Editor's Note:
Stocks end on their lows for the week while volatility surges higher. Selling pressure on Friday was enough to stop us out of APOL and CRS. I've removed PCAR as a candidate. We're not listing an entry point on SUSS tonight.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 50.46 change: +0.15

Stop Loss: 47.90
Target(s): 54.00, 57.00
Current Gain/Loss: - 0.4%
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/20 update: ALXN is still performing relatively well. The early morning Friday rally failed under the $52 level but shares still closed in positive territory. There is still a good chance that ALXN will retest the $48 area if the market's major indices continue to slide. More aggressive traders may want to use a wider stop loss. I am reluctant to open new positions given the market's recent weakness. Let's wait and see how ALXN performs on Monday.

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.

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


Avon Products Inc. - AVP - close: 20.53 change: -0.43

Stop Loss: 19.95
Target(s): 23.50, 24.40
Current Gain/Loss: - 6.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/20 update: AVP lost another -2% on Friday and closed near its lows for the session. That doesn't bode well for Monday morning. The stock looks headed for the prior week's lows in the $20.30 area. I would wait for a dip near $20.30 or a bounce from this region before considering new bullish positions. I am raising our risk by about 1.2% by moving our stop loss from $20.20 to $19.95.

- small bullish positions -

Suggested Position: Long AVP stock @ $21.91

- or -

Long SEP $23 call (AVP1117I23) entry $0.50

08/20 new stop loss at $19.95

chart:

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


Giant Interactive Group Inc. - GA - close: 7.70 change: -0.10

Stop Loss: 7.38
Target(s): 9.30
Current Gain/Loss: - 8.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/20 update: GA is still correcting lower. The stock is down four days in a row. Shares are nearing what should be support in the $7.60-7.50 zone, an area bolstered by the 50-dma and 200-dma. Aggressive traders may want to buy a dip near the 200-dma at $7.55. Personally I would prefer to buy a bounce. Please note that we're raising our stop loss to $7.38. More conservative traders may want a stop closer to $7.50ish instead.

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

08/20 new stop loss @ 7.38

chart:

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


Susser Holdings - SUSS - close: 19.40 change: +0.56

Stop Loss: 17.30
Target(s): 21.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/20 update: SUSS was a strong performer on Friday. Shares rallied +2.9% and on pretty good volume. Unfortunately our conditions to initiate new positions was not met. Both the S&P500 and SUSS opened lower. Now shares have rallied to potential resistance. The $19.50 area was resistance back in June 2008 and February 2007.

Instead of trying to launch positions now we'd rather wait. If the market's major indices continue to sink we could see SUSS retest short-term support near $18.00 or even see a pull back toward $17 and its 50-dma.

We will keep SUSS on the play list tonight but we do not have an entry point to initiate positions. At this point we just want to be patient and see how shares perform on Monday.

No Entry Point Tonight. Just Wait and Watch on Monday.

chart:

Entry on August xx at $ xx.xx
Earnings Date 11/09/11 (unconfirmed)
Average Daily Volume = 88.5 thousand
Listed on August 18, 2011


BEARISH Play Updates

None. No bearish plays currently.


CLOSED BULLISH PLAYS

Apollo Group Inc. - APOL - close: 44.93 change: -0.38

Stop Loss: 44.70
Target(s): 53.00
Current Gain/Loss: - 4.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/20 update: APOL spent most of Friday churning sideways above support at the $45.00 level. Unfortunately the stock gapped open lower at $44.79 and dipped to $44.68 before bouncing. Our stop loss was hit at $44.70. While our trade has been closed I would keep APOL on your watch list. Another dip into the $43-42 zone or its 200-dma could be a new bullish entry point.

closed Position: Long APOL stock @ $47.00, exit $44.70 (-4.8%)

- or -

SEP $50 call (APOL1117I50) Entry $1.32, exit $0.65 (-50.7%)

08/19 stopped out @ 44.70
08/17 new stop loss @ 44.70

chart:

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


Carpenter Technology - CRS - close: 43.68 change: -0.64

Stop Loss: 43.45 (stock only)
Target(s): 51.50, 56.50
Current Gain/Loss: - 5.5%
Time Frame: 1 to 3 weeks
New Positions: see below

Comments:
08/20 update: Shares of CRS were hit again on Friday morning. The stock gapped open lower at $43.23. This was a new three-month low and under the prior week's support near $44. With our stop loss at $43.45 the play would have been closed immediately. CRS managed a quick rebound but the rally stalled at its 200-dma. Our stock position was closed at the open.

Readers will want to keep CRS on your watch list. The stock has not yet broken its long-term bullish trend of higher lows. I'd keep an eye on the $42-40 zone as potential support and wait for a bounce (or even a new close over the 200-dma again) before considering new bullish positions.

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

closed Position: Long CRS stock @ $46.01, exit $43.23 (-5.5%)

08/19 gap down exit at $43.23
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.

chart:

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


PACCAR Inc. - PCAR - close: 34.02 change: -0.86

Stop Loss: 35.85
Target(s): 39.90, 43.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/20 update: We are removing PCAR as a trade. Our entry point conditions were never met. Now the stock is breaking down to new lows for the year. There is a chance that PCAR will find support near $33.50 at its February 2010 lows. I would rather remove PCAR from the play list and keep it on my watch list to see if shares bounce first. There's always a chance we could see PCAR trade down toward round-number support at $30 instead.

Our trade never opened.

chart:

Entry on August xx at $ xx.xx
Earnings Date 10/25/11 (unconfirmed)
Average Daily Volume = 5.6 million
Listed on August 17, 2011