Editor's Note:
The stock market seems to be looking for direction. Investors might be waiting for earnings season to start.

SPR was closed this morning. We want to exit our WNR trade tomorrow morning.


Current Portfolio:


BULLISH Play Updates

TD Ameritrade Holding Corp. - AMTD - close: 30.83 change: +0.20

Stop Loss: 29.90
Target(s): 33.85
Current Gain/Loss: + 0.6%

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:
01/08/14: Shares of AMTD were showing some relative strength today with a +0.65% gain. The stock looks like it is coiling for a bullish breakout past the $31.00 level soon.

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: 22.93 change: +0.43

Stop Loss: 20.95
Target(s): 26.00
Current Gain/Loss: + 1.4%

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:
01/08/14: CZR also outperformed the market today. Traders bought the dip this morning and CZR surged to a +1.9% gain. Yet the stock remains under short-term resistance near $23.00.

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: 49.95 change: +0.30

Stop Loss: 48.95
Target(s): 54.75
Current Gain/Loss: - 0.6%

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:
01/08/14: H managed another bounce but once again shares failed under resistance in the $50.30-50.40 area. 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



MDC Partners Inc. - MDCA - close: 26.05 change: +0.12

Stop Loss: 24.45
Target(s): 28.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 07, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 215 thousand
New Positions: Yes, see below

Comments:
01/08/14: MDCA continues to consolidate quietly near the $26.00 level. There is no change from my earlier comments.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $26.20. If triggered our multi-week target is $28.50.

Trigger @ 26.20

Suggested Position: buy MDCA stock @ (trigger)




Western Refining, Inc. - WNR - close: 40.94 change: -0.99

Stop Loss: 39.75
Target(s): 46.00
Current Gain/Loss: - 1.0%

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:
01/08/14: Ouch! WNR really underperformed the market today with a -2.3% decline. It is possible that shares will bounce near the $40.00 mark but after today's drop we're suggesting an immediate exit tomorrow morning.

*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*

01/08/14 prepare to exit tomorrow morning
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: 41.26 change: -0.41

Stop Loss: 37.65
Target(s): 47.50
Current Gain/Loss: +2.5%

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:
01/08/14: I cautioned readers yesterday that XLRN could see a minor pullback. The stock gave up almost -1% today. There is still a good chance we could see this stock tag $40.00 before moving higher.

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: 42.25 chnage: -1.28

Stop Loss: 41.90
Target(s): 48.50
Current Gain/Loss: - 2.4%

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:
01/08/14: The trading in YNDX today does not bode well for tomorrow. The stock tried to rally but failed near the $44 level this morning. YNDX then plunged toward support near $42.00 and underperformed the market with a -2.9% decline. Put it all together and YNDX has created a bearish engulfing candlestick reversal pattern. I am inching our stop loss up to $41.90. We're not suggesting 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*

01/08/14 new stop loss @ 41.90, warning! today looks like a potential bearish reversal pattern
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

Best Buy Co. - BBY - close: 37.84 change: -0.54

Stop Loss: 40.25
Target(s): 35.10
Current Gain/Loss: + 1.6%

Entry on January 08 at $38.47
Listed on January 07, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.2 million
New Positions: see below

Comments:
01/08/14: Our new BBY trade is off to a good start. The stock tried to bounce but failed near the $39.00 level and eventually underperformed the market with a -1.4% decline.

Earlier Comments:
Our target is $35.10. More aggressive traders could aim for technical support at the simple 200-dma, currently near $33.25 instead.

current Position: short BBY stock @ $38.47

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

Long Feb $38 PUT (BBY1422N38) entry $2.06

01/08/14 BBY opened at $38.47



Ecopetrol SA - EC - close: 35.75 change: -1.10

Stop Loss: 38.25
Target(s): 31.00
Current Gain/Loss: + 4.3%

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:
01/08/14: The sell off in EC seems to be picking up speed. Shares traded as low as $35.14 before paring its losses. The stock closed down almost -3%. I am adjusting our stop loss down to $38.25.

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

01/08/14 new stop loss @ 38.25
01/06/14 triggered @ 37.35



Nationstar Mortgage Holdings - NSM - close: 33.85 change: -0.47

Stop Loss: 36.55
Target(s): 31.00
Current Gain/Loss: + 5.0%

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:
01/08/14: NSM continues to underperform the market as well. Shares gave up another -1.3% today and closed near their lows for the session. I am adjusting our stop loss down to $36.55.

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*

01/08/14 new stop loss @ 36.55
01/06/14 triggered @ 35.65



Sears Hometown and Outlet Stores - SHOS - close: 23.24 change: -0.75

Stop Loss: 25.55
Target(s): 20.25
Current Gain/Loss: + 2.8%

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: see below

Comments:
01/08/14: Wednesday was a good day for SHOS shorts as well. The early morning bounce attempt failed. Shares reversed into a -3.1% decline.

current Position: short SHOS @ $23.90




CLOSED BULLISH PLAYS

Spirit Aero Systems - SPR - close: 33.84 change: +0.15

Stop Loss: 32.95
Target(s): 38.50
Current Gain/Loss: - 1.3%

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:
01/08/14: SPR has not been performing as expected. In last night's newsletter we decided to exit. Shares opened at $33.62 this morning.

closed Position: long SPR stock @ $34.05 exit $33.62 (-1.3%)

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

Apr $35 call (SPR1419D35) entry $2.50* exit $1.65 (-34.0%)

01/08/14 planned exit
*option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart: