Editor's Note:
Most of the major U.S. indices still managed gains on Monday but momentum definitely stalled. Market participants are waiting to hear from Janet Yellen in her first appearance before congress as the news Federal Reserve Chairman tomorrow.

DHI and GALT hit our entry triggers.
GME and VJET hit our stop losses.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 63.78 change: +0.90

Stop Loss: 60.95
Target(s): 68.00
Current Gain/Loss: +2.5%

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:
02/10/14: The upward momentum in shares of ADBE continued on Monday with another +1.4% gain and another record high. The stock is now up five days in a row and growing short-term overbought.

We are moving our stop loss to $60.95. Broken resistance near $62.00 should offer some support so more conservative traders may want to move their stop closer to $62.00 instead.

I am not suggesting new positions at this time.

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

02/10/14 new stop loss @ 60.95
02/07/14 triggered @ 62.25



DR Horton Inc. - DHI - close: 23.55 change: -0.34

Stop Loss: 22.85
Target(s): 27.50
Current Gain/Loss: -2.5%

Entry on February 10 at $24.15
Listed on February 08, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.1 million
New Positions: see below

Comments:
02/10/14: Our new DHI trade is not off to the best start. Shares spiked higher this morning, hit our suggested entry point at $24.15, and then almost immediately reversed lower. That can be frustrating. Nimble traders could watch for a bounce near its rising 10-dma (currently near $23.20) as an alternative entry point. Otherwise I would wait for a new relative high, above today's $24.17, before initiating positions.

Earlier Comments:
Currently DHI is hovering just below resistance near $24.00. A breakout could spark some short covering. The most recent data listed short interest at 18% of the 264 million-share float. Our multi-week target is $27.50. The Point & Figure chart for DHI is bullish with a $28.00 target.

current Position: Long DHI stock @ $24.15

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

Long MAR $24 call (DHI1422C24) entry $1.25

02/10/14 triggered @ 24.15



Galectin Therapeutics - GALT - close: 15.96 change: +2.05

Stop Loss: 13.85
Target(s): 17.75
Current Gain/Loss: +11.2%

Entry on February 10 at $14.35
Listed on February 08, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 994 thousand
New Positions: see below

Comments:
02/10/14: Our new play on GALT is off to a great start. This morning an analyst reiterated their "buy" rating on GALT and raised their price target from $16 to $32. Shares exploded by gapping open higher at $13.98 and then running to an intraday high of $16.70. The stock settled with a +14.7% gain. Our entry trigger was hit this morning at $14.35.

I am not suggesting new positions at this time. We will raise our stop loss to $13.85.

Earlier Comments:
We want to use small positions to limit our risk. Our short-term target is $17.75. More aggressive investors may want to aim higher. The Point & Figure chart for GALT is bullish with a long-term $37.00 target.
(NOTE: Investors may want to consider using options to limit their risk.)

current Position: Long GALT stock @ $14.35

02/10/14 new stop loss @ 13.85
02/10/14 triggered @ 14.35



Hewlett-Packard Co. - HPQ - close: 28.81 change: -0.26

Stop Loss: 27.80
Target(s): TBD
Current Gain/Loss: + 1.0%

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:
02/10/14: We are running low on time for our HPQ trade to work. Earnings are coming up on Feb. 20th and we do not want to hold over the announcement.

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: 56.74 change: +0.12

Stop Loss: 53.90
Target(s): 59.75
Current Gain/Loss: + 0.9%

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:
02/10/14: Shares of JPM were upgraded this morning but the news had little impact on the price today. The financial sector drifted sideways as market participants wait to hear from the new Federal Reserve Chairman Janet Yellen as she speaks to congress tomorrow.

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



Penn Virginia Corp. - PVA - close: 12.32 change: -0.30

Stop Loss: 11.45
Target(s): 17.00
Current Gain/Loss: - 1.8%

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:
02/10/14: The volatility in PVA continues. Today saw shares dip to their simple 10-dma before paring losses and closing with a -2.3% decline.

We have less than nine days left for this trade to work. The plan is to exit ahead of earnings on the 19th.

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



BEARISH Play Updates

Lowe's Companies - LOW - close: 46.12 change: +0.05

Stop Loss: 46.85
Target(s): 40.15
Current Gain/Loss: -2.9%

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:
02/10/14: Monday was another quiet session for LOW. I don't see any changes from my prior comments. 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



The Fresh Market, Inc. - TFM - close: 33.58 change: -0.13

Stop Loss: 35.10
Target(s): 30.25
Current Gain/Loss: + 2.9%

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:
02/10/14: It was another good day for TFM bears with the stock failing to bounce back above the $34.00 level, which looks like short-term resistance.

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



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

Stop Loss: 46.05
Target(s): 41.00
Current Gain/Loss: + 1.5%

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:
02/10/14: Monday turned out to be a quiet day for VSI with shares drifting sideways. Thanks to a gap down at the open and a very minor drift higher VSI underperformed the market with a -0.6% loss. 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



CLOSED BEARISH PLAYS

GameStop Corp. - GME - close: 36.42 change: +0.92

Stop Loss: 36.10
Target(s): 31.00
Current Gain/Loss: - 1.4%

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:
02/10/14: Our GME trade has been stopped out at $36.10. The oversold bounce continued with its fifth gain in a row. Shares managed to push past short-term resistance near $36.00.

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.

closed Position: short GME stock @ $35.60 exit $36.10 (-1.4%)

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

MAR $35 PUT (GME1422o35) entry $1.65 exit $1.30* (-21.2%)

02/10/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
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: 34.97 change: +2.57

Stop Loss: 34.35
Target(s): 25.25
Current Gain/Loss: -10.8%

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:
02/10/14: Our aggressive trade on VJET did not work. The German market did not have a big day. VJET didn't have any specific headlines to explain today's rally. Rival 3D stocks like DDD and SSYS did not see big moves. Yet XONE delivered a big bounce of +6.3% but again on no news. We can't explain what was likely short covering in VJET today. Our stop was hit at $34.35.

Earlier Comments:
Investors should note that this is an aggressive, higher-risk trade.

*Small Positions to Limit Risk!*

closed Position: short VJET stock @ $31.00 exit $34.35 (-10.8%)

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

MAR $30 PUT (VJET1422o30) entry $3.45* exit $1.90** (-44.9%)

02/10/14 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
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: