Editor's Note:
Warning! The market looks vulnerable to profit taking. After a four-week rally stocks are overbought and today could be the beginning of a pullback. There were a lot of bullish engulfing candlestick reversal patterns in the market today.

The Federal Reserve ended their two-day meeting today. There were no changes in policy but stocks initially sold off following the Fed statement.

We want to exit our SGMS and SMG trades at the open tomorrow.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 54.10 change: -0.76

Stop Loss: 51.25
Target(s): 58.50
Current Gain/Loss: + 1.1%

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:
10/30/13: I cautioned readers last night that ADBE could see some weakness surrounding the security breach headlines. Shares effectively erased yesterday's gains. Today could have been worse given the market's broad-based pullback. I am not suggesting new positions at the moment.

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: 35.11 change: -0.28

Stop Loss: 34.25
Target(s): 39.00
Current Gain/Loss: - 0.7%

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:
10/30/13: I am urging caution here. CMN looks vulnerable. The stock settled on short-term support at its 10-dma. Yet shares also produced a bearish engulfing candlestick reversal pattern. Any follow through lower could hit our stop loss at $34.25.

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



East West Bancorp - EWBC - close: 34.08 change: +0.07

Stop Loss: 32.90
Target(s): 39.00
Current Gain/Loss: - 1.8%

Entry on October 29 at $34.71
Listed on October 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
10/30/13: There was no follow through on EWBC's bearish reversal yesterday. That's good news. I would stay cautious here considering how the major indices performed today. I am not suggesting new positions at this time.

current Position: long EWBC stock @ $34.71

10/29/13 trade opened on gap higher at $34.71.
10/28/13 adjust entry point to $34.60 from $34.50. Today's high was $34.49.



HB Fuller Co. - FUL - close: 47.59 change: -0.64

Stop Loss: 46.75
Target(s): 49.75
Current Gain/Loss: + 3.0%

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:
10/30/13: FUL displayed some relative weakness with a -1.3% decline. Fortunately shares did pare their losses by the close. You have a choice of technical patterns to watch. Bulls could argue that FUL is building a bull-flag consolidation pattern, a short-term tight pattern of lower highs and lower lows. Bears will point out that today's session has created a bearish engulfing candlestick reversal pattern.

The low today was $47.07. More conservative traders might want to adjust their stop closer to this low.

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

10/29/13 new stop loss @ 46.75
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



Hormel Foods - HRL - close: 43.69 change: -0.42

Stop Loss: 42.75
Target(s): 48.00
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 29, 2013
Time Frame: 3 to 5 weeks
Average Daily Volume = 558 thousand
New Positions: Yes, see below

Comments:
10/30/13: HRL did not see any follow through on yesterday's rally. Instead shares followed the market lower and actually underperformed with a -0.9% decline. On a short-term basis HRL should see support near $43.50 and its 10-dma. Currently we are on the sidelines.

Earlier Comments:
The September 19th peak was $44.22. I am suggesting a trigger to open bullish positions at $44.40. If triggered our target is $48.00. However, we will plan to exit prior to the late November earnings report.

Trigger @ 44.40

Suggested Position: buy HRL stock @ (trigger)



Krispy Kreme Doughnuts, Inc. - KKD - close: 23.76 change: -0.24

Stop Loss: 23.40
Target(s): (sold half @ 23.25) exit the 2nd half at $26.50
Current Gain/Loss: (+14.5%) 2nd half = +17.0%

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:
10/30/13: KKD gave up -1.0% today. Shares should see support at $23.50. If not then KKD will hit our stop loss at $23.40.

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

10/29/13 new stop loss @ 23.40
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: 18.43 change: -0.21

Stop Loss: 18.15
Target(s): 19.50
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:
10/30/13: Strategy change! We want to exit SGMS. Yesterday's session looked like a potential reversal and today may have confirmed it. I am suggesting we exit immediately tomorrow morning to lock in potential gains.

*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%)

10/30/13 prepare to exit at the open tomorrow
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.



Scotts Miracle-Gro Co. - SMG - close: 58.50 change: -0.34

Stop Loss: 55.85
Target(s): 59.75
Current Gain/Loss: + 4.2%

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:
10/30/13: The rally in SMG seems to have stalled at the $59.00 level. Shares could correct back to the $57.00 or $56.00 levels before resuming the up trend. Long-term investors may want to hold on to SMG. We do not want to hold over the earnings report that is due out next week. Therefore I am suggesting we exit tomorrow morning to lock in any potential gains.

current Position: long SMG stock @ $56.15

10/30/13 prepare to exit at the open tomorrow
10/29/13 adjust exit target to $59.75
10/23/13 new stop loss @ 55.85
10/21/13 new stop loss @ 55.40
10/17/13 new stop loss @ 54.75



Sonoco Products Co. - SON - close: 40.54 change: -0.40

Stop Loss: 39.75
Target(s): 44.75
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 436 thousand
New Positions: Yes, see below

Comments:
10/30/13: SON dropped back toward short-term support at the simple 10-dma. I don't see any changes from my prior comments.

I am suggesting a trigger to open bullish positions at $41.25. If triggered our target is $44.75. More aggressive traders may want to aim higher.

Trigger @ 41.25

Suggested Position: buy SON stock @ (trigger)



Consumer Staples ETF - XLP - close: 42.57 change: -0.37

Stop Loss: 40.75
Target(s): 47.50
Current Gain/Loss: - 0.4%

Entry on October 29 at $42.75
Listed on October 28, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 7.0 million
New Positions: see below

Comments:
10/30/13: The XLP completely erased yesterday's gains (exactly). More importantly today's performance has created a bearish engulfing candlestick reversal pattern. I would expect the XLP to pullback toward the $42.00 level, which should be support. More conservative traders might want to adjust their stop loss higher.

current Position: long the XLP @ $42.75

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

Long 2014 Jan $43 call (XLP1418a43) entry $0.71*

10/30/13 FYI: today's session has created a bearish reversal pattern. Look for a dip back toward $42.00.
*option entry price is an estimate since the option did not trade at the time our play was opened.



BEARISH Play Updates


None. We do not have any active bearish trades.