Editor's Note:
The S&P 500, Dow Industrials, and the small cap Russell 2000 index all ended the week at new all-time highs.


Current Portfolio:


BULLISH Play Updates

Archer Daniels Midland - ADM - close: 34.06 change: +0.15

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:
05/11/13: The S&P 500 gained +0.43% on Friday. ADM managed to keep pace with a +0.44% gain. We will give ADM another day to show some relative strength otherwise we will probably drop it as an active candidate. Currently shares are hovering just below resistance in the $34.00-34.50 area. 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

chart:



The Hartford Financial Serv. Group - HIG - close: 29.66 change: +0.19

Stop Loss: 27.25
Target(s): 32.50
Current Gain/Loss: +1.5%

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:
05/11/13: HIG managed to outpace many of its peers in the insurance sector with a +0.6% gain on Friday. I am still concerned that HIG might be short-term overbought here. Look for short-term support at its rising 10-dma (near 28.75).

Earlier Comments:
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

chart:



The Kroger Co. - KR - close: 34.49 change: +0.04

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:
05/11/13: It was an underwhelming week for KR. The stock reversed at the $35.00 level. Profit taking has actually been rather mild. Shares of KR will likely gap down on Monday morning, May 13th, as the stock begins trading ex-dividend for its 15-cent dividend.

The trend is up but 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.

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:



Loews Corp. - L - close: 45.45 change: +0.06

Stop Loss: 44.45
Target(s): 49.75
Current Gain/Loss: -0.2%

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:
05/11/13: Shares of L briefly traded below its 10-dma on Friday. Traders bought the dip near round-number support at $45.00. This looks close enough to fill the gap from early May. I would use the bounce on Friday afternoon as a new entry point to launch bullish positions. More conservative traders might want to tighten their stops closer to $45.00.

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

chart:



Altria Group - MO - close: 36.68 change: +0.33

Stop Loss: 35.95
Target(s): 40.00
Current Gain/Loss: + 0.5%

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:
05/11/13: After drifting sideways most of the week shares of MO were suddenly showing some relative strength on Friday with a +0.9% gain. Investors may want to use this rebound as a new bullish entry point.

NOTE: If you choose to trade the call options you may want to buy the Septembers instead of the Junes.

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

chart:



Republic Services - RSG - close: 33.95 change: -0.61

Stop Loss: 33.85
Target(s): 37.50
Current Gain/Loss: - 2.3%

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:
05/11/13: Hmm... RSG is definitely not cooperating. The stock is down three days in a row and the weakness is accelerating. Friday saw shares breakdown below their 10-dma. The stock underperformed the market with a -1.7% decline on Friday and I couldn't find any specific news to account for the relative weakness. We will try and limit the damage by raising the stop loss to $33.85.

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

05/11/13 new stop loss @ 33.85
05/07/13 triggered at $34.75

chart:



Semiconductor ETF - SMH - close: 38.76 change: +0.26

Stop Loss: 35.90
Target(s): 40.00
Current Gain/Loss: + 2.7%

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:
05/11/13: The semiconductor rally continues. The chip stocks have been some of the best performers this past week. The SMH rallied again on Friday to close at new five-year highs. This ETF is definitely short-term overbought and due for some profit taking but it can always grow more overbought. I am not suggesting new positions. More conservative traders may want to raise their stop loss.

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.

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: 50.96 change: +0.27

Stop Loss: 48.45
Target(s): 52.00
Current Gain/Loss: + 6.7%

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:
05/11/13: The rally in TJX continues with a +0.5% gain on Friday. The stock is up three weeks in a row and up seven out of the last eight weeks. Traders may want to think about taking profits soon. Our exit target is $52.00. I am not suggesting new positions at this time.

FYI: TJX has a quarterly dividend of $0.145, which is payable on June 6, 2013. The stock will begin trading ex-dividend on May 14th.

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.

chart:



SPDR S&P Homebuilders ETF - XHB - close: 31.91 change: +0.44

Stop Loss: 29.75
Target(s): 34.50
Current Gain/Loss: + 1.8%

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:
05/11/13: The XHB continues to show relative strength with a +1.39% gain on Friday versus the S&P 500's +0.4% gain. The ETF is up several days in a row and is probably due for some profit taking. If you're looking for an entry point I would seriously consider waiting for a pullback. A dip near the rising 10-dma might be our next 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

chart:



BEARISH Play Updates

SolarWinds, Inc. - SWI - close: 45.86 change: +1.22

Stop Loss: 46.15
Target(s): 40.25
Current Gain/Loss: - 2.8%

Entry on May 10 at $44.60
Listed on May 09, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.3 million
New Positions: see below

Comments:
05/11/13: Ouch! There was no follow through on Thursday's bearish reversal. The stock completely erased Thursday's $1.00 loss with a +1.22 gain. The rally did stall at resistance near $46.00 but I would hesitate to launch new positions here. If SWI breaks out past $46.00 it should hit our stop loss at $46.15.

current Position: short SWI stock @ $44.60

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

Jun $42.50 PUT (SWI1322R42.5) entry $1.20*

*option entry price is an estimate since the option did not trade at the time our play was opened.

chart: