Editor's Note:
The S&P 500 index ended the week at another record high. The trend is up but stocks are starting to look overbought and due for a pullback.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 53.81 change: -0.40

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:
10/26/13: ADBE retreated from all-time highs on Friday with a -0.7% decline. If you're looking for an entry point you may want to wait for a dip near $53.00 or its 10-dma near $52.85.

current Position: long ADBE stock @ $53.50

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

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

chart:



Cantel Medical Corp. - CMN - close: 35.35 change: -0.30

Stop Loss: 34.25
Target(s): 39.00
Current Gain/Loss: + 0.0%

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:
10/26/13: We are right back to where we started with CMN. Shares declined on Friday morning and never recovered. The stock posted -0.8% decline. Overall CMN's bullish trend is little changed. I would still launch positions here or you could wait for a potential dip to the 10-dma near the $34.60 area.

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

chart:



Salesforce.com, Inc. - CRM - close: 54.56 change: +0.18

Stop Loss: 52.25
Target(s): 59.75
Current Gain/Loss: - 2.8%

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:
10/26/13: Traders are still buying the dip in CRM. Shares slipped to $53.65 on Friday before bouncing. CRM bounced from the $53.00 level twice this week and more conservative traders may want to move their stop closer to this level.

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)

chart:



HB Fuller Co. - FUL - close: 47.98 change: -0.30

Stop Loss: 45.75
Target(s): 49.75
Current Gain/Loss: + 3.9%

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:
10/26/13: FUL's upward momentum stalled the last couple of days. Yet traders bought the dip on Friday near Wednesday's intraday low in the $47.50 area. More conservative traders may want to raise their stop loss closer to the 10-dma currently near $47.20. FUL is currently up six weeks 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

chart:



GameStop Corp. - GME - close: 54.88 change: +0.08

Stop Loss: 53.25
Target(s): 63.00
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.7 million
New Positions: Yes, see below

Comments:
10/26/13: GME briefly traded at a new relative high on Friday morning but shares failed to hit our suggested entry point at $55.50. The stock looks like it's still coiling for a bullish breakout higher. I don't see any changes from my earlier comments.

Earlier Comments:
If this rally continues GME could see a short squeeze. The most recent data listed short interest at 18% of the 114 million share float.

I am suggesting a trigger to open bullish positions at $55.50. If triggered our target is $63.00 but more conservative traders may want to exit near $60.00, which could prove to be round-number, psychological resistance.

Trigger @ 55.50

Suggested Position: buy GME stock @ (trigger)

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

Buy the 2014 Jan $60 call (GME1418a60) current ask $2.24

chart:



Krispy Kreme Doughnuts, Inc. - KKD - close: 24.00 change: -0.54

Stop Loss: 22.85
Target(s): (sold half @ 23.25) exit the 2nd half at $26.50
Current Gain/Loss: (+14.5%) 2nd half = +18.2%

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:
10/26/13: KKD hit some profit taking on Friday. The stock actually tagged a new multi-year high early Friday morning and then reversed sharply. Fortunately, traders were buying the dip midday. Yet Friday's move still looks like a potential bearish reversal pattern. I would be cautious here. More conservative traders may want to either exit now to lock in gains or raise their stop loss.

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.

chart:



Scientific Games - SGMS - close: 18.89 change: -0.01

Stop Loss: 18.15
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:
10/26/13: The sideways consolidation in SGMS continued on Friday. Fortunately in these neutral type patterns the stock usually breaks out in the direction of the prevailing trend, which in this case is up.

I am raising our stop loss to $18.15. 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%)

10/26/13 new stop loss @ 18.15
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.

chart:



Scotts Miracle-Gro Co. - SMG - close: 58.80 change: +0.42

Stop Loss: 55.85
Target(s): 59.85
Current Gain/Loss: + 4.7%

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:
10/26/13: The rally in SMG continues. Shares outperformed the major indices with a +0.7% gain on Friday. The stock looks short-term overbought here. More conservative trades may want to start scaling back positions. 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

chart:



BEARISH Play Updates


None. We do not have any active bearish trades.