Editor's Note:
The U.S. stock market stumbled lower this morning thanks to widespread weakness in Europe. The European markets were down in reaction to a downgrade for the EU's 2014 GDP growth forecast.

The weakness was widespread but most of the market managed a bounce off their Tuesday morning lows.

SON has been removed. PBYI was stopped out.
We want to exit our EWBC trade tomorrow morning.


Current Portfolio:


BULLISH Play Updates

Adobe Systems - ADBE - close: 54.79 change: -0.60

Stop Loss: 53.40
Target(s): 58.50
Current Gain/Loss: + 2.4%

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:
11/05/13: ADBE hit some profit taking on Tuesday with a -1.0% decline. Look for shares to find short-term support at their rising 10-dma near $54.30.

current Position: long ADBE stock @ $53.50

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

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

11/04/13 new stop loss @ 53.40
11/02/13 new stop loss @ 52.40



East West Bancorp - EWBC - close: 33.50 change: -0.05

Stop Loss: 32.90
Target(s): 39.00
Current Gain/Loss: - 3.5%

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:
11/05/13: I am suggesting an early exit on our EWBC trade. The stock is not cooperating. The intraday bounce attempt failed at its 20-dma. While there is still a chance that EWBC will find support at $33.00 I would rather cut our losses now and free up capital for another trade. We'll plan on exiting tomorrow morning at the opening bell.

current Position: long EWBC stock @ $34.71

11/05/13 prepare to exit tomorrow morning
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: 48.58 change: -0.34

Stop Loss: 46.95
Target(s): 49.75
Current Gain/Loss: + 5.2%

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:
11/05/13: Unfortunately there was no follow through on yesterday's bullish breakout in FUL. We can blame the stock market's widespread spike lower this morning. Traders did buy the dip in FUL near its simple 10-dma this morning. More conservative traders may want to raise their stop loss closer to the $47.50 area.

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

11/04/13 new stop loss @ 46.95
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



Halliburton Co. - HAL - close: 53.13 change: -0.91

Stop Loss: 52.40
Target(s): 57.50
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on November 04, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.8 million
New Positions: Yes, see below

Comments:
11/05/13: Hmm... HAL did not see any follow through on yesterday's display of relative strength. The stock did bounce off its morning lows but the rebound rolled over this afternoon. That doesn't bode well and shares underperformed the broader market and the energy industry with a -1.6% decline. We will give HAL a little bit more time to recover. Otherwise we'll drop it as a candidate. For now our strategy is unchanged.

Earlier Comments:
HAL is currently testing short-term resistance near $54.00. A breakout here could signal a run toward its all-time highs near $57.75 or higher. I am suggesting a trigger to open bullish positions at $54.15. If triggered our first target is $57.50.
FYI: The Point & Figure chart for HAL is bullish with a $62.00 target.

Trigger @ 54.15

Suggested Position: buy HAL stock @ (trigger)

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

buy the 2014 Jan $55 call (HAL1418a55)



Krispy Kreme Doughnuts, Inc. - KKD - close: 25.33 change: +0.74

Stop Loss: 23.90
Target(s): (sold half @ 23.25) exit the 2nd half at $26.50

Current Gain/Loss: (+14.5%) 2nd half = +24.8%

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:
11/05/13: KKD is still marching to the beat of its own drum. Shares virtually ignored the market's weakness this morning. The stock displayed relative strength with a +3.0% gain and a new multi-year high.

Our exit target is $26.50. More aggressive traders may want to aim higher. Tonight we are raising the stop loss to $23.90.

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

11/05/13 new stop loss @ 23.90
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.



Micron Technology - MU - close: 17.67 change: -0.22

Stop Loss: 17.40
Target(s): 19.90
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on November 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 52 million
New Positions: Yes, see below

Comments:
11/05/13: MU underperformed its peers in the semiconductor sector. The SOX index lost -0.3% while MU gave up -1.2% today. Currently we are still on the sidelines.

Earlier Comments:
Over 10% of the float is short interest and further gains could spark some short covering.

I am suggesting a trigger to open bullish positions at $18.05. If triggered our target is $19.90.

Trigger @ 18.05

Suggested Position: buy MU stock @ (trigger)



Consumer Staples ETF - XLP - close: 42.63 change: +0.08

Stop Loss: 40.75
Target(s): 47.50
Current Gain/Loss: - 0.3%

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:
11/05/13: Traders bought the dip in the consumer staples ETF today near its rising 10-dma. Readers could use today's rebound as a new bullish 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.



Yandex N.V. - YNDX - close: 37.52 change: -0.19

Stop Loss: 35.90
Target(s): 1st target @ 41.75, 2nd target @ 44.50
Current Gain/Loss: - 2.5%

Entry on November 04 at $38.50
Listed on November 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.2 million
New Positions: see below

Comments:
11/05/13: Tuesday proved to be a relatively quiet day for YNDX. Traders may want to wait and see if shares bounce off their rising 50-dma before initiating new positions (or wait for a new relative high above $38.65.).

Earlier Comments:
I want to caution you that this is an aggressive, higher-risk trade. YNDX can be a volatile stock. Our first target is $41.75. Our secondary, more aggressive target is $44.50.

*small positions*

current Position: Long YNDX stock @ $38.50

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

Long 2014 Jan $40 call (YNDX1418a40) entry $1.75



BEARISH Play Updates

Teradata Corp. - TDC - close: 42.63 change: -0.38

Stop Loss: 47.05
Target(s): 37.00
Current Gain/Loss: + 1.8%

Entry on November 04 at $43.40
Listed on October 31, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: see below

Comments:
11/05/13: The relative weakness in TDC continues with a -0.88% decline. I don't see any changes from our prior updates.

Earlier Comments:
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.

current Position: short TDC stock @ $43.40

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

Long 2014 Jan $40 PUT (TDC1418m40) entry $0.90

11/04/13 triggered at $43.40
11/02/13 adjust entry trigger from $43.50 to $43.40



CLOSED BULLISH PLAYS

Sonoco Products Co. - SON - close: 40.21 change: -0.70

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: see below

Comments:
11/05/13: We are removing SON as an active candidate. Shares underperformed the market with a -1.7% decline. Today's drop also looks like a breakdown from its recent sideways consolidation. Our trade had not opened yet.

Trade did not open.

11/05/13 removed from the newsletter. suggested entry trigger was $41.25

chart:



CLOSED BEARISH PLAYS

Puma Biotechnology - PBYI - close: 41.51 change: +1.72

Stop Loss: 41.25
Target(s): 31.00
Current Gain/Loss: - 6.5%

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:
11/05/13: Our aggressive trade on PBYI did not pan out. We were triggered on the bearish breakdown below support. Yet there was no follow through. PBYI has reversed and today's move (+4.3%) is a bullish breakout above resistance near $40.00 and its simple 200-dma. Our stop loss was hit at $41.25.

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

*small positions*

closed Position: short PBYI stock @ $38.75 exit $41.25 (-6.5%)

chart: