Editor's Note:
Friday proved to be a very volatile day in the stock market. Early gains reversed and stocks fell to new lows by lunchtime. The S&P 500 index fell to 1168 before bouncing on news out of Europe but the index was unable to close back above the 1200 mark.

The better than expected July jobs report fueled some early morning gains and that triggered some of our bullish trades. Yet the sharp reversal lower stopped us out.


Current Portfolio:

BULLISH Play Updates

Motorola Mobility Holdings, Inc. - MMI - close: 23.09 chg: +0.81

Stop Loss: 20.70
Target(s): 25.75, 27.75
Current Gain/Loss: - 1.0%
Time Frame: 3 to 6 weeks
New Positions: see below

08/06 update: Our brand new play on MMI is now open. The stock opened higher at $23.34. Combine that with the slightly higher open in the S&P 500 and our play was triggered. Yet shares of MMI didn't make it very far. The upward momentum stalled near the 50-dma. When the market swooned lower on Friday morning MMI dipped to $21.58. Thankfully MMI did not breakdown to a new relative low like most of the market on Friday.

I would wait to see how the market acts on Monday morning before considering new bullish positions here. Aggressive traders might want to consider removing their stop loss for Monday and then re-adding it back on Monday night since there is no way to know how volatile the market will be on Monday.

Earlier Comments:
More conservative traders may want to use a tighter stop instead. Our first target is $25.75. Our secondary, more aggressive target is $27.75. We do want to keep our position size small to limit our risk.

- small positions-

Suggested Position: long MMI stock @ 23.34

- or -

Long SEP $25 call (MMI1117I25) Entry @ $1.05


Entry on August 5 at $23.34
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 5.9 million
Listed on August 4, 2011

BEARISH Play Updates

None. No bearish plays currently.


Intersections Inc. - INTX - close: 18.16 change: -0.28

Stop Loss: 17.75
Target(s): 19.90, 21.75
Current Gain/Loss: unopened
Time Frame: 2 to 4 weeks
New Positions: see below

08/06 update: It was another very volatile day in the market on Friday. INTX gapped open higher at $18.63, spiked to $19.44, and then promptly reversed lower. Shares broke down under support near $18.00 and its 50-dma. The low today was $17.50. That's a -10% move from the intraday high. INTX hit our stop loss at $17.75.

The larger trend is still up so I'd keep INTX on your watch list.

closed Position: Long INTX stock @ $18.63, exit $17.75 (-

08/05 Play opened at $18.63. Stopped at $17.75
08/04 Adjusted our entry point strategy, our stop loss and targets due to the market drop on Thursday. New stop @ 17.75. New targets are $19.95 and $21.75.


Entry on August 5 at $18.63
Earnings Date 08/08/11 (unconfirmed)
Average Daily Volume = 150 thousand
Listed on August 2, 2011

PowerShares QQQ ETF - QQQ - close: 53.83 change: -0.34

Stop Loss: 53.49
Target(s): 55.90, 56.90
Current Gain/Loss: - 2.3%
Time Frame: 1 to 2 weeks
New Positions: see below

08/06 update: After Thursday's massive decline it looked like an oversold bounce was a good bet as long as the jobs number wasn't a total miss. Sure enough, the market rallied on the jobs data, which was better than expected. Yet the rally didn't last very long. The QQQs opened higher but the bounce ran out of gas in less than an hour thanks to renewed worries about Europe.

Stocks collapsed again intraday and the QQQ plunged to $52.32. Then news surfaced that the ECB might be willing to buy bonds from the struggling countries of Italy and Spain. That helped the market rebound. Tech stocks struggled the whole day and the QQQs settled in the red. Our stop loss was hit Friday morning at $53.49.

closed Position: Long the QQQ @ 54.79, exit 53.49 (-2.3%)

- or -

AUG $57 call (QQQ1120H57) Entry @ $0.40, exit $0.20 (-50%)

- or -

SEP $57 call (QQQ1117I57) Entry @ $0.89, exit $0.50 (-43.8%)

08/05 Our play was opened Friday morning and stopped out before 10 o'clock.


Entry on August 5 at $54.79
Earnings Date --/--/--
Average Daily Volume = 70 million
Listed on August 4, 2011

ProShares Ultra Financials - UYG - close: 48.85 change: -1.90

Stop Loss: 49.49
Target(s): 54.50, 56.50
Current Gain/Loss: - 4.3%
Time Frame: 1 to 3 weeks
New Positions: see below

08/06 update: Our aggressive, higher-risk trade on the UYG did not pan out. Shares did open higher as expected but the rally reversed lower. The UYG hit our stop at $49.49 on its way down to $47.01.

Traders may want to tray again since the UYG found support near its 2010 lows but given the US credit downgrade news I would probably avoid financials on Monday.

Our plan was to use small positions to limit our risk.

- small positions -

closed Position: long the UYG @ 51.74, exit $49.49 (-4.3%)

- or -

AUG $53 call (UYG1120H53) Entry @ $1.51, exit $1.27 (-15.8%)

08/05 our play was opened and stopped out on Friday morning.


Entry on August 5 at $51.74
Earnings Date --/--/--
Average Daily Volume = 1.7 million
Listed on August 4, 2011