Editor's Note:
Stock markets around the world produced a knee-jerk reaction lower to disappointing economic data out of China.

CLDX, HGR, P, and TAN all hit our stop losses.

We are listing a new entry point on KWEB.


Current Portfolio:


BULLISH Play Updates

Avis Budget Group, Inc. - CAR - close: 40.07 change: -1.08

Stop Loss: 39.85
Target(s): 45.00
Current Gain/Loss: - 1.9%

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:
01/23/14: The market's generally widespread sell-off today pushed CAR toward round-number support at the $40.00 mark. A bounce from here could be used as a new entry point.

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.



Cognex Corp. - CGNX - close: 38.46 change: -0.24

Stop Loss: 37.35
Target(s): 43.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 22, 2014
Time Frame: exit PRIOR to earnings on February 13th
Average Daily Volume = 465 thousand
New Positions: Yes, see below

Comments:
01/23/14: It was a quiet day for shares of CGNX, which drifted sideways inside a narrow range. I don't see any changes from last night's new play description.

Earlier Comments:
CGNX has been relatively resilient to any market declines in 2014. Investors bought the minor pullback and the following bounce has now pushed CGNX to new all-time highs.

I am suggesting a trigger to open bullish positions at $39.00. If triggered our target is $43.50. I would be tempted to aim higher but we will plan to exit prior to earnings on February 13th.

Trigger @ 39.00

Suggested Position: buy CGNX stock @ $39.00



EMC Corp. - EMC - close: 26.22 change: +0.16

Stop Loss: 25.70
Target(s): TBD, exit prior to earnings
Current Gain/Loss: - 0.9%

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:
01/23/14: It was another close call for our EMC trade. This stock followed the market lower this morning. Shares hit an intraday low of $25.72 before bouncing back into positive territory. Our stop loss is at $25.70. The relative strength on the rebound is encouraging but we're almost out of time on this trade. I am not suggesting new positions.

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



Hewlett-Packard Co. - HPQ - close: 29.37 change: -0.47

Stop Loss: 28.95
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:
01/23/14: HPQ is still retreating from round-number resistance near $30.00. The $28.70 level was prior resistance and thus should be support. We may want to consider buying a dip or a bounce near $28.70 and we'll make that decision if we see an entry point. At the moment we're still waiting for a breakout and a trigger to launch bullish positions at $30.15. Please note that I'm adjusting our current stop (if triggered) to $28.95.

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)

01/23/14 new stop @ 28.95
Nimble traders may want to look for support near $28.70 as an alternative entry point.




China Internet ETF - KWEB - close: 34.09 change: -1.76

Stop Loss: 33.45
Target(s): 39.75
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 22, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 91 thousand
New Positions: Yes, see below

Comments:
01/23/14: Disappointing economic data out of China today sparked a widespread sell-off in equities in Asia, Europe, and the U.S. The KWEB gapped open lower at $34.55 and closed with a -4.9% decline. We suspect that today's move in KWEB is an overreaction. Therefore we want to take advantage of today's decline and launch positions at the opening bell tomorrow morning. We will adjust our stop loss to $33.45. We still want to keep our position size small to limit our risk.

*small positions*

Suggested Position: BUY KWEB @ (at the opening bell)

01/23/14 Today's -4.9% decline looks like an overreaction. Adjust strategy to launch positions tomorrow morning with a new stop loss at $33.45



BEARISH Play Updates

Ecopetrol SA - EC - close: 34.70 change: -0.20

Stop Loss: 36.25
Target(s): 31.00
Current Gain/Loss: + 7.1%

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:
01/23/14: Shares of EC tried to rally intraday but failed close to short-term resistance near its simple 10-dma. The stock closed near its low for the session with a -0.5% loss. I am not suggesting new positions.

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

Celldex Therapeutics - CLDX - close: 29.18 change: -0.33

Stop Loss: 27.90
Target(s): 36.00
Current Gain/Loss: - 7.5%

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:
01/23/14: I cautioned readers that this was an aggressive, higher-risk trade but I honestly wasn't expecting a -7% drop this morning. The stock market was weak this morning and traders decided to hit the sell button on CLDX. The plunged toward its simple 10-dma erased about four days of gains. CLDX did bounce and pared its loss to just -1.1% by the closing bell. Unfortunately our stop was hit at $27.90.

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

*small positions*

closed Position: Long CLDX stock @ $30.15 exit $27.90 (-7.5%)

01/23/14 stopped out
01/22/14 triggered @ 30.15

chart:



Hanger, Inc. - HGR - close: 39.52 change: -0.95

Stop Loss: 39.45
Target(s): 44.50
Current Gain/Loss: - 3.1%

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:
01/23/14: The market's drop this morning pushed HGR below the $40 level. Our stop was hit at $39.45. Nimble traders might want to consider buying a dip near its 40-dma or 50-dma with a tight stop loss since HGR has a trend of bouncing near those moving averages.

closed Position: Long HGR stock @ $40.70 exit $39.45 (-3.1%)

01/23/14 stopped out
01/21/14 triggered @ $40.70

chart:



Pandora Media - P - close: 34.64 change: +0.02

Stop Loss: 33.75
Target(s): 39.50
Current Gain/Loss: - 2.3%

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:
01/23/14: Pandora actually held up reasonably well today. Unfortunately during the market's volatile spike lower this morning shares of P briefly traded below support near $34.00 and its 10-dma. Our stop was hit at $33.75.

I am longer-term bullish on Pandora so I would keep this stock on your watch list for a new entry point down the road.

closed Position: long P stock @ $34.55 exit $33.75 (-2.3%)

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

Feb $35 call (P1422B35) entry $2.55* exit $2.24 (-12.1%)

01/23/14 stopped out
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.

chart:



Solar ETF - TAN - close: 40.35 change: -1.34

Stop Loss: 39.75
Target(s): 48.50
Current Gain/Loss: - 5.9%

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:
01/23/14: Solar stocks were not immune to the market's widespread weakness this morning. The TAN gapped open lower at $40.93 and spiked down to $39.75 before paring its losses. Our stop loss just happens to be $39.75.

Earlier Comments:
Our plan was to use small positions to limit our risk.

*small positions*

closed Position: long TAN @ $42.25 exit $39.75 (-5.9%)

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

April $45 call (TAN1419D45) entry $2.25* exit $1.05**(-53.3%)

01/23/14 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart: