Editor's Note:
After more than two weeks of selling the market has finally produced an oversold bounce. Our CBOU trade is performing very well. I've adjusted our entry point strategy on the ALXN trade.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 49.85 change: +1.80

Stop Loss: 46.25
Target(s): 54.00, 57.00
Current Gain/Loss: unopened
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/09 update: It looks like the market may have put in a short-term bottom and ALXN could be forming a short-term bullish double bottom with support in the $46.50-47.00 area. I am suggesting adjust our entry point strategy. We will launch small bullish positions tomorrow but only if ALXN and the S&P 500 both open positive tomorrow morning. We'll raise our stop loss to $46.25. I've updated our option strike.

open SMALL bullish positions if ALXN and the S&P500 open positive tomorrow morning.

Suggested Position: ALXN stock @ the open

- or -

buy the SEP $55 call (ALXN1117I55)

08/09 new entry point strategy, new stop loss, new targets.

Entry on August xx at $ xx.xx
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on August 8, 2011


Caribou Coffee Inc. - CBOU - close: 16.24 change: +2.59

Stop Loss: 12.95
Target(s): 16.75, 18.00
Current Gain/Loss: +15.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/09 update: Good news! CBOU is performing even better than expected. Shares rebounded off the $13.50 level this morning and soared to a +18.9% gain. The bulls in this stock should be very encouraged. Today's rally is a breakout past its IPO high back at $15.50. This is a new all-time high for the stock.

Our first target to take profits is at $16.75. I am adjusting our secondary target to $18.00.

Earlier comments:
I do want to point out that one of my biggest concerns, aside from the wider market issues, is that CBOU's IPO opening price and all-time high is essentially $15.50. This level could be significant resistance. Our targets are $16.75 and $17.50.

- (small positions) -

Current Position: Long CBOU stock @ $14.06

- or -

Long SEP $15 call (CBOU1117I15) Entry $1.30

08/08 new stop loss @ 12.95

Entry on August 8 at $14.06
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 756 thousand
Listed on August 6, 2011


Changyou.com Ltd. - CYOU - close: 41.59 change: +1.98

Stop Loss: 37.45
Target(s): 43.75, 47.50
Current Gain/Loss: + 5.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/09 update: CYOU did not show the same intraday weakness visible in the market's major indices this afternoon. Shares are now back above the $40.00 level and challenging resistance at the 50-dma. I would use today's bounce as a new bullish entry point. Conservative traders might want to raise their stop loss.

FYI: CYOU does have options but the spreads are a little too wide.

Current Position: Long CYOU stock @ $39.31

08/08 new stop loss @ 37.45

Entry on August 8 at $39.31
Earnings Date 10/24/11 (unconfirmed)
Average Daily Volume = 417 thousand
Listed on August 6, 2011


Motorola Mobility Holdings, Inc. - MMI - close: 23.12 chg: +1.59

Stop Loss: 20.70
Target(s): 25.75, 27.75
Current Gain/Loss: - 0.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/09 update: MMI ended the day up +7.3% after bouncing twice in the $21.30-21.50 area. Instead of waiting for a dip to $21.00 I would use today's bounce as a new entry point but keep your position size small to limit risk.

Earlier Comments:
Our first target is $25.75. Our secondary, more aggressive target is $27.75. We do want to keep our position size small to limit our risk.

- small positions-

Suggested Position: long MMI stock @ 23.34

- or -

Long SEP $25 call (MMI1117I25) Entry @ $1.05

Entry on August 5 at $23.34
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 5.9 million
Listed on August 4, 2011


BEARISH Play Updates

None. No bearish plays currently.