Editor's Note:
Our Chinese stocks are underperforming with CYOU and GA down today. CBOU was stopped out (as was CYOU). Yet APOL and AVP were both opened on the morning strength.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 51.74 change: -0.71

Stop Loss: 47.90
Target(s): 54.00, 57.00
Current Gain/Loss: + 2.1%
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/17 update: ALXN underperformed today with a second day of profit taking. I've been suggesting readers wait for a dip into the $51-50 zone before initiating new positions. The low today was $50.84. If the market dips again tomorrow then ALXN might test the $50 level and its 50-dma.

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


Apollo Group Inc. - APOL - close: 46.78 change: -0.21

Stop Loss: 44.70
Target(s): 53.00
Current Gain/Loss: - 0.47%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/17 update: Our new trade on APOL was opened this morning by the smallest of margins. We wanted to buy the stock if the S&P500 and APOL both opened positive today. APOL opened up by one cent at $47.00, which was enough to trigger our trade. Shares failed near the $48.00 level for the second day in a row, which is a little worrisome. Readers may want to wait and watch to see if APOL offers an entry point near $46 or even the $45 level soon. Please note that I am raising our stop loss to $44.70.

Suggested Position: Long APOL stock @ $47.00

- or -

Long SEP $50 call (APOL1117I50) Entry $1.32

08/17 new stop loss @ 44.70

Entry on August 17 at $47.00
Earnings Date 10/12/11 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on August 16, 2011


Avon Products Inc. - AVP - close: 21.74 change: -0.06

Stop Loss: 20.20
Target(s): 23.50, 24.40
Current Gain/Loss: - 0.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/17 update: Our trade in AVP is now open. Shares opened higher at $21.91. Combine that with the up tick in the S&P500 this morning and our trade is open. AVP climbed to $22.25 intraday before fading into negative territory. This failed rally near $22 is a little bit ominous. Readers may want to wait for a dip near $21.50 or the $21.25 levels before considering new bullish positions.

- small bullish positions -

Suggested Position: Long AVP stock @ $21.91

- or -

Long SEP $23 call (AVP1117I23) entry $0.50

Entry on August 17 at $21.91
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 5.1 million
Listed on August 15, 2011


Carpenter Technology - CRS - close: 47.53 change: -0.20

Stop Loss: 43.45 (stock only)
Target(s): 51.50, 56.50
Current Gain/Loss: + 3.3%
Time Frame: 1 to 3 weeks
New Positions: see below

Comments:
08/17 update: The pull back in CRS was relatively mild on Wednesday with a 20-cent drop. Shares spent most of the day hovering on either side of $47.50. I don't see any changes from my prior comments. 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


Giant Interactive Group Inc. - GA - close: 7.97 change: -0.22

Stop Loss: 7.20
Target(s): 9.30
Current Gain/Loss: - 5.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/17 update: There seems to be a trend of Chinese stocks underperforming this week. GA dipped again with a -2.6% drop today. Once the stock broke down under the $8.00 level it hovered there between $8.00 and its 10 and 100-dma below it. I am not suggesting new bullish positions at this time. More conservative traders may want to consider a higher stop loss!

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: 45.99 change: +0.29

Stop Loss: 44.40 (stock only)
Target(s): 49.75, 53.50
Current Gain/Loss: - 2.3%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
08/17 update: The trading in HON is almost identical to the trading in the S&P500 today. The early morning strength faded but shares recovered off their afternoon lows. It looks like a normal pull back off the big bounce from last week's lows. I would still consider new positions now if both HON and the S&P500 open positive tomorrow or you can exercise patience and see if HON will test the $45.00 mark and launch positions there.

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.


CLOSED BULLISH PLAYS

Caribou Coffee Inc. - CBOU - close: 14.75 change: -1.00

Stop Loss: 14.75
Target(s): --.--, 18.00
Current Gain/Loss: + 4.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/17 update: Ouch! It was an ugly day for CBOU. Shares declined throughout the session and tested $14.51 at its lows before closing with a -6.3% loss. Our stop loss was hit at $14.75 ending this trade.

Bigger picture CBOU still looks bullish so I would keep this stock on your watch list.

- (small positions) -

closed Position: Long CBOU stock @ $14.06, exit $14.75 (+4.9%)

- or -

SEP $15 call (CBOU1117I15) Entry $1.30, exit $0.90 (-30%)

08/17 stopped out @ 14.75
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


Changyou.com Ltd. - CYOU - close: 39.15 change: -1.06

Stop Loss: 39.75
Target(s): 43.75, 47.50
Current Gain/Loss: + 1.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/17 update: CYOU underperformed for the second day in a row and slipped to a new relative low at $38.03 this afternoon. Our stop loss was hit at $39.75. The stock has fallen more than -12% in just two days on no news. CYOU actually saw some positive analyst comments today. Bigger picture the larger trend is still a bullish one. I'd keep CYOU on your watch list.

closed Position: Long CYOU stock @ $39.31, exit $39.75 (+1.1%)

08/17 stopped out @ 39.75 (+1.1%)
08/15 new stop loss @ 39.75
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