Editor's Note:
After a three-day decline the U.S. market bounced with the Russell 2000 and the NASDAQ leading the charge.

H hit our entry trigger. We want to exit our SPR trade tomorrow morning.


Current Portfolio:


BULLISH Play Updates

TD Ameritrade Holding Corp. - AMTD - close: 30.63 change: +0.06

Stop Loss: 29.90
Target(s): 33.85
Current Gain/Loss: - 0.1%

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: see below

Comments:
01/07/14: Traders bought the dip again with AMTD gapping lower at $30.21 this morning. Unfortunately the big bounce faded and shares underperformed the broader market averages. The $31.00 level seems to be shaping up as overhead resistance.

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: 22.50 change: +0.22

Stop Loss: 20.95
Target(s): 26.00
Current Gain/Loss: - 0.5%

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:
01/07/14: CZR delivered somewhat of a bumpy day. The early morning rally failed near $23.00. The stock pared its gains but still closed with a +0.98% advance.

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: 49.65 change: +0.20

Stop Loss: 48.95
Target(s): 54.75
Current Gain/Loss: - 1.2%

Entry on January 07 at $50.25
Listed on January 02, 2014
Time Frame: exit PRIOR to earnings in mid February
Average Daily Volume = 264 thousand
New Positions: see below

Comments:
01/07/14: I am urging caution on our H trade. The stock is not performing as expected. The stock did rally this morning and it did hit our suggested entry point at $50.25. Unfortunately shares rolled over under its intraday high near $50.40 and gave back nearly all of its gains. I am not suggesting new positions at this time. Wait for a bullish breakout above $50.45 before launching new positions.

Earlier Comments:
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.

*small positions*

current Position: Long H stock @ $50.25

01/07/14 triggered @ 50.25




Spirit Aero Systems - SPR - close: 33.69 change: -0.37

Stop Loss: 32.95
Target(s): 38.50
Current Gain/Loss: - 1.1%

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:
01/07/14: SPR underperformed the market today with a -1.0% decline. Shares look poised to breakdown below short-term support near $33.50. I am suggesting an immediate exit tomorrow morning to cut our losses early.

current Position: long SPR stock @ $34.05

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

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

01/07/14 prepare to exit tomorrow morning
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: 41.93 change: -0.58

Stop Loss: 39.75
Target(s): 46.00
Current Gain/Loss: + 1.4%

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:
01/07/14: Uh-oh! The action in WNR today was bearish. Instead of following the market higher, shares of WNR underperformed with a -1.3% decline. More importantly today's move looks like a bearish engulfing candlestick reversal pattern. These reversals need to see confirmation. More conservative traders may want to raise their stop loss. I am not suggesting new positions.

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*

01/07/14 caution: today's session has produced a candlestick reversal pattern
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: 41.67 change: +0.73

Stop Loss: 37.65
Target(s): 47.50
Current Gain/Loss: +3.5%

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:
01/07/14: XLRN continues to soar and hit $43.70 intraday. Shares did see a sharp pullback from their midday highs. I would not be surprised to see XLRN retest the $40.00 level soon.

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: 43.53 chnage: +0.62

Stop Loss: 41.75
Target(s): 48.50
Current Gain/Loss: + 0.5%

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:
01/07/14: YNDX saw some volatility today. The stock tagged both the top and bottom edge of its $42-44 trading range. Investors may want to wait for a rally past $44.00 before initiating positions. I am raising our stop loss to $41.75.

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*

01/07/14 new stop loss @ 41.75
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: 36.85 change: -0.85

Stop Loss: 39.05
Target(s): 31.00
Current Gain/Loss: + 1.3%

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:
01/07/14: EC broke down to new multi-year lows with today's -2.25% decline. So far so good. Investors could use today's drop as a new bearish 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: 34.32 change: -0.34

Stop Loss: 37.75
Target(s): 31.00
Current Gain/Loss: + 3.7%

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:
01/07/14: NSM also ignored the market's rally today and fell to new relative lows.

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



Sears Hometown and Outlet Stores - SHOS - close: 23.99 change: +0.10

Stop Loss: 25.55
Target(s): 20.25
Current Gain/Loss: - 0.4%

Entry on January 07 at $23.90
Listed on January 06, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 160 thousand
New Positions: Yes, see below

Comments:
01/07/14: Tuesday proved to be a relatively quiet day for SHOS. Shares did not see much follow through on yesterday's breakdown but that may have been a reflection of Tuesday's widespread market bounce. I remain bearish. Nimble traders might want to consider trying to launch positions on a bounce in the $24.50-25.00 zone.

current Position: short SHOS @ $23.90