Editor's Note:
Big cap stocks led the market bounce on Friday but gains were mild.

CMN was stopped out on Friday. HRL has been removed.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 54.61 change: +0.39

Stop Loss: 52.40
Target(s): 58.50
Current Gain/Loss: + 2.1%

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:
11/02/13: ADBE ended Friday near its highs for the session. Shares also outperformed the major indices with a +0.7% gain. The stock looks poised to hit new record highs soon. I am raising our stop loss up to $52.40.

current Position: long ADBE stock @ $53.50

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

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

11/02/13 new stop loss @ 52.40

chart:



East West Bancorp - EWBC - close: 33.58 change: -0.11

Stop Loss: 32.90
Target(s): 39.00
Current Gain/Loss: - 3.3%

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:
11/02/13: I am worried about our EWBC trade. Tuesday's bearish reversal and the following sell-off has created a bearish engulfing candlestick reversal pattern on EWBC's weekly chart. More conservative traders may want to abandon ship or raise their stops closer to the $33.30 level. I do see potential support at $33.00 so we'll hold on for now but I am not suggesting new positions.

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.

chart:



HB Fuller Co. - FUL - close: 47.97 change: +0.10

Stop Loss: 46.75
Target(s): 49.75
Current Gain/Loss: + 3.8%

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:
11/02/13: Traders are still in a buy-the-dip mood with FUL as they did so twice on Friday morning. Shares still seem to be consolidating sideways in a bull-flag shaped 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

chart:



Krispy Kreme Doughnuts, Inc. - KKD - close: 24.10 change: -0.16

Stop Loss: 23.40
Target(s): (sold half @ 23.25) exit the 2nd half at $26.50
Current Gain/Loss: (+14.5%) 2nd half = +18.7%

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:
11/02/13: KKD posted a small loss on Friday but shares managed to eke out a gain for the week. That puts KKD running streak at five up weeks in a row. I am not suggesting new positions at this time.

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.

chart:



Sonoco Products Co. - SON - close: 40.66 change: +0.02

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:
11/02/13: SON has spent the last week consolidating sideways below resistance near $41.00. If shares do not start moving higher soon we will drop SON as a candidate. Currently our plan is unchanged. 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)

chart:



Consumer Staples ETF - XLP - close: 42.51 change: +0.17

Stop Loss: 40.75
Target(s): 47.50
Current Gain/Loss: - 0.6%

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:
11/02/13: Good news! I was expecting the XLP to correct lower to the $42.00 level. Yet traders bought the dip on Friday and this ETF outperformed the S&P 500 with a +0.38% gain. I would consider new positions now or you can cross your fingers and hope for a dip near $42.00 as a lower entry point.

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.

chart:



BEARISH Play Updates

Puma Biotechnology - PBYI - close: 39.82 change: +1.51

Stop Loss: 41.25
Target(s): 31.00
Current Gain/Loss: - 2.8%

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:
11/02/13: PBYI is seeing some volatility. Shares bounced near Thursday's low and PBYI outperformed the market with a +3.9% gain on Friday. Yet the rally stalled at resistance near $40 and its simple 200-dma. Although I will point out that Friday's session has also created a bullish engulfing candlestick reversal pattern and that could panic the shorts.

I am not suggesting new positions at this time.

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

chart:



Teradata Corp. - TDC - close: 44.00 change: -0.07

Stop Loss: 47.05
Target(s): 37.00
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on October 31, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: Yes, see below

Comments:
11/02/13: Hmm... TDC didn't really see any follow through lower on Friday. As a matter of fact the stock bounced twice near $43.60. I am adjusting our suggested entry trigger down to $43.40. Otherwise I don't see any changes from our Thursday night new play description. The $40.00 level might be round-number support but we're aiming for $37.00. FYI: The Point & Figure chart for TDC is bearish with a $22.00 target.

Trigger @ 43.40

Suggested Position: short TDC stock @ (trigger)

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

Buy the 2014 Jan $40 PUT (TDC1418m40) current ask $0.85

11/02/13 adjust entry trigger from $43.50 to $43.40

chart:



CLOSED BULLISH PLAYS

Cantel Medical Corp. - CMN - close: 34.04 change: -1.06

Stop Loss: 34.25
Target(s): 39.00
Current Gain/Loss: - 3.1%

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:
11/02/13: Unfortunately shares of CMN took a turn for the worse on Friday. I didn't see any specific news to account for the stock's relative weakness. Shares plunged -3.0% and broke through support. Our stop was hit at $34.25.

The long-term trend is still up but the correction may not be over yet. I would keep CMN on your watch list. Shares may find support again near $32 and near $30.

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*

closed Position: long CMN stock @ $35.35 exit $34.25 (-3.1%)

11/01/13 stopped out

chart:



Hormel Foods - HRL - close: 43.35 change: -0.11

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: see below

Comments:
11/02/13: HRL is not cooperating and failed to participate in the market's rally on Friday. Our trade has not opened yet. I am removing HRL as an active candidate.

Trade did not open.

11/02/13 removed from the newsletter. suggested trigger was $44.40

chart: