Editor's Note:
The stock market accelerated lower on bearish comments from the U.S. treasury regarding the impact of a debt default (referencing the debt ceiling debate). The Treasury said the situation could worsen and be as bad or worse than the 2008 financial crisis.

KKD hit our entry trigger. PRIM was stopped out.


Current Portfolio:


BULLISH Play Updates

Avago Technologies - AVGO - close: 43.30 change: -0.11

Stop Loss: 41.30
Target(s): 44.50
Current Gain/Loss: + 7.6%

Entry on September 17 at $40.25
Listed on September 10, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 2.1 million
New Positions: see below

Comments:
10/03/13: AVGO held up well during today's market weakness. Shares continued to find support in the $43 area (actual low was $42.82). While this strength is encouraging if the market really breaks down we will probably see AVGO dip toward $42.00 if not lower. I am not suggesting new positions at this time.

Earlier Comments:
The Point & Figure chart for AVGO is bullish with a long-term $56.00 target.

current Position: long AVGO stock @ $40.25

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

Long 2014 Jan $40 call (AVGO1418a40) entry $2.80

10/01/13 new stop loss @ 41.30
09/28/13 new stop loss @ 40.85
09/24/13 new stop loss @ 39.85
09/21/13 new stop loss @ 39.40



Twenty-First Century Fox, Inc. - FOXA - close: 33.15 change: -0.56

Stop Loss: 32.45
Target(s): 37.50
Current Gain/Loss: - 2.8%

Entry on October 01 at $34.10
Listed on September 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.6 million
New Positions: see below

Comments:
10/03/13: FOXA underperformed the market with a -1.6% decline and tested short-term support near $33.00. A bounce from here could be a new bullish entry point but investors may want to hesitate. The broader market is starting to turn negative on the situation in Washington.

current Position: Long FOXA stock @ $34.10



Goodyear Tire & Rubber Co. - GT - close: 22.78 change: -0.49

Stop Loss: 21.85
Target(s): 25.00
Current Gain/Loss: + 1.2%

Entry on September 19 at $22.50
Listed on September 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.2 million
New Positions: see below

Comments:
10/03/13: Ouch! GT gave up -2.1% today with a dip toward short-term support at its simple 10-dma. Currently our stop loss is at $21.85. Cautious traders might want to consider a stop closer to the rising 20-dma (near 22.24).

current Position: long GT stock @ $22.50

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

Long 2014 Jan $23 call (GT1418a23) entry $1.63

10/01/13 new stop loss @ 21.85
09/24/13 new stop loss @ 21.65



Krispy Kreme Doughnuts, Inc. - KKD - close: 21.18 change: +1.20

Stop Loss: 19.19
Target(s): 23.25
Current Gain/Loss: + 4.3%

Entry on October 03 at $20.30
Listed on October 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.25 million
New Positions: see below

Comments:
10/03/13: Our new play on KKD is off to a strong start. Shares ignored the market's weakness this morning and instead KKD surged higher. The move today almost looks like a short squeeze but KKD does not have that much short interest. The breakout past its mid September highs and above its 50-dma is bullish. Our trigger to open bullish positions was hit this morning at $20.30. After a +6.0% gain today I would expect some profit taking tomorrow.

NOTE: KKD is prone to some intraday spikes. I am suggesting small positions to limit our risk.

*small positions*

current Position: Long KKD stock @ $20.30



Lions Gate Entertainment - LGF - close: 35.81 change: -0.93

Stop Loss: 34.60
Target(s): 40.00
Current Gain/Loss: - 2.6%

Entry on October 02 at $36.75
Listed on October 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.75 million
New Positions: Yes, see below

Comments:
10/03/13: It was not a good day for LGF. The stock lost -2.5% and gave back more than half of its prior two-day rally. The next test is potential support at $35.00 or its simple 50-dma near $34.85. I would wait for a bounce before considering new positions.

current Position: Long LGF stock @ $36.75



PolyOne Corp. - POL - close: 30.64 change: -0.06

Stop Loss: 29.25
Target(s): 34.50
Current Gain/Loss: -0.4%

Entry on September 30 at $30.75
Listed on September 28, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 412 thousand
New Positions: see below

Comments:
10/03/13: POL continues to weather the market's pullback pretty well. Traders bought the dip near support at $30.00 yet again. The stock bounced back to almost unchanged.

current Position: Long POL stock @ $30.75



PRD Energy - PREGF - close: 1.05 change: +0.07

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

Entry on September 27 at $1.05
Listed on September 26, 2013
Time Frame: 6 to 9 weeks
Average Daily Volume = 130 thousand
New Positions: see below

Comments:
10/03/13: Shares of PREGF steadily drifted higher on Thursday while ignoring the market's volatility. Today's +6.8% gain puts this play back to breakeven.

*Higher Risk, Speculative Trade*

current Position: Long PREGF stock @ $1.05



Ryanair Holdings - RYAAY - close: 50.37 change: +0.35

Stop Loss: 48.90
Target(s): 54.50
Current Gain/Loss: - 0.0%

Entry on September 26 at $50.35
Listed on September 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 540 thousand
New Positions: see below

Comments:
10/03/13: Our patience with RYAAY might pay off. The stock outperformed the broader market today with a +0.69% gain. Today's rise is also a bullish move back above short-term resistance near $50.00 and its 50-dma and 100-dma.

*small positions*

current Position: Long RYAAY stock @ $50.35



Seagate Technology - STX - close: 45.56 change: -0.39

Stop Loss: 43.75
Target(s): 47.00
Current Gain/Loss: +7.8%

Entry on September 25 at $42.25
Listed on September 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.5 million
New Positions: see below

Comments:
10/03/13: After a strong four-day rally higher STX hit some profit taking with a -0.8% pullback. We can watch for likely support near $44.00 or more conservative traders can just exit now to lock in gains.

current Position: Long STX stock @ $42.25

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

Long 2014 Jan $45 call (STX1418a45) entry $1.71

10/02/13 new stop loss @ 43.75
10/01/13 new stop loss @ 41.95
09/30/13 new stop loss @ 41.40
09/26/13 new stop loss @ 40.90



The TJX Companies - TJX - close: 56.19 change: -0.52

Stop Loss: 55.40
Target(s): 62.00
Current Gain/Loss: - 1.0%

Entry on October 01 at $56.75
Listed on September 28, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.1 million
New Positions: see below

Comments:
10/03/13: The decline in TJX kept pace with the pullback in the S&P 500 with both pulling back about -0.9%. Today's low in TJX was $55.82, which keeps the trend of higher lows intact for now. However, if the market continues to sink we could see TJX hit our stop loss at $55.40 soon. I am not suggesting new positions today.

In other news, there was an interesting note from the National Retail Federation today. The NRF released their 2013 holiday shopping forecast and expect overall retail sales in November and December to show +3.9% growth in 2013. That's above 2012's 3.5% growth rate and above the 10-year average of +3.3% growth. However, they also warned that the situation in Washington D. C. could impact consumer confidence if the lack of political cooperation persists. The government shutdown and concerns over the debt ceiling could hamper consumers' appetite to spend money.

Earlier Comments:
Our $62.00 target might be a little aggressive. More conservative investors may want to exit near $60.00.

current Position: Long TJX stock @ $56.75

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

Long 2014 Jan $60 call (TJX1418a60) entry $1.15



Ubiquiti Networks - UBNT - close: 35.25 change: +0.45

Stop Loss: 32.90
Target(s): 39.75
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 853 thousand
New Positions: Yes, see below

Comments:
10/03/13: Traders bought the dip in UBNT near $34.00 midday. The stock's afternoon rebound lifted shares to a +1.29% gain. The relative strength is encouraging and we could see UBNT hit our suggested entry point at $35.75 tomorrow. I don't see any changes from my prior comments.

Earlier Comments:
UBNT could see another short squeeze. The most recent data listed short interest at more than 32% of the very small 19.5 million share float. If the market continues to rally I suspect odds of a short squeeze in UBNT definitely go up. Today's high was $35.47. I am suggesting a trigger at $35.75. If triggered our short-term target is $39.75.

NOTE: I do consider this a more aggressive, higher-risk trade because UBNT can be a volatile stock. I am suggesting smaller positions to limit risk.

Trigger @ 35.75 *small positions*

Suggested Position: buy UBNT stock @ (trigger)



BEARISH Play Updates

Urban Outfitters - URBN - close: 36.70 change: -0.22

Stop Loss: 38.25
Target(s): 34.50
Current Gain/Loss: + 1.5%

Entry on September 24 at $37.25
Listed on September 19, 2013
Time Frame: 3 to 4 weeks
Average Daily Volume = 2.8 million
New Positions: see below

Comments:
10/03/13: URBN spent the day churning sideways. Shares eventually settled with a -0.59% loss. I am not suggesting new positions at this time.

Earlier Comments:
Our target is the November 2012 lows near $34.50. FYI: The Point & Figure chart has produced a sell signal and is forecasting at $31.00 target.

current Position: short URBN stock @ $37.25

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

Long Oct $38 PUT (URBN1319v38) entry $1.45

09/28/13 new stop loss @ 38.25



CLOSED BULLISH PLAYS

Primoris Services - PRIM - close: 24.76 change: -0.71

Stop Loss: 24.75
Target(s): 28.50
Current Gain/Loss: - 2.9%

Entry on September 23 at $25.50
Listed on September 21, 2013
Time Frame: exit PRIOR to earnings in early November
Average Daily Volume = 222 thousand
New Positions: see below

Comments:
10/03/13: The Thursday morning market sell-off hit PRIM pretty hard. Shares spiked down below support near $25.00 and hit our stop loss at $24.75.

While our trade has been closed I would keep PRIM on your watch list. A dip near the $23.00-24.00 zone could prove to be another bullish entry point.

closed Position: Long PRIM stock @ $25.50 exit $24.75 (-2.9%)

10/03/13 stopped out
10/01/13 new stop loss @ 24.75

chart: