Editor's Note:
The U.S. markets have managed to post their fourth gain in a row. Will stocks see another Friday afternoon sell-off? Or can bulls drive stocks toward their late August highs?

Cautious traders may want to take profits early.

-James

Current Portfolio:


BULLISH Play Updates

CBOE Holdings, Inc. - CBOE - close: 26.34 change: -0.48

Stop Loss: 24.75
Target(s): 29.50
Current Gain/Loss: - 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/15 update: I'm actually starting to worry about CBOE. The stock has stalled at the $27.00 level three days in a row. Today the stock displayed relative weakness with a -1.7% drop. I am now expecting a drop toward the simple 10-dma near $25.65. I would wait for that dip or a bounce near that area before considering new positions.

Earlier Comments:
We need to label this as a slightly more aggressive trade. While things look good on a short-term basis the long-term weekly chart is showing potential resistance. Readers may want to wait for a close over that trendline before considering new bullish positions.

Current Position: Long CBOE stock @ $26.43

- or -

Long OCT $27 call (CBOE1122J27) Entry $0.99

Entry on September 13 at $26.43
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 703 thousand
Listed on September 12, 2011


Hansen Medical Inc. - HNSN - close: 4.11 change: +0.08

Stop Loss: 3.90
Target(s): 4.85, 5.20
Current Gain/Loss: - 3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/15 update: HNSN rallied from $4.02 this morning to $4.25 this afternoon (a +5.7% move). If you were looking for a bounce from the $4.00 level you got it. Tomorrow might be a little rocky since lately the stock market seems to get nervous on Fridays.

Earlier Comments:
The stock can be volatile so we want to keep our position size small. Conservative traders may want a stop closer to today's low (3.90) while aggressive traders may want a stop under Friday's low (3.61).

Current Position: Long HNSN stock @ $4.25

09/14 new stop loss @ 3.90

Entry on September 14 at $4.25
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 963 thousand
Listed on September 12, 2011


NVIDIA Corp. - NVDA - close: 15.50 change: +0.22

Stop Loss: 13.49
Target(s): 16.75
Current Gain/Loss: +3.9%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
09/15 update: NVDA continues to climb. The stock is up four days in a row. Today's +1.4% rally is in-line with the +1.4% gain for the SOX index. Chart readers will note that NVDA is nearing potential technical resistance at its exponential 200-dma and its simple 100-dma near the $15.80 mark. I would not be surprised to see NVDA tag this level and retreat. At this point we want to wait for a dip before launching new positions.

Current Position: Long NVDA stock @ $14.91

- or -

Long OCT $15 call (NVDA1122J15) Entry $1.10

- or -

Long 2012 JAN $15 call (NVDA1122A15) Entry $2.28

09/14 new stop loss @ 13.49
09/14 gap open higher entry point @ 14.91

Entry on September 14 at $14.91
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 19.3 million
Listed on September 13, 2011


SodaStream Intl. - SODA - close: 42.25 change: -0.57

Stop Loss: 37.20
Target(s): 45.75, 49.75
Current Gain/Loss: +3.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/15 update: SODA is still struggling with technical resistance at its 30-dma. The action today was very disappointing. The stock market is up four days in a row but SODA failed to participate. I would expect a dip toward $40.00 or even the simple 10-dma near $39.50ish soon. I am not suggesting new positions at this time. Wait for another dip or a bounce near the $40.00 level before considering new positions.

Earlier Comments:
If this stock can rally then SODA could see a huge short squeeze. The most recent data listed short interest at more than 75% of the very, very small 14.6 million-share float.

Remember, we want to use small positions to limit our risk.

Current Position: Long SODA @ $40.84

- or -

Long OCT $45 call (SODA1122J45) Entry $3.00

09/13 new stop loss at $37.20
09/13 trade is open. SODA @ 40.84

Entry on September 13 at $40.84
Earnings Date 11/29/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 8, 2011


Stamps.com Inc. - STMP - close: 22.25 change: -0.90

Stop Loss: 19.75
Target(s): 22.25, 24.75
Current Gain/Loss: + 9.6%
Time Frame: 6 to 10 weeks
New Positions: see below

Comments:
09/15 update: After yesterday's big rally shares of STMP hit some profit taking. The stock hit $23.47 intraday and then faded to close down -3.8%. If the market does retreat tomorrow then STMP could see another hefty drop but look for the $20 level to offer support.

I am not suggesting new positions at this time. Conservative traders may want to exit now or up their stop loss. The October $20 call has a bid of $2.95 (+96.6%). Currently our final target is $24.75.

Current Position: Long STMP stock @ $20.29

- or -

Long OCT $20 call (STMP1122J20) Entry $1.50

09/14 new stop loss @ 19.75
09/14 1st target hit @ 22.25 (+9.6%)
option bid near $2.70 (+80%)
09/12 STMP gapped open at $20.29, above our entry point.

Entry on September 12 at $20.29
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 248 thousand
Listed on September 10, 2011


WABCO Holdings - WBC - close: 49.18 change: +1.96

Stop Loss: 46.35
Target(s): 49.50, 54.00
Current Option Gain/Loss: + 6.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/15 update: I was starting to lose patience with WBC but shares outperformed on Thursday with a +4.1% gain. Shares are nearing resistance again at the $50.00 level. Cautious traders will want to exit now. Please note that I am raising our stop loss to $46.35 to try and prevent this trade from posting a loss if WBC reverses. I am not suggesting new positions.

- Suggested Positions -

current Position: Long WBC stock @ $46.32

09/15 new stop loss @ 46.35
09/14 new stop loss @ 43.60
09/08 1st target hit at $49.50 (+6.8%)
09/07 trade now open. WBC gaps higher at $46.32
09/06 trade not open yet. Try again. New stop loss 43.40. new targets 49.50 and 54.00

Entry on September 7 at $46.32
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 900 thousand
Listed on September 3, 2011


BEARISH Play Updates

Greif, Inc. - GEF - close: 48.67 change: +0.92

Stop Loss: 50.60
Target(s): 44.00, 40.50
Current Gain/Loss: -3.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/15 update: The short covering in GEF continues. The stock added +1.9% and managed to close above short-term resistance at $48.00. Yet the rally today couldn't breakout past the simple 10-dma. If the stock rolls over here or near the $50.00 level I would use it as a new entry point for bearish positions.

Earlier Comments:
FYI: The Point & Figure chart for GEF is bearish with a $30 target. I am not suggesting the options. The spreads are too wide.

*Small Bearish Positions*

Current Position: short GEF stock @ $46.93

Entry on September 12 at $46.93
Earnings Date 12/07/11 (unconfirmed)
Average Daily Volume = 247 thousand
Listed on September 10, 2011