Editor's Note:
The small cap index underperformed the major indices during the market's widespread sell off on Monday. That doesn't bode well for the market since small caps are expected to perform well in January.

The plan was to close our DWA at the opening bell this morning.
GE, TPX, and WLT hit our stop loss. XLRN, EC, and NSM hit our entry triggers.


Current Portfolio:


BULLISH Play Updates

TD Ameritrade Holding Corp. - AMTD - close: 30.57 change: -0.14

Stop Loss: 29.90
Target(s): 33.85
Current Gain/Loss: - 0.3%

Entry on December 31 at $30.65
Listed on December 21, 2013
Time Frame: exit PRIOR to earnings on January 21st
Average Daily Volume = 1.9 million
New Positions: Yes, see below

Comments:
01/06/14: AMTD spiked to new relative highs this morning but the gains didn't last. Shares succumbed to the market's weakness and settled near the $30.50 area and its 10-dma.

current Position: long AMTD stock @ $30.65

01/04/14 new stop loss @ 29.90
12/31/13 triggered at $30.65



Caesars Entertainment - CZR - close: 22.28 change: -0.43

Stop Loss: 20.95
Target(s): 26.00
Current Gain/Loss: - 1.5%

Entry on January 06 at $22.62
Listed on January 04, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 836 thousand
New Positions: see below

Comments:
01/06/14: Our plan was to launch small positions at the opening bell today. CZR actually gapped down at $22.62. The stock managed to tag a new high late in the day before reversing sharply lower. That late day sell off is a bit worrisome. I would not be surprised to see CZR dip toward the $21.75 area.

FYI: The Point & Figure chart for CZR is bullish with a $27.00 target.

*small positions*

current Position: long CZR stock @ $22.62

01/06/14 trade opened on gap down at $22.62



Hyatt Hotels Corp. - H - close: 49.45 change: -0.35

Stop Loss: 48.95
Target(s): 54.75
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 02, 2014
Time Frame: exit PRIOR to earnings in mid February
Average Daily Volume = 264 thousand
New Positions: Yes, see below

Comments:
01/06/14: H underperformed the market with a -0.7% decline. Currently we are still on the sidelines. I don't see any changes from my earlier comments.

Earlier Comments:
I am suggesting small bullish positions if H can trade at $50.25. More conservative investors may want to wait for a new all-time high above $50.50 before initiating positions. H's intraday high was $50.43 on December 23rd.

If triggered at $50.25 our target is $54.75. However, we will plan to exit prior to earnings in mid February. FYI: The Point & Figure chart for H is bullish with a $66.00 target.

Trigger @ 50.25 *small positions*

Suggested Position: buy H stock @ (trigger)




Spirit Aero Systems - SPR - close: 34.06 change: +0.06

Stop Loss: 32.95
Target(s): 38.50
Current Gain/Loss: + 0.0%

Entry on December 24 at $34.05
Listed on December 21, 2013
Time Frame: Exit PRIOR to earnings in February.
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
01/06/14: SPR saw a spike higher but it failed near December's high and resistance near the $34.50 area. Investor will want to consider waiting for a new rally above $34.50 before launching new positions.

Earlier Comments:
Our multi-week target is $38.50 but we will plan on exiting positions prior to SPR's earnings report in February.

current Position: long SPR stock @ $34.05

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

Long Apr $35 call (SPR1419D35) entry $2.50*

12/30/13 new stop loss @ 32.95
12/24/13 triggered @ 34.05
*option entry price is an estimate since the option did not trade at the time our play was opened.



Western Refining, Inc. - WNR - close: 42.51 change: +0.09

Stop Loss: 39.75
Target(s): 46.00
Current Gain/Loss: + 2.8%

Entry on December 24 at $41.35
Listed on December 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: see below

Comments:
01/06/14: WNR is doing a pretty good job of ignoring the market's recent weakness. Shares are just churning sideways inside the $42-43 zone. More conservative traders may want to consider raising their stop loss.

Earlier Comments:
I would keep in mind that there is a lot of short interest. The most recent data listed short interest at about 28% of the 50.6 million share float. That could fuel a short squeeze in WNR. The plan was to use small positions to limit our risk just in case there is a worker strike at the NTI plant and retail gas stations and the stock sinks. Our short-term target is $46.00. More aggressive traders could aim higher since the Point & Figure chart for WNR is bullish with a $50.00 target.

*Small positions *

current Position: Long WNR stock @ $41.35

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

Long Mar $42 call (WNR1422c42) entry $2.70*

12/31/13 new stop loss @ 39.75
12/24/13 trade opened this morning at $41.35
*option entry price is an estimate since the option did not trade at the time our play was opened.



Acceleron Pharma. - XLRN - close: 40.94 change: +1.93

Stop Loss: 37.65
Target(s): 47.50
Current Gain/Loss: +1.7%

Entry on January 06 at $40.25
Listed on January 04, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 230 thousand
New Positions: see below

Comments:
01/06/14: XLRN was also ignoring the market's weakness today. Shares broke through resistance at $40.00 this afternoon and outperformed with a +4.9% gain. Our suggested entry point was hit at $40.25. Remember, the plan was to use small positions to limit our risk. This is an aggressive, higher-risk trade.

*small positions*

current Position: long XLRN stock @ $40.25

01/06/14 triggered @ $40.25



Yandex N.V. - YNDX - close: 42.91 chnage: +0.01

Stop Loss: 40.95
Target(s): 48.50
Current Gain/Loss: - 0.9%

Entry on January 02 at $43.31
Listed on December 31, 2013
Time Frame: exit PRIOR to earnings in mid February
Average Daily Volume = 2.7 million
New Positions: see below

Comments:
01/06/14: YNDX is another stock that appears unaffected by the market's 2014 slide. Shares are just consolidating sideways near $43.00. Traders may want to wait for a rally above $43.50 or the December intraday high at $43.65 before initiating new positions.

Earlier Comments:
Our multi-week target is $48.50. We want to keep our position size small to limit our risk. FYI: The Point & Figure chart for YNDX is bullish with a $48.00 target.

*Small positions*

current Position: long YNDX stock @ $43.31

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

Long Feb $45 call (YNDX1422B45) entry $2.00*

01/02/14 trade opened on gap higher at $43.31.
*option entry price is an estimate since the option did not trade at the time our play was opened.



BEARISH Play Updates

Ecopetrol SA - EC - close: 37.70 change: +0.02

Stop Loss: 39.05
Target(s): 31.00
Current Gain/Loss: - 0.9%

Entry on January 06 at $37.35
Listed on December 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 716 thousand
New Positions: see below

Comments:
01/06/14: Our bearish play on EC has been triggered. The stock fell to a new two-year low at $37.33 before bouncing. Our suggested entry point was $37.35. I would wait for another new relative low if you're looking for a new entry point.

Earlier Comments:
Our target is $31.00. Once it's below $37.50 the next level of support appears to be the $30.00 level.

current Position: short EC stock @ $37.35

01/06/14 triggered @ 37.35



Nationstar Mortgage Holdings - NSM - close: 34.66 change: -1.40

Stop Loss: 37.75
Target(s): 31.00
Current Gain/Loss: +2.8%

Entry on January 06 at $35.65
Listed on December 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
01/06/14: Our NSM trade is off to a good start. The stock failed at its simple 10-dma again this morning. Then with a breakdown below support the stock plunged to new multi-month lows with a -3.88% decline. Our suggested entry point was hit at $35.65.

Earlier Comments:
I am labeling this an aggressive, higher-risk trade. There is already a lot of bears in this trade. The most recent data listed short interest at 39% of the very small 20.4 million share float. That is a risk of a short squeeze. Thus I am suggesting small positions. Traders may want to use put options to limit their risk.

*small positions*

current Position: short NSM stock @ $35.65

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

Long Feb $35 PUT (NSM1422N35) entry $2.40*

01/06/14 triggered @ 35.65




CLOSED BULLISH PLAYS

DreamWorks Animation - DWA - close: 35.00 change: -0.19

Stop Loss: 34.45
Target(s): 39.50
Current Gain/Loss: - 0.3%

Entry on December 20 at $35.35
Listed on December 19, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 702 thousand
New Positions: see below

Comments:
01/06/14: DWA has just been meandering sideways. In the weekend newsletter we decided to exit at the opening bell today. DWA opened at $35.24.

closed Position: long DWA stock @ $35.35 exit $35.24 (-0.3%)

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

Mar $35 call (DWA1422c35) entry $2.65* exit $2.35** (-11.3%)

01/06/14 planned exit
**option exit price is an estimate since the option did not trade at the time our play was closed.
01/04/14 prepare to exit on Monday morning, January 6th
12/28/13 new stop loss @ 34.45
12/20/13 triggered @ 35.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



General Electric - GE - close: 27.26 change: -0.22

Stop Loss: 26.95
Target(s): 29.50
Current Gain/Loss: - 1.9%

Entry on December 26 at $27.75
Listed on December 24, 2013
Time Frame: Exit PRIOR to earnings on January 17th
Average Daily Volume = 37 million
New Positions: see below

Comments:
01/06/14: Last week's market pullback saw GE dip toward support near $27.50. Over the weekend we raised our stop loss to $27.20 just in case the sell off continued. Sure enough GE continued to sink and hit our new stop loss today.

closed Position: long GE stock @ $27.75 exit $27.20 (-1.9%)

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

Feb $28 call (GE1422B28) entry $0.58 exit $0.34* (-41.3%)

01/06/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
01/04/14 new stop loss @ 27.20
01/04/14 adjust target down to $29.50
12/26/13 triggered @ 27.75

chart:



Tempur Sealy Intl. - TPX - close: 51.14 change: -3.24

Stop Loss: 51.75
Target(s): 57.50
Current Gain/Loss: - 2.2%

Entry on December 24 at $52.91
Listed on December 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 757 thousand
New Positions: see below

Comments:
01/06/14: Ouch! TPX erased almost three weeks worth of gains with today's -5.9% decline. The drop today appears to be a reaction to news that TPX's rival, Select Comfort (symbol: SCSS), issued an earnings warning this morning. Instead of waiting to see if TPX might also warn investors just hit the sell button and TPX crashed toward round-number support at $50.00. Our stop was hit at $51.75.

closed Position: long TPX stock @ $52.91 exit $51.75 (-2.2%)

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

Mar $55 call (TPX1422c55) entry $3.50* exit $2.50**(-28.5%)

01/06/14 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
12/30/13 new stop loss @ 51.75
12/26/13 new stop loss @ 50.95
12/24/13 trade opens at $52.91
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Walter Energy, Inc. - WLT - close: 15.63 change: -0.35

Stop Loss: 15.45
Target(s): 19.25
Current Gain/Loss: - 8.7%

Entry on December 30 at $16.93
Listed on December 28, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 6.0 million
New Positions: see below

Comments:
01/06/14: WLT did not cooperate with us once. The stock is down four days in a row and today saw a breakdown below its 50-dma and its 200-dma. Our stop was hit at $15.45. We labeled this an aggressive, higher-risk trade but we still didn't expect this much weakness in WLT.

* small positions *

closed Position: Long WLT stock @ $16.93 exit $15.45 (-8.7%)

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

Feb $17 call (WLT1422B17) entry $1.70 exit $0.86 (-49.4%)

01/06/14 stopped out
12/30/13 trade opens at $16.93

chart: