Editor's Note:
Thursday's market was a relatively quiet one with the major indices not seeing a lot of movement.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 11.27 change: -0.06

Stop Loss: 10.80
Target(s): 12.95
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 11, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 39 million
New Positions: Yes, see below

Comments:
02/12/14: AA's rally continued for a little while this morning before peaking at $11.48. The stock eventually faded to a -0.5% decline. Overall I don't see any changes from our new play description from Tuesday night.

Earlier Comments:
AA shares have garnered some bullish analyst comments lately. Just today Barron's ran an article on AA discussing how Goldman Sachs is bullish on AA and is forecasting +30% upside in the next six months for the stock. Essentially Goldman expects AA to benefit from rising aluminum demand from the automobile and aerospace industries.

We like the bullish trend of higher lows. I am suggesting a trigger to launch bullish positions at $11.55. If triggered our multi-week target is $12.95.
FYI: The Point & Figure chart for AA is very bullish with a $20.00 target.

Trigger @ 11.55

Suggested Position: buy AA stock @ (trigger)

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

Buy the APR $12 call (AA1419D12)



Adobe Systems - ADBE - close: 65.14 change: +1.17

Stop Loss: 61.65
Target(s): 68.00
Current Gain/Loss: +4.6%

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:
02/12/14: ADBE continues to impress with another gain. The stock outperformed the major indices with a +1.8% gain today, marking its seventh daily gain in a row. I am concerned that ADBE is growing short-term overbought and due for a dip. We're not suggesting new positions at this time. More conservative traders may want to take some money off the table, especially if you're holding the March calls.

Please note our new stop loss at $61.65.

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

02/12/14 new stop loss @ 61.65
02/10/14 new stop loss @ 60.95
02/07/14 triggered @ 62.25



Agios Pharmaceuticals - AGIO - close: 31.19 change: -0.15

Stop Loss: 27.45
Target(s): 39.00
Current Gain/Loss: - 0.9%

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:
02/12/14: AGIO delivered a quiet session on less than half its normal volume. The low today was $30.64. 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: 23.23 change: -0.10

Stop Loss: 22.85
Target(s): 27.50
Current Gain/Loss: -3.8%

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:
02/12/14: DHI is still not cooperating and lost another -0.4%. Shares are hovering just above what appears to be short-term support near $23.00.

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: 16.17 change: +0.71

Stop Loss: 14.75
Target(s): 17.75
Current Gain/Loss: +12.7%

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:
02/12/14: It was a rocky day for GALT but traders bought the dip near $15.00 and shares close near their highs with a +4.5% gain. I am raising or stop loss up to $14.75. More conservative investors may want to lock in gains now.

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

02/12/14 new stop loss @ 14.75
02/10/14 new stop loss @ 13.85
02/10/14 triggered @ 14.35



Hewlett-Packard Co. - HPQ - close: 29.42 change: +0.06

Stop Loss: 28.45
Target(s): TBD
Current Gain/Loss: + 3.1%

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:
02/12/14: HPQ pared its gains after a sharp pullback this afternoon. We are down to one week left on this trade. I am raising our stop loss $28.45.

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

02/12/14 new stop loss @ 28.45
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: 57.52 change: +0.09

Stop Loss: 54.90
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:
02/12/14: JPM spent Wednesday's session consolidating sideways in a narrow range, which isn't necessarily a bad thing. Don't forget that we moved the stop loss to $54.90 yesterday. There was a typo in last night's newsletter. More conservative traders might want to consider a stop closer to $55.50 or even $56.00 instead.

current Position: Long JPM stock @ $56.25

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

Long MAR $55 call (JPM1422C55) entry $2.53

02/11/14 new stop loss @ 54.90
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: 12.69 change: +0.23

Stop Loss: 11.75
Target(s): 17.00
Current Gain/Loss: + 1.1%

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:
02/12/14: The slow churn higher in PVA continues. Today was an up day with PVA closing near the top of its churn with a +1.8% gain. I am raising our stop loss to $11.75. 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

02/12/14 new stop loss @ 11.75
02/06/14 new stop loss @ 11.45
02/03/14 triggered at $12.55



BEARISH Play Updates

The Fresh Market, Inc. - TFM - close: 34.56 change: +0.49

Stop Loss: 34.85
Target(s): 30.25
Current Gain/Loss: + 0.1%

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:
02/12/14: TFM came super close to hitting our new stop loss today. Yesterday we moved the stop down to $34.85. Today the intraday high was $34.81. Fortunately TFM looks poised to move lower tomorrow. After the closing bell tonight TFM's rival Whole Foods (WFM) reported earnings that missed estimates and WFM's management lowered their 2014 guidance. Shares of WFM are down about -$5.00 in after hours near $51.30 a share. That is weighing on shares of TFM, which are trading down about 75 cents in after hours.

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