% in the fourth quarter. The stock outperformed the market with a +1.6% gain. Shares are nearing potential resistance at their December and early January highs. I am not suggesting new positions at current levels.

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: 23.10 change: -0.29

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: - 0.2%

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:
02/07/13: MS was showing weakness during the first half of today's session and broke down below the simple 10-dma. Fortunately the stock followed the market's rebound higher with an afternoon bounce of its own.

Small Positions*

current Position: Long MS stock @ $23.15



Ocwen Financial - OCN - close: 40.80 change: -0.47

Stop Loss: 39.65
Target(s): 44.75
Current Gain/Loss: - 1.4%

Entry on February 07 at $41.37
Listed on February 6, 2013
Time Frame: Exit prior to earnings in late February
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
02/07/13: OCN hit some profit taking today. Our trade opened this morning but last night I suggested nimble traders look to buy a dip near $40.00. The stock fell to $39.92 before bouncing. We can use the afternoon rebound as another bullish entry point.

This trade may only last a couple of weeks. We are planning to exit prior to earnings, which are expected in late February. There is no date yet.

*Small Positions*

current Position: Long OCN stock @ $41.37



North American Palladium - PAL - close: 1.91 change: -0.01

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: +15.8%

Entry on January 14 at $ 1.65
Listed on January 12, 2013
Time Frame: Exit prior to earnings on Feb. 21
Average Daily Volume = 2.8 million
New Positions: see below

Comments:
02/07/13: PAL has found the next level of resistance near the $2.00 mark. Actually yesterday's high and today's high was $1.98. I would not be surprised to see shares of PAL correct lower toward $1.80 again before moving higher.

Please note that we will plan to exit prior to PAL's earnings report on Feb. 21st if shares have not hit our exit target by then.

current Position: long PAL stock @ $1.65

02/06/13 adjusted time frame for earnings on Feb. 21st
01/30/13 new stop loss @ 1.55



Synopsys Inc. - SNPS - close: 34.36 change: +0.06

Stop Loss: 33.45
Target(s): 37.50
Current Gain/Loss: + 0.3%

Entry on February 06 at $34.25
Listed on February 2, 2013
Time Frame: exit prior to the February 20th earnings
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Comments:
02/07/13: SNPS saw an intraday high near $34.50 before the stock pared its gains. I would still consider new bullish positions now or more nimble traders could try and buy a dip near $34.00 or its 10-dma.

current Position: Long SNPS stock @ $34.25



Sonic Corp. - SONC - close: 11.32 change: -0.01

Stop Loss: 10.80
Target(s): 12.75
Current Gain/Loss: + 1.5%

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:
02/07/13: SONC saw a spike toward $11.50 this morning but the rally quickly ran out of fuel. SONC spent the rest of the day drifting sideways. Wait for a new rise past $11.35 before considering new bullish 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



Symantec Corp - SYMC - close: 22.24 change: -0.04

Stop Loss: 21.45
Target(s): 24.90
Current Gain/Loss: - 0.3%

Entry on February 06 at $22.30
Listed on February 5, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 10 million
New Positions: see below

Comments:
02/07/13: SYMC spent today's session consolidating sideways in a narrow range. I would use a new rise above $22.32 as a new entry point to buy the stock or call options.

*Small positions*

current Position: long SYMC stock @ $22.30

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

Long Mar $23 call (SYMC1316c23) entry $0.38



BEARISH Play Updates

Peabody Energy - BTU - close: 23.76 change: -0.40

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: - 0.3%

Entry on February 07 at $23.70
Listed on February 5, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.2 million
New Positions: see below

Comments:
02/07/13: BTU continues to show relative weakness. The stock lost another -1.6% today. Plus shares hit our trigger to open bearish positions at $23.70.

current Position: short BTU stock @ $23.70

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

Long Mar $23 PUT (BTU1316o23) entry $0.80