Editor's Note:
The U.S. market managed to shrug off bearish economic data out of China and disappointing earnings and guidance from retail giant Wal-mart (WMT).

GWPH hit our entry trigger.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 11.78 change: +0.02

Stop Loss: 10.80
Target(s): 12.95
Current Gain/Loss: + 2.0%

Entry on February 19 at $11.55
Listed on February 11, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 39 million
New Positions: Yes, see below

Comments:
02/20/14: After yesterday's big rally in AA the stock took some time off today to consolidate sideways. Broken resistance near $11.50 should offer some new support.

Earlier Comments:
Our multi-week target is $12.95. The Point & Figure chart for AA is very bullish with a $20.00 target.

current Position: Long AA stock @ $11.55

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

Long APR $12 call (AA1419D12) entry $0.47

02/19/14 triggered at $11.55



Agios Pharmaceuticals - AGIO - close: 32.56 change: +0.31

Stop Loss: 29.75
Target(s): 39.00
Current Gain/Loss: + 3.4%

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:
02/20/14: AGIO dipped down and tested short-term technical support at its rising 10-dma this morning. The stock bounced and managed to outperform with a +0.9% gain.

More conservative traders may want to raise their stop loss toward $31.00. 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



Dunkin' Brands Group - DNKN - close: 50.51 change: +0.34

Stop Loss: 48.40
Target(s): 57.50
Current Gain/Loss: - 0.3%

Entry on February 19 at $50.65
Listed on February 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
02/20/14: DNKN kept pace with the market's bounce today with a +0.6% gain. There is no change from my prior comments last night. Traders may want to either wait for a new high above $50.80 or look for a potential dip near its rising 10-dma as alternative entry points.

FYI: The Point & Figure chart for DNKN is bullish with a $60.00 target.

current Position: long DNKN stock @ $50.65

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

Long MAR $50 call (DNKN1422C50) entry $1.50*

02/19/14 triggered @ 50.65
*option entry price is an estimate since the option did not trade at the time our play was opened.



First Solar, Inc. - FSLR - close: 56.88 change: +0.91

Stop Loss: 54.75
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:
02/20/14: We are almost out of time on this FSLR trade. The company is scheduled to report earnings on Tuesday, February 25th. Traders may want to exit tomorrow. I am suggesting we plan to exit on Monday. Tonight we'll raise the stop loss to $54.75.

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

02/20/14 new stop loss @ 54.75, prepare to exit on Monday, Feb. 24th
02/18/14 new stop loss @ 52.45
02/18/14 triggered @ 53.75



Flotek Industries - FTK - close: 24.37 change: +0.23

Stop Loss: 23.95
Target(s): 29.75
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 976 thousand
New Positions: Yes, see below

Comments:
02/20/14: There is no change from my prior comments on FTK. We're waiting for a breakout past resistance near $25.00.

Earlier Comments:
I am suggesting small bullish positions if FTK can trade at $25.15. If triggered our target is $29.75.
FYI: The Point & Figure chart for FTK is bullish with a $31.00 target.

Trigger @ 25.15 *small positions*

Suggested Position: buy FTK stock @ (trigger)

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

Buy the Mar $25 call (FTK1422C25)



JPMorgan Chase & Co - JPM - close: 57.58 change: +0.32

Stop Loss: 55.45
Target(s): 59.75
Current Gain/Loss: + 2.4%

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:
02/20/14: JPM bounced from its 50-dma but I am not convinced the profit taking is over yet. 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: 45.50 change: +0.83

Stop Loss: 43.90
Target(s): 49.85
Current Gain/Loss: + 0.8%

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:
02/20/14: PODD is looking strong with a +1.8% gain and a new closing high. Keep in mind that we don't have much time left and plan to exit prior to earnings next week on February 27th.

We are adjusting the stop loss to $43.90.

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

02/20/14 new stop loss @ 43.90
02/13/14 triggered $ 45.15



SolarWinds, Inc. - SWI - close: 45.40 change: +0.95

Stop Loss: 43.45
Target(s): 49.50
Current Gain/Loss: + 2.0%

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:
02/20/14: The bullish momentum in SWI continued with a +2.1% gain and a new multi-month high. I am raising the stop loss to $43.45.

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

02/20/14 new stop loss @ 43.45
02/18/14 entry trigger hit at $44.50



BEARISH Play Updates

GW Pharmaceuticals - GWPH - close: 57.45 change: +0.01

Stop Loss: 61.05
Target(s): 47.50
Current Gain/Loss: - 1.2%

Entry on February 20 at $56.75
Listed on February 19, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 335 thousand
New Positions: see below

Comments:
02/20/14: I need to urge caution on our new GWPH trade. The stock hit our trigger this morning but shares are not cooperating. After the ten o'clock hour this morning shares of GWPH saw a brief spike down to $52.00 and just as quickly recovered. Our trade had already been triggered earlier in the day. I didn't find any specific catalyst for the midmorning plunge. The bounce back is what concerns me. The sharp sell-off and rebound back to positive territory looks like a potential short-term bottom. I am not suggesting new positions at this time.

Earlier Comments:
This is an aggressive, higher risk trade because GWPH can be volatile.

*small positions*

current Position: short GWPH stock @ $56.75

02/20/14 triggered @ 56.75



Nuance Communications - NUAN - close: 15.15 change: +0.12

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:
02/20/14: NUAN found support again near $15.00 today. If shares do not show relative weakness tomorrow then we will drop it as a bearish candidate in the weekend newsletter.

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)



Telefonica Brasil, S.A. - VIV - close: 18.02 change: +0.05

Stop Loss: 18.80
Target(s): 15.25
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 19, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.9 million
New Positions: Yes, see below

Comments:
02/20/14: VIV did not see any follow through on yesterday's weakness. The stock managed a meager bounce. I don't see any changes from our Wednesday night new play description.

Earlier Comments:
VIV is a telecommunication company in Brazil. The stock appears to be in a slow decline since its 2011 peak. Although it looks like the decline is picking up speed. Shares have been underperforming the last couple of days and shares tagged a new multi-year low today. VIV is trying to hold support near $18.00 and its December 2013 low. A breakdown here could signal a drop toward $16 or lower.

I am suggesting a trigger at $17.70 to open bearish positions. Our target is $15.25. The Point & Figure chart for VIV is bearish with a $12.00 target.

Trigger @ 17.70

Suggested Position: short VIV stock @ (trigger)