Editor's Note:
The S&P 500 index rallied past resistance near the 1600 mark on Friday. The market's breakout created widespread gains across almost all market sectors.

We have removed TEO and OZRK as candidates.
SMH was triggered. VRTU was stopped out.


Current Portfolio:


BULLISH Play Updates

The Kroger Co. - KR - close: 34.71 change: +0.09

Stop Loss: 33.85
Target(s): 36.50
Current Gain/Loss: +2.5%

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:
05/04/13: Hmm... KR rallied toward its April high and then reversed on Friday. This could be signaling a potential bearish double top pattern. I am not suggesting new positions. We will try and limit our risk by raising the stop loss to breakeven at $33.85.

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

05/04/13 new stop loss @ 33.85
05/01/13 new stop loss @ 33.15
04/25/13 new stop loss @ 32.90

chart:



Altria Group - MO - close: 36.51 change: -0.14

Stop Loss: 35.35
Target(s): 40.00
Current Gain/Loss: + 0.0%

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:
05/04/13: With the U.S. stock market in rally mode just above everything was more appealing that a boring, defensive play like MO. Shares underperformed with a mild pullback of -0.3%. I don't see any changes from my prior comments. The larger-trend is still bullish but 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

chart:



Semiconductor ETF - SMH - close: 37.66 change: +0.29

Stop Loss: 35.90
Target(s): 40.00
Current Gain/Loss: - 0.2%

Entry on May 03 at $37.75
Listed on May 02, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 2.6 million
New Positions: see below

Comments:
05/04/13: The stock market's big rally on Friday produced a gap open higher in the SMH. Shares of this ETF opened at $37.75. That was above our suggested entry point of $37.55 so the trade opened immediately. While I would still consider new positions now at current levels readers might want to wait for a dip before initiating new positions.

Earlier Comments:
Our short-term target is $40.00 although traders could aim for the 2007 high near $41.40 instead. FYI: The Point & Figure chart for SMH is bullish with a $44.00 target.

I am listing our stop loss at $35.90 but more conservative traders may want to use a higher stop.

current Position: Long SMH @ $37.75

05/03/13 triggered on gap open at $37.75, trigger was $37.55

chart:



The TJX Companies - TJX - close: 49.55 change: +0.68

Stop Loss: 47.40
Target(s): 52.00
Current Gain/Loss: + 3.8%

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:
05/04/13: The retail sector was a healthy participant in the market's rally on Friday. Shares of TJX pushed past resistance near $49.00 to hit new all-time highs.

I want to caution readers that the $50.00 level could be round-number resistance. More conservative traders may want to exit early near $50.00. 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.

chart:



BEARISH Play Updates

Home Inns & Hotels - HMIN - close: 24.77 change: -0.02

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:
05/04/13: Shares of HMIN are still not seeing a lot of movement. The fact that this stock did not participate in the market's widespread rally on Friday is another sign of relative weakness.

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)

chart:



CLOSED BULLISH PLAYS

Telecom Argentina - TEO - close: 16.16 change: -0.43

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: see below

Comments:
05/04/13: TEO's performance on Friday was surprising. Shares did not participate with the rest of the market. After Thursday's failed breakout higher the underperformance on Friday could be a warning signal. Granted TEO might still hold support at the $16.00 mark but we're going to drop TEO as a candidate. Our trade did not open. The suggested trigger was $17.00.

Trade did not open.

05/04/13 removed from the newsletter

chart:



CLOSED BEARISH PLAYS

Bank of the Ozarks - OZRK - close: 41.07 change: +0.64

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: see below

Comments:
05/04/13: There has been no follow through on Wednesday's surge lower in shares of OZRK. Our trade in OZRK has not opened yet and we're removing it from the newsletter. The suggested trigger was $39.35.

Trade did not open.

05/04/13 removed from the newsletter

chart:



Virtusa Corp. - VRTU - close: 23.27 change: +1.17

Stop Loss: 22.65
Target(s): 20.10
Current Gain/Loss: -3.9%

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:
05/04/13: VRTU does not appear to have a high amount of short interest but Friday's rally in the stock definitely looks like a short squeeze. The stock erupted higher early on and rallied past potential resistance at its 10-dma, 20, 30, 40, and 50-dma. The stock also rallied past short-term resistance at $22.50 and hit our stop loss at $22.65. I couldn't find any specific news for VRTU or its competitors to explain the relative strength.

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

*Small Positions*

closed Position: short VRTU stock @ $21.80 exit $22.65 (-3.9%)

05/03/13 stopped out

chart: