Editor's Note:
The market's widespread sell-off continued on Monday. The oversold bounce that began midday rolled over by the closing bell.


Current Portfolio:


BULLISH Play Updates

Hewlett-Packard Co. - HPQ - close: 28.60 change: +0.11

Stop Loss: 26.95
Target(s): TBD
Current Gain/Loss: + 0.2%

Entry on January 27 at $28.53
Listed on January 18, 2014
Time Frame: exit PRIOR to earnings on Feb. 20th
Average Daily Volume = 13.2 million
New Positions: see below

Comments:
01/27/14: HPQ held up pretty well today. The bounce stalled at its simple 10-dma but shares still ended the session with a gain, which was something of a rarity on Monday. It does look like the market might see another spike down tomorrow morning. Nimble traders may want to try and launch new positions here on a dip near $28.00 or its 50-dma.

current Position: long HPQ stock @ $28.53

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

Long Mar $30 call (HPQ1422C30) entry $0.96

01/27/14 trade opens at $28.53
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.



JPMorgan Chase & Co - JPM - close: 55.09 change: +0.00

Stop Loss: 52.40
Target(s): 59.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 25, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 18 million
New Positions: Yes, see below

Comments:
01/27/14: Shares of JPM briefly traded below their simple 100-dma before bouncing back and eventually closing unchanged on the session. We are not giving up on the buy-the-dip strategy. I am suggesting a buy-the-dip trigger at $54.00. Our multi-week target is $59.00.

Trigger @ $54.00

Suggested Position: buy JPM stock @ (trigger)

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

Buy the MAR $55 call (JPM1422C55)



Mylan, Inc. - MYL - close: 44.01 change: -0.30

Stop Loss: 41.90
Target(s): 48.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 25, 2014
Time Frame: Exit PRIOR to earnings in late February
Average Daily Volume = 3.0 million
New Positions: Yes, see below

Comments:
01/27/14: MYL continued to sink but shares managed to find support near $44.00. Shares did close on their lows for the day, which is normally bearish for tomorrow. I don't see any changes from our weekend new play description on MYL.

I am suggesting we buy the dip and use a trigger to launch bullish positions at $43.55. If triggered we'll start with a stop loss at $41.90. Our target is $48.00 but we will plan on exiting prior to MYL's earnings report in late February (no confirmed date yet).

Trigger @ $43.55

Suggested Position: buy MYL stock @ (trigger)

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

Buy the Mar $45 call (MYL1422C45)



BEARISH Play Updates

Ecopetrol SA - EC - close: 34.24 change: +0.20

Stop Loss: 35.65
Target(s): 31.00
Current Gain/Loss: + 8.3%

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:
01/27/14: EC produced a bounce this morning but the rally had faded by lunchtime. The stock did manage a +0.5% gain by the closing bell. I am adjusting our stop loss down to $35.65. I am not suggesting new positions.

current Position: short EC stock @ $37.35

01/27/14 new stop loss @ 35.65
01/14/14 new stop loss @ 36.25
01/08/14 new stop loss @ 38.25
01/06/14 triggered @ 37.35



Vitamin Shoppe, Inc. - VSI - close: 45.59 change: -1.11

Stop Loss: 48.05
Target(s): 41.00
Current Gain/Loss: + 0.6%

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:
01/27/14: It was a good day for VSI bears. The bounce failed near its 200-dma. Shares reversed into a -2.3% decline and VSI closed at new relative lows. I would use today's drop as another bearish entry point. 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