Editor's Note:
The stock market bulls remain in charge and stocks pushed to new highs last week.

LOW has been removed. We want to exit our WLT trade on Monday. I have updated a few stop losses tonight.


Current Portfolio:


BULLISH Play Updates

Avago Technologies - AVGO - close: 46.06 change: +0.96

Stop Loss: 43.25
Target(s): 48.00
Current Gain/Loss: + 3.5%

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:
10/19/13: Shares of AVGO soared +2.1% on Friday after Goldman Sachs added it to its "conviction buy list". I am raising our stop loss to $43.25. I wouldn't chase it here.

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

10/19/13 new stop loss @ 43.25
10/17/13 new stop loss @ 42.90

chart:



First Solar, Inc. - FSLR - close: 49.97 change: +4.00

Stop Loss: 43.90
Target(s): 54.00
Current Gain/Loss: + 8.5%

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:
10/19/13: It was a very bullish week for FSLR thanks to a +8.69% surge on Friday. The stock raced toward round-number resistance at $50.00. I am raising our stop loss to $44.80. More conservative traders may want to raise their stop higher. I am not suggesting new positions at this time. After such a big run up this week I would expect a dip soon.

NOTE: Our call option has almost doubled in value. Traders may want to take profits there.

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

chart:



HB Fuller Co. - FUL - close: 47.10 change: -0.25

Stop Loss: 44.95
Target(s): 49.75
Current Gain/Loss: + 1.9%

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:
10/19/13: After hitting early gains on Friday morning, FUL's -0.5% close on Friday was disappointing. Something happened midday where shares plunged nearly a dollar on a spike in volume. I couldn't find any news to explain the relative weakness. Friday's performance remains a short-term warning signal.

The stock is up five weeks in a row and might be due for a pullback. I would look for a dip back toward what should be support near $46.00.

Earlier comments:
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

chart:



iShares China Large Cap ETF - FXI - close: 38.15 change: +0.04

Stop Loss: 37.49
Target(s): 41.75
Current Gain/Loss: - 0.3%

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:
10/19/13: Traders may want to turn more cautious on our FXI trade. The U.S. dollar is falling as our elected leaders choose to raise our debt ceiling. A falling dollar could be bad for China. We are raising our stop loss to $37.49. I am not suggesting new positions at this time.

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

10/19/13 new stop loss @ 37.49

chart:



HEALTHSOUTH Corp. - HLS - close: 36.33 change: +0.49

Stop Loss: 35.25
Target(s): 39.75
Current Gain/Loss: + 0.1%

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:
10/19/13: After underperforming earlier in the week HLS displayed some strength on Friday. Shares gapped open higher and closed up +1.3%. This is a new multi-year closing high for HLS. Yet I remain cautious on it. HLS has not fully participated in the market's recent rally. I am adjusting the stop loss to $35.25.

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

10/19/13 new stop loss @ 35.25
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

chart:



Krispy Kreme Doughnuts, Inc. - KKD - close: 23.52 change: +0.10

Stop Loss: 22.40
Target(s): (sold half @ 23.25) exit the 2nd half at $24.75
Current Gain/Loss: (+14.5%) 2nd half = +15.9%

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:
10/19/13: Friday morning saw KKD surge past resistance and hit new multi-year highs. Unfortunately, the rally faded by the closing bell. Let's hope that wasn't a bull trap pattern. I am raising our stop loss to $22.40.

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

10/19/13 new stop loss @ 22.40
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.

chart:



Scientific Games - SGMS - close: 18.42 change: +0.21

Stop Loss: 16.90
Target(s): 19.75
Current Gain/Loss: + 4.7%

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:
10/19/13: SGMS completed its acquisition of WMS Industries Inc. on Friday. This news probably didn't impact the stock. Shares were already in rally mode. SGMS hit another multi-year high on Friday. The stock is now up three weeks in a row. I am raising our stop loss to $16.90. Please note the trend line on our chart below.

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*

10/19/13 new stop loss @ 16.90
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:



Scotts Miracle-Gro Co. - SMG - close: 57.20 change: +0.18

Stop Loss: 54.75
Target(s): 59.85
Current Gain/Loss: + 1.9%

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:
10/19/13: SMG managed another gain on Friday. The stock is up six out of the last seven sessions. If you missed our entry point consider waiting for a dip. Broken resistance near $56.00 should be new support.

current Position: long SMG stock @ $56.15

10/17/13 new stop loss @ 54.75

chart:



Walter Energy Inc. - WLT - close: 15.21 change: -0.44

Stop Loss: 14.95
Target(s): 19.50
Current Gain/Loss: - 6.4%

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: see below

Comments:
10/19/13: Our WLT trade is not working. The stock continues to struggle with resistance near the $16.00 level. Our trade was triggered on an intraday spike Thursday as the market reacted to positive earnings news from BTU, another coal miner. Yet there was no follow through in WLT. Friday's session actually looks like a bearish reversal pattern.

We are suggesting an immediate exit on Monday morning.

current Position: Long WLT stock @ $16.25

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

Long NOV $17 call (WLT1316k17) entry $0.93

10/19/13 prepare to exit on Monday morning (Oct. 21st).

chart:



BEARISH Play Updates

ValueClick, Inc. - VCLK - close: 19.89 change: +0.38

Stop Loss: 20.11
Target(s): 18.05
Current Gain/Loss: - 0.2%

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:
10/19/13: I am starting to worry that VCLK is not going to cooperate. With the stock market in rally mode shares of VCLK are trying to bounce. Shares spent most of last week consolidating sideways while the market bounced. Yet Friday has produced a bullish move above its 10-dma. The rally did stall at round-number resistance at $20.00. Yet if the market continues to rise we could see VCLK break higher.

More conservative traders may want to exit immediately. I am adjusting our stop loss lower to $20.11. 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

10/19/13 new stop loss @ 20.11
10/12/13 new stop loss @ 20.26
10/08/13 new stop loss @ 20.51

chart:



CLOSED BULLISH PLAYS

Lowe's Companies - LOW - close: 47.66 change: -1.36

Stop Loss: 47.75
Target(s): 54.00
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 17, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 6.8 million
New Positions: see below

Comments:
10/19/13: We are removing LOW as an active candidate. The stock underperformed the market on Friday and did not participate in the broad-based rally. Shares dropped -2.77% as traders reacted to bearish analyst comments. Our trade did not open. The suggested trigger was $49.50.

Trade did not open.

10/19/13 removed from the newsletter.

chart: