Editor's Note:
Actually profit taking in the market today was relatively mild. After such a strong monthly performance in October the market was overbought and due for a dip.

We closed our SGMS and SMG trades to lock in potential gains. Our PBYI trade was triggered today.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 54.22 change: +0.12

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:
10/31/13: ADBE displayed a little bit of relative strength and bucked the market's down trend today with a +0.2% gain. If the market's pullback continues I would look for ADBE to find support near $53.00.

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: 35.10 change: -0.01

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:
10/31/13: CMN briefly traded below short-term support near $35.00 this morning but shares quickly recovered. Unfortunately the rebound stalled near short-term resistance at $35.50. I would stay cautious here. If the stock market accelerates lower I do expect CMN to hit our stop 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: 33.69 change: -0.39

Stop Loss: 32.90
Target(s): 39.00
Current Gain/Loss: - 2.9%

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:
10/31/13: EWBC isn't looking so hot. Tuesday's session still looms over the stock like a big bearish reversal. Today's weakness (-1.1%) seems to confirm the reversal. More conservative traders will want to seriously consider an early exit now. I am not suggesting new positions at this time.

current Position: long EWBC stock @ $34.71

10/31/13 EWBC is not performing well. Trades may want to exit early now
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: 47.87 change: +0.28

Stop Loss: 46.75
Target(s): 49.75
Current Gain/Loss: + 3.6%

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:
10/31/13: There was no follow through on yesterday's bearish reversal pattern in FUL. Instead the stock outperformed the major indices with a +0.5% gain. That lends more conviction behind the idea that FUL is building a bull-flag consolidation pattern.

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: 43.46 change: -0.23

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:
10/31/13: HRL pared its losses with a decent bounce off its morning lows. We are still on the sidelines waiting for a new high.

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: 24.26 change: +0.50

Stop Loss: 23.40
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:
10/31/13: KKD looks a lot better after today's display of relative strength. The stock added +2.1% after shares bounced near short-term support near $23.50 again.

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.



Sonoco Products Co. - SON - close: 40.64 change: +0.10

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:
10/31/13: SON is still hovering near its 10-dma. We may drop SON soon if shares don't perform. 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: 42.35 change: -0.23

Stop Loss: 40.75
Target(s): 47.50
Current Gain/Loss: - 0.9%

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:
10/31/13: There are not surprises here. After yesterday's bearish reversal the XLP slipped another -0.5% today. The $42.00 level should be support so we can use a dip or a bounce near $42.00 as a new bullish entry point. 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

Puma Biotechnology - PBYI - close: 38.31 change: -0.80

Stop Loss: 41.25
Target(s): 31.00
Current Gain/Loss: + 1.1%

Entry on October 31 at $38.75
Listed on October 30, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 226 thousand
New Positions: see below

Comments:
10/31/13: The weakness in PBYI continued on Thursday and shares underperformed the major indices with a -2.0% decline. PBYI was down -5% at its worst levels of the day before paring its losses. Our trigger to open small bearish positions was hit at $38.75.

Remember, this is a higher-risk, more aggressive trade. We want to keep our position size small.

Earlier Comments:
Our target is $31.00. More aggressive traders may want to aim lower since the Point & Figure chart for PBYI is bearish with a $20 target.

NOTE: You could try and limit your risk by buying put options instead of shorting the stock but the option spreads are wide thanks to PBYI's volatility.

*small positions*

current Position: short PBYI stock @ $38.75



CLOSED BULLISH PLAYS

Scientific Games - SGMS - close: 18.28 change: -0.15

Stop Loss: 18.15
Target(s): 19.50
Current Gain/Loss: + 4.5%

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:
10/31/13: The profit taking in SGMS continued. Our plan was to exit positions at the opening bell this morning. Unfortunately, SGMS gapped lower at $18.39.

The long-term trend is still higher. I would keep SGMS on your watch list for a correction back toward its 40-dma or 50-dma, which may prove to be a new bullish entry point.

*small positions*

closed Position: long SGMS stock @ $17.60 exit $18.39 (+4.5%)

- (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%)

10/31/13 closed this morning
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.

chart:



Scotts Miracle-Gro Co. - SMG - close: 58.72 change: +0.22

Stop Loss: 55.85
Target(s): 59.75
Current Gain/Loss: + 4.1%

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:
10/31/13: SMG managed to outperform the market with a +0.3% gain today. That was after traders bought the dip this morning. Our plan was to exit positions this morning at the open to lock in gains.

I would keep SMG on your watch list for a correction lower. The $56.00 level should be support.

closed Position: long SMG stock @ $56.15 exit $58.43 (+4.1%)

10/31/13 closed this morning
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

chart: