Editor's Note:
The U.S. market's major indices managed a bounce on Thursday but healthcare stocks underperformed.

CMN was triggered today. HLS was stopped out.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 54.21 change: +1.15

Stop Loss: 51.25
Target(s): 58.50
Current Gain/Loss: + 1.3%

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:
10/24/13: ADBE shot higher at the open but I didn't see any specific news to account for the relative strength. Shares closed at a new record high after today's +2.1% gain.

current Position: long ADBE stock @ $53.50

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

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



Cantel Medical Corp. - CMN - close: 35.65 change: +0.41

Stop Loss: 34.25
Target(s): 39.00
Current Gain/Loss: + 0.8%

Entry on October 24 at $35.35
Listed on October 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 153 thousand
New Positions: see below

Comments:
10/24/13: We did not have to wait very long for CMN to hit our entry trigger. Another bullish day in the market allowed CMN to hit another new high. Shares opened at $35.31 and quickly hit our suggested entry point at $35.35. Shares did pare their gains by the close. Given the afternoon pullback I would not be surprised to see CMN retest the $35.30 area, which we could use as another entry point.

Earlier Comments:
We want to keep our position size small because CMN is arguably already overbought (but that tends to happen with momentum stocks).

*small positions*

current Position: long CMN stock @ $35.35



Salesforce.com, Inc. - CRM - close: 54.38 change: +1.04

Stop Loss: 52.25
Target(s): 59.75
Current Gain/Loss: - 3.2%

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:
10/24/13: CRM spent more than two days retreating from its spike higher on Monday. Yet traders were buying the dip midweek. Today saw CRM outperform with a +1.9% bounce. Yesterday I was suggesting readers use a rally above $54.00 as a new entry point.

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: 48.28 change: -0.21

Stop Loss: 45.75
Target(s): 49.75
Current Gain/Loss: + 4.5%

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:
10/24/13: Thursday proved to be a quiet day for shares of FUL. The stock drifted sideways and closed down -0.4%. There is no change from my prior comments. 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



Krispy Kreme Doughnuts, Inc. - KKD - close: 24.54 change: +0.29

Stop Loss: 22.85
Target(s): (sold half @ 23.25) exit the 2nd half at $26.50
Current Gain/Loss: (+14.5%) 2nd half = +20.9%

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:
10/24/13: KKD's rival Dunkin Donuts (DNKN) reported earnings this morning and missed bottom line estimates by two cents. Revenues were better than expected but management issued cautious guidance. Thankfully this news did not hamper KKD's rally. Instead shares outperformed the market again with a +1.1% gain.

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: 18.90 change: +0.24

Stop Loss: 17.90
Target(s): 19.50
Current Gain/Loss: + 7.4%

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:
10/24/13: SGMS erased yesterday's loss with a 24-cent bounce. The last couple of days look like SGMS is just churning sideways. I am not suggesting new positions. More conservative traders may want to take profits now.

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: 58.38 change: +0.34

Stop Loss: 55.85
Target(s): 59.85
Current Gain/Loss: + 4.0%

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:
10/24/13: SMG continued to drift higher and managed to outpace the S&P 500 on Thursday with a +0.58% gain. Shares do look short-term overbought here. I am not suggesting new positions.

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

HEALTHSOUTH Corp. - HLS - close: 35.40 change: -0.96

Stop Loss: 35.40
Target(s): 39.75
Current Gain/Loss: - 2.5%

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:
10/24/13: Healthcare-related stocks underperformed the market today. HLS led the way lower with a -2.6% plunge. Shares broke down below their two-month up trend and hit our stop loss at $35.40.

closed Position: Long HLS stock @ $36.30 exit $35.40 (-2.5%)

10/24/13 stopped out
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

chart: