Editor's Note:
The large cap S&P 500 index and the small cap Russell 2000 index are both stalling at resistance.

Our plan was to exit AGIO at the open this morning. We want to exit JPM at the open tomorrow morning. GWPH and RAX were both stopped out today.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 11.62 change: -0.15

Stop Loss: 11.25
Target(s): 12.95
Current Gain/Loss: + 0.6%

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: see below

Comments:
02/25/14: AA underperformed the market today with a -1.2% decline. The stock looks like it is headed back toward the $11.50 area, which should offer some short-term 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

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



American Airlines Group - AAL - close: 37.00 change: +0.35

Stop Loss: 34.45
Target(s): 39.85
Current Gain/Loss: + 1.4%

Entry on February 24 at $36.50
Listed on February 20, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 13.3 million
New Positions: see below

Comments:
02/25/14: Airlines stocks continue to show relative strength and AAL hit a new relative high with today's +0.9% gain. More conservative traders may want to adjust their stop loss higher.

current Position: Long AAL stock @ $36.50

02/24/14 triggered @ 36.50



Dunkin' Brands Group - DNKN - close: 51.48 change: +0.89

Stop Loss: 49.75
Target(s): 57.50
Current Gain/Loss: + 1.6%

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:
02/25/14: DNKN was a strong performer today with a +1.75% gain to new highs. I didn't see any specific news to explain today's show of strength. We will raise the stop loss to $49.75.

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*

02/25/14 new stop @ 49.75
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.



Flotek Industries - FTK - close: 24.97 change: -0.25

Stop Loss: 23.95
Target(s): 29.75
Current Gain/Loss: - 0.7%

Entry on February 24 at $25.15
Listed on February 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 976 thousand
New Positions: see below

Comments:
02/25/14: FTK hit some profit taking today (-0.99%) after yesterday's big gains. Looking at the intraday chart, readers may want to wait for a new rally above $25.25 before initiating new positions.

Earlier Comments:

FYI: The Point & Figure chart for FTK is bullish with a $31.00 target.

*small positions*

current Position: long FTK stock @ $25.15

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

Long Mar $25 call (FTK1422C25) entry $0.90*

02/24/14 triggered @ $25.15
*option entry price is an estimate since the option did not trade at the time our play was opened.



JPMorgan Chase & Co - JPM - close: 57.03 change: -1.00

Stop Loss: 55.45
Target(s): 59.75
Current Gain/Loss: + 1.4%

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:
02/25/14: Investors were not happy with the tone of JPM's analyst meeting today. The stock underperformed its peers in the financial sector with a -1.7% drop and a breakdown below its 50-dma. We are suggesting an immediate exit tomorrow morning.

current Position: Long JPM stock @ $56.25

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

Long MAR $55 call (JPM1422C55) entry $2.53

02/25/14 prepare to exit tomorrow morning
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



SolarWinds, Inc. - SWI - close: 45.74 change: +0.48

Stop Loss: 43.45
Target(s): 49.50
Current Gain/Loss: + 2.8%

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:
02/25/14: I was a bit surprised by the relative strength in SWI today. Shares looked ready to retreat toward the $44 level. Yet this morning the stock bounced at $45.00 and outperformed the market with a +1.0% gain.

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

Eaton Vance - EV - close: 36.78 change: -0.34

Stop Loss: 37.05
Target(s): 30.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 20, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: Yes, see below

Comments:
02/25/14: EV looks like it might be rolling over beneath its 20-dma.

Earlier Comments:
The February 5th low was $35.59. I am suggesting a trigger to open bearish positions at $35.50. If triggered our target is $30.50. The Point & Figure chart for EV is bearish with a $28.00 target.

Trigger @ 35.50

Suggested Position: short EV stock @ (trigger)



Harsco Corp. - HSC - close: 25.12 change: +0.43

Stop Loss: 25.40
Target(s): 21.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 24, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 447 thousand
New Positions: Yes, see below

Comments:
02/25/14: Shares of HSC were upgraded this morning and the stock gapped open higher on this news. HSC managed to gain +1.7% but failed to breakout past its 200-dma. Nothing has changed for us.

I am suggesting a trigger to launch bearish positions at $24.40. If triggered our target is $21.50. I do expect shares to see short-term support near its February low ($23.21) and the $22.00 level.

Trigger @ 24.40

Suggested Position: short HSC stock @ (trigger)



Telefonica Brasil, S.A. - VIV - close: 18.16 change: -0.08

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:
02/25/14: The bounce in VIV seems to be fading. 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)




CLOSED BULLISH PLAYS

Agios Pharmaceuticals - AGIO - close: 30.19 change: -0.12

Stop Loss: 29.75
Target(s): 39.00
Current Gain/Loss: - 3.9%

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:
02/25/14: AGIO did not see a lot of follow through on yesterday's big decline. Shares only fell 12 cents and seem to be holding near the simple 20-dma. Our plan was to exit positions this morning and AGIO opened at $30.25.

*Small positions to limit risk!*

closed Position: long AGIO stock @ $31.48 exit $30.25 (-3.9%)

02/25/14 planned exit
02/24/14 prepare to exit immediately
02/13/14 new stop loss @ 29.75
02/11/14 trade opens at $31.48

chart:



CLOSED BEARISH PLAYS

GW Pharmaceuticals - GWPH - close: 59.79 change: +0.30

Stop Loss: 61.05
Target(s): 47.50
Current Gain/Loss: - 7.6%

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:
02/25/14: Our aggressive bet on GWPH did not pay off. Even with the market's weakness this morning shares of GWPH still managed to spike high enough to hit our stop loss at $61.05 before paring its gains.

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

*small positions*

closed Position: short GWPH stock @ $56.75 exit $61.05 (-7.6%)

02/25/14 stopped out
02/20/14 triggered @ 56.75

chart:



Rackspace Holdings - RAX - close: 35.72 change: +1.17

Stop Loss: 36.05
Target(s): 27.00
Current Gain/Loss: - 7.7%

Entry on February 24 at $33.48
Listed on February 20, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.7 million
New Positions: see below

Comments:
02/25/14: Bears in RAX panicked this morning on rumors the company might be talks to be acquired. These M&A rumors sparked some short covering and RAX spiked +8.19% and traded above its 50-dma before paring its gains. Our stop loss was hit at $36.05.

Earlier Comments:
NOTE: RAX does have an above average amount of short interest, about 12% of the 113 million share float. That could make the stock volatile with potential short squeezes. Investors will want to limit their position size and/or use put options to limit their risk.

*small positions*

closed Position: short RAX stock @ $33.48 exit $36.05 (-7.7%)

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

Mar $32.50 PUT (RAX1422o32.5) entry $0.99 exit $0.44 (-55.5%)

02/25/14 stopped out
02/24/14 trade opened at $33.48

chart: