Editor's Note:
The U.S. market's major indices continue to climb. Stocks are looking short-term overbought and due for a dip.

ADBE and FWLT were triggered. VCLK was closed.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 53.17 change: +0.09

Stop Loss: 51.25
Target(s): 58.50
Current Gain/Loss: - 0.6%

Entry on October 22 at $53.50
Listed on October 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.6 million
New Positions: see below

Comments:
10/22/13: It wasn't much but ADBE managed to hit another new all-time high on Tuesday. Shares also hit our suggested entry point at $53.50. I would still consider new positions now or you could wait for a rally past today's high (53.57).

current Position: long ADBE stock @ $53.50

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

Long 2014 Jan $55 call (ADBE1418a55) entry $1.95



Avago Technologies - AVGO - close: 46.87 change: -0.18

Stop Loss: 44.75
Target(s): 48.00
Current Gain/Loss: + 5.3%

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:
10/22/13: AVGO spent the session trading sideways. Traders bought the dip near $46.50 midday. I am not suggesting new positions at this time. Readers may want to lock in gains.

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

10/21/13 new stop loss @ 44.75
10/19/13 new stop loss @ 43.25
10/17/13 new stop loss @ 42.90



Salesforce.com, Inc. - CRM - close: 54.28 change: -0.82

Stop Loss: 52.25
Target(s): 59.75
Current Gain/Loss: - 3.3%

Entry on October 21 at $56.15
Listed on October 19, 2013
Time Frame: 3 to 5 weeks
Average Daily Volume = 4.0 million
New Positions: see below

Comments:
10/22/13: I cautioned readers that CRM would likely fill the gap. Shares did more than that with a sharp spike lower this morning. CRM fell to $53.00 before bouncing. The relative weakness is a bit worrisome. Traders may want to wait and see if the bounce continues tomorrow before initiating new positions.

We will plan to exit prior to CRM's earnings report in late November. FYI: The Point & Figure chart for CRM is bullish with a long-term $77 target.

current Position: long CRM stock @ $56.15

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

Long 2014 Jan $60 call (CRM1418a60) entry $2.10

10/21/13 trade opened on gap higher at $56.15, trigger was 54.50
(gap higher due to an upgrade to strong buy)



HB Fuller Co. - FUL - close: 48.16 change: +0.68

Stop Loss: 45.75
Target(s): 49.75
Current Gain/Loss: + 4.2%

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:
10/22/13: FUL displayed relative strength with a +1.4% gain. Shares also hit new all-time highs. The 10-dma has risen to $46.23. I am adjusting our stop loss to $45.75.

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

10/22/13 new stop loss @ 45.75
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



Foster Wheeler - FWLT - close: 27.71 change: -0.28

Stop Loss: 26.95
Target(s): 31.00
Current Gain/Loss: -1.6%

Entry on October 22 at $28.15
Listed on October 19, 2013
Time Frame: exit PRIOR to earnings on Nov. 7th
Average Daily Volume = 891 thousand
New Positions: see below

Comments:
10/22/13: Uh-oh! I am urging caution here. The action in FWLT was bearish today. FWLT rallied up to $28.44 this morning and then reversed. Not only did it reverse but shares fell to a -1.0% decline. Today's move has produced a bearish engulfing candlestick reversal pattern. Unfortunately, the morning move higher hit our suggested entry point at $28.15. Now normally these reversal patterns need to see confirmation so for now it's just a warning signal. I am not suggesting new positions at the moment.

current Position: long FWLT stock @ $28.15



iShares China Large Cap ETF - FXI - close: 38.17 change: -0.00

Stop Loss: 37.49
Target(s): 41.75
Current Gain/Loss: - 0.2%

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:
10/22/13: The Chinese stock markets were down today. Plus many of the popular momentum Chinese stocks suffered profit taking today. Yet the FXI closed virtually unchanged.

I am suggesting we remain cautious. No 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

10/21/13 new stop loss @ 37.60
10/19/13 new stop loss @ 37.49



HEALTHSOUTH Corp. - HLS - close: 36.48 change: +0.01

Stop Loss: 35.40
Target(s): 39.75
Current Gain/Loss: + 0.5%

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:
10/22/13: HLS did not see much follow through on yesterday's rally. The stock closed virtually unchanged on Tuesday. On a short-term basis I would expect a dip back toward $36.00. We are raising our stop loss to $35.40.

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

10/22/13 new stop loss @ 35.40
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



Krispy Kreme Doughnuts, Inc. - KKD - close: 24.58 change: +0.93

Stop Loss: 22.85
Target(s): (sold half @ 23.25) exit the 2nd half at $26.50
Current Gain/Loss: (+14.5%) 2nd half = +21.1%

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:
10/22/13: KKD displayed relative strength with a +3.9% gain and a breakout past resistance to hit new multi-year highs. Traders have a decision to make. Where do you plan to exit the rest of our position? We've been aiming for $24.75. Today's high was $24.66. Based on KKD's strength I suspect we could see this stock rally past the $25.00 level (which could be round-number resistance).

You could choose to lock in gains now (+21%). We are raising our exit target from $24.75 to $26.50. I am also raising our stop loss to $22.85.

Earlier Comments:
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

10/22/13 Exit Strategy Update: We are raising our exit target on the second half of our trade from $24.75 to $26.50.
new stop loss @ 22.85.
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.



Scientific Games - SGMS - close: 18.88 change: -0.06

Stop Loss: 17.90
Target(s): 19.50
Current Gain/Loss: + 7.3%

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:
10/22/13: The rally in SGMS could be getting tired. The stock hit a new high on an intraday basis but closed in negative territory. I am raising our stop loss to $17.90.

NOTE: Our plan was to exit our November $17.50 calls at the opening bell this morning.

Earlier comments:
The next major resistance level looks like the $19.50-20.00 zone. 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) -

(option exit on 10/22/2013)
NOV $17.50 call (SGMS1316k17.5) entry $1.15* exit $1.80* (+56.5%)

10/22/13 new stop loss @ 17.90
10/22/13 planned exit to close the call options. +56.5%
10/21/13 new stop loss @ 17.40, adjust exit target to $19.50
prepare to exit our Nov. $17.50 call at the open tomorrow.
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.



Scotts Miracle-Gro Co. - SMG - close: 58.09 change: +0.70

Stop Loss: 55.40
Target(s): 59.85
Current Gain/Loss: + 3.5%

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:
10/22/13: SMG raced higher with a +1.2% gain on Tuesday. This is a new two-year high for the stock. I am not suggesting new positions at this time.

current Position: long SMG stock @ $56.15

10/21/13 new stop loss @ 55.40
10/17/13 new stop loss @ 54.75



BEARISH Play Updates


None. We do not have any active bearish trades.



CLOSED BEARISH PLAYS

ValueClick, Inc. - VCLK - close: 19.99 change: +0.10

Stop Loss: 20.11
Target(s): 18.05
Current Gain/Loss: - 0.7%

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:
10/22/13: VCLK has not been cooperating with us. We decided in last night's newsletter to exit positions at the opening bell today.

closed Position: short VCLK stock @ $19.85 exit $19.99 (-0.7%)

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

NOV $20 PUT (VCLK1316w20) entry $1.45 exit $1.20 (-17.2%)

10/22/13 planned exit at the opening bell
10/21/13 prepare to exit at the opening bell tomorrow.
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: