Editor's Note:
Our bearish plays are performing well as the market rolled over into another broad-based decline on Wednesday.

GME hit our entry trigger.


Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 49.65 change: -1.59

Stop Loss: 49.25
Target(s): 56.50
Current Gain/Loss: - 2.8%

Entry on January 28 at $51.10
Listed on January 27, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.6 million
New Positions: see below

Comments:
01/29/14: Ouch! ADSK reversed yesterday's gains and more with a -3.0% drop. The close below its simple 30-dma and the $50.00 level is short-term bearish. Odds are good that we'll see ADSK hit our stop loss at $49.25 tomorrow.

current Position: Long ADSK stock @ $51.10

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

Long MAR $55 call (ADSK1422C55) entry $1.44

01/28/14 triggered @ 51.10



Arrowhead Research - ARWR - close: 14.30 change: +0.64

Stop Loss: 12.30
Target(s): 15.00
Current Gain/Loss: +16.3%

Entry on January 28 at $12.30
Listed on January 27, 2014
Time Frame: Plan to EXIT Prior to earnings on February 4th
Average Daily Volume = 790 thousand
New Positions: see below

Comments:
01/29/14: The relative strength in ARWR continues with a +4.6% gain on top of yesterday's big move. This is a new multi-year high for the stock. We are adjusting our stop loss to $12.30.

More conservative traders may want to just take profits now. ARWR announced they would report earnings on February 4th. We do not want to hold over the announcement.

Our plan was to limit our risk with small positions.

*small positions*

current Position: Long ARWR stock @ $12.30

01/29/14 new stop loss @ 12.30
01/28/14 new stop loss @ 11.80
We need to exit PRIOR to earnings on February 4th!
01/28/14 triggered @ 12.30



Hewlett-Packard Co. - HPQ - close: 29.02 change: +0.02

Stop Loss: 26.95
Target(s): TBD
Current Gain/Loss: + 1.7%

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:
01/29/14: The bounce in HPQ paused today. Shares drifted sideways near the $29.00 level. Traders may want to wait for a rise above $29.20 before considering new bullish positions.

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: 55.53 change: -0.21

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:
01/29/14: JPM held up better than many of its peers today. The bank stock gapped down this morning but traders bought the dip near $55.00 and its 100-dma again. By the closing bell JPM had pared its loss to just -0.3% versus a -1.1% drop in the XLF financial ETF.

Earlier Comments:
Currently we have two potential entry points on JPM. If the stock continues to bounce we have a suggested entry point at $56.25 with a stop loss at $53.90. If the stock dips we have a buy-the-dip entry point at $54.00 with a stop loss at $52.40.

Trigger @ $54.00 or $56.25

Suggested Position: buy JPM stock @ (trigger)

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

Buy the MAR $55 call (JPM1422C55)

01/28/14 add a secondary entry trigger at $56.25
adjust the exit target to $59.75



Mylan, Inc. - MYL - close: 44.48 change: -0.22

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:
01/29/14: There was no follow through on yesterday's bounce in MYL. The stock appears to be churning sideways inside the $44-45 zone. I do not see any changes from my earlier comments.

Earlier Comments:
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)



Penn Virginia Corp. - PVA - close: 12.00 change: -0.13

Stop Loss: 11.15
Target(s): 17.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 28, 2014
Time Frame: exit PRIOR to earnings on Feb.19th
Average Daily Volume = 3.2 million
New Positions: Yes, see below

Comments:
01/29/14: Wednesday ended up as a quiet session for shares of PVA. The stock merely drifted sideways near the $12.00 level. I do not see any changes from our Tuesday night new play description.

Earlier Comments:
Driving the stock higher has been some very bullish analyst comments on the stock. One analyst listed PVA as a likely takeover target. All this bullish talk on PVA has got to make the shorts nervous and there are a lot of shorts. The most recent data listed short interest at 32% of the 49.9 million share float. New highs from here could spark more short covering.

So far the January high for PVA has been $12.49. We are suggesting a trigger to open bullish positions at $12.55. If triggered our target is $17.00 but that is very, very optimistic goal. Odds are more likely we won't capture that big of a move because PVA is due to report earnings on February 19th and we do not want to hold over the announcement.

Investors may want to consider PVA as a longer-term trade. The Point & Figure chart for PVA is bullish with a long-term $25.00 target.

Trigger @ 12.55

Suggested Position: buy PVA stock @ (trigger)

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

Buy the Mar $12.50 call (PVA1422C12.5)



BEARISH Play Updates

Ecopetrol SA - EC - close: 33.97 change: -0.62

Stop Loss: 35.25
Target(s): 31.00
Current Gain/Loss: + 9.0%

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:
01/29/14: Good news! EC has erased the recent two-day bounce. The stock closed on its lows for the session and looks poised to sink to new multi-year lows tomorrow.

We are adjusting our stop loss to $35.25. I am not suggesting new positions.

current Position: short EC stock @ $37.35

01/29/14 new stop loss @ 35.25
01/28/14 investors may want to start taking some money off the table
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



GameStop Corp. - GME - close: 35.07 change: -0.98

Stop Loss: 37.75
Target(s): 31.00
Current Gain/Loss: + 1.5%

Entry on January 29 at $35.60
Listed on January 28, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 6.2 million
New Positions: see below

Comments:
01/29/14: Our new play on GME has been opened. The stock gapped open lower at $35.70 and underperformed the market with a -2.7% drop. This is a new six-month low for the stock. Our plan was to open bearish positions at $35.60.

Earlier Comments:
We should probably consider this a more aggressive, higher-risk trade because there is so much short interest. The most recent data listed short interest at 25% of the 113 million share float. That could make GME volatile and we run the risk of the stock seeing short-term spikes. However, long-term GME could be in trouble as the video industry moves more and more to an online, download purchase system instead of consumers going to their local game story to buy games.

More conservative traders may want to wait for a drop below $35.00 before initiating positions. Our target is $31.00. More aggressive traders could aim lower. The Point & Figure chart for GME is bearish with a $20.00 target.

current Position: short GME stock @ $35.60

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

Long MAR $35 PUT (GME1422o35) entry $1.65

01/29/14 trigger @ 35.60



Vitamin Shoppe, Inc. - VSI - close: 44.11 change: -1.24

Stop Loss: 46.55
Target(s): 41.00
Current Gain/Loss: + 3.8%

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:
01/29/14: VSI continues to perform for the bears. The stock gapped open lower at $44.87 this morning and plunged to $43.58 intraday. The stock underperformed the market with a -2.7% decline at the closing bell (versus a -1.0% drop in the S&P 500).

Tonight we are adjusting the stop loss to $46.55.

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

01/29/14 new stop loss @ 46.55
01/24/14 triggered @ $45.85