Editor's Note:
The U.S. markets delivered a five-day rally to end the week on a high note.

-James

Current Portfolio:


BULLISH Play Updates

CBOE Holdings, Inc. - CBOE - close: 27.28 change: +0.94

Stop Loss: 25.40
Target(s): 29.50
Current Gain/Loss: + 3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/17 update: Shares of CBOE turned things around on Friday with a big reversal higher to close up +3.5%. Friday's move is also a bullish breakout over short-term resistance at $27.00. Readers can use this move as a new entry point. I am raising our stop loss to $25.40. More conservative traders may want a stop loss closer to $26.00 instead.

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

09/17 new stop loss @ 25.40

chart:

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: 4.12 change: +0.01

Stop Loss: 3.90
Target(s): 4.85, 5.20
Current Gain/Loss: - 3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/17 update: HNSN's volatile session on Friday gave us a scare. The stock dipped to $3.91 by Friday afternoon. Our stop loss is at $3.90. Shares suddenly reversed higher in the last two hours to rally from $3.91 to $4.25 intraday (a +8.6% move).

Earlier Comments:
The stock can be volatile so we want to keep our position size small.

Current Position: Long HNSN stock @ $4.25

09/14 new stop loss @ 3.90

chart:

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: 15.46 change: -0.04

Stop Loss: 13.49
Target(s): 16.75, 18.25
Current Gain/Loss: +3.6%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
09/17 update: NVDA continues to get positive press. Friday morning on CNBC, commentator Jim Cramer said he believes NVDA is going to $20 a share. Later on Friday the Forbes.com website published an article that agreed with Cramer. Meanwhile short-term NVDA is performing as expected. I warned readers to look for a rally to resistance and then a retreat lower. NVDA hit $16.10 on Friday morning before pulling back. I would buy a dip in the $15.00-14.50 zone.

NOTE: We are adding a secondary target at $18.25.

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

09/17 added secondary target of $18.25
09/14 new stop loss @ 13.49
09/14 gap open higher entry point @ 14.91

chart:

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: 41.68 change: -0.57

Stop Loss: 37.20
Target(s): 45.75, 49.75
Current Gain/Loss: +2.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/17 update: This could be a new entry point in SODA. The stock has failed at technical resistance near its 30-dma for three days in a row. Yet Friday saw an intraday double bottom in the $40.50-40.60 zone. I would be tempted to buy SODA here. However, there is reason to wait. The stock market looks short-term overbought with a five-day rally. If the S&P500 sees a pull back soon then SODA might dip closer to $40.00 or its 10-dma.

Readers have to decide if they want to buy SODA now or wait for a potential dip closer to $40.00.

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

chart:

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: 22.40 change: +0.15

Stop Loss: 21.40
Target(s): 22.25, 24.75
Current Gain/Loss: +10.4%
Time Frame: 6 to 10 weeks
New Positions: see below

Comments:
09/17 update: STMP is up almost +15% for the week. The stock is up almost +50% from its August closing low near $15.30 and up even more from its sub-$12 lows in June. By almost any measure STMP is overbought here. Yet I'm not convinced the rally is over yet.

We're not suggesting new positions at this time but if you're looking for an entry point I'd be watching for a dip or a bounce near $20.00. Please note that we are raising our stop loss significantly to $21.40. More conservative traders may want to just take profits now and exit completely. The newsletter's final target for STMP is $24.75.

Current Position: Long STMP stock @ $20.29

- or -

Long OCT $20 call (STMP1122J20) Entry $1.50

09/17 new stop loss @ 21.40
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.

chart:

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: 49.12 change: -0.06

Stop Loss: 46.35
Target(s): 49.50, 54.00
Current Option Gain/Loss: + 6.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/17 update: The rally in WBC stalled on Friday with shares stuck under resistance at $50.00. If you're looking for a new entry point then a breakout past $50.00 can work but the newsletter is not suggesting new positions at this time.

- 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

chart:

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: 48.08 change: -0.59

Stop Loss: 50.60
Target(s): 44.00, 40.50
Current Gain/Loss: -2.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/17 update: After a three-day bounce the rebound in GEF has stalled at resistance near the 10-dma. I see Friday's move as a new entry point for bearish positions. More conservative traders might want to consider adjusting their stop loss lower toward the $49.00 level instead of our stop at $50.60.

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

chart:

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