Editor's Note:
Stocks produced another big move but this time it was higher. Nearly every sector participated in this widespread rebound.

RGR produced a very big turnaround after yesterday's potential bearish reversal.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 51.73 change: +1.32

Stop Loss: 47.90
Target(s): 54.00, 57.00
Current Gain/Loss: + 2.0%
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/23 update: It was a big day for the market. ALXN's +2.6% gain could not keep up with the NASDAQ's +4.2% rally. Once again traders bought the dip in ALXN near support at $50.00. Today's move looks like a new bullish entry point but I want to warn you that stocks could drop fast if Bernanke disappoints on Friday. Cautious traders may want to use a stop loss closer to $49.40 instead.

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


Auxilium Pharma - AUXL - close: 17.00 change: +0.87

Stop Loss: 14.95
Target(s): 17.95, 19.75
Current Gain/Loss: +5.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/23 update: AUXL managed to outpace the rally in the NASDAQ with a +5.3% gain today. Volume was strong again, which is a good sign. Our first target is at $17.95. We will add a secondary, and much more aggressive target at $19.75 but that means AUXL will need to rally past multiple levels of resistance to get there.

Please note our new stop loss at $14.95. More conservative traders may want a stop closer to $15.50 instead.

Given the market's recent volatility we do want to keep our position size small.

Current Position: Long AUXL stock @ $16.13

- or -

Long SEP $17.50 call (AUXL1117I17.5) Entry $0.45

08/23 new stop loss @ 14.95.
08/23 added 2nd target at $19.75

Entry on August 22 at $16.13
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on August 20, 2011


Avon Products Inc. - AVP - close: 21.36 change: +0.71

Stop Loss: 19.95
Target(s): 23.50, 24.40
Current Gain/Loss: - 2.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/23 update: AVP delivered a +3.4% gain but has yet to fill the gap down from Aug. 18th. The $21.70 level could be short-term resistance. I would be tempted to launch new positions here but I have to warn you that if Bernanke disappoints the market on Friday then stocks could drop pretty quickly.

- 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

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: 7.94 change: +0.26

Stop Loss: 7.38
Target(s): 9.30
Current Gain/Loss: - 6.1%
2nd position Gain/Loss: +0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/23 update: GA produced another bounce near support at $7.60 and its 200-dma. This time there was some follow through and shares added +3.3%. The rebound looks like a new bullish entry point. I would consider new positions here. We will raise our stop loss up to $7.55.

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

- Add 2nd position - keep it small!

buy GA stock @ the open

buy SEP $7.50 call (GA1117I7.5) current ask $0.65

08/23 new stop loss @ 7.55
08/23 adding a 2nd position
08/20 new stop loss @ 7.38

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


Sturm Ruger & Co - RGR - close: 30.67 change: +2.19

Stop Loss: 27.25
Target(s): 33.75
Current Gain/Loss: + 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/23 update: The bullish reversal in RGR was impressive. After yesterday's sharp decline, the stock reversed our -5% loss thanks to today's +7.6% surge to new all-time closing highs. The stock is acting pretty frothy here and the big volatility could be a warning signal. We definitely want to keep our position size small. Readers might want to raise their stop loss closer to the $28.00 level instead.

Current Position: Long RGR stock @ 30.25

- or -

Long SEP $30 call (RGR1117I30) Entry $1.95

08/22 RGR gaps open higher at $30.25 (entry point)

Entry on August 22 at $30.25
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 310 thousand
Listed on August 20, 2011


RealD Inc. - RLD - close: 15.17 change: +0.70

Stop Loss: 11.99
Target(s): 18.00
Current Gain/Loss: + 8.0%
Time Frame: 6 to 10 weeks
New Positions: see below

Comments:
08/23 update: RLD continues to outperform. Shares added another +4.8% and closed above potential resistance at the $15.00 level. My only concern today would be the very light volume behind today's move. The next level of resistance is the $16.00 mark. Cautious trades may want to take profits near $16.00. I would not chase it here. More conservative investors might want to raise their stop toward the $13.00-13.20 area.

Earlier Comments:
We want to use small positions to limit our risk. NOTE: If you trade options you may want to use the November instead of Octobers but the spreads are a little wider.

current Position: Long RLD stock @ $14.04

- or -

Long SEP $15.00 call (RLD1117I15) Entry $0.60

08/22 gap open entry at $14.04

Entry on August 22 at $14.04
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on August 20, 2011


BEARISH Play Updates

Nordic American Tanker - NAT - close: 17.46 change: +0.58

Stop Loss: 18.55
Target(s): 12.75, 10.50
Current Gain/Loss: - 2.4%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
08/23 update: The highly shorted shipping stocks saw a strong bounce and yet NAT's +3.4% gain was only in line with the rebound in the S&P500 index. I would wait for a rise to or a failed rally near $18.00 as our next entry point.

Start small and add to positions later. You may want to consider using put options instead since your risk is limited to the cost of the put you purchase.

- small positions -

Current Position: short NAT stock @ $17.05

- or -

Long OCT $15 PUT (NAT1122V15) Entry $0.75*

08/22 gap open entry @ 17.05
* option entry is an estimate. option did not trade today

Entry on August 22 at $17.05
Earnings Date 11/07/11 (unconfirmed)
Average Daily Volume = 583 thousand
Listed on August 20, 2011


Overseas Shipholding Group - OSG - close: 15.81 change: +0.87

Stop Loss: 17.55
Target(s): 12.50, 10.25
Current Gain/Loss: - 1.8%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
08/23 update: OSG experienced a +5.8% bounce thanks to some short covering. The stock has been very oversold for a long time. Readers may want to wait for a bounce near $16.50 or the 10-dma before considering new bearish positions. I would keep positions very small to start.

- Small Bearish Positions -

Current Position: short OSG stock @ $15.52

- or -

Long OCT $14 PUT (OSG1122V14) Entry $1.50

08/22 gap open entry at $15.52

Entry on August 22 at $15.52
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 981 thousand
Listed on August 20, 2011


CLOSED BULLISH PLAYS

Susser Holdings - SUSS - close: 20.79 change: +0.89

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

Comments:
08/23 update: It's very unfortunate that our entry point on SUSS was not triggered. The stock has continued to outperform. Now shares are looking overbought with the sharp rally from $16 to almost $21. I would not chase it and we are removing SUSS as a candidate. Yet I would definitely keep this stock on your watch list for a pull back.

Our trade did not open.

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