Editor's Note:
The market rally stalled a bit on Tuesday thanks in part to some disappointing economic data. The NAHB housing market index and New York Empire State fed survey both declined.

FSLR and SWI hit our entry triggers.
GALT hit our stop loss. PVA was closed.
We do want to exit our HPQ trade tomorrow.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 11.40 change: +0.03

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:
02/18/14: Shares of AA continue to consolidate sideways below short-term resistance near $11.50. We are waiting for a bullish move higher.

Earlier Comments:
AA shares have garnered some bullish analyst comments lately. 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)



Agios Pharmaceuticals - AGIO - close: 34.46 change: +2.44

Stop Loss: 29.75
Target(s): 39.00
Current Gain/Loss: + 9.5%

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:
02/18/14: AGIO was showing lots of strength today. With an intraday high of $35.34 the stock was up +10% midday. Shares pared those gains to +7.6% at the close. More conservative traders may want to take some money off the table know.

I am not suggesting new positions at this time.

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

02/13/14 new stop loss @ 29.75
02/11/14 trade opens at $31.48



First Solar, Inc. - FSLR - close: 56.86 change: +3.69

Stop Loss: 49.85
Target(s): 59.75
Current Gain/Loss: + 5.8%

Entry on February 18 at $53.75
Listed on February 13, 2014
Time Frame: Exit PRIOR to earnings on Feb 25th
Average Daily Volume = 3.1 million
New Positions: see below

Comments:
02/18/14: FSLR is another big winner today. The stock gapped open higher at $53.68 and then surged to a +7% gain. Our trigger was hit this morning at $53.75. We are raising the stop loss to $52.45. I am not suggesting new positions at current levels.

FYI: FSLR will report earnings on Feb. 25th.

Earlier Comments:
A breakout higher could spark some short covering. The most recent data listed short interest at 23% of the 72.5 million share float. Solar energy stocks like FSLR can be volatile so I am suggesting small positions to limit our risk. This could be a short-term trade. We plan to exit ahead of FSLR's earnings report. FSLR is starting to bounce from support on its Point & Figure chart. Currently the chart is still bearish but a move above $53.00 would produce a new buy signal (update: new buy signal suggest a $64 target).

*small positions*

current Position: long FSLR stock @ $53.75

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

Long MAR $55 call (FSLR1422C55) entry $4.30

02/18/14 triggered @ 53.75



Hewlett-Packard Co. - HPQ - close: 29.58 change: -0.44

Stop Loss: 28.90
Target(s): TBD
Current Gain/Loss: + 3.7%

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:
02/18/14: We have run out of time on our HPQ trade. The plan is to exit tomorrow (Feb. 19th) at the closing bell to avoid holding over HPQ's earnings report on Thursday.

current Position: long HPQ stock @ $28.53

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

Long Mar $30 call (HPQ1422C30) entry $0.96

02/18/14 prepare to exit tomorrow at the closing bell
02/15/14 new stop loss @ 28.90
02/13/14 new stop loss @ 28.55
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: 58.49 change: +0.34

Stop Loss: 55.45
Target(s): 59.75
Current Gain/Loss: + 4.0%

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:
02/18/14: The rally just won't stop in JPM. Shares are now up ten days in a row. Odds are growing every day for a minor pullback. Broken resistance in the $56.50 area could be support. I am not suggesting new positions.

current Position: Long JPM stock @ $56.25

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

Long MAR $55 call (JPM1422C55) entry $2.53

02/13/14 new stop loss @ 55.45
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



Insulet Corp. - PODD - close: 44.63 change: +0.15

Stop Loss: 42.95
Target(s): 49.85
Current Gain/Loss: - 1.2%

Entry on February 13 at $45.15
Listed on February 12, 2014
Time Frame: Exit PRIOR to earnings on Feb. 27th
Average Daily Volume = 687 thousand
New Positions: see below

Comments:
02/18/14: Most of the market delivered a quiet session on Tuesday and PODD was one of those stocks. Shares just drifted sideways. Broken resistance near $44.00 should offer some support. Traders can use a dip or a bounce near $44.00 as a new entry point.

Earlier Comments:
A move past $45 could spark more short covering. The most recent data listed short interest at 17% of the 51.3 million-share float. Our target is $49.85. We will plan to exit prior to earnings, which are expected in late February, possibly early March. There is no confirmed date yet.

*small positions*

current Position: long PODD stock @ $45.15

02/13/14 triggered $ 45.15



SolarWinds, Inc. - SWI - close: 44.46 change: +0.42

Stop Loss: 42.45
Target(s): 49.50
Current Gain/Loss: - 0.1%

Entry on February 18 at $44.50
Listed on February 15, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.27 million
New Positions: see below

Comments:
02/18/14: The rally in SWI continues with a +0.9% gain and a close above its simple 300-dma. Our suggested trigger to launch positions was hit at $44.50.

Earlier Comments:
Our target is $49.50. More aggressive traders or those with a longer time frame may want to aim higher since the Point & Figure chart for SWI is bullish with a $63.00 target.

current Position: long SWI stock @ $44.50

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

Long MAR $45 call (SWI1422C45) entry $1.45

02/18/14 entry trigger hit at $44.50



BEARISH Play Updates

Nuance Communications - NUAN - close: 15.19 change: +0.38

Stop Loss: 15.25
Target(s): 13.05
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 15, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 5.7 million
New Positions: Yes, see below

Comments:
02/18/14: Shares of NUAN did not cooperate today as the stock rallied +2.5%. If this bounce continues tomorrow then we'll likely remove NUAN as a candidate.

Our suggested entry point is $14.45.

Earlier Comments:
Traders should note that activist investor Carl Icahn has a significant stake in NUAN. It was first disclosed back in April 2013 that he had a 9.3% stake in the company. By December 31st his stake had risen to 24%. Carl has a much longer time frame than we do but if more headlines surface about his involvement or him buying more shares it could spark another pop in NUAN's stock price. Therefore I am suggesting we use small positions to limit our risk.

Tonight we're suggesting a trigger to open bearish positions at $14.45, just below Thursday's low. If triggered our target is $13.05. More aggressive traders may want to aim lower. The Point & Figure chart for NUAN is bearish with a $5.50 target.

Trigger @ 14.45

Suggested Position: short NUAN stock @ (trigger)

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

Buy the MAR $14 PUT (NUAN1422o14)





CLOSED BULLISH PLAYS

Galectin Therapeutics - GALT - close: 15.46 change: +0.64

Stop Loss: 14.75
Target(s): 17.75
Current Gain/Loss: + 2.8%

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:
02/18/14: GALT displayed relative strength today with a +4.3% gain. Unfortunately the rally occurred after GALT had dipped to its 10-dma and hit our stop loss at $14.75 along the way.

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.)

closed Position: Long GALT stock @ $14.35 exit $14.75 (+2.8%)

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

chart:



Penn Virginia Corp. - PVA - close: 13.20 change: +0.40

Stop Loss: 12.25
Target(s): 17.00
Current Gain/Loss: + 5.2%

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:
02/18/14: We were lucky with our PVA exit. The plan was to exit positions today at the closing bell. Shares displayed relative strength with a +3.1% gain.

closed Position: Long PVA stock @ $12.55 exit $13.20 (+5.2%)

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

Mar $12.50 call (PVA1422C12.5) entry $1.10 exit $1.25 (+13.6%)

02/18/14 planned exit at the closing bell
02/15/14 new stop loss @ 12.25, prepare to exit on Tuesday at the closing bell
02/13/14 new stop loss @ 11.95
02/12/14 new stop loss @ 11.75
02/06/14 new stop loss @ 11.45
02/03/14 triggered at $12.55

chart: