The U.S. stock market saw a bullish breakout on Tuesday, May 31st. Unfortunately the rally didn't last. Stocks collapsed on the first day of June and the major indices stretched their losses to five weeks in a row. The current trend is down and the major indices have broken their long-term up trend. Yet the S&P 500 paused at key support near 1300 on Friday. The market may yet bounce but I'm concerned traders will use any rally to launch new bearish positions.

The month of June is not historically a bullish one for stocks. This June suffers from uncertainty regarding the end of QE2 at the end of the month. The market's widespread weakness accelerated lower this past week and several of our bullish candidates have pulled back to key support at their long-term trendlines of higher lows. This could be a make or break weak for a number of our plays.

I am suggesting an early exit for our Ford trade.

BA, BMY, CACI, COST, DRI, FISV, and SMG all have updated stop losses.

Disclaimer: At any given time the author may have positions in any or all of any companies mentioned in the Leaps Newsletter.

--Position Summary Table--
Table lists Directional CALL or PUT/LEAPS only.
Insurance puts, if applicable, are not shown.

Red symbol/name represents a play or option position exited or closed this week.