Editor's Note:
Most of the stock market rebounded off their Friday morning lows. Traders bought the dip in spite of all the sequestration hype.

We did see a few stocks get stopped out.


Current Portfolio:


BULLISH Play Updates

Gilead Sciences - GILD - close: 43.45 change: +0.73

Stop Loss: 41.40
Target(s): 44.85
Current Gain/Loss: +5.5%

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:
03/02/13: The rally continues in GILD with shares up +1.7% on Friday. The stock closed at a new all-time high. I am raising our stop loss to $41.40. 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

03/02/13 new stop loss @ 41.40
02/23/13 new stop loss @ 40.75

chart:



NASDAQ OMX Group - NDAQ - close: 31.58 change: -0.08

Stop Loss: 30.75
Target(s): 34.85
Current Gain/Loss: + 0.1%

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:
03/02/13: Traders bought the dip near NDAQ's rising 10-dma on Friday morning. The stock almost made it back to unchanged by the closing bell. Shares are still hovering under resistance near the $32.00 level. A breakout past $32.00 could be used as an alternative bullish entry point.

*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

chart:



Progressive Corp. - PGR - close: 24.42 change: +0.06

Stop Loss: 23.90
Target(s): 26.00
Current Gain/Loss: + 3.8%

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:
03/02/13: The action in PGR on Friday followed the S&P 500 index. I am concerned that the stock's upward momentum is slowing or reversing. PGR has spent the last four days inside Monday's trading range. That's not a very convincing rebound. Readers may want to take profits now and exit early.

Please note our new stop loss at $23.90. I am not suggesting new positions at this time.

current Position: Long PGR stock @ $23.52

03/02/13 new stop loss @ 23.90
02/23/13 new stop loss @ 23.75
02/20/13 new stop loss @ 23.40
02/13/13 new stop loss @ 22.95

chart:



Shutterfly, Inc. - SFLY - close: 43.40 change: +0.12

Stop Loss: 40.95
Target(s): 48.50
Current Gain/Loss: + 0.3%

Entry on February 28 at $43.25
Listed on February 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
03/02/13: SFLY didn't see a lot of movement on Friday with a sideways session. I would still consider new positions now but more conservative traders could wait and watch for a dip near $42.00 or its 10-dma as an alternative entry point.

Earlier Comments:
SFLY could see another short squeeze. The most recent data listed short interest at nearly 40% of the small 28.6 million share float. I would keep our position size small as SFLY can be a volatile stock.

*Small Positions*

current Position: long SFLY stock @ $43.25

chart:



Symantec Corp - SYMC - close: 23.68 change: +0.24

Stop Loss: 22.30
Target(s): 24.90
Current Gain/Loss: + 6.2%

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:
03/02/13: Software security stock SYMC continues to climb. Shares are up four days in a row and trading near multi-year highs. I would not chase it here. Please note we are adjusting the exit target down to $24.50. If you have the March $23 call, you may want to consider taking profits early as SYMC nears the $24.00 level.

*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

02/28/13 new stop loss @ 22.30
02/25/13 new stop loss @ 22.15
02/16/13 new stop loss @ 21.95

chart:



Verizon Comm. - VZ - close: 46.72 change: +0.19

Stop Loss: 44.95
Target(s): 46.95
Current Gain/Loss: + 2.7%

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:
03/02/13: The VZ bulls seem unstoppable. Traders bought the dip in VZ on Friday morning and the stock rallied +0.4% to post its ninth gain in a row. This can't last forever. I do expect the October 2012 highs near $47.25 to be resistance.

Please note that I am adjusting our exit target down to $46.95. I am raising our stop loss to $44.95.

Our plan was to keep our position size small to limit our risk. 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

03/02/13 new stop loss @ 44.95, adjust target to $46.95.

chart:



BEARISH Play Updates

Apollo Group Inc. - APOL - close: 16.64 change: -0.23

Stop Loss: 18.15
Target(s): 15.50
Current Gain/Loss: + 8.8%

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:
03/02/13: The weakness in APOL continues with a -1.3% decline and a new multi-year low on Friday. I am adjusting our stop loss down to $18.15.

Note: our March $18 put option has more than doubled (+136%). Readers may want to start taking profits now.

current Position: short APOL stock @ $18.25

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

Long Mar $18 PUT (APOL1316o18) entry $0.60

03/02/13 new stop loss @ 18.15
02/28/13 new stop loss @ 18.60

chart:



AngloGold Ashanti Ltd. - AU - close: 24.05 change: -0.19

Stop Loss: 25.55
Target(s): 20.25
Current Gain/Loss: -0.2%

Entry on March 01 at $24.01
Listed on February 28, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 2.0 million
New Positions: see below

Comments:
03/02/13: As expected shares of AU declined on Friday. Unfortunately the stock's gap open lower, at $24.01, did impact our entry point. I would not be surprised to see a bit of a bounce here and we can use the bounce as a new bearish entry point. Or as an alternative you could wait for a failed rally near the simple 10-dma as an entry point.

Earlier Comments:
We want to keep our position size small because AU is arguably already short-term oversold. Of course it can grow a lot more oversold. Our target is $20.25. Readers may want to buy the put options, which can allow you to limit your risk to the cost of the option.
FYI: The Point & Figure chart for AU is bearish with a $13.00 target.

*Small Positions*

current Position: short AU stock @ $24.01

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

Long Apr $24 PUT (AU1320p24) entry $1.10

chart:



EMC Corp. - EMC - close: 23.25 change: +0.24

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:
03/02/13: The stock market's widespread weakness on Friday morning helped EMC spiked lower at the open. The stock rebounded at $22.75 so our trade is not open yet. If we see EMC close above its simple 10-dma we will probably drop it as a bearish candidate. For now the plan is unchanged.

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)

chart:



Ford Motor Co. - F - close: 12.61 change: +0.00

Stop Loss: 13.05
Target(s): 11.50
Current Gain/Loss: - 0.8%

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:
03/02/13: U.S. vehicle sales in February are likely to hit an annual pace of 15.2 million, according to industry experts. Ford just announced on Friday that their February sales were up +9% from a year ago. The news failed to help the stock very much, which closed unchanged on the session. If Ford doesn't start to show additional weakness soon we will likely drop it. I am not suggesting new positions at this time. More conservative traders might want to adjust their stops closer to Thursday's high (12.87).

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

chart:



CLOSED BULLISH PLAYS

National Instruments - NATI - close: 30.11 change: +0.03

Stop Loss: 29.60
Target(s): 32.75
Current Gain/Loss: - 2.5%

Entry on February 28 at $30.35
Listed on February 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 340 thousand
New Positions: see below

Comments:
03/02/13: NATI ended Friday's session virtually unchanged. Unfortunately the stock market's widespread weakness on Friday morning was too much for shares of NATI. The stock spiked lower, past support at its 20-dma, and hit our stop loss at $29.60.

closed Position: Long NATI stock @ $30.35 exit $29.60 (-2.5%)

03/01/13 stopped out

chart:



Sarepta Therapeutics - SRPT - close: 29.59 change: +0.30

Stop Loss: 28.85
Target(s): 34.75
Current Gain/Loss: - 4.3%

Entry on February 27 at $30.15
Listed on February 26, 2013
Time Frame: Exit PRIOR to earnings on Mar. 7th
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
03/02/13: Our aggressive trade on biotech stock SRPT did not pay off. Shares posted a +1.0% gain on Friday but the market's weakness on Friday morning pushed the stock to our stop loss at $28.85.

Earlier Comments:
Remember, this is a higher-risk trade. We want to keep our position size small.

*Small Positions*

closed Position: long SRPT stock @ $30.15 exit $28.85 (-4.3%)

chart:



CLOSED BEARISH PLAYS

DuPont Fabros Tech. - DFT - close: 23.67 change: +0.51

Stop Loss: 23.60
Target(s): 20.25
Current Gain/Loss: - 3.3%

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:
03/02/13: After Thursday's bullish breakout above the $23 level and its 10-dma, the rally continued on Friday. DFT hit our stop loss at $23.60.

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.

*Small Positions*

closed Position: short DFT stock @ $22.85 exit $23.60 (-3.3%)

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

Mar $25 PUT (DFT1316o25) entry $2.35 exit $1.35 (-42.5%)

03/01/13 stopped out
02/23/13 new stop loss @ 23.60

chart: