Editor's Note:
The volatility index retreated as stocks rallied on Friday. Investors seem unconcerned over the government shutdown. The major indices closed near their highs for the day on Friday.

UBNT and WX hit our entry triggers.


Current Portfolio:


BULLISH Play Updates

Avago Technologies - AVGO - close: 43.50 change: +0.20

Stop Loss: 41.90
Target(s): 44.50
Current Gain/Loss: + 8.1%

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:
10/05/13: AVGO is still holding up well. The stock hit another high on Friday morning. Shares are now up four weeks in a row and up six out of the last seven weeks. I am raising our stop loss up to $41.90. I am not suggesting new positions at this time.

The bid on our 2014 call option has hit $4.70 and readers may want to take profits early.

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

10/05/13 new stop loss @ 41.90
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

chart:



Twenty-First Century Fox, Inc. - FOXA - close: 33.65 change: +0.50

Stop Loss: 32.45
Target(s): 37.50
Current Gain/Loss: - 1.3%

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:
10/05/13: FOXA almost completely erased Thursday's loss with a +1.5% rebound on Friday. I would consider new bullish positions now at current levels but investors may want to wait for shares to hit a new high (above $34.12).

current Position: Long FOXA stock @ $34.10

chart:



Goodyear Tire & Rubber Co. - GT - close: 23.01 change: +0.23

Stop Loss: 21.85
Target(s): 25.00
Current Gain/Loss: + 2.3%

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:
10/05/13: GT has extended its rally to seven weeks in a row. If the market cooperates we could see GT breaking out past resistance near $23.50 soon. Currently our stop loss is at $21.85 but more conservative investors might want to adjust their stop closer to the 20-dma (currently 22.35) or closer to the $22.50 level.

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

chart:



Krispy Kreme Doughnuts, Inc. - KKD - close: 22.68 change: +1.50

Stop Loss: 20.45
Target(s): sell half @ 23.25. exit the 2nd half at $24.75
Current Gain/Loss: +11.7%

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:
10/05/13: The rally in KKD continues as investors react to the company's news they will expand in South America. Shares are up four days in a row and up +13% for the week.

Investors have a decision to make. KKD has resistance in the $23.25-23.50 zone. Previously I have been suggesting we exit at $23.25. Today we are adjusting our exit strategy. I am suggesting we sell half of our position at $23.25. We want to adjust our final exit target to $24.75. Tonight we are also adjusting our stop loss to $20.45.

Earlier Comments:
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

10/05/13 Strategy Update: new stop loss @ 20.45
Plus, we want to sell half of our position at $23.25 and then exit the rest of our position at $24.75.

chart:



Lions Gate Entertainment - LGF - close: 36.33 change: +0.52

Stop Loss: 34.90
Target(s): 40.00
Current Gain/Loss: - 1.1%

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:
10/05/13: Thankfully there was no follow through on Thursday's profit taking in LGF. The stock bounced on Friday and outperformed the market with a +1.45% gain. If you're looking for a new entry point you may want to wait for a rally past $37.00. Tonight we are adjusting our stop loss up to $34.90.

current Position: Long LGF stock @ $36.75

10/05/13 new stop loss @ 34.90

chart:



PolyOne Corp. - POL - close: 30.47 change: -0.17

Stop Loss: 29.75
Target(s): 34.50
Current Gain/Loss: -0.9%

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:
10/05/13: POL spent the week consolidating sideways inside the $30.00-31.00 zone. We are going to try and reduce our risk by raising the stop loss up to $29.75. Nimble traders can buy dips near $30.00.

current Position: Long POL stock @ $30.75

10/05/13 new stop loss @ 29.75

chart:



PRD Energy - PREGF - close: 1.20 change: +0.14

Stop Loss: 0.93
Target(s): TBD
Current Gain/Loss: +13.8%

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:
10/05/13: PREGF ended the week on a high note. The stock surged +13.6% on Friday and closed at new multi-year highs. We are adding a stop loss at $0.93.

*Higher Risk, Speculative Trade*

current Position: Long PREGF stock @ $1.05

10/05/13 new stop loss @ 0.93

chart:



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

Stop Loss: 48.90
Target(s): 54.50
Current Gain/Loss: - 1.5%

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:
10/05/13: After showing some relative strength on Thursday, RYAAY gave it all back and more with a -1.5% decline on Friday. Shares hit $48.99 intraday before paring its losses. I couldn't find any news to account for Friday's relative weakness. More conservative investors may want to jump ship and exit early. I am not suggesting new positions.

*small positions*

current Position: Long RYAAY stock @ $50.35

chart:



Seagate Technology - STX - close: 45.87 change: +0.31

Stop Loss: 43.75
Target(s): 47.00
Current Gain/Loss: +8.6%

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:
10/05/13: STX spiked lower at the open on Friday but shares found support near $44.50 and rebounded back into positive territory. The stock is hovering just below short-term resistance at the $46.00 mark. I am not suggesting new positions. More conservative traders may want to exit positions (including the option) 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

chart:



The TJX Companies - TJX - close: 56.35 change: +0.16

Stop Loss: 55.75
Target(s): 62.00
Current Gain/Loss: - 0.7%

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:
10/05/13: Fortunately there wasn't much follow through on Thursday's decline in TJX. Yet the stock's bounce was somewhat anemic on Friday. We are turning more cautious here and raising our stop loss up to $55.75. I am not suggesting new positions at the moment.

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

10/05/13 new stop loss @ 55.75

chart:



Ubiquiti Networks - UBNT - close: 36.54 change: +1.29

Stop Loss: 32.90
Target(s): 39.75
Current Gain/Loss: + 2.2%

Entry on October 04 at $35.75
Listed on October 01, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 853 thousand
New Positions: see below

Comments:
10/05/13: UBNT displayed relative strength on Friday with a +3.65% gain. The stock was actually a lot higher midday with shares hitting a new all-time, intraday high at $37.77. Our trigger to open bullish positions was hit at $35.75. More conservative investors may want to wait for a close above $37.50 since a failure here (near its late August high) would look like a potential bearish double top.

Keep in mind that this is a more aggressive, higher-risk trade and I am suggesting investors keep their position size small.

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.

*small positions*

current Position: long UBNT stock @ $35.75

chart:



WuXi Pharma Tech - WX - close: 28.86 change: +0.71

Stop Loss: 26.95
Target(s): 31.50
Current Gain/Loss: + 2.0%

Entry on October 04 at $28.30
Listed on October 03, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 289 thousand
New Positions: see below

Comments:
10/05/13: WX also displayed relative strength on Friday and also hit a new high and also hit our suggested entry point. The plan was to open bullish positions at $28.30. The stock gapped higher at $28.28 and then surged to a +2.5% gain.

NOTE: We wanted to keep our position size small to limit our risk.

We will have to keep a careful eye on the $30.00 level, which might prove to be round-number resistance.

*small positions*

current Position: Long WX stock @ $28.30

chart:



BEARISH Play Updates

Urban Outfitters - URBN - close: 36.96 change: +0.26

Stop Loss: 37.75
Target(s): 34.50
Current Gain/Loss: + 0.8%

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:
10/05/13: URBN is not cooperating. The stock's downward momentum has stalled. Friday's session (+0.7%) threatened to breakout past the $37 level and what should be short-term resistance at its 10-dma. We are turning more defensive here and lowering our stop loss down to $37.75. 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

10/05/13 new stop loss @ 37.75
09/28/13 new stop loss @ 38.25

chart: