Editor's Note:
The U.S. market bounced off their Wednesday morning lows but the major indices still closed in negative territory.

We have removed ISIS as an active candidate.

Some of our bearish plays displayed volatility today.

We want to exit our EC trade tomorrow morning.


Current Portfolio:


BULLISH Play Updates

Hewlett-Packard Co. - HPQ - close: 28.01 change: -0.32

Stop Loss: 27.80
Target(s): TBD
Current Gain/Loss: - 1.8%

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:
02/05/14: Lack of follow through on yesterday's bounce from support is a bit troubling but HPQ managed to hold support near $28 and its 50-dma today. Any follow through lower will hit our stop loss at $27.80.

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.



JPMorgan Chase & Co - JPM - close: 55.21 change: +0.26

Stop Loss: 52.90
Target(s): 59.75
Current Gain/Loss: - 1.8%

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:
02/05/14: JPM managed to show a little bit of relative strength with a gain today. You'll notice the bounce stalled at short-term resistance near the simple 10-dma.

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: 12.13 change: -0.31

Stop Loss: 11.15
Target(s): 17.00
Current Gain/Loss: - 3.3%

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:
02/05/14: Shares of PVA are proving to be somewhat volatile. Fortunately traders continue to buy the dips and maintain the trend of higher lows. More conservative traders may want to raise their stop loss.

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: 23.12 change: +0.34

Stop Loss: 24.55
Target(s): 20.25
Current Gain/Loss: + 4.8%

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:
02/05/14: Uh-oh! BBY was showing relative strength today with a +1.5% gain. I am lowering our stop loss to $24.55. More conservative investors may want to exit now to lock in gains or adjust their stop loss closer to the $24.00 level. I am not suggesting new positions at this time.

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

02/05/14 new stop loss @ 24.55
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: 34.80 change: +0.46

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:
02/05/14: EC is starting to eat away at our potential gains with an oversold bounce. The stock outperformed the broader market today with a +1.3% gain. It is possible that the $35.00 level will hold as resistance. However, we are suggesting an immediate exit at the opening bell tomorrow to try and lock in some gains.

current Position: short EC stock @ $37.35

02/05/14 prepare to exit immediately
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



Lowe's Companies - LOW - close: 45.53 change: +0.63

Stop Loss: 46.85
Target(s): 40.15
Current Gain/Loss: -1.6%

Entry on February 05 at $44.82
Listed on February 04, 2014
Time Frame: Exit PRIOR to earnings on February 26th
Average Daily Volume = 6.9 million
New Positions: see below

Comments:
02/05/14: Our new bearish trade on LOW is not off to the best start. Shares opened at $44.82, spiked down to $44.45 and then bounced. Not only did LOW bounce but it outperformed the market with a +1.4% gain. The only good thing about today's bounce was how it stalled near technical resistance at its simple 200-dma. I would wait for a new drop under $45.00 before initiating new bearish positions. More conservative traders might want to tighten their stop loss.

Earlier Comments:
Our target is $40.15 but we will plan to exit prior to their earnings report on February 26th.

FYI: The Point & Figure chart for LOW is bearish with a $40.00 target.

current Position: short LOW stock @ $44.82

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

Long MAR $45 PUT (LOW1422o45) entry $1.80

02/05/14 trade opens at $44.82



The Fresh Market, Inc. - TFM - close: 34.03 change: +0.14

Stop Loss: 36.05
Target(s): 30.25
Current Gain/Loss: + 1.6%

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:
02/05/14: TFM managed to post a gain today but the stock was fading lower into the closing bell. Today's failed rally at its high today is a good sign for the bears. I would consider new positions now at current levels or you could wait for a new relative low (below $33.70) as a new entry point.

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: 34.76 change: +0.81

Stop Loss: 36.60
Target(s): 31.00
Current Gain/Loss: + 2.4%

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:
02/05/14: Shares of GME were downgraded to a "strong sell" by Zacks today but the news failed to halt the oversold bounce in the stock. Shares outperformed the wider market with a +2.3% gain. The relative strength is worrisome. More conservative traders may want to lower their stop loss. I am not suggesting new positions.

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: 35.73 change: +1.99

Stop Loss: 36.55
Target(s): 30.50
Current Gain/Loss: - 2.7

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:
02/05/14: Ouch! What happened to QIWI today. The stock soared +5.89% with a rally toward short-term resistance near $36.00 and its simple 10-dma. I didn't see any news that might explain today's relative strength. I warned readers that QIWI is a volatile stock but today's move was a surprise. I am not suggesting new positions at this time.

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: 42.97 change: -0.59

Stop Loss: 46.55
Target(s): 41.00
Current Gain/Loss: + 6.3%

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:
02/05/14: VSI continued to sink and tagged a new low this morning. Shares settled with a -1.3% decline, underperforming the major indices. 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

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

Isis Pharmaceuticals - ISIS - close: 46.83 change: -3.06

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: see below

Comments:
02/05/14: Shares of ISIS are not cooperating. We were waiting for a breakout to new highs. The stock has instead move lowered and underperformed the market today with a -6.1% plunge. I don't see any headlines that might account for today's relative weakness.

We are removing ISIS as a potential candidate.

Trade did not open.

02/05/14 removed from the newsletter. suggested trigger was $52.15

chart: