Editor's Note:
The month of June is off to a terrible start if you're bullish on stocks. We had one play, DHR, get stopped out during the widespread weakness today.

-James

Current Portfolio:


BULLISH Play Updates

Cheesecake Factory Inc. - CAKE - close: 30.75 change: -1.02

Stop Loss: 28.95
Target(s): 33.95, 37.00
Current Gain/Loss: - 2.4%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
06/01 update: CAKE followed the market lower and closed on its lows today. Shares gave back -3.2%. The stock should have support near $30.00 but readers may want to wait for a bounce before considering new positions.

Earlier Comments:
Keep in mind that CAKE doesn't move very fast (at least not normally) so we'll need some patience for this trade to work. FYI: The Point & Figure chart for CAKE is bullish with a $59 target.

Current Position: Long CAKE stock @ $31.53

- or -

Long the July $33 call (CAKE1116G33) Entry @ $0.75

Entry on May 20 at $31.53
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on May 19th, 2011


Capital One Financial - COF - close: 52.75 change: -1.59

Stop Loss: 51.75
Target(s): 57.00, 59.50
Current Gain/Loss: - 0.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/01 update: Financial stocks were hit hard by today's sell-off. COF gave back -2.9% and closed near its 50-dma. You could almost argue that COF is forming a bearish H&S pattern. I am not suggesting new positions at this time.

Current Position: Long COF stock @ $53.07

- or -

Long the June $55 calls (COF1118F55) Entry @ $0.96

05/17 New stop loss @ 51.75

Entry on May 5 at $53.07
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 3.7 million
Listed on May 4th, 2011


Corn Products Intl. - CPO - close: 56.02 change: -0.71

Stop Loss: 53.60
Target(s): 59.90
Current Gain/Loss: - 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: CPO only lost -1.25% versus a -2.3% drop in the S&P 500. I would expect a dip toward the $55 area. Readers may want to wait for a bounce before considering new bullish positions.

Current Position: Long CPO stock @ 56.28

- or -

Long June $55 call (CPO1118F55) Entry @ $2.10

Entry on May 27 at $56.28
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 688 thousand
Listed on May 26th, 2011


Dr. Pepper Snapple Group - DPS - close: 40.94 change: -0.26

Stop Loss: 37.90
Target(s): 44.90
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
06/01 update: DPS continues to slide lower in an orderly manner. There is no change from my prior comments. Our plan is to launch bullish positions on a dip at $40.25. If triggered we'll use a stop loss at $37.90. Our target is $44.90.

buy-the-dip Trigger @ $40.25

Suggested Position: buy DPS stock @ $40.25

- or -

Buy the August $45 call (DPS1120H45) current ask $0.80

Entry on May x at $xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 2.1 million
Listed on May 14th, 2011


Ecolab Inc. - ECL - close: 54.28 change: -0.60

Stop Loss: 50.95
Target(s): 57.00, 59.90
Current Gain/Loss: + 1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: The intraday spike to $57.50 looks like a bad tick on ECL's chart. Overall the profit taking in ECL wasn't that bad and shares only lost -1.0%. At this point I would expect a dip toward support near $53.00. Wait for the dip or a bounce near this level before initiating new positions.

Current Position: Long ECL stock @ 53.35

- or -

Long July $55 call (ECL1116G55) Entry @ $0.60

Entry on May 26 at $53.35
Earnings Date 07/26/11 (unconfirmed)
Average Daily Volume: 1.5 million
Listed on May 18th, 2011


EMC Corp. - EMC - close: 28.06 change: -0.41

Stop Loss: 26.90
Target(s): 29.95, 32.25
Current Gain/Loss: + 1.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: Profit taking in EMC was relatively mild. If the market continues to slide I would look for a drop toward $27.50 or its 50-dma. Please note our new stop loss at $26.90. I am not suggesting new positions at this time.

Current Position: Long EMC stock @ $27.55

- or -

Long the June $27.00 calls (EMC1118F27) Entry @ $1.35

Second Option Position (listed 05/12/11)

Long the June $29.00 calls (EMC1118F29) Entry @ $0.45

06/01 new stop loss @ 26.90
05/12 New entry point. Added second option position.

Entry on May 3 at $27.55
Earnings Date 04/20/11
Average Daily Volume: 21.4 million
Listed on April 27th, 2011


Electronic Arts Inc. - ERTS - close: 24.42 change: +0.01

Stop Loss: 23.25
Target(s): 26.25, 28.00
Current Gain/Loss: - 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: I am shocked that ERTS did not see larger declines. Today's market-wide drop would have been the perfect excuse to lock in gains in ERTS. Instead the stock tagged a new 52-week high and closed in positive territory albeit only by a penny. Look for a dip or a bounce near $24.00 before considering new bullish positions.

I am suggesting that we keep our position size small to limit our risk. We'll start with a stop loss at $23.25. Our targets are $26.25 and $27.00.

- Small Positions -

Current Position: Long ERTS stock @ $24.44

- or -

Long July $25 call (ERTS1116G25) Entry @ $0.90

Entry on June 1 at $24.44
Earnings Date 08/02/11 (unconfirmed)
Average Daily Volume: 5.8 million
Listed on May 31st, 2011


Expedia Inc. - EXPE - close: 27.80 change: -0.21

Stop Loss: 26.70
Target(s): 27.75, 29.75
Current Gain/Loss: + 7.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: EXPE started the day on a down note thanks to an analyst downgrade but shares were holding up reasonably well considering the market's weakness. Then EXPE popped higher this afternoon on news it had signed a deal with Groupon.com to form a discount travel website. At the end of the day EXPE only lost -0.7% and tested its rising 10-dma.

This stock continues to look overbought. Readers are strongly encouraged to consider taking profits right here and exiting early. I am not suggesting new positions at this time. Please note our new stop loss at $26.70.

Current Position: Long EXPE stock @ 25.85

- or -

Long the June $25 call (EXPE1118F25) Entry @ $1.20

- or -

Long the July $27 call(EXPE1116G27) Entry @ $0.95

06/01 new stop loss @ 26.70
05/31 new stop loss @ 26.25
05/21 New stop loss @ 25.40
05/20 1st Target Hit @ 27.75 (+7.3%), June $25 call @ $2.70 (+125%), July $27 call @ $1.40 (+47.3%)

Entry on May 18 at $25.85
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 5.5 million
Listed on May 17th, 2011


Jabil Circuit Inc. - JBL - close: 20.49 change: -1.09

Stop Loss: 19.90
Target(s): 22.95, 24.75
Current Gain/Loss: - 4.4%
Time Frame: until June 21st, 2011
New Positions: see below

Comments:
06/01 update: Warning! The big drop in JBL today has left the stock testing its six-week trendline of higher lows. I am not suggesting new positions at this time. We'll wait and see if JBL can bounce from support here or at $20.00.

We only have a few weeks for this trade to work as JBL reports earnings on June 21st and we don't want to hold over the announcement.

- Use Small Positions -

Current Position: Long JBL stock @ $21.44

- or -

Long July $22 call (JBL1116G22) Entry @ $1.05

Entry on May 31 at $21.44
Earnings Date 06/21/11 (confirmed)
Average Daily Volume: 3.6 million
Listed on May 28th, 2011


Kansas City Southern - KSU - close: 56.37 change: -2.52

Stop Loss: 54.70
Target(s): 59.75, 62.50
Current Gain/Loss: - 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: Railroads and transport stocks were hit hard today. KSU fell -4.2%. I would be tempted to buy a dip or a bounce near the $55.00 level. We are raising our stop loss to $54.70. Our upside targets are $59.75 and $62.50.

Current Position: Long KSU stock @ $56.39

- or -

Long the June $60 call (KSU1118F60) Entry @ $0.53

06/01 New stop loss @ 54.70

Entry on May 19 at $56.39
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on May 18th, 2011


Lennar Corp. - LEN - close: 18.55 change: -0.43

Stop Loss: 18.15
Target(s): 21.00
Current Gain/Loss: - 1.8%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
06/01 update: LEN could not get past the $19.00 level with the stock market in retreat. Shares slipped back toward technical support at the 50-dma. Normally I'd be tempted to buy this dip but given the market's sharp decline today I am suggesting readers wait. Let's wait and see if and where LEN can bounce before initiating new positions.

Earlier Comments:
The plan was to keep our position size small to limit our risk. Our target is $21.00. FYI: The Point & Figure chart for LEN is bullish with a $26 target.

- Small Positions -

Current Position: Long LEN stock @ $18.90

- or -

Long July $20 call (LEN1116G20) entry @ $0.39

Entry on June 1 at $18.90
Earnings Date 06/23/11 (unconfirmed)
Average Daily Volume: 3.4 million
Listed on May 31st, 2011


Rosetta Resources - ROSE - close: $46.44 change: -2.71

Stop Loss: 43.90
Target(s): 54.00
Current Gain/Loss: - 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: There seems to be some confusion over the intraday high in ROSE today. My intraday chart says it was $52.67 but other sources are listing the high at $51.32. If we use $51.32 then ROSE fell -9.5% from its morning highs and produced a big bearish engulfing reversal candlestick pattern. I couldn't find any news behind the big drop other than the market's decline today. ROSE should have some support near $45 and its 50-dma. Let's wait and watch for a bounce from this level before considering new positions. More conservative traders might want to up their stops closer to the $45 area.

-Small Bullish Positions-

Current Position: Long ROSE stock @ $47.35

- or -

Long July $50 call (ROSE1116G50) Entry @ $1.95

Entry on May 26 at $47.35
Earnings Date 08/08/11 (unconfirmed)
Average Daily Volume: 967 thousand
Listed on May 25th, 2011


Riverbed Technology, Inc. - RVBD - close: 37.25 change: -0.67

Stop Loss: 34.95
Target(s): 39.90, 43.00
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: RVBD is back to where we started at $37.25. The move today looks like a failed rally at resistance near $40.00. There is a really good chance RVBD will retest the $36.00 level soon. I am not suggesting new positions at this time.

Current Position: Long RVBD stock @ $37.25

- or -

Long the June $40 call (RVBD1118F40) Entry @ $1.15

Entry on May 12 at $37.25
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 5.1 million
Listed on May 11th, 2011


DENTSPLY Intl. - XRAY - close: 38.41 change: -0.83

Stop Loss: 37.30
Target(s): 42.00, 44.50
Current Gain/Loss: - 1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: Hmm... it's not looking good for XRAY. Shares lost -2.1% and look like they will test support near $38 soon. I'm concerned that XRAY may have just formed a new lower high. I am not suggesting new bullish positions at this time.

NOTE: Readers may want to avoid the options. XRAY doesn't have a lot of option volume and the spreads are wide, which puts traders at a disadvantage.

Current Position: Long XRAY stock @ 39.00

- or -

Long the June $40 call (XRAY1118F40) Entry @ 0.60

Entry on May 12 at $39.00
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 904 thousand
Listed on May 7th, 2011


BEARISH Play Updates

Aon Corp. - AON - close: 51.47 change: -0.68

Stop Loss: 52.75
Target(s): 46.50
Current Gain/Loss: + 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: The action in AON today looks like a new entry point for bearish positions.

Earlier Comments:
Our target is the $46.50 level. I would expect some support near $50.00 and the 100-dma so don't be surprised to see an initial bounce near this area. NOTE: The option spreads on AON are a little wide. Conservative traders may not want to play the options.

(small positions only)

Current Position: short AON stock @ 51.61

- or -

Long the June $50 PUT (AON1118R50) entry @ $0.45

05/31 New stop loss @ 52.75
05/23 gap down entry @ 51.61

Entry on May 23 at $51.61
Earnings Date 07/29/11 (unconfirmed)
Average Daily Volume: 1.7 million
Listed on May 21st, 2011


Ford Motor Co. - F - close: 14.23 change: -0.69

Stop Loss: 15.15
Target(s): 13.25
Current Gain/Loss: + 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: The major car makers reported disappointing sales numbers this morning. Ford lost -4.6% as investors reacted to the news. Shares have broken down to new relative lows. Currently our target is $13.25. Do not be surprised if Ford produces a short-term bounce near its March lows near $13.75. I would keep our position size small to limit our risk.

Small Positions!

Current Position: Short F stock @ $14.40

- or -

Long July $15 PUT (F1116S15) Entry @ $0.90

Entry on May 25 at $14.40
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 57 million
Listed on May 24th, 2011


H&R Block - HRB - close: 16.23 change: +0.03

Stop Loss: 16.55
Target(s): 14.10
Current Gain/Loss: unopened
Time Frame: until June 23rd, 2011
New Positions: Yes, see trigger

Comments:
06/01 update: HRB bucked the trend today and posted a gain. The relative strength is somewhat surprising. We are still waiting for a breakdown to launch positions but if HRB doesn't show some weakness soon we'll drop it.

I am suggesting a trigger to open bearish positions at $15.60, which is under last week's low. More conservative traders may want to wait for a breakdown under the rising 100-dma, which could act as possible support. If we are triggered at $15.60 our target is $14.15 near the 200-dma.

Trigger @ 15.60

Suggested Position: Short HRB stock @ $15.60

- or -

buy the July $15.00 PUT (HRB1116S15) current ask $0.65

Entry on May x at $xx.xx
Earnings Date 06/23/11 (confirmed)
Average Daily Volume: 5.8 million
Listed on May 28th, 2011


St. Jude Medical - STJ - close: 49.77 change: -0.90

Stop Loss: 52.26
Target(s): 47.00
Current Gain/Loss: + 2.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/01 update: STJ is rolling over just as expected. More conservative traders may want to consider a tighter stop loss. Readers could use today's drop under $50 as a new entry point for bearish positions. Currently our target is $47.00. More aggressive traders may want to aim lower.

Earlier Comments:
We wanted to keep our position size small (about half or less than a normal trade) to limit our risk.

(Small Positions)

Current Position: Short STJ stock @ 51.00

- or -

Long the June $50 PUT (SJT1118R50) Entry @ $1.00

05/23 New stop loss @ 52.26

Entry on May 20 at $51.00
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on May 16th, 2011


CLOSED BULLISH PLAYS

Danaher Corp. - DHR - close: 52.44 change: -2.09

Stop Loss: 52.65
Target(s): 58.00-60.00 zone
Current Gain/Loss: - 4.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
06/01 update: Ouch! It was an ugly day for DHR. Shares really underperformed with a -3.8% decline. The drop has broken several layers of support and hit our stop loss at $52.65.

Closed Position: Long DHR stock @ $55.17, Exit 52.65 (-4.5%)

- or -

Sept. $57.50 call (DHR1117I57.5) Entry @ $1.90, exit 0.85 (-55.2%)

06/01 Stopped out @ 52.65 (-4.5%), Option @ -55.2%

chart:

Entry on May 19 at $55.17
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 3.5 million
Listed on May 18th, 2011