Editor's Note:
The U.S. market's S&P 500 index and Russell 2000 index hit new record highs on Thursday. The move followed news that congress had finally ironed out a deal, even if it is a temporary deal to fund the government and raise the debt limit.

FSLR and WLT were triggered. URBN was closed this morning.


Current Portfolio:


BULLISH Play Updates

Avago Technologies - AVGO - close: 45.10 change: +0.60

Stop Loss: 42.90
Target(s): 48.00
Current Gain/Loss: + 1.3%

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:
10/17/13: Traders bought the dip in AVGO this morning near $44.00 and the stock rebounded with a +1.3% gain. This is another new record high. We will adjust our stop loss up to $42.90. 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

10/17/13 new stop loss @ 42.90



First Solar, Inc. - FSLR - close: 45.97 change: +0.21

Stop Loss: 43.90
Target(s): 54.00
Current Gain/Loss: - 0.2%

Entry on October 17 at $46.05
Listed on October 16, 2013
Time Frame: Exit PRIOR to earnings in very late October (or early Nov.)
Average Daily Volume = 4.5 million
New Positions: see below

Comments:
10/17/13: FSLR gapped open higher this morning but the rally sort of fizzled. Shares spent most of the day moving sideways and closed up with a +0.45% gain (versus +0.6% in the NASDAQ). Our trigger to open bullish positions was hit at $46.05 this morning.

Earlier Comments:
A breakout here could spark some short covering. The most recent data listed short interest at 21% of the 70.7 million share float. I am suggesting a trigger to open bullish positions at $46.05. If triggered our target is $54.00 but we may exit earlier to avoid holding over FSLR's earnings report expected around the end of October or early November. FYI: The Point & Figure chart for FSLR is bullish with a $54.00 target.

NOTE: FSLR can be a volatile stock. I am suggesting small positions to limit our risk.

*small positions*

current Position: Long FSLR stock @ $46.05

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

Long NOV $50 call (FSLR1316K50) entry $2.25



HB Fuller Co. - FUL - close: 47.35 change: +1.26

Stop Loss: 44.95
Target(s): 49.75
Current Gain/Loss: + 2.5%

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:
10/17/13: It looks like we're back in business with FUL. The stock displayed relative strength with a +2.7% gain, closing at a new all-time high. I am raising our stop loss to $44.95.

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

10/17/13 new stop loss @ 44.95
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: 38.11 change: -0.10

Stop Loss: 36.70
Target(s): 41.75
Current Gain/Loss: - 0.4%

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:
10/17/13: The FXI gapped down this morning but pared its losses by the closing bell. I would still consider new positions now or you could look for a potential dip near $37.50 as an alternative entry point.

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: 35.84 change: +0.11

Stop Loss: 34.95
Target(s): 39.75
Current Gain/Loss: - 1.3%

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:
10/17/13: It looks like HLS is holding at support on its rising 10-dma, at least for now. The stock bounced but shares did underperform the broader market. I remain cautious here. 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: 23.42 change: +0.21

Stop Loss: 21.85
Target(s): (sold half @ 23.25) exit the 2nd half at $24.75
Current Gain/Loss: (+14.5%) 2nd half = +15.4%

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:
10/17/13: The bounce in KKD continues and shares are challenging resistance near $23.50. A breakout higher here could spark another sprint higher.

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: 18.21 change: +0.23

Stop Loss: 16.40
Target(s): 19.75
Current Gain/Loss: + 3.5%

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:
10/17/13: Thankfully there was no follow through on what looked like a possible reversal on Wednesday. Traders bought the dip this morning and SGMS outperformed the market with a +1.2% gain.

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: 57.02 change: +1.13

Stop Loss: 54.75
Target(s): 59.85
Current Gain/Loss: + 1.5%

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:
10/17/13: SMG spiked higher this morning following an analyst upgrade before the bell. SMG has cleared resistance near $56.00 and should be free to rally. I am raising our stop loss to $54.75.

current Position: long SMG stock @ $56.15

10/17/13 new stop loss @ 54.75



Walter Energy Inc. - WLT - close: 15.65 change: +0.15

Stop Loss: 14.95
Target(s): 19.50
Current Gain/Loss: - 3.7%

Entry on October 17 at $16.25
Listed on October 15, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 6.7 million
New Positions: Yes, see below

Comments:
10/17/13: I cautioned readers last night to keep an eye on BTU's earnings report. BTU reported better than expected results this morning and the news sparked a rally across the coal industry. Shares of WLT surged to a +5.1% gain intraday. Unfortunately, WLT did not maintain these gains and the stock closed back below resistance. Our trigger was hit at $16.25 so our play is open but I would not launch new positions at this time. The failure to close above $16.00 might suggest this is a failed rally pattern.

Earlier comments:
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.

current Position: Long WLT stock @ $16.25

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

Long NOV $17 call (WLT1316k17) entry $0.93



BEARISH Play Updates

ValueClick, Inc. - VCLK - close: 19.51 change: +0.06

Stop Loss: 20.26
Target(s): 18.05
Current Gain/Loss: + 1.7%

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:
10/17/13: VCLK spent Thursday's session churning sideways. The stock is still struggling with resistance at its 10-dma. 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



CLOSED BEARISH PLAYS

Urban Outfitters - URBN - close: 36.44 change: -0.02

Stop Loss: 36.75
Target(s): 34.50
Current Gain/Loss: + 2.6%

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:
10/17/13: URBN has not been cooperating. We decided in last night's newsletter that the best move was to exit early at the opening bell today. Fortunately, shares gapped down at $36.30.

closed Position: short URBN stock @ $37.25 exit $36.30 (+2.6%)

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

(we exited the October put on 10/09/2013)
Oct $38 PUT (URBN1319v38) entry $1.45 exit $2.85* (+96.5%)

10/17/13 planned exit
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

chart: