Editor's Note:
Our play list saw gains across the board. We're updating stop losses. Cautious traders may want to take some profits now.

Our new SLX steel ETF trade was opened. I've adjusted our strategy on the DIG trade. We need to turn cautious on our shorts in the shipping industry.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 54.68 change: +1.69

Stop Loss: 51.40
Target(s): --.--, 57.00
Current Gain/Loss: + 7.9%
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/27 update: It was a good week for ALXN. After basing near the $50 level for a few days the stock managed a rally past resistance near $54 by Friday's close. Aggressive traders might want to chase it here. The newsletter is not suggesting new positions at this time. Our final target remains $57.00.

We will raise our stop loss to $51.40. More conservative traders may want to adjust theirs closer to $52.00 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

08/27 new stop loss @ 51.40
08/25 Sold Half @ 53.49 (+5.5%) -stock only, not the option
08/24 new stop loss @ 49.45
08/24 Take profits now. Sell half at the open tomorrow. ALXN is currently up +5.6% (stock only). We'll leave our option position unchanged. Current bid is $1.40 (+0.0%)
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


Auxilium Pharma - AUXL - close: 17.11 change: +0.04

Stop Loss: 15.25
Target(s): --.--, 18.45
Current Gain/Loss: +6.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/27 update: AUXL has spent a large portion of the last three and a half days trading in the $16.40-17.40 range. Meanwhile volume has been falling. I remain concerned that AUXL looks a little overbought given the big bounce from its August lows. Thus I am not suggesting new positions at this time. We will raise our stop loss to $15.75.

I am adjusting our final target to $18.45. More aggressive traders could aim higher.

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

08/27 new stop loss @ 15.75
08/27 adjusted target to $18.45.
08/25 Planned exit to sell half. AUXL @ 17.07 (+5.8%)
sold half of Sep. $17.50 call, bid @ 0.60 (+33.3%)
08/24 Take profits (sell half) Tomorrow at the close
08/24 new stop loss @ 15.25
08/23 new stop loss @ 14.95.
08/23 added 2nd target at $19.75

chart:

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: 21.68 change: +0.31

Stop Loss: 20.75
Target(s): 23.50, 24.40
Current Gain/Loss: - 1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/27 update: I am turning a bit more cautious on AVP. Traders bought the dip at $20.82 on Friday morning. The stock does look poised to move higher but shares remain under resistance at $22.00. Readers may want to wait for a new relative high over $22.25 or a close over $22.00 before initiating new positions. I am raising our stop loss up to $20.75.

- small bullish positions -

Suggested Position: Long AVP stock @ $21.91

- or -

Long SEP $23 call (AVP1117I23) entry $0.50

08/27 new stop loss @ 20.75
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


Ultra Oil & Gas ETF - DIG - close: 40.57 change: +1.48

Stop Loss: 36.90
Target(s): 48.50
Current Gain/Loss: unopened
Time Frame: 2 to 6 weeks
New Positions: Yes, see below

Comments:
08/27 update: The dip in DIG on Friday was not as low as I expected. Shares hit $37.42 on Friday morning and bounced. It looks like the market may have bottomed so we will switch our entry point strategy. I'm removing our buy-the-dip trigger at $36.00. We will plan on opening bullish positions on Monday morning but only if DIG and the S&P500 both open positive. I'm adjusting our stop loss to $36.90. We want to keep our position size small.

I am REMOVING the option because the spreads are too wide.

open positions on Monday morning if DIG and S&P500 are positive at the open.

Suggested Position: buy this ETF @ the open

08/27 new stop loss @ 36.90
08/27 removing the option - spreads are too wide
08/27 We are switching back to our original entry strategy. Open positions on Monday morning if DIG and S&P500 open positive.
08/25 New strategy: buy a dip at $36.00 instead, new stop loss at $35.45
08/24 Readers may want to wait on launching new positions until after we see the market's reaction to Bernanke's comments on Friday.

chart:

Entry on August xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 1.4 million
Listed on August 23, 2011


Giant Interactive Group Inc. - GA - close: 8.50 change: +0.33

Stop Loss: 7.55
Target(s): 9.30
Current Gain/Loss: + 0.4%
2nd position Gain/Loss: +7.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/27 update: Friday produced another strong move in GA. Shares rallied +4% and closed right on resistance at $8.50. The stock has seen a big week with a bounce from $7.60 to $8.50 (+11.8%). Aggressive traders could buy a breakout over resistance at $8.50 but I am not suggesting new positions at this time. Cautious traders may want to take profits in the second position and/or raise their stop loss too.

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 - entry on 08/24/11

Second Position (small): Long GA stock @ 7.92

Long SEP $7.50 call (GA1117I7.5) Entry $0.65

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


Sturm Ruger & Co - RGR - close: 32.56 change: +1.34

Stop Loss: 29.75
Target(s): 33.75
Current Gain/Loss: + 7.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
08/27 update: Be careful here. RGR is looking pretty overbought with three weekly gains in a row. Shares are also up four days in a row with Friday's gain another +4.2%. This is another new all-time high. Cautious traders may want to take profits now. Currently our target to exit is $33.75. Please note I am raising our stop loss to $29.75. I am not suggesting new positions at this time.

Current Position: Long RGR stock @ 30.25

- or -

Long SEP $30 call (RGR1117I30) Entry $1.95

08/27 new stop loss @ 29.75, cautious traders may want to take profits now
08/22 RGR gaps open higher at $30.25 (entry point)

chart:

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: 14.71 change: +0.10

Stop Loss: 13.75
Target(s): 18.00
Current Gain/Loss: + 4.7%
Time Frame: 6 to 10 weeks
New Positions: see below

Comments:
08/27 update: Traders bought the dip twice near $14.25 on Friday morning. Shares then spent most of its Friday churning sideways in a narrow range of $14.60 to $14.80. I am not suggesting new positions at this time but we will raise our stop loss to $13.75.

We'll keep our final target at $18.00.

Earlier Comments:
We want to use small positions to limit our risk.

current Position: Long RLD stock @ $14.04

- or -

Long SEP $15.00 call (RLD1117I15) Entry $0.60

08/27 new stop loss @ 13.75
08/25 planned exit to sell half at the close.
RLD +4.0%, option @ $0.90 (+50%)
08/24 Prepare to take profits early and sell half tomorrow at the closing bell.
08/24 new stop loss at $13.25
08/22 gap open entry at $14.04

chart:

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


Steel ETF - SLX - close: 52.66 change: +1.63

Stop Loss: 49.40
Target(s): 55.75, 59.75
Current Gain/Loss: +5.3%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
08/27 update: SLX provided an excellent entry point and hit our trigger to open bullish positions at $50.00 on Friday. The actual low was $49.79. If you missed the entry point I would still be tempted to buy it here. I am leaving our stop loss at $49.40. More conservative traders may want to place theirs near $49.75 instead.

Please note that I am adjusting our first target to take profits to $54.50. Our second, more aggressive target will be $59.00. The plan was to keep our position size small to limit our risk.

Play Triggered.

Suggested Position: Long this ETF @ $50.00

- or -

Long SEP $55 call (SLX1117I55) Entry $0.90

08/27 adjusted targets to $54.50 and $59.00
08/26 Play triggered at $50.00
08/25 new strategy: buy a dip at $50.00, new stop 49.40

chart:

Entry on August 26 at $50.00
Earnings Date --/--/--
Average Daily Volume = 126 thousand
Listed on August 23, 2011


BEARISH Play Updates

Nordic American Tanker - NAT - close: 17.33 change: +0.21

Stop Loss: 18.55
Target(s): 12.75, 10.50
Current Gain/Loss: - 1.6%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
08/27 update: NAT bounced near $16.90 for the second day in a row. The stock managed a +1.2% gain but failed to breakout over short-term technical resistance at the 10-dma. Readers may want to wait for a new breakdown before initiating new positions (like a drop under $16.90 or under $16.50).

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*

08/24 NAT provides another entry point with failed rally at $18
08/22 gap open entry @ 17.05
* option entry is an estimate. option did not trade today

chart:

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: +0.76

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:
08/27 update: Hmmm... the action in OSG on Friday is worrisome. Stocks plunged Friday morning and yet OSG did not break down under support at $15.00. Traders bought the dip and the stock saw a +5.0% gain by the closing bell. I am growing concern that OSG could see a much more significant oversold bounce, and shares are definitely oversold.

We are not suggesting new positions at this time. Cautious traders may want to tighten their stops. The plan was to keep our position size small to limit our risk.

- Small Bearish Positions -

Current Position: short OSG stock @ $15.52

- or -

Long OCT $14 PUT (OSG1122V14) Entry $1.50

08/27 Turn cautious. OSG did not break support at $15.00 on Friday.
08/22 gap open entry at $15.52

chart:

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