Editor's Note:
Investors are already thinking about the upcoming fourth of July market holiday as volume was very light and will probably remain light all week.

There were no significant changes in our play list except for a big move higher in NANO.

-James

Current Portfolio:


BULLISH Play Updates

Cheesecake Factory Inc. - CAKE - close: 31.28 change: +0.37

Stop Loss: 28.95
Target(s): 33.95, 37.00
Current Gain/Loss: - 0.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
06/27 update: CAKE continues to bounce and shares added +1.1%. I am not suggesting 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


Ecolab Inc. - ECL - close: 54.55 change: +0.13

Stop Loss: 52.45
Target(s): 57.00, 59.90
Current Gain/Loss: + 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/27 update: ECL recovered from its morning lows but its final gain lagged behind the market's major indices. I am not suggesting 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: 18.31 change: +1.45

Stop Loss: 15.85
Target(s): 19.25, 22.00
Current Gain/Loss: + 8.8%
Time Frame: 6 to 8 weeks or more
New Positions: see below

Comments:
06/27 update: I could not find any specific news to account for NANO's +8.6% rally. Initially I thought it may have been a reflection of a low volume day but volume on NANO was actually above average. The rally did stall near its early April highs at $18.33 so odds are good NANO might see some profit taking tomorrow. I am not suggesting new positions at this time.

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


UnitedHealth Group Inc. - UNH - close: 51.03 change: +0.57

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: - 0.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/27 update: Traders bought the dip at $50.00 again and UNH added +1.1% on Monday. Readers could use this bounce as a new entry point to launch positions. My weekend comments regarding stop loss placement still apply.

We do not want to hold over the July 19th earnings report.

- small positions -

Suggested Position: Long UNH stock @ $51.25

- or -

Long July $50 call (UNH1116G50) Entry @ $2.07

Entry on June 24 at $51.25
Earnings Date 07/19/11 (confirmed)
Average Daily Volume: 7.9 million
Listed on June 23, 2011


BEARISH Play Updates

Aon Corp. - AON - close: 49.29 change: +0.17

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

Comments:
06/27 update: AON managed a minor bounce that stalled at its simple 10-dma. Nimble traders may want to consider new bearish positions on another failed rally near $50.00 (just consider a tighter stop loss). At the moment our target is $47.00 but we may have to adjust it down the road to stay above the 200-dma.

(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: 59.11 change: -0.90

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:
06/27 update: ATI is still churning sideways inside the $58-62 trading range but the stock underperformed on Monday and is poised to breakdown under its 200-dma again. I am suggesting a trigger to launch 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: 48.23 change: +0.04

Stop Loss: 50.75
Target(s): 42.50
Current Gain/Loss: - 1.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/27 update: ETN managed another bounce off its 10-dma this morning. Shares remain under resistance at $49.00 and at $50.00. I would prefer to see a drop under $47.50 or under $47.00 before considering new bearish positions.

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: 13.46 change: +0.22

Stop Loss: 13.85
Target(s): final target @ 12.55
Current Gain/Loss: + 6.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/27 update: After Friday's weakness Ford managed to recover on Monday (+1.6%) but shares are still trading near resistance at the $13.50 level. 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: 56.79 change: +0.44

Stop Loss: 59.05
Target(s): 54.00
Current Gain/Loss: + 1.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/27 update: HON slowly drifted higher and some of the short-term technical indicators are starting to look bullish. The recent consolidation may just be a bear-flag pattern and HON does have overhead resistance in the $58-59 area. I am not suggesting new positions at this time.

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


Ingersoll-Rand - IR - close: 43.53 change: +0.40

Stop Loss: 45.25
Target(s): 40.25, 37.50
Current Gain/Loss: - 0.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
06/27 update: There was no follow through on IR's reversal lower from Friday but the intraday bounce today did stall at the $44.00 level. I would still consider new positions now. Our targets are $40.25 and $37.50. More aggressive traders could aim lower but we do not want to hold over the late July earnings report. FYI: The Point & Figure chart for IR is bearish with a $33 target.

NOTE: IR's August options do not have much volume or open interest. Prices could be erratic.

- small positions -

Current Position: short IR stock @ $43.21

- or -

Long AUG. $40 PUT (IR1120T40) Entry @ $0.90

Entry on June 27 at $43.21
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 3.0 million
Listed on June 25, 2011


Kohl's Corp. - KSS - close: 50.22 change: +0.77

Stop Loss: 51.75
Target(s): 47.50, 45.25
Current Gain/Loss: - 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/27 update: KSS recovered a significant chunk of Friday's losses with its +1.5% gain today. The close back above the $50.00 level is technically bullish but volume was pretty light today. I am not suggesting new positions at this time.

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: 34.08 change: +0.12

Stop Loss: 36.05
Target(s): 33.65, and 30.50
Current Gain/Loss: + 3.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/27 update: MAR is still churning sideways. There is no change from my prior comments. We've been expecting MAR to see an oversold bounce back toward $35.00 or its 50-dma. I'm not suggesting new positions at this time.

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: 15.81 change: +0.03

Stop Loss: 16.55
Target(s): 14.00
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see trigger

Comments:
06/27 update: SCHW briefly traded to a new relative low of $15.64 and then recovered. I am suggesting a trigger to open bearish positions at $15.60. More conservative traders may want to use a trigger at $15.49 instead. If triggered we'll use a stop loss at $16.55. Our first target is $14.00 but we do not want to hold over the mid July earnings report.

Keep our position size small!

Trigger @ 15.60 (small positions)

Suggested Position: short SCHW stock @ $15.60

- or -

Buy the July $15.00 PUT (SCHW1116S15)

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: 46.35 change: +0.05

Stop Loss: 50.05
Target(s): 47.00, 45.25
Current Gain/Loss: + 9.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/27 update: Considering the stock market's widespread bounce today the lack of a bounce in STJ is a good sign for the bears. Volume in STJ was actually pretty strong today. I don't see any changes from my prior comments. I'm not suggesting new positions at this time. More conservative traders may want to exit early now.

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

06/25 Adjusted final target to $45.25
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

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


Xerox Corp. - XRX - close: 9.91 change: +0.02

Stop Loss: 10.40
Target(s): 9.25, 9.00
Current Gain/Loss: + 0.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
06/27 update: XRX spent Monday's session churning sideways under the $10.00 level. There is no change from my weekend comments. I would still consider new bearish positions now with a stop at $10.40. We want to keep our position size small. More conservative traders could reduce their risk and use a stop closer to Wednesday's high near $10.17 instead.

I'm setting our targets at $9.25 and $9.00. More conservative traders may want to take profits early at $9.40 instead. We do not want to hold over the late July earnings report.

- open small positions now -

Suggested Position: short XRX stock @ current levels

- or -

Buy the August $9.00 PUT (XRX1120T9) current ask $0.21

Entry on June 27 at $xx.xx
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 11.7 million
Listed on June 25, 2011