Editor's Note:
The new Fed Chairman Janet Yellen seemed to echo her predecessor Mr. Bernanke during her testimony before congress today. The market rejoiced with a widespread rally.

LOW and VSI hit our stops.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 63.97 change: +0.19

Stop Loss: 60.95
Target(s): 68.00
Current Gain/Loss: +2.8%

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:
02/11/14: ADBE has stretched its gains to six days in a row. The stock got a boost today after an analyst raised their price target to $80. There is a chance that ADBE is poised for a pullback after nearing potential round-number resistance at $65.00 this morning. Do not be surprised to see a dip toward $62.00, which should be new support.

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



Agios Pharmaceuticals - AGIO - close: 31.34 change: +0.01

Stop Loss: 27.45
Target(s): 39.00
Current Gain/Loss: - 0.4%

Entry on February 11 at $31.48
Listed on February 10, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 380 thousand
New Positions: see below

Comments:
02/11/14: AGIO's performance today was a bit disappointing. The stock opened at $31.48, rallied to almost $33.00, and then reversed to close virtually unchanged on the session. The move today looks like a possible short-term top on a session when most of the market rallied higher. That's not very inspiring. Traders may want to wait and see if AGIO retests and bounces from the $30.00 mark before initiating new positions.

Earlier Comments:
Further strength could spark more short covering. The most recent data listed short interest at 19% of the very small 11.0 million share float. Due to AGIO's volatility I am suggesting small positions to limit risk.

*Small positions to limit risk!*

current Position: long AGIO stock @ $31.48

02/11/14 trade opens at $31.48



DR Horton Inc. - DHI - close: 23.33 change: -0.22

Stop Loss: 22.85
Target(s): 27.50
Current Gain/Loss: -3.4%

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:
02/11/14: I am really starting to worry about our DHI trade. The stock has underperformed the market two days in a row. Looking at some of the other homebuilders their performance today was all over the map. DHI dipped to and briefly pierced short-term support at its 10-dma.

I am suggesting investors wait for a new relative high above $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: 15.46 change: -0.50

Stop Loss: 13.85
Target(s): 17.75
Current Gain/Loss: + 7.7%

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:
02/11/14: After huge gains yesterday shares of GALT saw some profit taking today. I am not suggesting new positions at this time.

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: 29.36 change: +0.55

Stop Loss: 27.80
Target(s): TBD
Current Gain/Loss: + 2.9%

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:
02/11/14: HPQ displayed some relative strength with a +1.9% gain. The stock could be testing resistance near $30.00 soon. I am not suggesting new positions. 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: 57.43 change: +0.69

Stop Loss: 53.90
Target(s): 59.75
Current Gain/Loss: + 2.1%

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:
02/11/14: JPM delivered a bullish session with a +1.2% gain and a breakout past its 50-dma. We are adjusting our stop loss higher to $54.90. I am not suggesting new positions. The $57.50-58.00 zone is potential resistance.

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: 12.46 change: +0.14

Stop Loss: 11.45
Target(s): 17.00
Current Gain/Loss: - 0.7%

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:
02/11/14: PVA is still drifting higher and closed with a +1.1% gain, in-line with the broader market. More conservative traders may want to tighten their stop loss. I am not suggesting new positions.

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

The Fresh Market, Inc. - TFM - close: 34.07 change: +0.49

Stop Loss: 34.85
Target(s): 30.25
Current Gain/Loss: + 1.5%

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:
02/11/14: The stock market's broad-based bounce today helped TFM rebound to the tune of +1.45%. It is worth noting that the rally failed at its 10-dma again. We are going to turn more defensive here and adjust the stop loss down to $34.85. TFM should have short-term overhead resistance near $34.75.

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

02/11/14 new stop loss @ 34.85
02/08/14 new stop loss @ 35.10
02/06/14 new stop loss @ 35.55
02/03/14 triggered @ 34.60



CLOSED BEARISH PLAYS

Lowe's Companies - LOW - close: 46.76 change: +0.64

Stop Loss: 46.85
Target(s): 40.15
Current Gain/Loss: -4.5%

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:
02/11/14: Another day of widespread market gains helped LOW push higher. Shares outperformed the market with a +1.3% gain and hit our stop loss at $46.85 intraday.

closed Position: short LOW stock @ $44.82 exit $46.85 (-4.5%)

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

MAR $45 PUT (LOW1422o45) entry $1.80 exit $0.85 (-52.7%)

02/11/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
02/07/14 downgraded by Goldman Sachs
02/05/14 trade opens at $44.82

chart:



Vitamin Shoppe, Inc. - VSI - close: 45.90 change: +0.75

Stop Loss: 46.05
Target(s): 41.00
Current Gain/Loss: - 0.4%

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:
02/11/14: VSI saw an intraday spike early this afternoon. Shares traded just high enough to hit $46.05, which happens to be our stop loss. The rally faded by the closing and VSI closed virtually unchanged on the session. I'm still bearish on VSI but officially our trade is closed.

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*

closed Position: short VSI stock @ $45.85 exit $46.05 (-0.4%)

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

Feb $45 PUT (VSI1422N45) entry $1.62 exit $0.75 (-53.7%)

02/11/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
02/03/14 new stop loss @ 46.05
01/29/14 new stop loss @ 46.55
01/24/14 triggered @ $45.85

chart: