Editor's Note:
The stock market's big rebound from its February lows stalled a bit on Friday.

TXTR hit our entry trigger. NUAN has been removed. PODD was stopped out.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 11.73 change: -0.05

Stop Loss: 11.25
Target(s): 12.95
Current Gain/Loss: + 1.6%

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:
02/22/14: AA posted big gains last week but shares struggled on Friday to build on the rally. The stock seems to be failing under the three-week trend of lower highs (see chart). I suspect we will see AA retest the $11.50 area, which should be new support. I am raising our stop loss to $11.25.

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

02/22/14 new stop loss @ 11.25
02/19/14 triggered at $11.55

chart:



Agios Pharmaceuticals - AGIO - close: 31.97 change: -0.59

Stop Loss: 29.75
Target(s): 39.00
Current Gain/Loss: + 1.6%

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:
02/22/14: AGIO's recent performance has been a bit worrisome. Friday saw the biotech indices and ETFs rally to new all-time highs. Yet AGIO has stalled after failing near $35.00 a few days ago.

I am suggesting caution here. We're 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

chart:



Dunkin' Brands Group - DNKN - close: 50.02 change: -0.49

Stop Loss: 48.40
Target(s): 57.50
Current Gain/Loss: - 1.2%

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:
02/22/14: DNKN's performance on Friday is a bit ominous. Shares created a bearish engulfing candlestick reversal pattern. If DNKN confirms this reversal then I would expect a pullback toward $48.00. That would not be good news since our stop loss is at $48.40.

I am not suggesting new positions at this time.

Earlier Comments:
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.

chart:



First Solar, Inc. - FSLR - close: 55.93 change: -0.95

Stop Loss: 54.90
Target(s): 59.75
Current Gain/Loss: + 4.1%

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:
02/22/14: FSLR pared its gains for the week with a -1.6% decline on Friday. What worries me is that Friday's performance also created a bearish engulfing candlestick reversal pattern.

Our trade is almost over. We were planning to exit on Monday at the closing bell. More conservative traders may want to just exit immediately (Monday morning). We do not want to hold over the earnings report on Tuesday.

I am moving our stop loss up to $54.90.

*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

02/22/14 new stop loss @ 54.90, exit on Monday at the close
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

chart:



Flotek Industries - FTK - close: 24.27 change: -0.10

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:
02/22/14: FTK spent the week consolidating sideways inside the $24-25 zone. Shares are currently testing short-term support at their 10-dma. If FTK doesn't cooperate soon we'll drop it.

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)

chart:



JPMorgan Chase & Co - JPM - close: 57.61 change: +0.03

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:
02/22/14: After Wednesday's pullback JPM has spent the last couple of days just drifting sideways. If the market retreats this week then odds are good we'll see JPM testing support near $56.00-56.50. 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

chart:



SolarWinds, Inc. - SWI - close: 45.28 change: -0.12

Stop Loss: 43.45
Target(s): 49.50
Current Gain/Loss: + 1.8%

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:
02/22/14: SWI extended its gains to three weeks in a row. Shares do look a little bit short-term overbought. I would not be surprised to see a dip back toward the $44.50-44.00 zone. A dip or a bounce in that area could be used as a new entry point.

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

chart:



BEARISH Play Updates

GW Pharmaceuticals - GWPH - close: 56.26 change: -1.19

Stop Loss: 61.05
Target(s): 47.50
Current Gain/Loss: + 0.9%

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:
02/22/14: Good news! There was no follow through on Thursday's intraday bounce in GWPH. The stock reversed and underperformed the market with a -2.0% drop on Friday. More conservative traders might want to adjust their stop loss lower.

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

chart:



Textura Corp. - TXTR - close: 24.99 change: -0.68

Stop Loss: 27.05
Target(s): 20.25
Current Gain/Loss: - 0.6%

Entry on February 21 at $24.85
Listed on February 20, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 617 thousand
New Positions: see below

Comments:
02/22/14: Our new play on TXTR has been triggered. Shares continued to sink and broke down to new multi-month lows and below round-number support at $25.00. Our trigger to open bearish positions was hit at $24.85.

Earlier Comments:
We should consider this a higher-risk, more aggressive trade. The most recent data listed short interest at 33% of the very small float of only 21.8 million shares. That does pose a risk of a short squeeze. Traders will want to seriously consider limiting their risk by using put options (your risk is limited to the amount you paid for the option).

*small positions, consider using the option!*

current Position: short TXTR stock @ $24.85

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

Long MAR $25 PUT (TXTR1422o25) entry $2.25

02/21/14 triggered @ $24.85
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Telefonica Brasil, S.A. - VIV - close: 18.20 change: +0.18

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:
02/22/14: VIV has bounced back toward what should be short-term resistance in the $18.40-18.50 zone. A failure here could be used as an alternative entry point. We're currently suggested a trigger to launch positions at $17.70.

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)

chart:




CLOSED BULLISH PLAYS

Insulet Corp. - PODD - close: 44.97 change: -0.53

Stop Loss: 43.90
Target(s): 49.85
Current Gain/Loss: - 2.8%

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:
02/22/14: PODD was looking strong on Thursday and closed at new highs. In the Thursday night newsletter we raised our stop loss to $43.90. Then on Friday morning the stock was downgraded. Shares spiked down to $43.86 before paring its losses. Sometimes the market just does not want to cooperate.

*small positions*

closed Position: long PODD stock @ $45.15 exit $43.90 (-2.8%)

02/21/14 stopped out
02/20/14 new stop loss @ 43.90
02/13/14 triggered $ 45.15

chart:



CLOSED BEARISH PLAYS

Nuance Communications - NUAN - close: 15.07 change: -0.08

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: see below

Comments:
02/22/14: We are removing NUAN as a candidate. Our trade did not open. However, readers may want to keep NUAN on their watch list. The big picture trend for NUAN is still down. A drop below the February low could be used as an entry point for a run towards the late 2013 low near $13.00.

Trade did not open.

02/22/14 removed from the newsletter. Trade did not open. Suggested entry point was $14.45.

chart: