Editor's Note:
The stock market rallied on hope for a debt ceiling deal between democrats and republicans but so far it's just hope. No deal has been made yet.

BJRI was stopped out. RJF has been removed.


Current Portfolio:


BULLISH Play Updates

Krispy Kreme Doughnuts, Inc. - KKD - close: 23.08 change: +0.13

Stop Loss: 21.40
Target(s): (sold half @ 23.25) exit the 2nd half at $24.75
Current Gain/Loss: (+14.5%) 2nd half = +13.7%

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:
10/10/13: KKD underperformed the broader market today but shares still posted a +0.5% gain. The stock has already had a strong performance this month and KKD is currently trying to chew through resistance in the $23.25-23.50 zone. I am not suggesting new positions at this time. More conservative traders may want to use a higher stop loss.

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: 1.04 change: -0.00

Stop Loss: 0.93
Target(s): TBD
Current Gain/Loss: - 0.5%

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:
10/10/13: Thursday proved to be a quiet day for shares of PREGF. The stock did not participate in the broader market rally. Instead PREGF closed unchanged on the session. A bounce from here or from the $1.00 level could be used as a new bullish entry point.

*Higher Risk, Speculative Trade*

current Position: Long PREGF stock @ $1.05

10/05/13 new stop loss @ 0.93



BEARISH Play Updates

Cliffs Natural Resources - CLF - close: 20.67 change: +0.58

Stop Loss: 20.85
Target(s): 16.25
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 09, 2013
Time Frame: exit PRIOR to earnings on Oct. 24th
Average Daily Volume = 6.6 million
New Positions: Yes, see below

Comments:
10/10/13: CLF erased yesterday's decline with a big +2.88% bounce today. It's worth noting that the rebound did stall at the $21.00 level and nts its 10-dma. CLF is still trading with a bearish trend of lower highs, at least for now. There is no change from my Wednesday night new play comments.

Earlier Comments:
Traders may want to use the option to limit their risk. CLF does have above average short interest. The latest data listed short interest at 34% of the 152 million share float.

I am suggesting a trigger to open small bearish positions at $19.75. If triggered our target is $16.25. However, we do not want to hold over CLF's earnings report on October 24th. FYI: The Point & Figure chart for CLF is bearish with a $15.00 target.

Trigger @ 19.75 *small positions*

Suggested Position: short CLF stock @ (trigger)

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

Buy the NOV $20 PUT (CLF1316w20)



Urban Outfitters - URBN - close: 36.46 change: +0.76

Stop Loss: 36.75
Target(s): 34.50
Current Gain/Loss: + 2.1%

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:
10/10/13: Several large retail chains reported their September same-store sales data this morning. The results were mixed with multiple companies missing estimates. Yet that didn't stop most of the retail names from participating in the stock market's widespread rally today. URBN surged +2.1% to close just above short-term technical resistance at its 10-dma. If there is any follow through higher tomorrow we could see URBN hit our stop at $36.75. 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 exit $2.85* (+96.5%)

10/09/13 planned exit to close our Oct. 38 puts at the open.
*option exit price is an estimate since the option did not trade at the time our play was closed.
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: 19.48 change: +0.17

Stop Loss: 20.51
Target(s): 18.05
Current Gain/Loss: + 1.9%

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:
10/10/13: VCLK gapped open higher this morning but shares pared their gains by the closing bell. The stock ended today's session with a +0.8% gain. A failed rally near $20.00 could be used as a new bearish entry point. More conservative traders might want to tighten their stops closer to $20.00.

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 BEARISH PLAYS

BJ's Restaurant - BJRI - close: 29.41 change: +0.44

Stop Loss: 29.55
Target(s): 25.00
Current Gain/Loss: - 6.5%

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:
10/10/13: BJRI was already not cooperating with us. The stock had already begun an oversold bounce prior to today's widespread market rally. Thus today's market bounce gave BJRI the push it needed to hit our 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.

closed Position: short BJRI stock @ $27.75 exit $29.55 (-6.5%)

10/10/13 stopped out

chart:



Raymond James Financial - RJF - close: 41.90 change: +1.20

Stop Loss: 41.15
Target(s): 36.25
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 08, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 931 thousand
New Positions: see below

Comments:
10/10/13: The financial sector was a strong outperformer today and RJF outperformed its peers with a +2.94% gain. Our trade has not opened yet (trigger was $36.25) so we are removing RJF from the newsletter.

Trade did not open.

10/10/13 removed from the newsletter

chart: