Editor's Note:
The small cap Russell 2000 index tagged another new all-time high today. That small cap strength is helping some of our bullish candidates.

Elsewhere our BTU trade was stopped out.


Current Portfolio:


BULLISH Play Updates

Asbury Automotive Group - ABG - close: 36.24 change: -0.07

Stop Loss: 34.85
Target(s): 38.50
Current Gain/Loss: + 2.8%

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:
02/14/13: ABG has spent more than a week now consolidating sideways along the $36.00 level. 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: 31.20 change: -0.48

Stop Loss: 28.85
Target(s): 33.50
Current Gain/Loss: + 5.6%

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:
02/14/13: CONN hit some profit taking today with a -1.5% pullback. The dip may not be over yet. Look for support at the 10-dma or the $30.00 level. 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: - 1.6%

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:
02/14/13: DECK managed a small bounce today. I am not convinced the pullback is over. Readers may want to wait and try and buy a dip near $42.75.

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



Gilead Sciences - GILD - close: 41.60 change: +0.20

Stop Loss: 39.85
Target(s): 44.85
Current Gain/Loss: +1.0%

Entry on February 14 at $41.18
Listed on February 13, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 8.0 million
New Positions: see below

Comments:
02/14/13: GILD opened lower at $41.18 but shares recovered and closed at another new high. I would still consider new positions now at current levels.

We do want to keep our position size small. Biotech stocks can be volatile.
FYI: The Point & Figure chart for GILD is bullish with a $47.50 target.

*Small Positions*

current Position: Long GILD stock @ $41.18



Morgan Stanley - MS - close: 23.83 change: +0.20

Stop Loss: 21.95
Target(s): 26.00
Current Gain/Loss: + 2.9%

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:
02/14/13: MS outperformed the market with a +0.8% gain. Traders bought the dip at technical support on the simple 10-dma again this morning. 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: 41.03 change: -0.38

Stop Loss: 39.65
Target(s): 44.75
Current Gain/Loss: - 0.8%

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:
02/14/13: Thursday was a disappointing session for OCN. Shares lost -0.9% and spent most of the day hovering near the $41 level. 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: 1.85 change: -0.02

Stop Loss: 1.55
Target(s): 2.45
Current Gain/Loss: +12.1%

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:
02/14/13: PAL lost -1% and slipped toward its 10-dma and 200-dma. 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: 24.00 change: -0.49

Stop Loss: 22.95
Target(s): 26.00
Current Gain/Loss: + 2.0%

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:
02/14/13: After a sharp, multi-day rally higher shares of PGR were due for a pullback. The profit taking got a little help with an analyst downgrade for PGR shares this morning. Look for support near $23.50 or the 10-dma.

current Position: Long PGR stock @ $23.52

02/13/13 new stop loss @ 22.95



Synopsys Inc. - SNPS - close: 34.33 change: +0.09

Stop Loss: 33.45
Target(s): 37.50
Current Gain/Loss: + 0.2%

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:
02/14/13: SNPS is still churning sideways inside the $34.00-34.60 zone. 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: 11.30 change: -0.08

Stop Loss: 11.15
Target(s): 12.75
Current Gain/Loss: + 1.3%

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:
02/14/13: SONC retreated with a -0.7% decline. If the stock doesn't start showing more strength we might drop it from the newsletter this weekend. 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: 22.67 change: +0.05

Stop Loss: 21.45
Target(s): 24.90
Current Gain/Loss: + 1.7%

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:
02/14/13: Traders bought the morning dip in SYMC at $22.41 and shares rebounded to a +0.2% gain. 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: 34.83 change: +0.35

Stop Loss: 33.95
Target(s): 39.50
Current Gain/Loss: - 1.7%

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:
02/14/13: I was about to give up on SYNA but shares outperformed the market with a +1.0% gain today. I remain cautious on this stock. 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: 35.00 change: -0.23

Stop Loss: 32.45
Target(s): 38.00
Current Gain/Loss: + 3.8%

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:
02/14/13: The rally in TEX stalled with the stock hovering near the $35.00 mark.

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

Caesars Entertainment - CZR - close: 11.24 change: -0.00

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:
02/14/13: The sell-off in CZR continued on Thursday and the stock almost hit $10.60 before finally bouncing back. The stock rebounded to close unchanged on the session. I am not suggesting new bearish positions at this time.

current Position: short CZR stock @ $12.53

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

Long Mar $10 PUT (CZR1316o10) entry $0.45



CLOSED BEARISH PLAYS

Peabody Energy - BTU - close: 25.01 change: +1.08

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: - 4.4%

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:
02/14/13: Alpha Natural Resources (ANR) reported better than expected earnings numbers this morning. That fueled a big oversold bounce in the coal industry. Shares of ANR surged +13.8%. This strength rubbed off on shares of BTU, which rallied +4.5%. Our stop loss on BTU was hit at $24.75.

closed Position: short BTU stock @ $23.70 exit $24.75 (-4.4%)

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

Mar $23 PUT (BTU1316o23) entry $0.80 exit $0.38 (-52.5%)

02/14/13 stopped out at $24.75

chart: