Editor's Note:
Shares of MAR hit our first profit target today. I'm also suggesting we take profits now on our Ford trade.

-James

Current Portfolio:


BULLISH Play Updates

Cheesecake Factory Inc. - CAKE - close: 30.18 change: +0.29

Stop Loss: 28.95
Target(s): 33.95, 37.00
Current Gain/Loss: - 4.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
06/13 update: CAKE is still trying to rebound but shares reversed late this afternoon paring its gains to just +0.9%. Volume was above average on today's session. I remain cautious. The close over $30 is bullish but the intraday reversal concerns me. No new positions at this time.

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

06/09 CAKE is bouncing from the 200-dma as expected.
06/04 More conservative traders may want to exit early. We are expecting a drop to the 200-dma.

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


Dr. Pepper Snapple Group - DPS - close: 40.77 change: +0.46

Stop Loss: 38.95
Target(s): 44.90
Current Gain/Loss: + 1.2%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
06/13 update: DPS is once again showing relative strength. The stock rallied to its 20-dma near $41.15 before trimming its gains. Volume is picking up on the bounce, which is a good sign. I remain cautious given the down trend in the major indices. If you're looking for a new entry point consider waiting for another dip or bounce near $40.50 and its 50-dma.

Current Position: Long DPS stock @ $40.25

- or -

Long Aug $45 call (DPS1120H45) Entry @ $0.30

06/04 new stop loss @ 38.95

Entry on June 3 at $40.25
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 2.1 million
Listed on May 14th, 2011


Ecolab Inc. - ECL - close: 54.04 change: +0.24

Stop Loss: 51.90
Target(s): 57.00, 59.90
Current Gain/Loss: + 1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13 update: It was a quiet Monday for ECL with shares hovering near the $54 level all day long. I am still expecting a dip toward what should be support near $53.00. More conservative traders may want to wait for a bounce from the 50-dma instead before considering new positions.

Current Position: Long ECL stock @ 53.35

- or -

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

06/04 new stop loss @ 51.90

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


Nanometrics Inc. - NANO - close: 16.60 change: -0.19

Stop Loss: 15.85
Target(s): 19.25, 22.00
Current Gain/Loss: - 1.3%
Time Frame: 6 to 8 weeks or more
New Positions: see below

Comments:
06/13 update: NANO spent Monday's session consolidating sideways. I don't see any changes from my weekend comments. I'm still suggesting new positions at current levels. Or readers could wait for a dip near $16.00 instead. More aggressive traders may want to place their stop under $15.50 or even the $15.00 level, since both should offer some support. I'd rather keep our stop tight and if we get stopped out at $15.85 we can try again and buy a dip or bounce near $15.00.

We'll start with multi-week targets at $19.25 and $22.00. FYI: NANO does have options but the spreads are so wide I wouldn't trade them.

Current Position: Long NANO stock @ $16.82

Entry on June 13 at $16.82
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume: 467 thousand
Listed on June 11th, 2011


NVIDIA Corp. - NVDA - close: 17.00 change: -0.13

Stop Loss: 16.59
Target(s): 19.50
Current Gain/Loss: - 2.3%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
06/13 update: Readers may want to hit the eject button and abandon ship on our aggressive, higher-risk NVDA trade. The SOX semiconductor index continues to sink and the index closed under the 400 mark today. Meanwhile NVDA is flirting with a breakdown under the $17.00 level. The 200-dma might offer some support (currently at 16.69). I'm inching our stop loss a little bit lower from 16.70 to 16.59. No new positions at this time. Our plan was to keep our position size small to limit our risk.

- Small Positions Only -

Current Position: Long NVDA stock @ $17.40

- or -

Long July $18 call (NVDA1116G18) Entry @ $0.68

06/13 adjust stop loss from 16.70 to 16.59

Entry on June 10 at $17.40
Earnings Date 08/11/11 (unconfirmed)
Average Daily Volume: 19.8 million
Listed on June 9th, 2011


BEARISH Play Updates

Aon Corp. - AON - close: 50.47 change: +0.27

Stop Loss: 52.75
Target(s): 46.50
Current Gain/Loss: + 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13 update: AON managed a +0.5% bounce from the $50.00 level. We were expecting a bounce so it's not surprising. The stock should have overhead resistance near $51.00 and near $52.00. Keep in mind that our June put will expire after Friday. Cautious traders may want to exit early. I am not suggesting new positions at this time.

Earlier Comments:
Our target is the $46.50 level. 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


AO Smith Corp. - AOS - close: 39.04 change: -0.07

Stop Loss: 42.05
Target(s): 36.00, 33.00
Current Gain/Loss: + 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13 update: The afternoon bounce attempt in AOS didn't get very far and shares closed near their lows for the session. There is no change from my prior comments. You can launch positions here or wait for a new relative low under $38.86.

FYI: The Point & Figure chart for AOS is bearish with a $33 target. Traders should also note that the most recent data listed short interest at 5% of the relatively small 38.2 million share float. That does raise the risk for a possible short squeeze and explains the volatile rallies in this stock.

NOTE: AOS does have options but the spreads appear too wide for us to trade them.

Current Position: short AOS stock @ $39.92

Entry on June 6 at $39.92
Earnings Date 07/20/11 (unconfirmed)
Average Daily Volume: 312 thousand
Listed on June 4th, 2011


Ford Motor Co. - F - close: 13.14 change: -0.21

Stop Loss: 14.26
Target(s): final target @ 12.55
Current Gain/Loss: + 8.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13 update: Hmm... I'll be honest. I was expecting a bigger sell-off in Ford. Over the weekend we lowered our target to $12.75. Ford gapped open lower at $13.14 and then declined to $12.78 before bouncing. The intraday bounce back could be the sign of a new short-term bottom.

I am suggesting we take profits immediately! Sell at least half of our positions. The option has a bid of $1.89 (+110%). I'm lowering our stop loss to $14.26. We will adjust our final target to be $12.55. I am not suggesting new positions at this time. The plan was to 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

06/13 New stop loss @ 14.26. Final target at $12.55
06/13 Take Profits Now! Ford @ 13.14 (+8.75%), Option @ $1.89 (+110%)
06/11 new targets at $12.75 and TBD.
06/11 new stop loss @ 14.55
06/08 new stop loss @ 15.01

chart:

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


Honeywell Intl. - HON - close: 55.71 change: +0.18

Stop Loss: 60.15
Target(s): 54.00
Current Gain/Loss: + 3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13 update: This morning HON announced it was buying EMS Technologies for $491 million or $33 a share. The news did not have much impact on HON's stock price but ELMG's rallied +32%. There is no change from my weekend comments on HON. The trend is down but HON looks a little bit oversold. I am not suggesting new positions at this time. More conservative traders may want to take profits early near $55.00. Currently our target is $54.00.

Earlier Comments:
We do want to keep our position size small to limit our risk.

- Small Positions -

Current Position: short HON stock @ 57.65

- or -

Long July $55 PUT (HON1116S55) Entry @ $0.75

Entry on June 2 at $57.65
Earnings Date 07/22/11 (unconfirmed)
Average Daily Volume: 4.1 million
Listed on June 1st, 2011


Kohl's Corp. - KSS - close: 49.80 change: +0.04

Stop Loss: 51.75
Target(s): 47.50, 45.25
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13 update: KSS didn't move much today. Shares opened at $49.80 and closed at $49.80. The intraday bounce off its lows might suggest KSS will rebound tomorrow. I don't see any changes from my weekend comments and I would still consider new positions here. As an alternative you could wait for KSS to rally towards or fail near its 10-dma (currently near $51.00). Let's keep our position size small to limit our risk. FYI: The Point & Figure chart for KSS is bearish with a $43 target.

- Small Positions-

Current Position: short KSS stock @ $49.80

- or -

Long July $47.50 put (KSS1116S47.5) Entry @ $0.75

Entry on June 13 at $49.80
Earnings Date 08/11/11 (unconfirmed)
Average Daily Volume: 4.1 million
Listed on June 11th, 2011


Marriott Intl. Inc. - MAR - close: 33.77 change: -0.07

Stop Loss: 36.55
Target(s): 33.65, and 30.50
Current Gain/Loss: + 4.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/13 update: Target achieved. MAR hit our new target at $33.65 (+4.9%) while the option was trading with a bid at 0.90 (+50.0%). I do want to urge caution here. MAR has essentially tested its April lows and it could bounce. We could see MAR rebound back to $35.00 or higher. I am lowering our stop loss down to $36.55. I am not suggesting new positions at this time.

Current Position: Short MAR stock @ $35.39

- or -

Long July $33 PUT (MAR1116S33) Entry @ $0.60

06/13 1st Target Hit @ $33.65 (+4.9%), Option @ 0.90 (+50%)
06/13 New stop loss @ 36.55
06/11 Adjusted exit targets to $33.65 and 30.50

chart:

Entry on June 8 at $35.39
Earnings Date 07/13/11 (unconfirmed)
Average Daily Volume: 3.7 million
Listed on June 7th, 2011


St. Jude Medical - STJ - close: 48.94 change: +0.04

Stop Loss: 51.05
Target(s): 47.00, 45.75
Current Gain/Loss: + 4.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/13 update: STJ produced a very quiet session with shares hovering near $49 and its 100-dma all day. I am not suggesting new positions at this time. We'll wait and see if shares fail at overhead resistance near $50.00 or at the $51.00 levels.

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

06/04 New stop loss @ 51.05, added second target at $45.75
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


Target Corp. - TGT - close: 46.43 change: -0.27

Stop Loss: 50.15
Target(s): 45.15
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
06/13 update: TGT continues to sink without us. I don't' want to chase it here. The plan is to wait for an oversold bounce back toward what should be new resistance in the $48.50-49.00 area. I'm suggesting a trigger to open bearish positions at $48.50. If triggered we'll use a stop loss at $50.15. Our first target is $45.15. FYI: The Point & Figure chart for TGT is bearish with a $43 target.

Trigger @ 48.50

Suggested Position: short TGT stock @ 48.50

- or -

buy the July $47 PUT (TGT1116S47) current ask $1.24

Entry on June x at $xx.xx
Earnings Date 08/18/11 (unconfirmed)
Average Daily Volume: 7.1 million
Listed on June 4th, 2011