Good Taco Tuesday to everyone... We're seeing a little continued weakness in the major indexes as I type this morning. Thought I'd let you know I did end up purchasing some QQQ February puts toward the close yesterday. My stop loss is set at yesterday's high so we'll see. You may want to do the same. It's a bit of a risky play as I'm fading against the recent run-up but that's what you have to do sometimes when you're conviction for a reversal is there. I hate to sound like a broken record but I just don't buy this market's move of late. Volume has been anemic at best, the TRIN is sleeping as is the VIX so the markets are too quiet for no good reason. We're in the midst of major bellwethers reporting, Europe is unstable and our own economic backdrop is shaky. Will Wall Street climb a wall of worry? It could but I think that's what it has done since April of 2009. I think we need a real shake-up before we go higher. Basically, "we're in a stock picker's market". That's what I always hear the CNBC pundits saying so I just thought I'd throw that in there for no reason whatsoever... because I'm being totally sarcastic. Aren't we always in a stock picker's market? Last time I checked, no matter what market we're in, stocks go up and stocks go down so I'd call that a stock picker's market. Ha. With that being said, I thought I'd give you a one paragraph update on each of our open trading ideas as well as our Featured Stocks list, so here goes... Updates In Alphabetical Order... Blue Earth's (BBLU) recent activity has been disappointing but the fact of the matter is nothing fundamentally has changed. However, the stock did bounce nicely off its August lows yesterday on pretty good volume and is seeing a bit of follow through today while the rest of the market seems indifferent. A good clue for traders looking to maybe scalp some decent profits on BBLU's double bottom play from yesterday. We launched VocalTec (CALL) last Tuesday as an SCN Featured Stock and it hasn't disappointed so far. We entered at $14.83 and the stock is currently trading just shy of $16 for roughly an 7% gain or so. Not bad but since it has now retraced 5/8 from the 2010 high to the 2010 low, we may see a bit of a pullback which may prove to be an excellent entry into the stock. So, keep a close eye there because this is one stock I think is going to reward investors and traders over the long haul. CALL is just adding way too many subscribers of late to be ignored. I think it's an excellent takeover target for not only major wireless carriers but also interested VOIP players like Microsoft or Google. We've been covering Chromadex (CDXC) quite a bit of late for darn good reason. The stock handsomely rewarded us with 100% returns in two weeks. The last couple of days the stock is providing a much needed pullback and that's to be expected after a pretty furious rally. If you missed that move, now wouldn't be a bad time to jump in. I still believe this stock has some serious legs as the volume of late has been very impressive. New distribution agreements over the last few weeks and a new appointment of CEO, Jeff Himmel could be just the fundamental catalyst to take shares of CDXC another leg up. Dexcom (DXCM) is another newly Featured Stock here at SCN launched last Tuesday along with CALL. We initiated coverage on DXCM at $10.27 and the daily chart of DXCM shows no signs of weakness to date. Currently trading at $10.68, it continues to trade above its 3x3 Displaced Moving Average and the Company continues to attract positive coverage from the Street. The stock found a good base after providing nice Q4 guidance back on the 11th of January. If the stock continues to run into earnings, I'd be a profit taker just prior to the announcement set for the 29th of February. My experience has taught me to buy the rumor and sell the news but if shares of DXCM decide to pullback into earnings, we could see a nice gap up if they can beat guidance. FrogAds (FROG) continues to jump around like a frog likes to do. After putting in a bottom earlier this month around $.25 cents and rallying to almost $.40 cents, the stock has since pulled back again. Here's the key with FROG... if the stock can re-rally from current levels, this could prove very bullish for traders of FROG. If it fails, well then that's a different story. Although FROG is a fairly speculative idea lacking in the fundamentals arena, there's no question it's getting a lot of attention. My suggestion on FROG is to buy the dips and sell the rips. FROG is turning into a pretty good trader for those looking to scalp quick gains. Lone Star (LSTG) recently stopped us out of a trade but it happens. It appears shares of LSTG are making an attempt to put in a nice rounding bottom currently trading at $.44 cents. We haven't given up on the idea that this one could still be a money maker. The Company came out yesterday and provided investors with an update. The Company announced it has filed an amendment to its La Candelaria Definitive Agreement in order to extend the Company's work commitment to the project until March 11, 2012. With the extension in place until March 11, Lone Star will have the opportunity to drill 3-4 deep core holes to add to the Company's understanding of the Mexico-based project's mineral potential. In December 2011, initial shallow holes were drilled on the La Candelaria property. While drilling results are still due from the ALS CHEMEX laboratories, Lone Star has received initial drilling results from a local laboratory. As was to be expected, trace amounts of silver and gold were found. Signs of promise there so let's see if the stock can put in a bottom that can hold. CommerceTel (MFON)... Rome wasn't built in a day but MFON slowly but surely appears to be attracting investor interest. Recent new client acquisition announcements from the Company proves CommerceTel's fourth quarter results may continue to see the revenue growth trend that the Company experienced for the first three quarters in 2011. This is a fundamental longer-term play I think will continue to play out for patient investors. If you get concerned about the stock trading between $1.17 and $1.40 on any given day, don't be. That's par for the course with many undiscovered ideas before they get traction and start to make a good move to the upside. Shares of Rite Aid (RAD) made a nice technical move yesterday breaking up above its short-term resistance level of $1.39 closing yesterday at $1.40 on the number. The stock has pulled back today but yesterday's move is significant in my opinion because the next stop now is the February 2011 high of $1.48. Shares of RAD continue to have positive momentum. Part of this momentum could be attributed to the Company's Same-store sales for December being strong, driven by increased pharmacy sales. Same-store sales (comps) for the month increased 3.6% from last year, with front-end comps increasing 0.7%, pharmacy comps up 5.2% and prescription count at comparable stores increasing 3.2%. With Walgreen's losing a lot of Express Scripts biz, this could positively affect Rite Aid's fundamentals going forward. SCN Contributor and excellent small cap stock picker, James E. Brumley, gave us U.S. Energy Corp. (USEG). We entered USEG at $3.17 and the stock is currently trading at $3.30 but what looks so appealing here is after finding some legs during the first part of December, the stock pulled back off its short-term high only to re-rally from there. It broke above its December high yesterday and appears to be heading in the right direction. A breakout may be looming here for USEG so make sure you have this one on the radar. If you're not in this trade yet, you may want to consider it because it's starting to shape up nicely. Sometimes the most profitable trades take a little time to develop and USEG appears to be doing just that so far. U.S. Precious Metals (USPR) has been a ripping winner for our Members with over 100% returns as well but don't turn away from it now. The stock has found legs AGAIN and looks like it wants to make another move higher. Earlier this month, shares of USPR ran to as high as $.29 cents before pulling way back. One would have thought it may have been a one and done rally but shares of USPR have once again found legs and are on the verge of testing that high. With virtually no news and an “all's quiet on the western front” demeanor about the stock, this one makes you wonder if there are some seriously good things shaping up behind closed doors. Last but not least, one of our favorite traders, VirnetX Holding Corp. (VHC) has since pulled back from the last time we suggested profit taking would be in order around the $30 level. Well, sure enough it ran to the number and has since pulled back. Not a bad time at all to pick some up again or buy some in-the-money calls a few months out because one thing we've learned about VHC is if you don't like it today, tomorrow could be quite the opposite. This patent portfolio play continues to win cases over some monster players in the space and word around the Street says there's more room for this one to grow. Questions, comments or suggestions? Looking for an opinion on a particular stock that's getting a lot of attention lately? Bring it on... I may add it to tomorrow's newsletter.