Editor's Note:
Thursday's market decline picked up speed on Friday and stocks plunged into the weekend.

We are removing CGNX. We're adjusting the entry strategy on HPQ.

CAR, EMC, and VSI have been stopped out. VSI hit our trigger.


Current Portfolio:


BULLISH Play Updates

Hewlett-Packard Co. - HPQ - close: 28.49 change: -0.88

Stop Loss: 26.95
Target(s): TBD
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:
01/25/14: The stock market's widespread decline on Friday has pulled HPQ toward support in the $28.00-28.50 area. We want to take advantage of this pullback and buy the dip. Tonight we're suggesting investors open bullish positions on Monday morning. We will adjust our stop loss to $26.95. We will adjust our exit target as the trade progresses.

Please note that if you're trading the option I have adjusted the option strike to March $30 calls.

*new entry point*

Suggested Position: buy HPQ stock @ (the opening bell)

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

Buy the Mar $30 call (HPQ1422C30) current ask $0.96

01/25/14 adjust entry strategy and open positions on Monday morning (Jan 27th)
01/25/14 new stop loss @ 26.95
01/23/14 new stop @ 28.95
Nimble traders may want to look for support near $28.70 as an alternative entry point.

chart:



BEARISH Play Updates

Ecopetrol SA - EC - close: 34.04 change: -0.66

Stop Loss: 36.25
Target(s): 31.00
Current Gain/Loss: + 8.9%

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:
01/25/14: EC continues to sink as expected. The stock lost another -1.9% on Friday and closed at new multi-year lows. I am not suggesting new positions.

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

chart:



Vitamin Shoppe, Inc. - VSI - close: 46.70 change: +0.46

Stop Loss: 48.05
Target(s): 41.00
Current Gain/Loss: - 1.9%

Entry on January 24 at $45.85
Listed on January 23, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 535 thousand
New Positions: see below

Comments:
01/25/14: Hmm... our new VSI trade is not performing as expected. The stock did see weakness on Friday morning but there was no follow through lower. Instead VSI actually bounced. Not only that but VSI outperformed the market with a +0.99% gain by the closing bell. We do not want to see relative strength in our bearish candidates. Our trade was triggered at $45.85 on Friday morning but I am not suggesting new positions at this time. More conservative traders may want to lower their stop loss.

Earlier Comments:
I do consider this a slightly more aggressive trade. The most recent data listed short interest at almost 15% of the 27.5 million share float. Therefore I'm suggesting small positions to limit our risk.

*small positions*

current Position: short VSI stock @ $45.85

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

Long Feb $45 PUT (VSI1422N45) entry $1.62

01/24/14 triggered @ $45.85

chart:




CLOSED BULLISH PLAYS

Avis Budget Group, Inc. - CAR - close: 38.60 change: -1.47

Stop Loss: 39.85
Target(s): 45.00
Current Gain/Loss: - 2.6%

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:
01/25/14: CAR gapped open lower at $39.80 and then plunged toward the $38.00 level. Our stop loss was at $39.85 so the gap down triggered our exit.

closed Position: Long CAR stock @ $40.85 exit $39.80 (-2.6%)

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

Feb $40 call (CAR1422B40) entry $2.50* exit $1.45 (-42.0%)

01/24/14 stopped out on gap down at $39.80
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.

chart:



Cognex Corp. - CGNX - close: 37.57 change: -0.89

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: see below

Comments:
01/25/14: We are removing CGNX as a potential candidate. The stock underperformed on Friday with a -2.3% decline. Our trade had not opened yet.

Trade did not open.

01/25/14 removed from the newsletter. trade did not open.
suggested trigger was $39.00

chart:



EMC Corp. - EMC - close: 25.49 change: -0.73

Stop Loss: 25.70
Target(s): TBD, exit prior to earnings
Current Gain/Loss: - 2.8%

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: see below

Comments:
01/25/14: Friday was a rough day for shares of EMC. The stock underperformed the broader market indices with a -2.78% decline. Shares hit our stop loss at $25.70.

closed Position: long EMC stock @ $26.45 exit $25.70 (-2.8%)

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

Feb $27 call (EMC1422B27) entry $0.53 exit $0.24 (-54.7%)

01/24/14 stopped out
01/21/14 triggered @ 26.45

chart:



China Internet ETF - KWEB - close: 32.62 change: -1.47

Stop Loss: 33.45
Target(s): 39.75
Current Gain/Loss: - 0.2%

Entry on January 24 at $33.51
Listed on January 22, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 91 thousand
New Positions: see below

Comments:
01/25/14: After Thursday's sell-off our plan was to buy KWEB at the opening bell on Friday. Unfortunately the markets continued to sink on Friday and the KWEB gapped down at $33.51. That happened to play into our favor since the gap down provided a better entry point but the follow through lower quickly hit our stop loss at $33.45.

*small positions*

closed Position: Long KWEB @ $33.51, exit 33.45 (-0.2%)

01/24/14 stopped out at $33.45
01/24/14 trade opened on gap down at $33.51
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

chart: