Editor's Note:
The market continues to sink as the major U.S. indices drop to new multi-week lows.

ADSK hit our stop loss. PVA and TFM hit our entry points.


Current Portfolio:


BULLISH Play Updates

Hewlett-Packard Co. - HPQ - close: 28.04 change: -0.96

Stop Loss: 27.70
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:
02/03/14: HPQ was making headlines today and not for a good reason. The company is restating its Autonomy unit's 2010 and 2011 results. HPQ claims it was lied to about Autonomy's performance before HPQ bought the British company back in 2011. HPQ is claiming a number of "accounting improprieties" in Autonomy. This news may have exacerbated today's sell-off in HPQ and shares fell -3.3%. The low today was $27.96. Our stop loss is at $27.70. The 50-dma could offer some support at $27.81. I am not suggesting new positions at this time.

current Position: long HPQ stock @ $28.53

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

Long Mar $30 call (HPQ1422C30) entry $0.96

02/01/14 new stop loss @ 27.70
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.



Isis Pharmaceuticals - ISIS - close: 49.09 change: -1.97

Stop Loss: 48.65
Target(s): 58.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 01, 2014
Time Frame: Exit PRIOR to earnings in late February
Average Daily Volume = 1.4 million
New Positions: Yes, see below

Comments:
02/03/14: ISIS completely erased Friday's gains with a -3.85% drop today. Shares are clinging to their 10-dma. I don't see any changes from the weekend newsletter's new play description.

Earlier Comments:
We are suggesting a trigger to open bullish positions at $52.15. If triggered our target is $58.50. However, we will plan to exit prior to ISIS earnings report, which is expected at the very end of February but no date has been confirmed yet.


FYI: The Point & Figure chart for ISIS is currently bearish but a move over $52.00 would produce a new buy signal.

Trigger @ $52.15

Suggested Position: buy ISIS stock @ (trigger)

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

Buy the MAR $55 call (ISIS1422C55)



JPMorgan Chase & Co - JPM - close: 54.31 change: -1.05

Stop Loss: 52.90
Target(s): 59.75
Current Gain/Loss: - 3.4%

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:
02/03/14: Banking stocks have had a rough January. The selling did not let up today with the XLF financial ETF down -2.5%. JPM was only down -1.89% so it's showing a tiny bit of relative strength. Unfortunately today's decline is a bearish breakdown under short-term support near $55 and its 100-dma. The next level of support appears like it could be the $54.00 level or its simple 200-dma (at 53.91).

I do expect JPM to test its 200-dma. If we want to keep this play active then we will need to move our stop loss. Tonight we're moving the stop from $53.90 to $52.90.

I am not suggesting new positions at this time.

current Position: Long JPM stock @ $56.25

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

Long MAR $55 call (JPM1422C55) entry $2.53

02/03/14 adjust stop loss from $53.90 to $52.90
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



Penn Virginia Corp. - PVA - close: 11.88 change: -0.11

Stop Loss: 11.15
Target(s): 17.00
Current Gain/Loss: - 5.3%

Entry on February 03 at $12.55
Listed on January 28, 2014
Time Frame: exit PRIOR to earnings on Feb.19th
Average Daily Volume = 3.2 million
New Positions: see below

Comments:
02/03/14: Shares of PVA were upgraded this morning. The stock reacted by gapping open higher at $12.39 and sprinting to $13.06. Unfortunately with the stock market in sell-off mode the gains in PVA didn't last. Shares reversed and closed down -0.9% and -9% from its intraday high.

Our trade opened at $12.55 this morning yet I would not launch new positions at current levels. Wait for a new rally above $12.50. We have a stop at $11.15 but more conservative traders may want to raise their stops.

If the market does bounce soon it could spark more short covering in PVA. The stock's high amount of short interest helps explain the spike higher this morning.

Earlier Comments:
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.

current Position: Long PVA stock @ $12.55

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

Long Mar $12.50 call (PVA1422C12.5) entry $1.10

02/03/14 triggered at $12.55

chart:
%IMG6%



BEARISH Play Updates

Best Buy Co. - BBY - close: 23.07 change: -0.47

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: + 5.0%

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:
02/03/14: There was no follow through on Friday's bounce in BBY. Shares lost -1.99% on Monday. I would be cautious here since BBY did find support intraday.

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: 34.04 change: -0.22

Stop Loss: 35.25
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:
02/03/14: EC drifted back toward support near $34.00. I am not suggesting new positions at this time.

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



The Fresh Market, Inc. - TFM - close: 33.81 change: -1.15

Stop Loss: 36.05
Target(s): 30.25
Current Gain/Loss: + 2.3%

Entry on February 03 at $34.60
Listed on February 01, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
02/03/14: Our brand new trade on TFM has been triggered. The stock broke down from its consolidation pattern as expected. TFM underperformed the market with a -3.2% decline. Our suggested entry point was hit at $34.60.

Earlier Comments:
I am listing this as a more aggressive, higher-risk trade due to the amount of short interest. The latest data listed short interest at about 25% of the 40 million share float. The bears have a pretty good story for the stock to trend lower but that much short interest does pose a danger of short-term spikes higher.

Our target is $30.25. More aggressive traders could aim lower since the Point & Figure chart for TFM is bullish with an $18 target.

current Position: short TFM stock @ $34.60

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

Long MAR $35 PUT (TFM1422o35) entry $2.90

02/03/14 triggered @ 34.60



GameStop Corp. - GME - close: 33.83 change: -1.24

Stop Loss: 36.60
Target(s): 31.00
Current Gain/Loss: + 5.0%

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:
02/03/14: GME's weakness accelerated on Monday with a -3.5% decline. Shares were down -5.6% at their worst levels of the session. I am adjusting our stop loss down to $36.60.

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

02/03/14 new stop loss @ 36.60
02/01/14 new stop loss @ 37.10
01/29/14 trigger @ 35.60



Vitamin Shoppe, Inc. - VSI - close: 43.04 change: -1.78

Stop Loss: 46.55
Target(s): 41.00
Current Gain/Loss: + 6.1%

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:
02/03/14: VSI plunged to new three-month lows with a -3.9% decline today. I am adjusting our stop loss down to $46.05.

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

02/03/14 new stop loss @ 46.05
01/29/14 new stop loss @ 46.55
01/24/14 triggered @ $45.85




CLOSED BULLISH PLAYS

Autodesk, Inc. - ADSK - close: 49.33 change: -1.92

Stop Loss: 49.25
Target(s): 56.50
Current Gain/Loss: - 3.6%

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:
02/03/14: Another widespread down day for the market sparked a -3.74% sell-off in ADSK. Shares hit our stop at $49.25.

closed Position: Long ADSK stock @ $51.10 exit $49.25 (-3.6%)

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

MAR $55 call (ADSK1422C55) entry $1.44 exit $0.95 (-34.0%)

02/03/14 stopped out
01/30/14 ADSK rallies on an upgrade
01/28/14 triggered @ 51.10

chart: