Editor's Note:
I have removed HMIN from the newsletter. The trade was unopened.


Current Portfolio:


BULLISH Play Updates

Archer Daniels Midland - ADM - close: 33.88 change: -0.32

Stop Loss: 33.25
Target(s): 37.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 04, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.7 million
New Positions: Yes, see below

Comments:
05/06/13: ADM did not see any follow through higher on Monday. Shares instead pulled back -0.9%. Overall I don't see any changes from my weekend comments. ADM is testing resistance near $34.00-34.25. A breakout here would be a new 52-week high.

I am suggesting a trigger to launch bullish positions at $34.50. If triggered our multi-week target is $37.50. The 2011 highs are near $38.00.

Trigger @ 34.50

Suggested Position: buy ADM stock @ (trigger)

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

buy the Sep $35 call (ADM1321i35)



The Kroger Co. - KR - close: 34.50 change: -0.21

Stop Loss: 33.85
Target(s): 36.50
Current Gain/Loss: +1.9%

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:
05/06/13: I cautioned readers over the weekend that Friday's intraday reversal coupled with the April 24th peak has created a potential bearish double top pattern for KR. Today's slow drift lower really doesn't help the bulls case but shares failed to really crack the rising 10-dma. I am not suggesting new positions.

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



Altria Group - MO - close: 36.08 change: -0.43

Stop Loss: 35.35
Target(s): 40.00
Current Gain/Loss: - 1.2%

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:
05/06/13: MO's pullback toward what should be short-term support near $36.00 is not too surprising. I cautioned readers that might happen. What is surprising is that MO underperformed the market when most equities were drifting higher today. I couldn't find any specific news to account for the relative weakness. At this point I would be tempted to use a new bounce above $36.25 as a entry point for bullish positions.

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



Republic Services - RSG - close: 34.67 change: +0.19

Stop Loss: 33.40
Target(s): 37.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 04, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 1.7 million
New Positions: Yes, see below

Comments:
05/06/13: RSG is still slowly drifting higher. Shares outperformed the major indices with a +0.55% gain today. Yet the stock did not hit our suggested entry point at $34.75 yet. Odds are good we'll see RSG hit our entry point tomorrow.

Earlier Comments:
I am suggesting a trigger to launch small bullish positions at $34.75. However, more conservative investors may want to wait for a close above $35.00 as an alternative entry point. It looks like the $35.00 region was resistance back in 2007 and 2008. I am suggesting we keep our position size small to limit our risk.

Trigger @ 34.75 *Small Positions*

Suggested Position: buy RSG stock @ (trigger)



Semiconductor ETF - SMH - close: 37.84 change: +0.18

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:
05/06/13: Monday looked a lot like Friday for SMH with shares up in the morning and a slow fade lower the rest of the session. 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



The TJX Companies - TJX - close: 49.29 change: -0.26

Stop Loss: 47.90
Target(s): 52.00
Current Gain/Loss: + 3.2%

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:
05/06/13: After hitting new all-time highs on Friday TJX was probably a target for some profit taking. Shares of TJX underperformed the retail sector with a -0.5% decline. Yet broken resistance near $49.00 held as support (for now). Please note that I am raising our stop loss to $47.90.

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

05/06/13 new stop loss @ 47.90
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


None. We do not have any active bearish trades.



CLOSED BEARISH PLAYS

Home Inns & Hotels - HMIN - close: 25.73 change: +0.96

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: see below

Comments:
05/06/13: HMIN is not cooperating. Shares outperformed the market with a +3.8% gain. Today's rally is a bullish breakout above the short-term trend of lower highs and its 10-dma. Our suggested entry trigger was $24.00 and the trade has not opened yet. Tonight we are removing HMIN as a candidate.

Trade did not open.

05/06/13 removed from the newsletter

chart: