Editor's Note:
The U.S. stock market accelerated lower as Wall Street starts to sour on worries over the debt ceiling and lack of progress in Washington.

KKD hit our first target at $23.25 today.
FOXA, GT, and LGF were stopped out.
P was removed. VCLK was triggered.


Current Portfolio:


BULLISH Play Updates

Avago Technologies - AVGO - close: 42.60 change: -0.40

Stop Loss: 41.90
Target(s): 44.50
Current Gain/Loss: + 5.8%

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:
10/08/13: AVGO gave up almost one percent as it followed the market lower on Tuesday. Today's decline marks AVGO's first breakdown below its simple 10-dma in several weeks. The next level of support should be $42.00.

More conservative traders may want to exit our 2014 January calls to lock in profits now.

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



Krispy Kreme Doughnuts, Inc. - KKD - close: 23.22 change: +0.42

Stop Loss: 21.40
Target(s): (sold half @ 23.25) exit the 2nd half at $24.75
Current Gain/Loss: (+14.5%) 2nd half = +14.4%

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:
10/08/13: Target achieved.

Shares of KKD ignored the stock market's sell-off and continued to show relative strength with a +1.8% gain. The stock is challenging resistance near its August highs. Our first target to exit part of our position was hit at $23.25 (a +14.5% gain). The plan was to sell half here at $23.25 and then sell the rest at $24.75. Keep in mind that KKD is short-term overbought and due for some profit taking. You might want to just exit completely here.

Please note our new stop loss @ 21.40.

Earlier Comments:
I am suggesting we sell half of our position at $23.25. We want to adjust our final exit target to $24.75.

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

10/08/13 new stop loss @ 21.40
10/08/13 1st target hit at $23.25 (sell half) +14.5%
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.



PRD Energy - PREGF - close: 1.10 change: -0.04

Stop Loss: 0.93
Target(s): TBD
Current Gain/Loss: + 4.3%

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:
10/08/13: PREGF slipped -3.9% on Tuesday. It could have been worse given the broader market's sell-off. If this pullback continues PREGF might find support near its 10-dma (1.03) or the $1.00 level.

*Higher Risk, Speculative Trade*

current Position: Long PREGF stock @ $1.05

10/05/13 new stop loss @ 0.93



Seagate Technology - STX - close: 44.79 change: -0.37

Stop Loss: 44.25
Target(s): 47.00
Current Gain/Loss: +6.0%

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:
10/08/13: STX was in the headlines today with news that the company had repurchased 9% of its stock or 32.7 million shares from Samsung Electronics at $46.03 a share. The story was viewed as a positive for STX but shares quickly reversed their morning gains and closed on their lows.

Technically today's session looks like a failed rally breakout and a bearish reversal near resistance at $46.00. I am raising our stop loss to $44.25 and I am suggesting we exit our 2014 January $45 calls immediately at the opening bell tomorrow. The current bid/ask on the option is $3.05/3.15.

current Position: Long STX stock @ $42.25

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

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

10/08/13 new stop loss @ 44.25, and exit the 2014 calls at the opening bell tomorrow.
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



Ubiquiti Networks - UBNT - close: 34.49 change: -1.65

Stop Loss: 33.90
Target(s): 39.75
Current Gain/Loss: - 3.5%

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:
10/08/13: UBNT tried to rally this morning but the bulls ran out of steam by lunchtime. UBNT underperformed the market with a -4.5% plunge. I am concerned that UBNT could be forming a bearish double top so we're raising the stop loss to $33.90.

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

10/08/13 new stop loss @ 33.90



WuXi Pharma Tech - WX - close: 28.01 change: -0.69

Stop Loss: 26.95
Target(s): 31.50
Current Gain/Loss: - 1.0%

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:
10/08/13: After holding up reasonably well on Monday shares of WX underperformed the market on Tuesday with a -2.4% drop. Shares are testing $28.00 and its 10-dma. If you want to be picky you could argue that today's session has created a bearish engulfing candlestick reversal pattern. More conservative traders might want to raise their stop loss closer to the simple 20-dma, currently near $27.40.

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



BEARISH Play Updates

BJ's Restaurant - BJRI - close: 28.80 change: +0.90

Stop Loss: 29.55
Target(s): 25.00
Current Gain/Loss: - 3.8%

Entry on October 07 at $27.75
Listed on October 05, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 315 thousand
New Positions: see below

Comments:
10/08/13: BJRI shot higher at the open. I couldn't find any company specific news behind the sudden display of relative strength (+3.2%). Looking around there was some strength in a few of the restaurant names and traders may have just covered some shorts in a panic. That could reverse tomorrow. YUM brands (YUM) reported disappointing earnings tonight after the closing bell and that could pressure the same restaurant stocks lower tomorrow.

BJRI's rally did stall at technical resistance at the simple 10-dma. More conservative traders may want to tighten their stop loss.

Earlier Comments:
I am suggesting small positions because BJRI does have above average short interest. The most recent data listed short interest at 17% of the small 23.2 million share float. I am not listing the options but you could buy put options to limit your risk in a bearish trade on BJRI.

current Position: short BJRI stock @ $27.75



Urban Outfitters - URBN - close: 35.06 change: -0.60

Stop Loss: 36.75
Target(s): 34.50
Current Gain/Loss: + 5.9%

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:
10/08/13: The sell-off in URBN is picking up speed with shares down another -1.6% today. I am adjusting our stop loss down to $36.75. I am not suggesting new positions at this time.

NOTE: Our October $38 puts have almost doubled in value (current bid $2.95). I am suggesting we go ahead and exit our put options at the opening bell tomorrow morning.

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

10/08/13 new stop loss @ 36.75
prepare to exit the October $38 puts at the open.
10/07/13 new stop loss @ 37.25
10/05/13 new stop loss @ 37.75
09/28/13 new stop loss @ 38.25



ValueClick, Inc. - VCLK - close: 19.00 change: -1.19

Stop Loss: 20.51
Target(s): 18.05
Current Gain/Loss: + 4.3%

Entry on October 08 at $19.85
Listed on October 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
10/08/13: Our new trade on VCLK is off to a strong start. Shares underperformed the market with a -5.89% plunge to new multi-month lows. Our trigger to open bearish positions was hit this morning at $19.85. I am adjusting our stop loss down to $20.51.

Trigger @ 19.85

Suggested Position: short VCLK stock @ (trigger)

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

Long NOV $20 PUT (VCLK1316w20) entry $1.45

10/08/13 new stop loss @ 20.51



CLOSED BULLISH PLAYS

Twenty-First Century Fox, Inc. - FOXA - close: 32.44 change: -0.65

Stop Loss: 32.45
Target(s): 37.50
Current Gain/Loss: - 4.8%

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:
10/08/13: The stock market's two-day decline was too much for FOXA. Shares underperformed the market with a -1.96% drop and hit our stop loss at $32.45.

closed Position: Long FOXA stock @ $34.10 exit $32.45 (-4.8%)

10/08/13 stopped out

chart:



Goodyear Tire & Rubber Co. - GT - close: 21.85 change: -0.60

Stop Loss: 21.85
Target(s): 25.00
Current Gain/Loss: - 2.9%

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:
10/08/13: GT is another victim of the stock market's broad-based sell-off. After a seven-week rally shares are finally starting to pullback and today saw GT breakdown below technical support at its 20-dma and the $22.00 level. Our stop was hit at $21.85.

closed Position: long GT stock @ $22.50 exit $21.85 (-2.9%)

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

2014 Jan $23 call (GT1418a23) entry $1.63 exit $1.15 (-29.4%)

10/08/13 stopped out
10/01/13 new stop loss @ 21.85
09/24/13 new stop loss @ 21.65

chart:



Lions Gate Entertainment - LGF - close: 34.24 change: -1.41

Stop Loss: 34.90
Target(s): 40.00
Current Gain/Loss: - 5.0%

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:
10/08/13: LGF was a distinct underperformer on Tuesday. The stock broke down below its 50-dma and posted a -3.95% decline. I didn't see any specific news behind today's display of relative weakness. Our stop loss was hit at $34.90.

closed Position: Long LGF stock @ $36.75 exit $34.90 (-5.0%)

10/08/13 stopped out
10/05/13 new stop loss @ 34.90

chart:



Pandora Media - P - close: 24.26 change: -2.04

Stop Loss: 25.75
Target(s): 32.50
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 05, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 16.6 million
New Positions: see below

Comments:
10/08/13: Pandora is one of the many momentum stocks that were crushed today. Shares gapped open lower and plunged to a -7.75% decline. Our trade has not opened (suggested trigger $28.15) and we are removing P as an active candidate.

Trade did not open.

10/08/13 removed from the newsletter

chart: