Editor's Note:
The NASDAQ and the transports were exceptions but the market was mostly higher on Tuesday.

We closed our ACOR trade as planned.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 36.21 change: +0.13

Stop Loss: 34.85
Target(s): 38.50
Current Gain/Loss: + 2.7%

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:
02/12/13: ABG seems to be stuck hovering just above the $36.00 level. I am raising our stop loss to $34.85. 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

02/12/13 new stop loss @ 34.85
02/05/13 new stop loss @ 34.40



Conns Inc. - CONN - close: 31.47 change: +0.79

Stop Loss: 28.85
Target(s): 33.50
Current Gain/Loss: + 6.5%

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:
02/12/13: CONN continues to show relative strength with a +2.5% gain and a new multi-year high today. I am raising our stop loss to $28.85. I am not suggesting new positions at this time.

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

02/12/13 new stop loss @ 28.85
02/09/13 new stop loss @ 28.45



Deckers Outdoor Corp. - DECK - close: 44.50 change: +0.10

Stop Loss: 41.40
Target(s): 49.75
Current Gain/Loss: + 0.2%

Entry on February 12 at $44.41
Listed on February 11, 2013
Time Frame: exit PRIOR to earnings in late February
Average Daily Volume = 2.2 million
New Positions: see below

Comments:
02/12/13: DECK did not see much follow through higher today. Shares seemed to struggle with the $45.00 level. The stock opened at $44.41. Nimble traders may want to look for a dip near $43.00 as an alternative entry point.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. DECK can be a volatile stock. Thus we want to keep our position size small. It is worth noting that if this strength continues DECK could see a short squeeze. The most recent data listed short interest at almost 44% of the small 30.9 million share float. We do not want to hold over the late February earnings report. At the moment it looks like that report might come out on Feb. 21st but the date has not been confirmed. More aggressive traders may want to buy the call options.

*Small Positions*

current Position: Long DECK stock @ $44.41



Morgan Stanley - MS - close: 23.63 change: +0.35

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: + 2.1%

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:
02/12/13: MS managed to outperform many of its peers in the financial sector with a +1.5% gain today. More conservative traders may want to tighten their stop loss.

Small Positions*

current Position: Long MS stock @ $23.15



Ocwen Financial - OCN - close: 41.32 change: +0.36

Stop Loss: 39.65
Target(s): 44.75
Current Gain/Loss: - 0.1%

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:
02/12/13: OCN turned in a quiet first half before starting to tick higher after lunchtime. Shares are still struggling with the $41.50 level as resistance.

After the closing bell tonight there was a press release saying Altisource Portfolio Solutions (ASPS) signed a non-binding letter of intent to purchase "certain fee-based businesses related to Ocwen's recently acquired Homeward Residential Holdings, Inc. mortgage servicing and origination business platform (the "Homeward Residential Fee-Based Businesses") and Ocwen's anticipated purchase of the mortgage servicing platform from Residential Capital, LLC (the "ResCap Fee-Based Businesses") for a combined purchase price of $218.6 million." (source: company press release)

I'm not sure how this sale of assets will affect shares of OCN tomorrow. I'm not suggesting new positions. We want to exit prior to the earnings report on Feb. 28th.

*Small Positions*

current Position: Long OCN stock @ $41.37



North American Palladium - PAL - close: 1.94 change: +0.15

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: +17.6%

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:
02/12/13: It was a good day for PAL. After yesterday's -6.7% plunge the stock rebounded with a +8.3% bounce today. I still don't see any news to account for all of the volatility but then PAL has been a volatile stock in the past. More conservative traders may want to raise their stop loss.

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



Progressive Corp. - PGR - close: 23.75 change: +0.19

Stop Loss: 22.45
Target(s): 26.00
Current Gain/Loss: + 1.0%

Entry on February 11 at $23.52
Listed on February 9, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 4.8 million
New Positions: see below

Comments:
02/12/13: PGR continues to march higher and set another new multi-year high today. Readers may want to start inching up their stop loss.

current Position: Long PGR stock @ $23.52



Synopsys Inc. - SNPS - close: 34.44 change: +0.29

Stop Loss: 33.45
Target(s): 37.50
Current Gain/Loss: + 0.6%

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:
02/12/13: Good news! There was no follow through on yesterday's bearish reversal candlestick pattern in SNPS. The stock rallied early this morning and spent the rest of the session fading sideways.

current Position: Long SNPS stock @ $34.25



Sonic Corp. - SONC - close: 11.47 change: +0.20

Stop Loss: 10.95
Target(s): 12.75
Current Gain/Loss: + 2.9%

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:
02/12/13: SONC seems to be trending higher again. The stock outperformed the major indices with a +1.7% gain today.

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



Symantec Corp - SYMC - close: 22.70 change: +0.06

Stop Loss: 21.45
Target(s): 24.90
Current Gain/Loss: + 1.8%

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:
02/12/13: SYMC tagged another new high at $22.91 before paring its gains. If the market sees any kind of dip I would expect SYMC to fall toward its 10-dma pretty quickly.

*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



Synaptics - SYNA - close: 34.69 change: -0.06

Stop Loss: 33.95
Target(s): 39.50
Current Gain/Loss: - 2.1%

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:
02/12/13: I am starting to worry about our SYNA trade. Shares have been drifting lower three days in a row. Granted the stock really has not moved that much over the last couple of sessions SYNA is still not participating in the market's rally. I am not suggesting new positions at this time.

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



Terex Corp. - TEX - close: 34.84 change: +1.56

Stop Loss: 31.95
Target(s): 38.00
Current Gain/Loss: + 3.4%

Entry on February 11 at $33.71
Listed on February 9, 2013
Time Frame: exit prior to earnings on Feb. 19th
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
02/12/13: The homebuilding industry was a bright spot in the market today. Strength in the homebuilders also filtered down to auxiliary plays like TEX. Shares of TEX actually displayed significant relative strength with a +4.6% gain and a new 52-week high.

NOTE: We will plan on exiting prior to the company's earnings report on Feb. 19th.

Earlier Comments:
We will plan to exit prior to the late February earnings report. Thus, odds of TEX actually hitting our target at $38 before we exit are probably slim but there is the possibility of a short squeeze.

current Position: Long TEX stock @ $33.71

02/11/13 trade opened on gap higher at $33.71



BEARISH Play Updates

Peabody Energy - BTU - close: 23.75 change: +0.22

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: - 0.2%

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:
02/12/13: BTU managed an oversold bounce on Tuesday and erased Monday's minor loss. Readers may want to wait for a new failed rally near the 10-dma before launching new positions.

current Position: short BTU stock @ $23.70

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

Long Mar $23 PUT (BTU1316o23) entry $0.80



CLOSED BULLISH PLAYS

Acorda Therapeutics - ACOR - close: 29.53 change: +0.28

Stop Loss: 28.80
Target(s): 31.00
Current Gain/Loss: + 3.6%

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:
02/12/13: ACOR was kind enough to keep the rally going for us. Shares added +0.9% today. Our plan was to exit today at the closing bell to avoid holding over the company's earnings report due tomorrow.

closed Position: long ACOR stock @ $28.50 exit $29.53 (+3.6%)

02/12/13 planned exit
02/11/13 new stop loss @ 28.80, ready to exit tomorrow at the closing bell
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: