Editor's Note:
The market continues to rally on expectations that the world's central banks will never let the punch bowl run dry.

There was no follow through on yesterday's market pullback and the S&P 500 is poised to breakout past 1600. It's success will be determined on how market participants choose to interpret tomorrow's nonfarm payroll jobs report.

Tonight we have removed ABBV. BIG was closed as planned.


Current Portfolio:


BULLISH Play Updates

The Kroger Co. - KR - close: 34.62 change: +0.42

Stop Loss: 33.15
Target(s): 36.50
Current Gain/Loss: +2.3%

Entry on April 19 at $33.85
Listed on April 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.2 million
New Positions: see below

Comments:
05/02/13: The slow drift higher in KR managed to pick up a little speed today. Shares gains +1.2%. I remain cautiously optimistic here. Readers may want to tighten their stops.

Earlier Comments:
Shares of KR are now hitting new 13-year highs. We should take note of its old highs. The closing high was $34.16 and the intraday high was $34.91 from March 1999. These levels could be potential overhead resistance. Yet it was so long ago they may not matter anymore. If you're worried about KR seeing resistance at these levels then you may want to wait for KR to close above these levels before initiating positions.

FYI: KR should begin trading ex-dividend on May 13th, 2013. The quarterly dividend should be 15 cents.

current Position: buy KR stock @ $33.85

05/01/13 new stop loss @ 33.15
04/25/13 new stop loss @ 32.90



Altria Group - MO - close: 36.65 change: +0.33

Stop Loss: 35.35
Target(s): 40.00
Current Gain/Loss: + 0.4%

Entry on April 29 at $36.50
Listed on April 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.6 million
New Positions: see below

Comments:
05/02/13: Thankfully there was no follow through on what looked like a short-term reversal yesterday. MO shot higher this morning to post a +0.9% gain. You could argue that MO is short-term overbought so I would not be surprised to see a dip toward $36.00 or its 10-dma.

Earlier Comments:
Our target is $40.00 but keep in mind that MO does not move very fast. This could be a multi-week trade.

current Position: Long MO stock @ $36.50

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

Long Jun $35 call (MO1322F35) entry $1.80



Telecom Argentina - TEO - close: 16.59 change: -0.14

Stop Loss: 15.95
Target(s): 19.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 173 thousand
New Positions: Yes, see below

Comments:
05/02/13: TEO rallied to a new 52-week high this morning and then immediately reversed lower. Traders did buy the dip at its simple 10-dma this afternoon. We are on the sidelines waiting for a move to $17.00 and beyond.

Earlier Comments:
I am suggesting small bullish positions if TEO can trade at $17.00 or higher. If triggered our multi-week target is $19.50. Remember, keep positions small to limit risk. TEO can be a volatile stock.

FYI: The Point & Figure chart is very bullish with a long-term target of $29. Plus the stock is currently offering a 5.5% yield.

Trigger @ 17.00 *Small Positions*

Suggested Position: buy TEO stock @ (trigger)



The TJX Companies - TJX - close: 48.87 change: +0.51

Stop Loss: 47.40
Target(s): 52.00
Current Gain/Loss: + 2.3%

Entry on April 09 at $47.75
Listed on April 08, 2013
Time Frame: exit PRIOR to earnings on May 21
Average Daily Volume = 4.7 million
New Positions: see below

Comments:
05/02/13: The stock market's rebound on Thursday helped fuel a nice bounce in shares of TJX. Shares look poised to breakout past the $49.00 level. However, success will probably depend on how the market chooses to interpret the jobs data tomorrow morning and if the S&P 500 can breakout past resistance at the 1600 mark.

Please note that I am raising our stop loss to $47.40. I am not suggesting new positions.

Earlier Comments:
Our target is $52.00. However, there is a risk that the $50.00 mark could be round-number resistance.

current Position: Long TJX stock @ $47.75

05/02/13 new stop loss @ 47.40
04/18/13 today's decline is bad news. TJX looks ready to hit our stop at $46.45 soon.



BEARISH Play Updates

Home Inns & Hotels - HMIN - close: 24.79 change: -0.07

Stop Loss: 25.25
Target(s): 20.25
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 27, 2013
Time Frame: exit PRIOR to earnings on May 13th
Average Daily Volume = 371 thousand
New Positions: Yes, see below

Comments:
05/02/13: HMIN is still drifting lower in a very slow trend of lower highs and lower lows. I am starting to worry that this stock doesn't move fast enough for us.

I am suggesting a trigger to launch bearish positions at $24.00. More aggressive traders could jump in sooner. If triggered our target is $20.25. We do not want to hold over the earnings report on May 13th.

Trigger @ 24.00

Suggested Position: short HMIN stock @ (trigger)



Bank of the Ozarks - OZRK - close: 40.43 change: +0.78

Stop Loss: 40.35
Target(s): 36.00
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 184 thousand
New Positions: Yes, see below

Comments:
05/02/13: OZRK managed to recoup a good chunk of yesterday's decline. Yet the rebound today failed at short-term resistance. I don't see any changes from my prior comments.

I am suggesting a trigger to launch small bearish positions at $39.35. If triggered our target is $36.00.

Trigger @ 39.35 *Small Positions*

Suggested Position: short OZRK stock @ (trigger)



Virtusa Corp. - VRTU - close: 22.10 change: +0.08

Stop Loss: 22.65
Target(s): 20.10
Current Gain/Loss: -1.4%

Entry on April 26 at $21.80
Listed on April 22, 2013
Time Frame: exit PRIOR to earnings on May 8th
Average Daily Volume = 116 thousand
New Positions: see below

Comments:
05/02/13: VRTU eked out a +0.3% gain. Shares are still in a bearish trend of lower highs and remain below their 10-dma for now. Unfortunately we are running out of time. May 8th is coming up soon.

Earlier Comments:
I would keep our position size small to limit our risk.

*Small Positions*

current Position: short VRTU stock @ $21.80



CLOSED BULLISH PLAYS

AbbVie Inc. - ABBV - close: 43.99 change: -1.56

Stop Loss: 44.90
Target(s): 49.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on April 30, 2013
Time Frame: 2 to 4 weeks
Average Daily Volume = 8.1 million
New Positions: Yes, see below

Comments:
05/02/13: ABBV collapsed this morning. Shares underperformed their peers in the biotech sector and the rest of the market. I couldn't find any specific news to account for today's relative weakness. Our trade has not opened yet and I'm removing ABBV as an active candidate.

Trade did not open.

05/02/13 removed from the newsletter

chart:



Big Lots Inc. - BIG - close: 36.30 change: +0.13

Stop Loss: 35.65
Target(s): 41.50
Current Gain/Loss: -1.3%

Entry on April 23 at $36.80
Listed on April 20, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 650 thousand
New Positions: see below

Comments:
05/02/13: BIG has been underperforming the market these last few days. Last night we decided the better move was to just abandon ship and exit this morning. BIG was kind enough to open higher at $36.32 this morning.

closed Position: Long BIG stock @ $36.80 exit $36.32 (-1.3%)

05/02/13 early exit
05/01/13 prepare to exit positions at the open tomorrow morning
04/30/13 new stop loss @ 35.65

chart: