Editor's Note:
The U.S. stock market rallied on news of a potential deal in the Senate to fund the government and postpone the debt ceiling deadline.

AVGO hit our entry trigger. We want to exit URBN tomorrow morning.


Current Portfolio:


BULLISH Play Updates

Avago Technologies - AVGO - close: 44.50 change: +0.76

Stop Loss: 42.40
Target(s): 48.00
Current Gain/Loss: + 0.0

Entry on October 16 at $44.50
Listed on October 14, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.75 million
New Positions: see below

Comments:
10/16/13: The widespread market rally helped lift AVGO to a new all-time high. Shares hit our suggested entry point at $44.50. Remember our plan was to keep our position size small to limit our risk.

*small positions*

Current Position: long AVGO stock @ $44.50

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

Long 2014 Jan $45 call (AVGO1418a45) entry $2.40



HB Fuller Co. - FUL - close: 46.09 change: +0.79

Stop Loss: 44.49
Target(s): 49.75
Current Gain/Loss: - 0.2%

Entry on October 15 at $46.20
Listed on October 12, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 405 thousand
New Positions: see below

Comments:
10/16/13: FUL displayed some relative strength today with a +1.74% gain. That's encouraging after yesterday's potential bearish reversal. It is worth noting that the stock failed at $46.30 and today the stock hit $46.31 before paring its gains. Traders may want to wait for a new high before initiating new positions.

Earlier comments:
If triggered our target is $49.75. More aggressive traders may want to aim higher. FUL's point & figure chart has created a spread triple-top breakout buy signal with a $62 target.

current Position: long FUL stock @ $46.20

10/15/13 be careful. FUL hit our trigger on a very brief intraday spike
10/14/13 adjust entry trigger to $46.20 from $46.15



iShares China Large Cap ETF - FXI - close: 38.21 change: +0.09

Stop Loss: 36.70
Target(s): 41.75
Current Gain/Loss: - 0.1%

Entry on October 11 at $38.25
Listed on October 10, 2013
Time Frame: 6 to 9 weeks
Average Daily Volume = 17.6 million
New Positions: see below

Comments:
10/16/13: The Chinese FXI underperformed the U.S. market. Shares only gained +0.22% but the longer-term trend of higher lows remains intact. I would still consider new positions at current levels.

Earlier comments:
This ETF might see some short-term resistance in the $39.25 area (September high) and the $40.00 level but our multi-week target is $41.75.

current Position: long the FXI (ETF) @ $38.25

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

Long 2014 Jan $40 call (FXI1418a40) entry $0.97



HEALTHSOUTH Corp. - HLS - close: 35.73 change: +0.03

Stop Loss: 34.95
Target(s): 39.75
Current Gain/Loss: - 1.6%

Entry on October 15 at $36.30
Listed on October 10, 2013
Time Frame: exit PRIOR to earnings on Oct. 28th
Average Daily Volume = 459 thousand
New Positions: see below

Comments:
10/16/13: Uh-oh! HLS did not participate in the broad-based market rally today. Shares underperformed with an anemic three-cent gain. HLS looks poised to breakdown below its simple 10-dma soon. More conservative traders may want to raise their stop loss. I am not suggesting new positions at this time.

Earlier Comments:
Our target is $39.75 but we do not want to hold over the earnings report scheduled for October 28th.

current Position: Long HLS stock @ $36.30

10/15/13 triggered at $36.30
10/14/13 adjust entry trigger to $36.30 from $36.25
adjust the stop loss from $34.75 to $34.95



Krispy Kreme Doughnuts, Inc. - KKD - close: 23.21 change: +0.44

Stop Loss: 21.85
Target(s): (sold half @ 23.25) exit the 2nd half at $24.75
Current Gain/Loss: (+14.5%) 2nd half = +14.3%

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:
10/16/13: Traders bought the dip in KKD near its rising 10-dma and shares outperformed the market with a +1.9% gain. Yet the stock remains below resistance in the $23.25-23.50 zone.

I am not suggesting new positions at this time.

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

10/14/13 new stop loss @ 21.85
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.



Scientific Games - SGMS - close: 17.98 change: +0.03

Stop Loss: 16.40
Target(s): 19.75
Current Gain/Loss: + 2.2%

Entry on October 14 at $17.60
Listed on October 12, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 690 thousand
New Positions: see below

Comments:
10/16/13: SGMS tagged new multi-year highs before paring its gains. The stock closed virtually unchanged on the session, which is a bit troubling. However, the stock is probably overbought after six days of gains in a row. If SGMS does dip, look for support near the 10-dma.

Earlier comments:
The next major resistance level looks like the $19.50-20.00 zone. Our target is $19.75. Keep in mind that we want to use small positions to limit our risk.

*small positions*

current Position: long SGMS stock @ $17.60

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

Long NOV $17.50 call (SGMS1316k17.5) entry $1.15*

*option entry price is an estimate since the option did not trade at the time our play was opened.



Scotts Miracle-Gro Co. - SMG - close: 55.89 change: +0.28

Stop Loss: 53.95
Target(s): 59.85
Current Gain/Loss: - 0.5%

Entry on October 15 at $56.15
Listed on October 14, 2013
Time Frame: 3 to 5 weeks
Average Daily Volume = 310 thousand
New Positions: see below

Comments:
10/16/13: SMG is still struggling with resistance near the $56.00 level. The stock managed a +0.5% gain but failed to keep pace with the major indices. Today's high was $56.20 and yesterday's high was $56.30. Readers may want to wait for a rally above either of these levels before initiating positions.

current Position: long SMG stock @ $56.15



Walter Energy Inc. - WLT - close: 15.50 change: -0.35

Stop Loss: 14.95
Target(s): 19.50
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 15, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 6.7 million
New Positions: Yes, see below

Comments:
10/16/13: WLT delivered a disappointing performance on Wednesday. After testing resistance yesterday the stock reversed and underperformed the major indices with a -2.2% decline.

Readers will want to keep an eye on another coal company, Peabody Energy (BTU), who reports earnings tomorrow on October 17th. BTU's results and management's guidance could definitely influence trading in WLT.

Earlier comments:
I am suggesting a trigger to open bullish positions at $16.25. If triggered our target is $19.50 but we will plan to exit prior to WLT's next earnings report expected in early November. FYI: The Point & Figure chart for WLT is bullish with a $25.00 target.

Trigger @ 16.25

Suggested Position: buy WLT stock @ (trigger)

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

Buy the NOV $17 call (WLT1316k17)



BEARISH Play Updates

Urban Outfitters - URBN - close: 36.46 change: +0.57

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:
10/16/13: URBN is not cooperating. Shares rallied with the market today and managed to breakout past short-term technical resistance at its 10-dma. The intraday high was $36.51. I am suggesting we exit immediately tomorrow morning to avoid any losses.

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%)

10/16/13 prepare to exit at the open tomorrow
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: 19.45 change: -0.03

Stop Loss: 20.26
Target(s): 18.05
Current Gain/Loss: + 2.0%

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:
10/16/13: VCLK briefly traded just above its 10-dma before failing at the $19.75 level. The stock underperformed the market and closed fractionally lower on the session. I am not suggesting new positions at this time.

current Position: short VCLK stock @ $19.85

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

Long NOV $20 PUT (VCLK1316w20) entry $1.45

10/12/13 new stop loss @ 20.26
10/08/13 new stop loss @ 20.51