Editor's Note:
The U.S. stock market managed to extend their gains another week.

We are removing our C trade. CGNX was stopped out.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 36.36 change: +0.40

Stop Loss: 34.40
Target(s): 38.50
Current Gain/Loss: + 3.1%

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:
02/09/13: ABG managed a bounce on Friday but pared its gains by lunchtime. More conservative traders may want to raise their stop loss closer to the $35.00 level. I am not suggesting new positions at this time.

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

chart:



Acorda Therapeutics - ACOR - close: 29.42 change: +0.42

Stop Loss: 28.60
Target(s): 31.00
Current Gain/Loss: + 3.2%

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:
02/09/13: ACOR managed a bounce near the short-term trend of higher lows. I am raising our stop loss up to $28.60. More conservative traders may want to exit early now. We only have two days left. ACOR is schedule to report earnings on Feb. 13th. If the stock does not hit our exit target by then we will plan on closing this trade on Tuesday, Feb. 12th at the closing bell to avoid earnings. I am not suggesting new positions.

current Position: long ACOR stock @ $28.50

02/09/13 new stop loss @ 28.60, prepare to exit on Feb. 12th at the close
02/05/13 new stop loss @ 28.25
01/30/13 new stop loss @ 27.95

chart:



Conns Inc. - CONN - close: 30.34 change: -0.13

Stop Loss: 28.45
Target(s): 33.50
Current Gain/Loss: + 2.7%

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:
02/09/13: The rally in CONN has stalled near $31.00 and its prior highs. Shares might need to consolidate sideways for a little while before generating enough steam to breakout to a new high. I am not suggesting new positions at this time. I am raising our stop loss to $28.45.

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

02/09/13 new stop loss @ 28.45

chart:



Morgan Stanley - MS - close: 23.32 change: +0.22

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: + 0.7%

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:
02/09/13: MS spent the entire week consolidating sideways in a new range. I would hesitate to launch new positions at this time. More conservative traders may want to tighten their stop loss.

Small Positions*

current Position: Long MS stock @ $23.15

chart:



Ocwen Financial - OCN - close: 40.97 change: +0.17

Stop Loss: 39.65
Target(s): 44.75
Current Gain/Loss: - 1.0%

Entry on February 07 at $41.37
Listed on February 6, 2013
Time Frame: Exit prior to the Feb. 28th earnings
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
02/09/13: OCN hit new all-time highs this past week. Yet the rally has stalled at the $41.50 level. Nimble traders could buy another dip or a bounce off the $40.00 mark. We want to exit prior to the earnings report on Feb. 28th.

*Small Positions*

current Position: Long OCN stock @ $41.37

chart:



North American Palladium - PAL - close: 1.92 change: +0.01

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: +16.4%

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:
02/09/13: PAL produced a bullish breakout higher this past week. Yet the rally stalled at round-number resistance near the $2.00 mark (actually $1.98). I am not suggesting new positions at this time. Readers may want to raise their stop loss.

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

chart:



Synopsys Inc. - SNPS - close: 34.40 change: +0.04

Stop Loss: 33.45
Target(s): 37.50
Current Gain/Loss: + 0.4%

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: see below

Comments:
02/09/13: SNPS rallied toward nine-year highs this past week. The breakout past its September 2012 highs is bullish. Although I would not be surprised to see a dip back toward short-term support at the rising 10-dma.

current Position: Long SNPS stock @ $34.25

chart:



Sonic Corp. - SONC - close: 11.35 change: +0.03

Stop Loss: 10.95
Target(s): 12.75
Current Gain/Loss: + 1.8%

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:
02/09/13: SONC did not make much progress either direction on Friday. I would still be tempted to launch new positions here. We are inching up our stop loss to $10.95.

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

02/09/13 new stop loss @ 10.95
01/26/13 new stop loss @ $10.80

chart:



Symantec Corp - SYMC - close: 22.59 change: +0.35

Stop Loss: 21.45
Target(s): 24.90
Current Gain/Loss: + 1.3%

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:
02/09/13: SYMC has rallied to highs not seen since 2008. Shares are breaking out from their recent sideways trading range. I don't see any changes from my prior comments.

*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

chart:



Synaptics - SYNA - close: 35.20 change: -0.26

Stop Loss: 33.95
Target(s): 39.50
Current Gain/Loss: - 0.6%

Entry on February 08 at $35.43
Listed on February 7, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 895 thousand
New Positions: see below

Comments:
02/09/13: SYNA's performance on Friday was a big disappointing. Shares opened at $35.43, tried to rally past $36.00 but failed. By the closing bell shares were underperforming the broader market indices. Overall the stock was little changed on the session. I would still consider new positions now but readers may want to wait for a bounce to initiating positions.

Earlier Comments:
The plan was to keep our position size small to limit our risk. More conservative traders may want to use a trigger at $36.05 instead as their entry point.

*Small Positions*

current Position: long SYNA stock @ $35.43

chart:



BEARISH Play Updates

Peabody Energy - BTU - close: 23.73 change: -0.03

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: - 0.1%

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:
02/09/13: The coal industry garnered some headlines on Friday. There is an investigation by the U.S. Department of Interior seeking to find if coal companies are violating royalty regulations (not paying taxes to the U.S. government). Thus far investigators have not found any violations yet. Shares of BTU dipped to a new relative low before bouncing back to close almost unchanged on the session.

I would still consider new positions now.

current Position: short BTU stock @ $23.70

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

Long Mar $23 PUT (BTU1316o23) entry $0.80

chart:



CLOSED BULLISH PLAYS

Citigroup - C - close: 42.68 change: -0.19

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: , see below

Comments:
02/09/13: Citigroup tried to breakout from its trading range this past week but the rally failed. Our trade did not open. I am removing C as a candidate. We can re-evaluate it on a close above $43.50.

Trade did not open.

02/09/13 removed from the newsletter.

chart:



Cognex Corp. - CGNX - close: 42.30 change: +0.06

Stop Loss: 41.25
Target(s): 44.00
Current Gain/Loss: +2.7%

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:
02/09/13: CGNX produced a volatile session on Friday. The stock initially spiked to a new multi-month high and hit $42.89 intraday. The gains didn't last and shares faded sharply lower by the closing bell. We were already planning to exit positions on Friday at the close but CGNX hit our new stop loss at $41.25.

closed Position: Long CGNX stock @ $40.15 exit $41.25 (+2.7%)

02/08/13 stopped out
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

chart: