Editor's Note:

PVA hit our entry trigger. EV and HSC have been removed.


Current Portfolio:


BULLISH Play Updates

Alcoa Inc. - AA - close: 11.74 change: -0.29

Stop Loss: 11.45
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: see below

Comments:
03/01/14: AA suffered some profit taking on Friday with a -2.4% decline. I didn't see any news that might explain the relative weakness. It could have been just fear of the weekend. Shares are testing their 10-dma again as short-term support. I am not suggesting new positions at this time.

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

02/26/14 new stop loss @ 11.45
02/22/14 new stop loss @ 11.25
02/19/14 triggered at $11.55

chart:



American Airlines Group - AAL - close: 36.93 change: +0.37

Stop Loss: 35.35
Target(s): 39.85
Current Gain/Loss: + 1.2%

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:
03/01/14: AAL saw some weakness on Friday morning but shares bounced near short-term support at $36.00 and quickly recovered. By the end of Friday AAL was outperforming the major indices with a +1.0% gain. We will adjust our stop loss higher to $35.35.

current Position: Long AAL stock @ $36.50

03/01/14 new stop loss @ 35.35
02/24/14 triggered @ 36.50

chart:



DR Horton Inc. - DHI - close: 24.56 change: -0.31

Stop Loss: 23.25
Target(s): 27.50
Current Gain/Loss: +0.9%

Entry on February 26 at $24.35
Listed on February 25, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.0 million
New Positions: see below

Comments:
03/01/14: DHI experienced some profit taking on Friday but overall the trend still looks bullish. The homebuilders have been very resilient in spite of disappointing data. Broken resistance near $24.00 should be new support for DHI.

current Position: Long DHI stock @ $24.35

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

Long Apr $25 call (DHI1419D25) entry $0.96*

02/26/14 triggered @ 24.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Dunkin' Brands Group - DNKN - close: 51.67 change: +0.09

Stop Loss: 49.75
Target(s): 57.50
Current Gain/Loss: + 2.0%

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:
03/01/14: DNKN ended the month at new all-time highs. If you are looking for a new entry point consider waiting for a dip near its rising 10-dma.

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.

chart:



Flotek Industries - FTK - close: 25.45 change: +0.19

Stop Loss: 23.95
Target(s): 29.75
Current Gain/Loss: + 1.2%

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:
03/01/14: FTK was also tagging new highs on Friday with a +0.75% gain. Thursday's low was $24.69 and more conservative investors might want to adjust their stop closer to that level.

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.

chart:



The Manitowoc Co. - MTW - close: 30.94 change: -0.04

Stop Loss: 29.60
Target(s): 34.85
Current Gain/Loss: + 0.5%

Entry on February 27 at $30.79
Listed on February 26, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.9 million
New Positions: see below

Comments:
03/01/14: The rally in MTW stalled a bit with shares finding resistance in the $31.25 area these last three days. Traders may want to consider waiting for another dip near $30.00 or wait for a close above $31.25 as alternative entry points to launch new positions.

Earlier Comments:
The plan was to keep our position size small to limit risk.

*Small positions*

current Position: Long MTW stock @ $30.79

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

Long Apr $30 call (MTW1419D30) entry $2.05*

02/27/14 trade opens at $30.79
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Penn Virginia Corp. - PVA - close: 15.15 change: +0.14

Stop Loss: 14.29
Target(s): 18.50
Current Gain/Loss: - 0.3%

Entry on February 28 at $15.20
Listed on February 27, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.8 million
New Positions: see below

Comments:
03/01/14: Our new play on PVA has been triggered. The stock pushed its way to a new high on Friday and hit $15.48 before paring its gains. Our trigger was hit at $15.20.

Earlier Comments:
A breakout could spark some short covering. The most recent data listed short interest at 14% of the very small 19.4 million share float.

current Position: Long PVA stock @ $15.20

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

Long APR $15 call (PVA1419D15) entry $1.25*

02/28/14 triggered @ 15.20
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



SolarWinds, Inc. - SWI - close: 46.18 change: -0.31

Stop Loss: 44.45
Target(s): 49.50
Current Gain/Loss: + 3.8%

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:
03/01/14: SWI has extended its gains to four up weeks in a row. Look for short-term support near its 10-dma on any pullback. We are raising the stop loss to $44.45.

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

03/01/14 new stop loss @ 44.45
02/27/14 new stop loss @ 43.90
02/20/14 new stop loss @ 43.45
02/18/14 entry trigger hit at $44.50

chart:



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BEARISH PLAYS

Eaton Vance - EV - close: 37.84 change: +0.87

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: see below

Comments:
03/01/14: EV is not cooperating. The stock surged +2.3% on Friday after being upgraded. We've been waiting for a breakdown but that seems unlikely now. We're removing EV as a candidate.

Trade did not open.

03/01/14 removed from the newsletter. trigger was $35.50

chart:



Harsco Corp. - HSC - close: 25.12 change: +0.24

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: see below

Comments:
03/01/14: HSC is not working for us. The stock has continued to churn sideways and while it remains under resistance the recent action suggest HSC could just see a breakout higher.

Our trade has not opened yet so we're removing HSC as a candidate.

Trade did not open.

03/01/14 removed from the newsletter. suggested trigger was $24.40

chart: