Editor's Note: Good Evening. CSCO stopped us out right at the end of the day Friday for a small loss. We've still got HANS long and our new long play on AMTD to take advantage of any bounces. I've also released two additional short plays which are weak stocks from weak sectors. I expect trading to be choppy as we head into Friday's employment report and as earnings season gets underway in the coming weeks. I suggest traders remain nimble and protect profits as positions move in the right direction. Please email me with any questions.

Current Portfolio:


BULLISH Play Updates

Hanson Natural Corp - HANS - close 39.73 change +0.08 stop 38.25

Target(s): 40.50, 41.25, 42.40, 43.25
Key Support/Resistance Areas: 42.50, 41.00, 40.25, 39.30, 38.50
Current Gain/Loss: +0.79% Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
6/26: HANS continues to make higher lows and if there is strength in the broader market early this week I believe our targets will be hit. On Friday the stock was increasing in the morning as the market was making now lows. The volume patterns are also bullish as the pullback tend to come on lighter volume. This shows me there may institutions buying this stock which bodes well for a bullish thesis. I've made some minor adjustments to the targets.

6/24: HANS printed a bullish engulfing candlestick today and closed +1.15% higher, despite the significant weakness in the broader market. The market should bounce soon, if not tomorrow, and this should bode well for HANS. The stock was turned back from its 50-day SMA today for the second time in the last 4 trading sessions. If it keeps knocking it should break through, and with the broader market in oversold conditions itching for a bounce, I expect this to happen and our targets to be hit. The 20-day and 200-day SMA are also providing support for the stock.

Current Position: Long HANS stock at $39.42

Options Traders:
Suggested Position: August $40.00 CALLS

Annotated chart:

Entry on June 23, 2010
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on 6/22/10


BEARISH Play Updates

Macy's - M - close 19.02 change +0.17 stop 21.70

Target(s): 18.90, 18.10
Key Support/Resistance Areas: 22.25, 21.25, 20.90, 20.25, 19.40, 18.00
Time Frame: 1 to 2 weeks

Comments:
I've adjusted our trigger to enter short positions to $19.50. I'm expecting the market to bounce from here and M should trade up to our trigger in the coming days. I'll leave my comments from the play release. M collapsed Thursday closing -6% lower and near our 2nd target of $18.90. I still believe the stock will trade down to $18.10 but I do not suggest chasing it at these levels. The broader market should bounce from here and I suspect M will as well. But these bounces should be short lived and I suggest we take advantage them. As such, I have adjusted the entry trigger to $19.50 and the suggested option position. M broke down on 6/23 out of a descending triangle but was saved with a rally. The stock is hanging on to a thread and I do not see any reason why the stock will not continue its descent. The broader market may bounce higher but there is plenty of resistance overhead to keep M in check. I suggest we use $19.50 as a trigger to enter short positions. The next level of meaningful support is all the down near $18.00 which are highs from December. I am going to place a wide initial stop at $21.70 to account for volatility and will adjust it once we are in the position.

Suggested Position: Short M stock if it trades up to $19.50

Option Traders: Buy August $20.00 PUTS, current ask $2.00, estimated ask at entry $1.70

Annotated chart:

Entry on June xx
Earnings 8/12/2010 (unconfirmed)
Average Daily Volume: 11.7 million
Listed on June 23, 2010


Whirlpool Corp - WHR - close 96.65 change +2.36 stop 105.50

Target(s): 94.10, 91.50, 86.05
Key Support/Resistance Areas: 101.70, 99.00, 97.50, 94.00, 85.25
Time Frame: 1 to 2 weeks

Comments:
We are waiting to be triggered at $97.50 to enter short positions. My comments remain the same from Thursday. I still believe WHR has a good chance to trade down to $91.50 and eventually $86.05 but I do not suggest chasing it at these levels. The broader market should bounce from here and I suspect WHR will as well. But these bounces should be short lived and I suggest we take advantage them. I have lowered our entry to short positions to $97.50. My comments from the play release remain the same. WHR has been making lower highs and has broken many trend lines. The stock has one more trend line providing support from the July lows to the February lows. However, I think it only a matter of time before this is broken and the stock retests or breaks its recent lows near $91.50. WHR is also below its 20-day and 50-day SMA's and I think there is enough overhead resistance to enter short positions at $97.50, which is below Thursday's highs and the 20-day SMA. I am going to place a wide initial stop at $105.50 to account for volatility and will adjust it once we are in the position.

Suggested Position: Short WHR stock if it trades up to $97.50

Option Traders: Buy August $95.00 PUTS current ask $6.80, estimated ask at entry $6.40

Annotated chart:

Entry on June xx
Earnings 7/21/2010 (unconfirmed)
Average Daily Volume: 2 million
Listed on June 23, 2010


CLOSED BULLISH PLAYS

Cisco Systems - CSCO - close 22.18 change -0.29 stop 22.20

Target(s): 23.35, 23.65, 23.85, 24.20
Key Support/Resistance Areas: 23.65, 22.55, 22.35
Current Gain/Loss: -2.84%
Time Frame: 1 to 2 weeks
New Positions: Stopped Out

Comments:
We were stopped out of CSCO right at the end of the day for -2.84% loss. The stock broke down out the base it has built over the past month and the reasons for initiating the trade failed. I have to say I was surprised the stock broke down, especially below $22.35 and especially as the broader market was gaining. CSCO lost -7% from its intraday high on Monday. If readers still have positions I would place a stop below today's low and play for a bounce from here.

Closed Position: Long CSCO stock at $22.20, entry was at $22.85

Annotated chart:

Entry on June 23, 2010
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 69 million
Listed on 6/16/10