Editor's Note:
The U.S. market continues to inch higher. The Russell 2000 and the Dow Jones transports average both hit new all-time highs.

Leadership seemed to narrow today. Some of our bullish candidates merely traded sideways.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 36.31 change: +0.10

Stop Loss: 34.85
Target(s): 38.50
Current Gain/Loss: + 3.0%

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:
02/13/13: ABG is still not making much progress. Shares did outperform the S&P 500 today but they also gave back most of their gains. I am not suggesting new positions. Readers may want to tighten their stop further.

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: 31.68 change: +0.21

Stop Loss: 28.85
Target(s): 33.50
Current Gain/Loss: + 7.2%

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:
02/13/13: CONN spent most of the day churning sideways but still managed to eke out a +0.6% gain. If the market sees a pullback we can look for CONN to test its simple 10-dma. 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: 43.58 change: -0.92

Stop Loss: 41.40
Target(s): 49.75
Current Gain/Loss: - 1.9%

Entry on February 12 at $44.41
Listed on February 11, 2013
Time Frame: exit PRIOR to earnings on Feb. 28th
Average Daily Volume = 2.2 million
New Positions: see below

Comments:
02/13/13: DECK hit some profit taking today with a -2.0% decline. Look for support in the $43-42 zone with both the 200-dma and 10-dma to help.

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: +0.00

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:
02/13/13: MS tagged a new 52-week high this morning and then reversed. Shares managed to drift back to unchanged by the closing bell. I am not suggesting new positions. More conservative traders may want to tighten their stop loss.

Small Positions*

current Position: Long MS stock @ $23.15



Ocwen Financial - OCN - close: 41.41 change: +0.09

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:
02/13/13: OCN rallied to a new all-time high by lunchtime but saw its gains fade by the closing bell. 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: 1.87 change: -0.07

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: +13.3%

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:
02/13/13: The volatility in PAL continues. The stock gave back -3.6% today. I don't see any changes from my prior comments. 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: 24.49 change: +0.74

Stop Loss: 22.95
Target(s): 26.00
Current Gain/Loss: + 4.1%

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:
02/13/13: PGR is surging to new relative highs. The move today was fueled by the company's release of its January 2013 results. Year over year PGR saw net premiums written rise +5% from January 2012. Net premiums earned were +9%. Net income rose +79%.

I am raising our stop loss to $22.95.

current Position: Long PGR stock @ $23.52

02/13/13 new stop loss @ 22.95



Synopsys Inc. - SNPS - close: 34.24 change: -0.20

Stop Loss: 33.45
Target(s): 37.50
Current Gain/Loss: + 0.0%

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:
02/13/13: SNPS underperformed the market with a -0.5% decline. Traders did buy the dip at its rising 10-dma again. More conservative traders might want to raise their stops closer to the $34.00 level.

current Position: Long SNPS stock @ $34.25



Sonic Corp. - SONC - close: 11.38 change: -0.09

Stop Loss: 11.15
Target(s): 12.75
Current Gain/Loss: + 2.1%

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:
02/13/13: SONC did not see any follow through on yesterday's rally. If the stock doesn't start showing more strength we might drop the stock as a trade this weekend. I am raising our stop loss to breakeven at $11.15. I'm not suggesting new positions.

current Position: Long SONC stock @ $11.15

02/13/13 new stop loss @ 11.15
02/09/13 new stop loss @ 10.95
01/26/13 new stop loss @ $10.80



Symantec Corp - SYMC - close: 22.62 change: -0.08

Stop Loss: 21.45
Target(s): 24.90
Current Gain/Loss: + 1.4%

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:
02/13/13: Wednesday turned out to be a quiet session for SYMC. Last night President Obama signed a new executive action to increase U.S. cyber security. SYMC's lack of a reaction to that news is a bit surprising. I am not suggesting new positions at this time.

*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: 34.48 change: -0.21

Stop Loss: 33.95
Target(s): 39.50
Current Gain/Loss: - 2.7%

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:
02/13/13: SYNA underperformed the market again. Shares are down three out of the last four trading days. Traders did buy the dip this afternoon but SYNA still posted a loss. If the stock does not see a decent bounce tomorrow we will likely drop it as a candidate. I am not suggesting new 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



Terex Corp. - TEX - close: 35.23 change: +0.39

Stop Loss: 32.45
Target(s): 38.00
Current Gain/Loss: + 4.5%

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:
02/13/13: TEX continued to rally and hit another 52-week high at $35.76. The stock pared its gains to close with a +1.1% gain on the session. I am raising our stop loss to $32.45.

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

02/13/13 new stop loss @ 32.45
02/11/13 trade opened on gap higher at $33.71



BEARISH Play Updates

Peabody Energy - BTU - close: 23.93 change: +0.18

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: - 1.0%

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:
02/13/13: The oversold bounce in BTU continues for a second day. Yet the stock did stall at short-term technical resistance on its 10-dma. A reversal here can be used as a new bearish entry point.

current Position: short BTU stock @ $23.70

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

Long Mar $23 PUT (BTU1316o23) entry $0.80



Caesars Entertainment - CZR - close: 11.24 change: -1.17

Stop Loss: 13.25
Target(s): 10.10
Current Gain/Loss: +10.3%

Entry on February 13 at $12.53
Listed on February 12, 2013
Time Frame: Exit prior to earnings on Feb. 25th
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
02/13/13: Our new CZR short play is off to a good start. The stock opened higher at $12.53, inched up to $12.74, and then plunged to a -9.4% decline on the session. I would not chase it here.

current Position: short CZR stock @ $12.53

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

Long Mar $10 PUT (CZR1316o10) entry $0.45