Editor's Note:
These back to back +5%/-5% days could make a trader seasick. Today saw a +4.6% rally across the major indices. Banks led the rally with +6% gains. Our CBOU trade continues to do well. The CRS trade is now open.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 50.58 change: +1.84

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:
08/11 update: ALXN managed a +3.7% gain but that failed to keep pace with the +4.6% rally in the market's major indices. I am resetting our entry point strategy. We'll launch bullish positions if ALXN and the S&P 500 both open positive tomorrow morning. However, we definitely want to keep our position size small. My concern tomorrow is that the market might open higher and then reverse to see a decline into the weekend.

open bullish positions if ALXN and S&P500 are both positive Friday morning.

Suggested Position: ALXN stock @ the open

- or -

buy the SEP $55 call (ALXN1117I55)

08/11 open positions if ALXN and S&P500 are positive Friday morning
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: 16.90 change: +0.62

Stop Loss: 14.75
Target(s): --.--, 18.00
Current Gain/Loss: +20.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/11 update: CBOU continues to perform well. Shares gapped open at $16.55 and then closed up +3.8% at another new all-time high. I am not suggesting new positions at current levels. A dip or a bounce near the $15.50 could be an entry point. Please note we are raising our stop loss to $14.75.

- (small positions) -

Current Position: Long CBOU stock @ $14.06

- or -

Long SEP $15 call (CBOU1117I15) Entry $1.30

08/11 new stop loss @ 14.75
08/10 CBOU almost hit our first target at $16.75. Don't wait. Go ahead and take profits now.
CBOU @ $16.28 (+15.7%), Sept.$15 call @ $2.05bid (+57.6%)
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


Carpenter Technology - CRS - close: 48.22 change: +2.46

Stop Loss: 43.45 (stock)
Target(s): 52.25, 57.50
Current Gain/Loss: + 4.8%
Time Frame: 1 to 3 weeks
New Positions: see below

Comments:
08/11 update: Both CRS and the S&P500 opened higher this morning so our conditions to launch positions was met. CRS opened at $46.01 and rallied to a +5.3% gain. The close above its June lows, which were potential resistance, is bullish. The next challenge is potential resistance at $50.00 and the 100-dma. We're aiming for $52.25 as our first target to take profits.

Earlier Comments:
I am not using a stop loss on the option position. We do want to keep our position size small to limit our risk. We are listing the August calls but keep in mind these expire in less than two weeks.

Current Position: Long CRS stock @ $46.01

- or -

Long AUG $50 call (CRS1120H50) Entry $0.65*

08/11 *entry is an estimate. option did not trade today.

chart:

Entry on August 11 at $46.01
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 622 thousand
Listed on August 9, 2011


Changyou.com Ltd. - CYOU - close: 42.61 change: +1.34

Stop Loss: 38.40
Target(s): 43.75, 47.50
Current Gain/Loss: + 8.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/11 update: CYOU delivered a +3.2% gain and a close above its 50-dma. The stock is not seeing quite the same volatility as the U.S. markets. I would be tempted to launch new positions here but keep our position size small.

The low on Aug. 8th was $38.53. I am raising our stop loss to $38.40.

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

Current Position: Long CYOU stock @ $39.31

08/11 new stop loss @ 38.40
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: 24.16 chg: +1.07

Stop Loss: 20.70
Target(s): 25.75, 27.75
Current Gain/Loss: + 3.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/11 update: Our MMI play has turned positive for us. Shares rallied above potential resistance at the 100-dma and the $24.00 level. The stock's gain of +4.6% kept pace with the major indices. I would be tempted to launch new positions here if the S&P500 is positive at the open tomorrow but readers will want to consider raising their stop loss.

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.