Editor's Note:
The market experienced a very widespread decline this morning but stocks managed an intraday bounce.

STJ gapped open lower under our first target. Meanwhile I'm suggesting an early exit from our AOS trade. Our DPS trade has been stopped out.

-James

Current Portfolio:


BULLISH Play Updates

Cheesecake Factory Inc. - CAKE - close: 30.92 change: +0.75

Stop Loss: 28.95
Target(s): 33.95, 37.00
Current Gain/Loss: - 1.9%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
06/23 update: Is our patience in CAKE going to pay off? The plunge in oil prices today fueled hope that the consumer will have additional money for discretionary items instead of pouring it in their gas tank. Shares of CAKE dipped toward technical support near their 200-dma again and then surged higher to post a +2.4% gain. The move today is also a bullish breakout over several key moving averages for CAKE.

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


Ecolab Inc. - ECL - close: 54.52 change: -0.02

Stop Loss: 52.45
Target(s): 57.00, 59.90
Current Gain/Loss: + 2.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/23 update: ECL dipped to a new three-week low this morning and bounced. Shares actually managed to close virtually unchanged on the session. Aggressive traders might want to consider new positions at this time.

Current Position: Long ECL stock @ 53.35

- or -

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

06/18 new stop loss @ 52.45
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: 16.82 change: +0.04

Stop Loss: 15.85
Target(s): 19.25, 22.00
Current Gain/Loss: - 0.0%
Time Frame: 6 to 8 weeks or more
New Positions: see below

Comments:
06/23 update: It's been almost two weeks and we're right back where we started with NANO at $16.82. Since that time NANO has retested support near $16.00 and the 50-dma. Aggressive traders may want to buy this bounce.

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


BEARISH Play Updates

Aon Corp. - AON - close: 49.27 change: -0.29

Stop Loss: 52.05
Target(s): 47.00
Current Gain/Loss: + 4.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/23 update: AON slipped to new relative lows this morning under the $49.00 level. Don't be surprised to see another oversold bounce back toward the $50 area. I am not suggesting new positions at this time.

(small positions only)

Current Position: short AON stock @ 51.61

06/18 adjusted exit target to $47.00
06/16 planned exit, June $50 put @ +11.1%
06/16 new stop loss @ 52.05
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


Allegheny Technologies - ATI - close: 60.76 change: +0.85

Stop Loss: 62.05
Target(s): 52.75, 50.50
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
06/23 update: ATI dipped toward short-term support near $58.00 and bounced back into positive territory. This doesn't bode well for the bears. We may end up removing ATI as a candidate soon. Currently our plan is to launch bearish positions at $57.40. We do not want to hold over the late July earnings report.

Trigger @ $57.40

Suggested Position: Short ATI stock @ $57.40

- or -

buy the July $55 PUT (ATI1116S55) current ask $1.60

06/22 FYI: ATI did produce an alternative entry point with a failed rally near $62.00. Aggressive traders may want to launch positions now. The newsletter will keep our trigger at $57.40.

Entry on June x at $xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on June 18th, 2011


Eaton Corp. - ETN - close: 48.85 change: +0.47

Stop Loss: 50.75
Target(s): 42.50
Current Gain/Loss: - 2.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/23 update: We are not off to a very good start with ETN. Shares gapped open lower at $47.62 (our new entry price) and then immediately bounced near its 10-dma. The stock rallied to a +0.9% gain and closed back above its exponential 200-dma. ETN should still have resistance near $49.00, near its simple 200-dma and near $50.00 but I am not suggesting new positions at this time. I repeat, no new positions. We'll wait for ETN to fail at overhead resistance first before considering new positions here.

Current Position: short ETN stock @ $47.62

- or -

Long July $47.50 PUT (ETN1116S47.5) Entry @ $1.40

- or -

Long Aug. $45 PUT (ETN1120T45) Entry @ $1.50

Entry on June 23 at $47.62
Earnings Date 07/20/11 (unconfirmed)
Average Daily Volume: 3.8 million
Listed on June 22, 2011


Ford Motor Co. - F - close: 13.47 change: +0.11

Stop Loss: 13.85
Target(s): final target @ 12.55
Current Gain/Loss: + 6.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/23 update: Be careful here. Ford has rallied off its morning lows and now the stock looks poised to breakout past resistance at $13.50. Once again I am suggesting readers take profits now and exit early. 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

06/16 new stop loss @ 13.85
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

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: 56.50 change: -0.51

Stop Loss: 59.05
Target(s): 54.00
Current Gain/Loss: + 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/23 update: HON spiked down toward the lower end of its recent trading range but managed almost a $1.00 bounce off its lows. I am not suggesting new positions. More conservative traders may want to lower their stops near the $58.00 level.

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

06/18 new stop @ 59.05

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: 50.90 change: +0.08

Stop Loss: 51.75
Target(s): 47.50, 45.25
Current Gain/Loss: - 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/23 update: Retail names rallied since lower oil and thus fuel prices should be bullish for the consumer. Yet KSS failed to make it past yesterday's highs. Lack of follow through on yesterday's failed rally makes me hesitant to launch new positions.

The plan was to 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: 34.24 change: -0.13

Stop Loss: 36.05
Target(s): 33.65, and 30.50
Current Gain/Loss: + 3.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/23 update: MAR gapped down this morning but shares recouped most of their losses. I am still expecting an oversold bounce. The stock should see resistance in the $35-36 area.

Current Position: Short MAR stock @ $35.39

- or -

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

06/21 readers may want to exit July options now
06/18 new stop loss @ 36.05
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

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


Charles Schwab - SCHW - close: 16.03 change: -0.05

Stop Loss: 17.55
Target(s): 15.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see trigger

Comments:
06/23 update: SCHW briefly traded to a new relative low under the bottom of its recent trading range. Shares almost made it back into positive territory with the afternoon bounce. I will most likely remove SCHW as a trade since shares are unlikely to hit our entry point any time soon.

Trigger @ 16.85

Suggested Position: short SCHW stock @ $16.85

- or -

Buy the July $17.00 PUT (SCHW1116S17)

Entry on June x at $xx.xx
Earnings Date 07/18/11 (unconfirmed)
Average Daily Volume: 10.2 million
Listed on June 13th, 2011


St. Jude Medical - STJ - close: 47.40 change: -1.27

Stop Loss: 50.05
Target(s): 47.00, 45.75
Current Gain/Loss: + 7.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/23 update: Target exceeded. STJ was downgraded this morning. Combine that with a down market and the stock gapped open lower at $46.50. This was under our first target at $47.00. The stock bounced at $46.20 and pared its losses to just -2.6%. I would expect STJ to try and fill the gap.

I am not suggesting new positions at this time. We will lower our stop to $50.05. Our second target remains $45.75.

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

06/23 1st target exceeded. Gap down at $46.50 (+8.8%)
06/23 new stop loss @ 50.05
06/16 exit June $50 put @ $1.95 (+95%)
06/15 prepare to exit our June $50 puts on Thursday at the close
06/04 New stop loss @ 51.05, added second target at $45.75
05/23 New stop loss @ 52.26

chart:

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

Dr. Pepper Snapple Group - DPS - close: 40.04 change: -0.40

Stop Loss: 39.65
Target(s): 44.90
Current Gain/Loss: - 1.4%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
06/23 update: The market's morning weakness was too much for DPS. The stock gapped open lower at $40.06 and then plunged to a new relative low at $39.55. Our stop loss was hit at $39.65 closing this trade.

closed Position: Long DPS stock @ $40.25, exit 39.65 (-1.49%)

- or -

Aug $45 call (DPS1120H45) Entry @ $0.30, exit 0.10 (-66.6%)

06/23 stopped out @ 39.65
06/21 new stop loss @ 39.65
06/14 new stop loss @ 39.40
06/04 new stop loss @ 38.95

chart:

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


CLOSED BEARISH PLAYS

AO Smith Corp. - AOS - close: 41.10 change: +0.33

Stop Loss: 42.05
Target(s): 36.00, 33.00
Current Gain/Loss: - 2.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/23 update: I am throwing in the towel on our AOS play. The stock spiked down to $39.69, which was under support at $40 and the 200-dma. Yet AOS immediately bounced back and rallied into positive territory. The only good thing for the bears is that AOS' bounce stalled at the 50-dma.

On the weekly chart AOS has very clearly broken support and its long-term up trend but short-term this stock is poised to rally. I am suggesting an early exit now.

Closed Position: short AOS stock @ $39.92, exit 41.10 (-2.9%)

06/23 exit early. AOS @ 41.10 (-2.9%)

chart:

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