Editor's Note:
Some of the Chinese stocks were underperforming on Tuesday. I could not find any specific news behind the weakness. The Shanghai index was only down -0.7%.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 52.45 change: -0.68

Stop Loss: 47.90
Target(s): 54.00, 57.00
Current Gain/Loss: + 3.5%
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/16 update: Tuesday was a quiet session for ALXN with the stock consolidating sideways on either side of $52.00. There are no changes from my prior comments. Consider waiting for a dip into the $51-50 zone before initiating new positions.

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

08/15 new stop loss @ 47.90
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.

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


Avon Products Inc. - AVP - close: 21.80 change: +0.02

Stop Loss: 20.20
Target(s): 23.50, 24.40
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/16 update: Our trade in AVP is not open yet. Shares gapped open lower aborting our entry point. Traders did buy the dip near $21.50 a few times this morning. The afternoon rally stalled near $22 and its 10-dma. I am suggesting we try again. If AVP and the S&P500 both open positive then we want to launch small bullish positions.

open small bullish positions if AVP and S&P500 open positive tomorrow.

Suggested Position: buy AVP stock @ open

- or -

buy the SEP $23 call (AVP1117I23)

Entry on August xx at $ xx.xx
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 5.1 million
Listed on August 15, 2011


Caribou Coffee Inc. - CBOU - close: 15.75 change: -0.24

Stop Loss: 14.75
Target(s): --.--, 18.00
Current Gain/Loss: +12.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/16 update: CBOU spiked lower this morning but spent most of the day churning sideways inside the $15.50-16.00 zone. Currently we have a stop loss at $14.75. More aggressive traders may want to place their stop under $14.50. While conservative traders will want to take profits now. Today was the lowest volume day in the last ten sessions.

I am not suggesting new positions at this time. 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

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: 47.73 change: -2.01

Stop Loss: 43.45 (stock only)
Target(s): 51.50, 56.50
Current Gain/Loss: + 3.7%
Time Frame: 1 to 3 weeks
New Positions: see below

Comments:
08/16 update: It was a troubling day for CRS. The rebound has failed at resistance near $50.00. Shares underperformed on Tuesday with a -4.0% drop. I would wait for a dip near $47.00 or a bounce from the exponential 200-dma near $46.40 before initiating new bullish positions.

Cautious traders may want to raise their stop loss on the stock.

Earlier Comments:
We do want to keep our position size small to limit our risk.

Current Position: Long CRS stock @ $46.01

08/15 exit Aug. $50 call now, bid $0.75 (+15.3%)
08/13 consider an early exit on the Aug. call
08/11 *entry is an estimate. option did not trade today.

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: 40.21 change: -3.22

Stop Loss: 39.75
Target(s): 43.75, 47.50
Current Gain/Loss: + 2.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/16 update: Ouch! What happened to CYOU today? The stock underperformed with a -7.4% drop erasing most of our gains in the process. The Chinese market was down but it wasn't that bad with a -0.7% decline. CYOU didn't appear to have any significant news. Volume was relatively light. I would use a bounce from $40.00 as a new bullish entry point. Keep in mind we have a stop loss at $39.75.

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

Current Position: Long CYOU stock @ $39.31

08/15 new stop loss @ 39.75
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


Giant Interactive Group Inc. - GA - close: 8.19 change: -0.27

Stop Loss: 7.20
Target(s): 9.30
Current Gain/Loss: - 3.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/16 update: GA is another Chinese stock that underperformed today. Shares opened lower at $8.38 and then plunged toward $8.00 before paring its losses. The stock closed down -3.1%. I see the intraday bounce off of $8.00 as a new entry point but readers may want to wait and see if both GA and the S&P500 open positive tomorrow before initiating new positions.

Earlier Comments:
Readers should consider this a higher-risk, more aggressive trade. We want to keep our position size small to limit our risk.

Current Position: Long GA stock @ $8.46

- or -

Long SEP $7.50 call (GA1117I7.5) Entry $0.95

Entry on August 15 at $ 8.46
Earnings Date 11/16/11 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on August 13, 2011


Honeywell Intl. - HON - close: 46.03 change: -1.20

Stop Loss: 44.40 (stock only)
Target(s): 49.75, 53.50
Current Gain/Loss: - 2.2%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
08/16 update: HON is experiencing some profit taking after its bounce from last week's lows. The dip today stalled almost exactly at the 38.2% Fib retracement of the bounce. This could be used as an entry point but readers may want to wait and see if shares near the $45 level instead and launch positions there instead.

Earlier Comments:
We want to keep our position size pretty small to limit our risk. We'll set our first upside targets at $49.75 and $53.50. We're not using a stop loss on our option positions.

Current Position: Long HON stock @ $47.10

- or -

Long SEP $50 call (HON1117I50) Entry $0.95

Entry on August 15 at $47.10
Earnings Date 10/21/11 (unconfirmed)
Average Daily Volume = 7.8 million
Listed on August 13, 2011


BEARISH Play Updates

None. No bearish plays currently.