Editor's Note:
The major U.S. indices paused their ascent on Monday. The S&P 500 index closed virtually unchanged on the session.

I am removing ADM. We want to exit our KR trade at the open tomorrow morning.

GRMN was triggered.

RSG and SWI were stopped out.


Current Portfolio:


BULLISH Play Updates

Garmin Ltd. - GRMN - close: 35.47 change: -0.65

Stop Loss: 34.95
Target(s): 39.50
Current Gain/Loss: - 2.2%

Entry on May 13 at $36.25
Listed on May 11, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
05/13/13: GRMN is not exactly cooperating with us. Shares spiked higher this morning and quickly reversed lower. Unfortunately our trigger to open bullish positions was hit at $36.25. The stock then proceeded to underperform the market with a -1.79% decline. I couldn't find any specific news to account for the relative weakness. Nimble traders could watch for a bounce off its rising 10-dma near 35.15 as an alternative entry point. Otherwise I would wait for a new rally back above $36.00 before considering new positions.

Earlier Comments:
Please note that I do consider this an aggressive, higher-risk trade. GRMN can be a very volatile stock. The longer-term trend is down with a pattern of lower highs. We're going against the grain in this stock. NOTE: GRMN does have options available for the more aggressive trader.

*very small positions*

current Position: long GRMN stock @ $36.25



The Hartford Financial Serv. Group - HIG - close: 29.89 change: +0.23

Stop Loss: 27.25
Target(s): 32.50
Current Gain/Loss: +2.3%

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:
05/13/13: Shares of HIG were upgraded this morning and the stock outperformed the broader market with a +0.77% gain. The rally has stalled right at round-number resistance at the $30.00 mark. I suspect HIG could see some short-term profit taking here.

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



The Kroger Co. - KR - close: 33.95 change: -0.39

Stop Loss: 33.85
Target(s): 36.50
Current Gain/Loss: +0.3%

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:
05/13/13: KR underperformed the market today with a -1.1% decline. The stock was weak right off the bat this morning. Technically it looks like shares have closed below the bottom of its bullish channel but to really confirm that breakdown KR would need to break below its rising 30-dma. We don't want to take the risk so I am suggesting we exit immediately at the opening bell tomorrow morning.

current Position: buy KR stock @ $33.85

05/13/13 prepare to exit tomorrow morning
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: 45.46 change: +0.01

Stop Loss: 44.45
Target(s): 49.75
Current Gain/Loss: -0.1%

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:
05/13/13: Loews is still not seeing a lot of movement. Yet traders did buy the dip again. Readers may want to wait for a rally past $45.50 before initiating new bullish positions.

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: 36.92 change: +0.24

Stop Loss: 35.95
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:
05/13/13: MO is back to showing relative strength again. The stock added +0.65% and closed at a new all-time high.

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



Prologis, Inc. - PLD - close: 43.24 change: -0.08

Stop Loss: 42.25
Target(s): 47.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 11, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.4 million
New Positions: Yes, see below

Comments:
05/13/13: PLD managed to tag a new 52-week high today. Yet the stock did not trade high enough to hit our suggested entry trigger at $43.55. I don't see any changes from my weekend comments.

I am suggesting a trigger to launch small bullish positions at $43.55. If triggered our multi-week target is $47.50.

Trigger @ 43.55 *small positions*

Suggested Position: buy PLD stock @ (trigger)



Semiconductor ETF - SMH - close: 38.29 change: -0.47

Stop Loss: 35.90
Target(s): 40.00
Current Gain/Loss: + 1.4%

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:
05/13/13: After seven up days in a row the SMH is finally seeing some profit taking. Shares gave back -1.2%. I have been warning readers to expect a pullback. 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



The TJX Companies - TJX - close: 50.65 change: -0.31

Stop Loss: 48.45
Target(s): 52.00
Current Gain/Loss: + 6.1%

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:
05/13/13: The Commerce Department said U.S. retail sales for April came in at +0.1% this morning. That was better than expected and should have been bullish news for the retail sector. Yet retail stocks retreated. TJX was no exception.

I would not be surprised to see TJX dip back toward the $50.00 level.

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.



SPDR S&P Homebuilders ETF - XHB - close: 31.92 change: +0.01

Stop Loss: 29.75
Target(s): 34.50
Current Gain/Loss: + 1.9%

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:
05/13/13: The rally continues with XHB scratching out a very slim gain today. This ETF is now up eight days in a row. 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



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BULLISH PLAYS

Archer Daniels Midland - ADM - close: 33.99 change: -0.07

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: see below

Comments:
05/13/13: We are giving up on ADM. The stock is not cooperating and has not hit our suggested entry trigger at $34.55.

Trade did not open.

05/13/13 removed from the newsletter
05/09/13 adjust entry trigger to $34.55

chart:



Republic Services - RSG - close: 33.79 change: -0.16

Stop Loss: 33.85
Target(s): 37.50
Current Gain/Loss: - 2.6%

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:
05/13/13: After Friday's relative weakness we're not surprised to see RSG hitting our new stop loss today at $33.85. If this pullback continues RSG will likely test its up trend support near the 40-dma and 50-dma (currently near 32.85).

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*

closed Position: Long RSG stock @ $34.75 exit $33.85 (-2.6%)

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

chart:



CLOSED BEARISH PLAYS

SolarWinds, Inc. - SWI - close: 45.80 change: -0.06

Stop Loss: 46.15
Target(s): 40.25
Current Gain/Loss: - 3.5%

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:
05/13/13: Shares of SWI spiked higher this morning before eventually reversing lower. Our stop loss was hit at $46.15.

closed Position: short SWI stock @ $44.60 exit $46.15 (-3.5%)

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

Jun $42.50 PUT (SWI1322R42.5) entry $1.20* exit $0.55 (-54.1%)

05/13/13 stopped out
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart: