Editor's Note:
The stock market's oversold bounce continued on Friday with widespread gains.

ADBE hit our entry trigger. BBY hit our stop loss.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 62.88 change: +1.54

Stop Loss: 59.75
Target(s): 68.00
Current Gain/Loss: +1.0%

Entry on February 07 at $62.25
Listed on February 06, 2014
Time Frame: exit PRIOR to earnings on March 18th
Average Daily Volume = 3.6 million
New Positions: see below

Comments:
02/08/14: Our new bullish play on ADBE is off to a good start. Shares broke out past resistance near $62.00 and outperformed the major indices with a +2.5% gain on Friday. Our suggested entry point was triggered at $62.25.

FYI: A move over $62.00 should create a new triple-top breakout buy signal on ADBE's point & figure chart.

current Position: Long ADBE stock @ $62.25

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

Long MAR $62.50 call (ADBE1422C62.5) entry $2.40

02/07/14 triggered @ 62.25

chart:



Hewlett-Packard Co. - HPQ - close: 29.07 change: +0.58

Stop Loss: 27.80
Target(s): TBD
Current Gain/Loss: + 1.9%

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:
02/08/14: The rebound in shares of HPQ continued thanks to the market's widespread bounce. Shares managed to outperform with a +2.0% gain. I am not suggesting new positions. HPQ is due to report earnings on Feb. 20th and we are planning to exit ahead of the report.

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.

chart:



JPMorgan Chase & Co - JPM - close: 56.62 change: +0.14

Stop Loss: 53.90
Target(s): 59.75
Current Gain/Loss: + 0.7%

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:
02/08/14: The bounce in JPM slowed on Friday but shares are still up four days in a row. The low last week was $54.20. I am adjusting our stop loss up to $53.90. The next challenge for the bulls is potential technical resistance at JPM's 50-dma near $57.00.

current Position: Long JPM stock @ $56.25

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

Long MAR $55 call (JPM1422C55) entry $2.53

02/08/14 new stop loss @ 53.90
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

chart:



Penn Virginia Corp. - PVA - close: 12.62 change: +0.49

Stop Loss: 11.45
Target(s): 17.00
Current Gain/Loss: + 0.6%

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:
02/08/14: PVA's performance on Friday was encouraging. After not participating in the market's rally on Thursday the stock outperformed with a +4.0% gain on Friday. This is a new two-year closing high for the stock. I am adjusting our stop loss up to $11.75, just below the 20-dma.

If you were looking for a new entry point then Friday's move could work. Just keep in mind our plan to exit ahead of earnings.

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

02/06/14 new stop loss @ 11.45
02/03/14 triggered at $12.55

chart:



BEARISH Play Updates

Lowe's Companies - LOW - close: 46.07 change: -0.51

Stop Loss: 46.85
Target(s): 40.15
Current Gain/Loss: -2.8%

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:
02/08/14: LOW was poised to hit our stop loss on Friday but its rally was short circuited by a downgrade from Goldman Sachs. LOW gapped down at $46.11 and slipped to a -2.4% loss before paring its losses. I am still concerned that the broader market's bounce could be trouble for our bearish play. More conservative traders may want to exit early now. I am not suggesting new positions.

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

02/07/14 downgraded by Goldman Sachs
02/05/14 trade opens at $44.82

chart:



The Fresh Market, Inc. - TFM - close: 33.71 change: -0.49

Stop Loss: 35.10
Target(s): 30.25
Current Gain/Loss: + 2.6%

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:
02/08/14: Shares of TFM continue to sink for us. The stock ignored the market's rally on Friday. Instead TFM produced a failed rally at its 10-dma and then dropped to a new two-year low. I am adjusting our stop loss down to $35.10.

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

02/08/14 new stop loss @ 35.10
02/06/14 new stop loss @ 35.55
02/03/14 triggered @ 34.60

chart:



GameStop Corp. - GME - close: 35.50 change: +0.15

Stop Loss: 36.10
Target(s): 31.00
Current Gain/Loss: + 0.3%

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:
02/08/14: GME managed a +0.4% gain on Friday but shares remain below short-term resistance at the $36.00 level. We are going to adjust our stop loss down to $36.10. 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

02/08/14 new stop loss @ 36.10
02/03/14 new stop loss @ 36.60
02/01/14 new stop loss @ 37.10
01/29/14 trigger @ 35.60

chart:



Voxeljet AG - VJET - close: 32.40 change: +1.05

Stop Loss: 34.35
Target(s): 25.25
Current Gain/Loss: - 4.5%

Entry on February 06 at $31.00
Listed on February 05, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 805 thousand
New Positions: see below

Comments:
02/08/14: VJET shot higher at the open on Friday but gains faded and the stock spent the rest of the session drifting sideways. The $34.00 level remains short-term overhead resistance. We're leaving our stop at $34.35 for now. More conservative traders might want to adjust their stop lower.

Earlier Comments:
Investors should note that this is an aggressive, higher-risk trade. There are already a lot of bears in this stock. The most recent data listed short interest in VJET at 2.39 million shares of the very, very small 4.27 million float. That's more than 55% of the float. Any good news could spark a very sharp pop in VJET. Therefore investors will want to strongly consider limiting their risk by trading with put options.

FYI: The Point & Figure chart for VJET is bearish with a $13.00 target.

*Small Positions to Limit Risk!*

current Position: short VJET stock @ $31.00

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

Long MAR $30 PUT (VJET1422o30) entry $3.45*

02/06/14 trade opened with gap down at $31.00
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Vitamin Shoppe, Inc. - VSI - close: 45.44 change: +0.99

Stop Loss: 46.05
Target(s): 41.00
Current Gain/Loss: + 0.9%

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:
02/08/14: Ouch! VSI has followed the stock market higher and the two-day bounce has erased nearly all of our potential gains so far. Look for potential resistance near $46.00. I am not suggesting new positions at this time.
(Note: more aggressive traders may want to move their stop just above $46.20 since the $46.20 level could also be overhead resistance.)

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

chart:



CLOSED BEARISH PLAYS

Best Buy Co. - BBY - close: 24.55 change: +0.84

Stop Loss: 24.55
Target(s): 20.25
Current Gain/Loss: - 1.1%

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:
02/08/14: The stock market's oversold bounce this past week was exaggerated thanks to short covering. Short covering probably helped BBY post a +3.5% gain on Friday. Shares pushed past short-term resistance near $24.00 and its 10-dma. Our stop loss was hit at $24.55.

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

*Small Positions*

closed Position: short BBY stock @ $24.29 exit $24.55 (-1.1%)

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

MAR $20 PUT (BBY1422o20) entry $0.45 exit $0.38 (-15.5%)

02/07/14 stopped out at $24.55
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

chart: