Editor's Note:
The U.S. stock market produced a widespread bounce after Monday's punishing decline.


Current Portfolio:


BULLISH Play Updates

Hewlett-Packard Co. - HPQ - close: 28.33 change: +0.29

Stop Loss: 27.80
Target(s): TBD
Current Gain/Loss: - 0.7%

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:
02/04/14: The news about Autonomy inflating its profits did not have that much impact on shares of HPQ. We mentioned the story last night. Shares of HPQ dipped to their simple 50-dma and bounced. I am inching our stop loss up to $27.80. Today's low was $27.89. 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

02/04/14 new stop loss @ 27.80
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: 49.89 change: +0.80

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:
02/04/14: ISIS managed to outperform the broader market with a +1.6% bounce yet it remains below resistance in the $51.50-52.00 area. I don't see any changes from my earlier comments.

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: 54.95 change: +0.64

Stop Loss: 52.90
Target(s): 59.75
Current Gain/Loss: - 2.3%

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:
02/04/14: One of the major headlines for JPM today was news it had settled with the U.S. government to pay a $614 million fine over a mortgage fraud case. The news does not appear to be affecting shares of JPM in after hours trading. Meanwhile during today's trading JPM stock produced an inside day, which doesn't help us determine the stock's direction. Overall the short-term direction is still down and odds still favor JPM testing support near $54.00 and its 200-dma.

(An inside day is when all of one day's trading is inside the prior day's trading range. It's normally seen as a sign of indecision by traders.)

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: 12.44 change: +0.56

Stop Loss: 11.15
Target(s): 17.00
Current Gain/Loss: - 0.9%

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:
02/04/14: Good news. With a positive market to help it shares of PVA managed to recover a good chunk of yesterday's lost gains. The stock outperformed with a +4.7% gain.

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



BEARISH Play Updates

Best Buy Co. - BBY - close: 22.78 change: -0.29

Stop Loss: 24.75
Target(s): 20.25
Current Gain/Loss: + 6.2%

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:
02/04/14: Shares of BBY continue to underperform and did not participate in the widespread market rally today. I am not suggesting new positions at this time. More conservative investors may want to lower their stop loss.

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: 34.34 change: +0.30

Stop Loss: 35.25
Target(s): 31.00
Current Gain/Loss: + 8.1%

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:
02/04/14: It was a quiet day for EC. The stock bounced along short-term 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: 33.89 change: +0.08

Stop Loss: 36.05
Target(s): 30.25
Current Gain/Loss: + 2.1%

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:
02/04/14: The action in TFM continues to look good for the bears. The stock tried to bounce today but failed intraday and settled with a minor gain.

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: 33.95 change: +0.12

Stop Loss: 36.60
Target(s): 31.00
Current Gain/Loss: + 4.6%

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:
02/04/14: GME also delivered a quiet session. The stock almost closed unchanged on the day. The failure to participate in the widespread market rally is a good sign for the bears.

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



Qiwi plc. - QIWI - close: 33.74 change: -0.80

Stop Loss: 36.55
Target(s): 30.50
Current Gain/Loss: + 3.0

Entry on February 04 at $34.80
Listed on February 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
02/04/14: Our new play on QIWI is off to a good start. Shares actually gapped open higher at $34.80 and quickly reversed. QIWI underperformed the market with a -2.3% decline versus a widespread bounce for the market.

Earlier Comments:
I am suggesting small positions to limit our risk. QIWI could be volatile if there are any headlines suggesting this Russian bill could be postponed or altered in a way that would not negatively impact the company's business.

Our short-term target is $30.50. More aggressive traders may want to aim lower since the Point & Figure chart for QIWI is bearish with a $24.00 target.

*small positions*

Current Position: short QIWI stock @ $34.80

02/04/14 trade opened on gap higher at $34.80



Vitamin Shoppe, Inc. - VSI - close: 43.56 change: +0.52

Stop Loss: 46.55
Target(s): 41.00
Current Gain/Loss: + 5.0%

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:
02/04/14: After yesterday's big decline shares of VSI produced a bounce (+1.2%). Yet today's session was an "inside day". The overall trend remains lower.

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