Editor's Note:
After a multi-day advance the major indices saw a little pullback on Thursday.


Current Portfolio:


BULLISH Play Updates

Archer Daniels Midland - ADM - close: 33.91 change: -0.49

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:
05/09/13: We may have to give up on our ADM trade. The stock does not want to hit our entry point. We've been waiting for shares to hit our suggested trigger at $34.50. Today the stock spiked up to $34.49 before reversing lower and falling to a -1.4% decline. This relative weakness is potentially worrisome. If we don't see ADM improve soon we'll likely drop it as a bullish candidate. Please note that I am adjusting our entry trigger to $34.55 now.

I am suggesting a trigger to launch bullish positions at $34.55. If triggered our multi-week target is $37.50. The 2011 highs are near $38.00.

Trigger @ 34.55

Suggested Position: buy ADM stock @ (trigger)

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

buy the Sep $35 call (ADM1321i35)

05/09/13 adjust entry trigger to $34.55



The Hartford Financial Serv. Group - HIG - close: 29.47 change: -0.23

Stop Loss: 27.25
Target(s): 32.50
Current Gain/Loss: +0.8%

Entry on May 07 at $29.23
Listed on May 06, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 7.3 million
New Positions: see below

Comments:
05/09/13: HIG spiked up toward $30.00 before reversing into a -0.7% decline. I cautioned readers yesterday that the $30.00 mark could prove to be round-number resistance. Look for short-term support near its 10-dma or the $28.00 level.

Earlier Comments:
I do think patient traders will probably be able to buy HIG on a dip at $28.50 soon so consider waiting for the dip as HIG fills the gap from Friday morning. The early 2011 high near $31.00 could be potential resistance but we're aiming higher. Keep in mind this is a multi-week trade so we'll need patience for the trend to play out for us. I would start this trade with small positions to limit our risk.

current Position: Long HIG stock @ $29.23

05/07/13 trade opened on gap open higher at $29.23



The Kroger Co. - KR - close: 34.45 change: -0.28

Stop Loss: 33.85
Target(s): 36.50
Current Gain/Loss: +1.8%

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:
05/09/13: KR is down two days in a row. The stock looks poised to drip toward the $34.00 level, which should offer some short-term support. 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



Loews Corp. - L - close: 45.39 change: -0.39

Stop Loss: 44.45
Target(s): 49.75
Current Gain/Loss: -0.3%

Entry on May 08 at $45.52
Listed on May 07, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
05/09/13: L posted a -0.8% pullback today. That was in-line with the insurance sector's dip today. The 10-dma could offer some short-term support. I am not suggesting new positions at the moment.

Earlier Comments:
I am suggesting we keep our position size small. Our multi-week target is $49.50 and we may need to be patient. Shares of L don't usually move that fast. FYI: The Point & Figure chart for L is bullish with a $58 target.

*Small Positions*

current Position: Long L stock @ $45.52



Altria Group - MO - close: 36.35 change: -0.17

Stop Loss: 35.95
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:
05/09/13: MO followed the market lower with a -0.4% dip today. Look for shares to test the $36.00 level again. Any lower and MO will hit our stop at $35.95. I am not suggesting new 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

05/07/13 new stop loss @ 35.95



Republic Services - RSG - close: 34.56 change: -0.27

Stop Loss: 33.40
Target(s): 37.50
Current Gain/Loss: - 0.5%

Entry on May 07 at $34.75
Listed on May 04, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 1.7 million
New Positions: see below

Comments:
05/09/13: RSG is testing short-term support near $34.50 and its 10-dma. I don't see any changes from my prior comments.

Earlier Comments:
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.

*Small Positions*

current Position: Long RSG stock @ $34.75

05/07/13 triggered at $34.75



Semiconductor ETF - SMH - close: 38.50 change: +0.12

Stop Loss: 35.90
Target(s): 40.00
Current Gain/Loss: + 2.0%

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:
05/09/13: Buyers continue to outnumber sellers in the SMH. The relative strength in the semiconductor sector is impressive. Yet this ETF is getting overbought. It will see a pullback eventually. I am not suggesting new positions at current levels.

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: 50.69 change: +0.29

Stop Loss: 48.45
Target(s): 52.00
Current Gain/Loss: + 6.2%

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:
05/09/13: As expected retail stocks were moving on the April same-store sales data. Analysts were expecting TJX to report same-store sales growth of +6.8%. TJX beat that estimate with +8.0% same-store sales growth. While many retailers complained about a colder than normal April the weather didn't seem to stop consumers from spending at off-price retailers like TJX. Shares of TJX spiked higher this morning on the bullish sales number. Yet traders were starting to pull some money off the table as TJX pared its gains. More conservative investors might want to take profits now.

I am raising our stop loss to $48.45. 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

05/09/13 new stop loss @ 48.45
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.



SPDR S&P Homebuilders ETF - XHB - close: 31.47 change: +0.07

Stop Loss: 29.75
Target(s): 34.50
Current Gain/Loss: + 0.4%

Entry on May 09 at $31.34
Listed on May 08, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 5.3 million
New Positions: see below

Comments:
05/09/13: The rally continues for the homebuilder ETF with a +0.2% gain. I don't see any changes from my prior comments.

Earlier Comments:
I am suggesting small bullish positions now at current levels. More conservative traders will want to seriously consider waiting for a dip. A pullback toward $30.00 might be a good spot for an alternative entry point.

NOTE: The XHB does have options but I would prefer to see a dip in the ETF before considering call options on it. If you do choose to trade the options I would probably pick the Septembers or 2014 Januarys.

*Small Positions*

current Position: Long the XHB @ $31.34



BEARISH Play Updates


None. We do not have any active bearish trades.