Editor's Note:
Stocks bounce but the S&P 500 remains under the 1500 level and the Russell 2000 sits at the 900 mark.

Our WDC trade was triggered. We want to exit SPLK tomorrow.


Current Portfolio:


BULLISH Play Updates

Gilead Sciences - GILD - close: 42.25 change: +0.16

Stop Loss: 40.75
Target(s): 44.85
Current Gain/Loss: +2.6%

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:
02/26/13: Traders bought the dip in GILD at its rising 10-dma. Lack of follow through on yesterday's reversal is encouraging. I am not suggesting new positions.

Earlier Comments:
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

02/23/13 new stop loss @ 40.75



National Instruments - NATI - close: 29.76 change: +0.26

Stop Loss: 29.60
Target(s): 32.75
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 340 thousand
New Positions: Yes, see below

Comments:
02/26/13: NATI managed a bounce but failed at the $30.00 again. There is no change from my prior comments. If NATI breaks down under its 20-dma, nimble traders may want to launch bearish positions (and we'll likely drop the stock as a bullish candidate).

Currently, I am suggesting a trigger to open bullish positions at $30.35. That would be a new 52-week high. If triggered our multi-week target is $32.75.
FYI: The Point & Figure chart for NATI is bullish with a $40.00 target.

Trigger @ 30.35

Suggested Position: buy NATI stock @ (trigger)



NASDAQ OMX Group - NDAQ - close: 31.45 change: +0.62

Stop Loss: 30.75
Target(s): 34.85
Current Gain/Loss: - 0.3%

Entry on February 25 at $31.55
Listed on February 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.0 million
New Positions: see below

Comments:
02/26/13: Positive analyst comments on NDAQ before the opening bell probably saved our trade from getting stopped out. NDAQ was about to hit our stop yesterday but we were saved by the closing bell. Today NDAQ gapped open higher and outperformed most of the market with a +2.0% gain. Readers may want to wait for a breakout past the $32.00 level before launching new positions.

*Small Positions*

current Position: long NDAQ stock @ $31.55

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

Long Apr $33 call (NDAQ1320d33) entry $0.95



Progressive Corp. - PGR - close: 24.30 change: +0.24

Stop Loss: 23.75
Target(s): 26.00
Current Gain/Loss: + 3.3%

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:
02/26/13: After a painful pullback yesterday PGR managed a +0.99% bounce today. I remain cautious here. Readers may want to tighten their stop loss further. I am not suggesting new positions at this time.

current Position: Long PGR stock @ $23.52

02/23/13 new stop loss @ 23.75
02/20/13 new stop loss @ 23.40
02/13/13 new stop loss @ 22.95



Splunk, Inc. - SPLK - close: 35.51 change: -0.04

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: + 0.2%

Entry on February 15 at $35.44
Listed on February 14, 2013
Time Frame: exit PRIOR to earnings on Feb. 28th
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
02/26/13: It was a very quiet day for SPLK with shares closing almost unchanged. Earnings are coming up soon and the stock might be stuck trading sideways as investors wait for the report. SPLK is scheduled to report earnings on Feb. 28th. I am suggesting that we go ahead and exit positions tomorrow (the 27th) at the closing bell. We'll raise our stop loss up toe $34.75.

current Position: Long SPLK stock @ $35.44

02/26/13 new stop loss @ 34.75, exit tomorrow at the closing bell
02/25/13 new stop loss @ 34.20
02/23/13 remember - plan to exit prior to earnings on Feb. 28th
02/15/13 trade opened on gap higher at $35.44, trigger was $35.30



Symantec Corp - SYMC - close: 22.46 change: +0.03

Stop Loss: 22.15
Target(s): 24.90
Current Gain/Loss: + 0.7%

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:
02/26/13: SYMC flirted with a bearish breakdown below its 20-dma but shares bounced near last week's lows. I am cautious here. Yesterday's reversal from the $23.00 level looks like a warning signal. 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

02/25/13 new stop loss @ 22.15
02/16/13 new stop loss @ 21.95



Verizon Comm. - VZ - close: 46.12 change: +0.40

Stop Loss: 44.35
Target(s): 47.25
Current Gain/Loss: + 1.4%

Entry on February 25 at $45.50
Listed on February 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 12.9 million
New Positions: see below

Comments:
02/26/13: The relative strength in VZ continues. The stock added +0.8% and posted its sixth gain in a row. I probably wouldn't chase it here. Wait for a dip before launching new positions.

Our plan was to keep our position size small to limit our risk. Our target is $47.25. More aggressive traders may want to aim for the $50.00 area but you may have to be patient.

*Small Positions*

current Position: Long VZ Stock @ $45.50



BEARISH Play Updates

Apollo Group Inc. - APOL - close: 17.24 change: -0.59

Stop Loss: 19.60
Target(s): 15.50
Current Gain/Loss: + 5.5%

Entry on February 25 at $18.25
Listed on February 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.1 million
New Positions: see below

Comments:
02/26/13: The sell-off in APOL continues with a -3.3% plunge on volume more than double the norm. I would not chase positions here at current levels.

current Position: short APOL stock @ $18.25

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

Long Mar $18 PUT (APOL1316o18) entry $0.60



DuPont Fabros Tech. - DFT - close: 22.63 change: +0.19

Stop Loss: 23.60
Target(s): 20.25
Current Gain/Loss: + 1.0%

Entry on February 20 at $22.85
Listed on February 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.25 million
New Positions: see below

Comments:
02/26/13: DFT didn't see much follow through on yesterday's decline. Actually shares bounced with a +0.8% gain but the general trend lower remains intact. I would still consider new positions at current levels.

Earlier Comments:
Please note that we do want to keep our position size small. That's because there is already a lot of short interest. The most recent data listed short interest at 22% of the 62.2 million share float. That raises the risk of a short squeeze. Readers may want to buy the put options to limit their risk to their size of their position.
FYI: The Point & Figure chart for DFT is bearish with a $10.00 target.

*Small Positions*

current Position: short DFT stock @ $22.85

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

Long Mar $25 PUT (DFT1316o25) entry $2.35

02/23/13 new stop loss @ 23.60



EMC Corp. - EMC - close: 22.94 change: +0.11

Stop Loss: 23.71
Target(s): 20.15
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 27.4 million
New Positions: Yes, see below

Comments:
02/26/13: EMC did not see any follow through on yesterday's sell-off thanks to the market's widespread bounce. We're still waiting for some follow through lower. I see potential support at the June 2012 lows. Therefore I am suggesting a trigger to open bearish positions at $22.65. If triggered our target is $20.15.

Trigger @ 22.65

Suggested Position: short EMC stock @ (trigger)

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

buy the April $22 PUT (EMC1320p22)



Ford Motor Co. - F - close: 12.34 change: +0.21

Stop Loss: 13.05
Target(s): 11.50
Current Gain/Loss: + 1.4%

Entry on February 21 at $12.51
Listed on February 20, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 43.7 million
New Positions: see below

Comments:
02/26/13: Shares of Ford produced a hefty bounce (+1.7%) today but remains below what should be new short-term resistance near $12.50. I am not suggesting new positions at this time.

Earlier Comments:
We do want to keep our position size small. Our initial target is $11.50 but we'll make adjustments along the way.

current Position: short F stock @ $12.51



Western Digital Corp. - WDC - close: 45.87 change: +1.06

Stop Loss: 46.51
Target(s): 40.25
Current Gain/Loss: -3.1%

Entry on February 26 at $44.50
Listed on February 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.2 million
New Positions: see below

Comments:
02/26/13: Sometimes stocks don't want to cooperate. WDC was poised to breakdown below its 50-dma at yesterday's close. This morning Citigroup comes out and reiterates their "sell" rating and suggests that WDC could see another -20% drop in price. You could think the stock would see some selling pressure. Unfortunately, WDC dipped just low enough to hit our trigger at $44.50 and then bounced. WDC is currently hovering just below what looks like short-term resistance at $46.00. I am not suggesting new positions at current levels.

current Position: short WDC stock @ $44.50