Editor's Note:
All of the major U.S. indices posted gains in a widespread market bounce.

ARWR hit our bullish exit target. JPM hit an entry trigger.


Current Portfolio:


BULLISH Play Updates

Autodesk, Inc. - ADSK - close: 51.52 change: +1.87

Stop Loss: 49.25
Target(s): 56.50
Current Gain/Loss: + 0.8%

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:
01/30/14: ADSK had us worried with yesterday's display of weakness. Fortunately the stock completely erased yesterday's losses with a +3.7% gain today. The rally today was boosted by an upgrade from JPMorgran. Chart readers will notice that ADSK did stall near $52 and its simple 10-dma. I would not be surprised to see a short-term dip back to $51.00.

current Position: Long ADSK stock @ $51.10

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

Long MAR $55 call (ADSK1422C55) entry $1.44

01/30/14 ADSK rallies on an upgrade
01/28/14 triggered @ 51.10



Hewlett-Packard Co. - HPQ - close: 29.25 change: +0.23

Stop Loss: 26.95
Target(s): TBD
Current Gain/Loss: + 2.5%

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:
01/30/14: HPQ continued to bounce on Thursday but its gains lagged behind the broader market and the technology sector. I would still be tempted to use this move as a new entry point.

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: 56.00 change: +0.47

Stop Loss: 53.90
Target(s): 59.75
Current Gain/Loss: - 0.4%

Entry on January 30 at $56.25
Listed on January 25, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 18 million
New Positions: see below

Comments:
01/30/14: Shares of JPM garnered some bullish analyst comments and a $66 price target this morning. That may have helped shares rally above the $56.00 level and hit our suggested entry point at $56.25. Unfortunately JPM did pared its gains by the close. Today's intraday high was $56.39 and more conservative investors might want to wait for JPM to trade above this level before initiating positions.

This trade starts with a stop at $53.90 and a target at $59.75. More conservative traders might want to consider a stop loss closer to the $54.50 area.

current Position: Long JPM stock @ $56.25

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

Long MAR $55 call (JPM1422C55) entry $2.53

01/30/14 triggered @ 56.25. Use stop loss at $53.90
01/28/14 add a secondary entry trigger at $56.25
adjust the exit target to $59.75



Mylan, Inc. - MYL - close: 45.55 change: +1.07

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:
01/30/14: MYL displayed relative strength with a +2.4% gain and a bullish move above round-number resistance at the $45.00 mark. More aggressive traders may want to launch positions following today's rally. We are currently on the sidelines with a buy-the-dip trigger at $43.55. However, if MYL can build on today's rally we might adjust our entry point strategy in the weekend newsletter.

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: 11.92 change: -0.08

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:
01/30/14: PVA's failure to participate in the market's widespread rally today is a troubling development. If shares do not show some improvement tomorrow we might drop PVA as an active candidate. At the moment 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

Best Buy Co. - BBY - close: 22.72 change: -1.25

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: + 6.5%

Entry on January 30 at $24.29
Listed on January 29, 2014
Time Frame: Exit PRIOR to earnings on Feb. 27th
Average Daily Volume = 17.6 million
New Positions: see below

Comments:
01/30/14: Our new bearish play on BBY is off to a great start. The plan was to launch positions at the opening bell. BBY gapped open higher this morning at $24.29 and quickly reversed lower. Shares underperformed the market with a -5.2% plunge to new lows. I am lowering our stop loss down to $24.75.

FYI: Our March $20 put is already up +75%.

Earlier Comments:
The plan is to use small positions to limit our risk.

*Small Positions*

current Position: short BBY stock @ $24.29

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

Long MAR $20 PUT (BBY1422o20) entry $0.45

01/30/14 new stop loss @ 24.75
01/30/14 trade opens with BBY gapping open higher at $24.29



Ecopetrol SA - EC - close: 34.82 change: +0.85

Stop Loss: 35.25
Target(s): 31.00
Current Gain/Loss: + 6.8%

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:
01/30/14: The market's rally today probably sparked some short covering and EC gained +2.5%. The stock is testing short-term resistance near $35.00. 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: 35.31 change: +0.24

Stop Loss: 37.75
Target(s): 31.00
Current Gain/Loss: + 0.8%

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:
01/30/14: GME managed a mediocre bounce today of +0.6%. I don't see any changes from my earlier comments and could still consider new positions at current levels.

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: 45.00 change: +0.89

Stop Loss: 46.55
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:
01/30/14: After a three-day drop VSI managed an oversold bounce of +2.0%. We can watch for potential resistance near $46.00 or its 10-dma. I am not suggesting new positions at this time.

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




CLOSED BULLISH PLAYS

Arrowhead Research - ARWR - close: 15.30 change: +1.00

Stop Loss: 12.30
Target(s): 15.00
Current Gain/Loss: +22.0%

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:
01/30/14: Target achieved.

The upward momentum in shares of ARWR continued on Thursday with the stock surging another +6.99%. Our suggested exit target was hit at $15.00. This stock is now up +41% from last week's intraday low of $10.80. Odds of a pullback should be growing.

Our plan was to limit our risk with small positions.

*small positions*

closed Position: Long ARWR stock @ $12.30 exit $15.00 (+22.0%)

01/30/14 target hit
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

chart: