Editor's Note:
The small cap Russell 2000 index and the NASDAQ composite both hit new relative highs. The S&P 500 remains under resistance near 1850.

CLDX hit our entry trigger.
LCI was stopped out.
We closed TX this morning.


Current Portfolio:


BULLISH Play Updates

Avis Budget Group, Inc. - CAR - close: 41.15 change: +0.40

Stop Loss: 39.85
Target(s): 45.00
Current Gain/Loss: - 0.2%

Entry on January 15 at $40.85
Listed on January 14, 2014
Time Frame: Exit PRIOR to earnings in mid February
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
01/22/14: Thankfully CAR did provide the bounce we were looking for. Shares outperformed the market with a +0.98% gain today. We can use this as a new bullish entry point to launch positions.

current Position: Long CAR stock @ $40.85

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

Long Feb $40 call (CAR1422B40) entry $2.50*

01/15/14 new stop loss @ 39.85, triggered at $40.85
*option entry price is an estimate since the option did not trade at the time our play was opened.



Celldex Therapeutics - CLDX - close: 29.51 change: +0.12

Stop Loss: 27.90
Target(s): 36.00
Current Gain/Loss: - 2.1%

Entry on January 22 at $30.15
Listed on January 21, 2014
Time Frame: exit PRIOR to earnings in late February
Average Daily Volume = 2.0 million
New Positions: see below

Comments:
01/22/14: Our new trade on CLDX has been triggered. The plan was to wait for a breakout past $30.00 and launch positions at $30.15. CLDX hit $30.48 at its highest levels today. Unfortunately the rally faded and CLDX closed back below the $30.00 mark, which doesn't inspire a lot of confidence.

Our trade is open but I would wait for a new rise above $30.00 before considering new positions.

NOTE: As expected the move above $30.00 did produce a new triple-top breakout buy signal on the Point & Figure chart, which is currently forecasting a $47 target.

Earlier Comments:
Biotechs can be volatile and I am labeling this an aggressive, higher-risk trade.

*small positions*

current Position: Long CLDX stock @ $30.15

01/22/14 triggered @ 30.15



EMC Corp. - EMC - close: 26.06 change: -0.27

Stop Loss: 25.70
Target(s): TBD, exit prior to earnings
Current Gain/Loss: - 1.5%

Entry on January 21 at $26.45
Listed on January 18, 2014
Time Frame: Exit PRIOR to earnings on January 29th
Average Daily Volume = 23 million
New Positions: Yes, see below

Comments:
01/22/14: Shares of EMC saw some volatility this morning. The stock spiked down to tag short-term support at its 10-dma (exactly at $25.84) before bouncing back. The rebound failed at resistance near $26.00 again. We are running low on time for this trade to work. Therefore I'm not suggesting new positions at this time.

We will plan on exiting prior to EMC's earnings report on January 29th.

current Position: long EMC stock @ $26.45

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

Long Feb $27 call (EMC1422B27) entry $0.53

01/21/14 triggered @ 26.45



Hanger, Inc. - HGR - close: 40.47 change: +0.29

Stop Loss: 39.45
Target(s): 44.50
Current Gain/Loss: - 0.6%

Entry on January 21 at $40.70
Listed on January 16, 2014
Time Frame: 4 to 5 weeks
Average Daily Volume = 159 thousand
New Positions: see below

Comments:
01/22/14: HGR drifted higher and outperformed the major indices with a +0.7% gain. The current challenge for the bulls is short-term resistance at the $40.70 level.

Earlier Comments:
Our target is $44.50. However, we will plan on exiting prior to HGR's earnings report (estimated in mid February).

current Position: Long HGR stock @ $40.70

01/21/14 triggered @ $40.70



Hewlett-Packard Co. - HPQ - close: 29.84 change: -0.06

Stop Loss: 28.75
Target(s): 34.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 18, 2014
Time Frame: exit PRIOR to earnings on Feb. 20th
Average Daily Volume = 13.2 million
New Positions: Yes, see below

Comments:
01/22/14: HPQ gapped lower this morning but traders immediately bought the dip. Shares managed to briefly trade above resistance near the $30.00 level but HPQ failed to hit our suggested entry point at $30.15. There is no change from my weekend new play description.

Earlier Comments:
HPQ is now testing major resistance near the $30.00 mark. A breakout here could inspire more buying pressure. I am suggesting a trigger to launch bullish positions at $30.15. If triggered our target is $34.50. However, that might be a little optimistic since we plan to exit prior to HPQ's earnings report in late February. FYI: The Point & Figure chart for HPQ is bullish with a long-term $47 target.

Trigger @ 30.15

Suggested Position: buy HPQ stock @ (trigger)

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

Buy the Feb $30 call (HPQ1422B30) current ask $1.25




Pandora Media - P - close: 34.62 change: -0.39

Stop Loss: 33.75
Target(s): 39.50
Current Gain/Loss: + 0.2%

Entry on January 15 at $34.55
Listed on January 14, 2014
Time Frame: exit PRIOR to earnings on February 5th
Average Daily Volume = 9.6 million
New Positions: see below

Comments:
01/22/14: Pandora's upward momentum is struggling. The stock is now down three days in a row and underperformed with a -1.1% decline today. We're looking for shares to find some short-term support near $34.00 or its simple 10-dma (near 34.12). I am not suggesting new positions at this time.

Earlier Comments:
If this rally continues it could spark more short covering. The most recent data listed short interest at 18% of the 154 million share float. Our target is $39.50. However, we will plan on exiting prior to Pandora's earnings report on February 5th.

current Position: long P stock @ $34.55

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

Long Feb $35 call (P1422B35) entry $2.55*

01/16/14 new stop loss @ 33.75
01/15/14 triggered @ 34.55
*option entry price is an estimate since the option did not trade at the time our play was opened.



Solar ETF - TAN - close: 41.69 change: +0.51

Stop Loss: 39.75
Target(s): 48.50
Current Gain/Loss: - 1.3%

Entry on January 16 at $42.25
Listed on January 14, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 442 thousand
New Positions: see below

Comments:
01/22/14: The bounce that started yesterday continued for shares of TAN. This solar ETF managed to recoup nearly all of yesterday's losses. Traders may want to wait for a rally above $42.00 before launching new positions.

Earlier Comments:
Our plan was to use small positions to limit our risk. Our multi-week target is $48.50. This could turn into a multi-month trade so we'll have to try and be patient.

FYI: A rise past $42.00 has created a new triple-top bullish breakout buy signal on TAN's point & figure chart, which is currently forecasting a long-term target of $61.

*small positions*

current Position: long TAN @ $42.25

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

Long April $45 call (TAN1419D45) entry $2.25*

01/18/14 Caution: Friday's move has created a candlestick reversal pattern but it needs to see confirmation
01/16/14 triggered at $42.25 (thanks to SCTY's +12% rally)
*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: 34.90 change: -0.26

Stop Loss: 36.25
Target(s): 31.00
Current Gain/Loss: + 6.6%

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:
01/22/14: The relative weakness in EC continues with a -0.7% decline today and a new closing low.

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

01/14/14 new stop loss @ 36.25
01/08/14 new stop loss @ 38.25
01/06/14 triggered @ 37.35




CLOSED BULLISH PLAYS

Lannett Company, Inc. - LCI - close: 34.74 change: -1.16

Stop Loss: 34.40
Target(s): 39.50
Current Gain/Loss: -2.1%

Entry on January 10 at $35.15
Listed on January 09, 2014
Time Frame: exit PRIOR to earnings in early February
Average Daily Volume = 261 thousand
New Positions: see below

Comments:
01/22/14: Our potential gains for the LCI trade went from +2% to -2% thanks to a sharp plunge today. The stock broke down below its 10-dma and the $35.00 level and hit our stop loss at $34.40. I couldn't find any news to account for today's relative weakness.

closed Position: Long LCI stock @ $35.15 exit $34.40 (-2.1%)

01/22/14 stopped out
01/18/14 new stop loss @ 34.40
01/14/14 new stop loss @ 33.95
01/13/14 new stop loss @ 33.65
01/10/14 triggered @ 35.15

chart:



Ternium S.A. - TX - close: 31.44 change: +0.44

Stop Loss: 29.90
Target(s): 35.00
Current Gain/Loss: - 1.4%

Entry on January 14 at $31.75
Listed on January 13, 2014
Time Frame: exit PRIOR to earnings on Feb. 19th
Average Daily Volume = 204 thousand
New Positions: see below

Comments:
01/22/14: We were unhappy with the recent performance in TX. In last night's newsletter we suggested an immediate exit at the opening bell. TX was kind enough to gap open higher at $31.30 for us.

closed Position: long TX stock @ $31.75 exit $31.30 (-1.4%)

01/22/14 early exit
01/21/14 prepare to exit immediately tomorrow morning
01/14/14 triggered @ 31.75

chart: