Editor's Note:
The U.S. markets managed to put together back-to-back gains for the first time in three weeks. Currently all of our bullish plays are sitting with comfortable gains. Cautious traders may want to take some money off the table and/or adjust their stop losses.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 52.59 change: +2.01

Stop Loss: 46.25
Target(s): 54.00, 57.00
Current Gain/Loss: + 3.7%
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/13 update: Our ALXN trade is now open. Both the stock and the S&P500 index opened positive on Friday morning. ALXN retested the $50.00 level before surging higher. The stock outperformed the market with a +3.9% gain on Friday. The bounce from $50 and the close over its 30-dma and 10-dma are all bullish signals. If you don't feel like chasing it here then wait for another dip in the $51.00 area before initiating plays.

More conservative traders may want to raise their stop loss (maybe closer to $48). Our plan was to keep our position size small to limit our risk.

Current Position: ALXN stock @ $50.67

- or -

Long SEP $55 call (ALXN1117I55) Entry $1.40

08/12 trade is open.
08/11 open positions if ALXN and S&P500 are positive Friday morning
08/09 new entry point strategy, new stop loss, new targets.

chart:

Entry on August 12 at $50.67
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on August 8, 2011


Caribou Coffee Inc. - CBOU - close: 17.05 change: +0.15

Stop Loss: 14.75
Target(s): --.--, 18.00
Current Gain/Loss: +21.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/13 update: CBOU continues to inch higher. The stock is up four days in a row and setting new all-time highs. Shares are short-term overbought and probably due for some profit taking but if the market continues to rebound CBOU could certainly extend its gains. I am not suggesting new positions at these levels. Our final target is $18.00. Aggressive traders could aim higher!

- (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

chart:

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: 48.98 change: +0.76

Stop Loss: 43.45 (stock only)
Target(s): 51.50, 56.50
Current Gain/Loss: + 6.4%
Time Frame: 1 to 3 weeks
New Positions: see below

Comments:
08/13 update: CRS outpaced the market on Friday with a +1.5% gain. The stock is now up +12.2% from last week's intraday low. Shares are nearing potential resistance at $50.00 and the 100-dma. Conservative traders may want to start taking profits early in the $49.50-50.00 zone. I am adjusting our profit targets to $51.50 and $56.50 although the $56.50 level may be wishful thinking on my part.

I'm not suggesting new positions at this time. Nimble traders could look for an intraday bounce in the $47-46 area. Cautious traders may want to raise their stop loss on the stock.

NOTE: The Aug. $50 call currently has a bid of $1.00 (+53%) and only has five days left until expiration. We need to look for an exit soon and cautious traders will want to exit very soon.

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.

Current Position: Long CRS stock @ $46.01

- or -

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

08/13 consider an early exit on the Aug. call
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: 42.95 change: +0.34

Stop Loss: 38.40
Target(s): 43.75, 47.50
Current Gain/Loss: + 9.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/13 update: Friday proved to be a quiet day for CYOU. The stock traded sideways in a relatively narrow range. The high was $43.38 so the stock is getting close to our $43.75 target. Cautious traders may want to start taking some money off the table now. I am a little hesitant to launch positions as CYOU approaches potential resistance at $44.00. Readers may want to wait for another intraday bounce in the $41-40 zone before considering new positions.

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

chart:

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: 24.47 chg: +0.31

Stop Loss: 21.25
Target(s): 25.75, 27.75
Current Gain/Loss: + 4.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/13 update: MMI managed to outpace the market's gains on Friday with a +1.2% gain of its own. Shares hit $25.38 but ran out of steam at the exponential 200-dma, which also happens to be near potential resistance at the May 27th high and the July 22nd high. Conservative traders may want to take profits now. If the market sees a pull back then MMI could dip back toward the $23.50-23.00 zone pretty easily. I am not suggesting new positions at these levels.

We will raise our stop loss to $21.25. More conservative traders may want a stop in the $22.00-22.50 area instead.

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

08/13 new stop loss @ 21.25

chart:

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.