Editor's Note:
The S&P 500 index snapped a five-day winning streak with a -0.4% decline on Wednesday. The major indices did look overbought so a pullback is not surprising.

AVGO, FWLT, FXI were stopped out. YHOO has been removed.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 53.06 change: -0.11

Stop Loss: 51.25
Target(s): 58.50
Current Gain/Loss: - 0.8%

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:
10/23/13: Traders bought the dip in ADBE near its 10-dma. The stock pared its losses by the closing bell. 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



Salesforce.com, Inc. - CRM - close: 53.34 change: -0.94

Stop Loss: 52.25
Target(s): 59.75
Current Gain/Loss: - 5.0%

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:
10/23/13: CRM underperformed the market again with a -1.7% decline on Wednesday. Yet traders bought the dip near $53.00 for the second day in a row. I am raising our stop loss to $52.75. Today's high was $54.04. Readers may want to wait for a rally above $54.00 before considering 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: 48.49 change: +0.33

Stop Loss: 45.75
Target(s): 49.75
Current Gain/Loss: + 5.0%

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:
10/23/13: The relative strength in FUL continues. The stock bucked the market's down trend with a +0.69% gain and another new high. Shares are on track for their sixth weekly gain in a row.

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



HEALTHSOUTH Corp. - HLS - close: 36.36 change: -0.12

Stop Loss: 35.40
Target(s): 39.75
Current Gain/Loss: + 0.2%

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:
10/23/13: Profit taking in HLS today was pretty mild. Shares found support near their rising 10-dma. Readers could use a bounce from this area as a new entry point. Just remember that we plan to exit prior to earnings on October 28th.

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: 24.25 change: -0.33

Stop Loss: 22.85
Target(s): (sold half @ 23.25) exit the 2nd half at $26.50
Current Gain/Loss: (+14.5%) 2nd half = +19.5%

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:
10/23/13: KKD gave back about a third of yesterday's gains. Yet traders bought the dip midday near $24.00 (actually 23.90). More conservative traders could lock in profits now but the trend is still higher.

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: 18.66 change: -0.22

Stop Loss: 17.90
Target(s): 19.50
Current Gain/Loss: + 6.0%

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:
10/23/13: The rally in SGMS could be getting exhausted. Shares gave back -1.1%. More conservative traders may want to lock in gains now. I would not be surprised to see a dip back toward its 10-dma and the $18 level.

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: 58.04 change: -0.05

Stop Loss: 55.85
Target(s): 59.85
Current Gain/Loss: + 3.4%

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:
10/23/13: SMG held up very well in the face of the market's decline. I am not suggesting new positions at this time. Should SMG see a pullback we can look for short-term support at $57.00 and $56.00. Tonight we're raising our stop loss to $55.85.

current Position: long SMG stock @ $56.15

10/23/13 new stop loss @ 55.85
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 BULLISH PLAYS

Avago Technologies - AVGO - close: 45.39 change: -1.48

Stop Loss: 44.75
Target(s): 48.00
Current Gain/Loss: + 0.6%

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:
10/23/13: It was a down day for the market and traders rushed to lock in profits on AVGO. Shares gapped open lower at $46.41 and traded below what should have been support at $45.00 and its 10-dma. At its worst levels of the day AVGO was off -4.6%. Our stop loss was hit at $44.75.

Remember our plan was to keep our position size small to limit our risk.

*small positions*

closed Position: long AVGO stock @ $44.50 exit $44.75 (+0.6%)

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

2014 Jan $45 call (AVGO1418a45) entry $2.40 exit $2.26 (-5.8%)

10/23/13 stopped out
10/21/13 new stop loss @ 44.75
10/19/13 new stop loss @ 43.25
10/17/13 new stop loss @ 42.90

chart:



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

Stop Loss: 26.95
Target(s): 31.00
Current Gain/Loss: -4.3%

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:
10/23/13: I cautioned readers yesterday that our FWLT trader may be in trouble. On Tuesday FWLT formed a bearish reversal pattern. Shares continued to see weakness today with a gap down at the open and a spike lower toward its 20-dma, below the $27.00 level. The intraday low was $26.85. Our stop was hit at $26.95.

closed Position: long FWLT stock @ $28.15 exit $26.95 (-4.3%)

chart:



iShares China Large Cap ETF - FXI - close: 36.90 change: -1.27

Stop Loss: 37.49
Target(s): 41.75
Current Gain/Loss: - 3.0%

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:
10/23/13: Ouch! It was an ugly day for the Chinese FXI ETF. Wednesday saw shares produce a sharp gap lower and post a -3.3% decline. This move followed a down day in the Chinese markets. Investors are reacting to news that China's central bank might tighten monetary policy to combat inflation pressures.

Our stop loss was $37.49 but FXI gapped open lower at $37.10.

closed Position: long the FXI (ETF) @ $38.25 exit $37.10 (-3.0%)

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

2014 Jan $40 call (FXI1418a40) entry $0.97 exit $0.41 (-57.7%)

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

chart:



Yahoo! Inc. - YHOO - close: 33.10 change: -0.84

Stop Loss: 33.40
Target(s): 39.50
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 22, 2013
Time Frame: 6 to 9 weeks
Average Daily Volume = 27.5 million
New Positions: see below

Comments:
10/23/13: It was not a good day for YHOO. The stock underperformed the market with a -2.47% decline. I find today's relative weakness worrisome. Since our trade has not opened yet we're removing YHOO as an active candidate.

Trade did not open.

10/23/13 removed from the newsletter, trigger was 35.10

chart: