Editor's Note:
Shares of NANO continue to soar and shares hit our first target today. Meanwhile the stock market is still bouncing on what is presumably end of quarter window dressing. If this rally continues we could see some bearish plays get stopped out.

-James

Current Portfolio:


BULLISH Play Updates

Cheesecake Factory Inc. - CAKE - close: 31.80 change: +0.52

Stop Loss: 28.95
Target(s): 33.95, 37.00
Current Gain/Loss: + 0.8%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
06/28 update: It's been a while but our CAKE play is finally back in positive territory. My only concern is the dwindling volume on this rally. Shares are approaching prior resistance in the $32.00 area. Meanwhile technical support at the simple 200-dma has risen to $29.72. We will raise our stop loss to $29.65. 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

06/28 New stop loss @ 29.65
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: 55.06 change: +0.51

Stop Loss: 52.45
Target(s): 57.00, 59.90
Current Gain/Loss: + 3.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/28 update: ECL rallied another +0.9% and closed above the $55.00 level. Shares are nearing its all-time highs set two weeks ago. 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


Macy's Inc. - M - close: 28.73 change: +0.58

Stop Loss: 27.45
Target(s): 29.90, 32.25
Current Gain/Loss: + 1.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/28 update: Macy's is off to a good start. Shares opened at $28.30 and rallied to a +2% gain. The MACD indicator on the daily chart has created a new buy signal. I don't see any changes from my Monday night comments. We want to keep our M positions small to limit our risk.

- small positions -

Current Position: Long M stock @ $28.30

- or -

(short-term)
Long July $29 call (M1116G29) Entry @ $0.56

- or -

(a bit longer-term)
Long Aug. $30 call (M1120H30) Entry @ $0.85

Entry on June 28 at $28.30
Earnings Date 08/10/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on June 27, 2011


Nanometrics Inc. - NANO - close: 19.40 change: +1.09

Stop Loss: 16.49
Target(s): 19.25, 22.00
Current Gain/Loss: +15.3%
Time Frame: 6 to 8 weeks or more
New Positions: see below

Comments:
06/28 update: Target achieved. NANO continues to soar. Shares added +5.9% on top of yesterday's +8.6% rally. Our first target was hit at $19.25 (+14.4%). Volume has been above average on this rally, which is normally a good signal. The $20.00 level could be round-number resistance. I would expect the rally to stall near $20 and there is a good chance NANO will see some profit taking after tagging this level. Please note that I am raising our stop loss to $16.49. Our second and final target remains the $22.00 level.

FYI: NANO does have options but the spreads are so wide I wouldn't trade them.

Current Position: Long NANO stock @ $16.82

06/28 First Target hit @ 19.25 (+14.4%)
06/28 New stop loss @ 16.49

chart:

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: 51.77 change: +0.74

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 1.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/28 update: The HMO healthcare index rallied to a new all-time high this afternoon. UNH is getting close to its 52-week high. I would still consider new bullish positions here at current levels.

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: 49.73 change: +0.44

Stop Loss: 52.05
Target(s): 47.00
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/28 update: As expected AON is bouncing back toward round-number resistance at $50.00. Aggressive traders could use this as a new entry point but you might want to 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: 61.63 change: +2.52

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:
06/28 update: ATI is seeing a big bounce today. Shares are challenging the top of its recent trading range near $62.00. A breakout past the $62.00-62.50 area would be bullish but bulls should be concerned with overhead resistance near $65.00 and its 50 and 100-dma.

Currently our plan is unchanged. We have a trigger to launch bearish positions a $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: 49.47 change: +1.24

Stop Loss: 50.50
Target(s): 42.50
Current Gain/Loss: - 3.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28 update: The oversold bounce in ETN continues. Shares added +2.5% and closed above resistance at $49.00. Shares are nearing additional resistance at the simple 200-dma and the $50.00 level. The 50-dma has declined to $50.37 so I am lowering our stop loss to $50.50. Readers may want to wait for ETN to produce a reversal before launching new 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

06/28 new stop loss @ 50.50

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: 13.33 change: -0.13

Stop Loss: 13.85
Target(s): final target @ 12.55
Current Gain/Loss: + 7.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/28 update: Ford failed to participate in the market's rally on Tuesday. Instead shares retreated with a -0.9% decline. While this is good news for the bears I would not launch new positions here. More conservative traders may want to lower their stop.

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: 58.38 change: +1.59

Stop Loss: 59.05
Target(s): 54.00
Current Gain/Loss: - 1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/28 update: Warning! HON has broken out above key resistance at $58.00 and its 100-dma. More conservative traders may want to abandon ship and exit early right now. I am not suggesting new positions at this time. If there is any follow through tomorrow HON could hit our stop loss at $59.05.

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: 43.60 change: +0.07

Stop Loss: 45.25
Target(s): 40.25, 37.50
Current Gain/Loss: - 0.9%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
06/28 update: IR managed a minor gain but shares really failed to participate in the market's rally. Instead IR spent the day churning near the $43.60 level. I am still tempted to launch bearish positions here but given the stock market's current rally I would hesitate.

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: 50.72 change: +0.50

Stop Loss: 51.75
Target(s): 47.50, 45.25
Current Gain/Loss: - 1.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/28 update: Friday's plunge to a new relative low in KSS is starting to feel like a bear trap. Shares bounced for the second day in a row but the rally today lagged behind the S&P 500 and the RLX retail index. KSS should have short-term resistance near $51.70. We have a stop at $51.75. 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: 35.57 change: +1.49

Stop Loss: 36.05
Target(s): 33.65, and 30.50
Current Gain/Loss: - 0.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/28 update: MAR rallied +4.3%. Surprised? I hope not. I've been warning readers to expect a bounce and I suggested we watch the $35.00 level or the 50-dma. MAR surged to the 50-dma and paused. We have a stop loss at $36.05. 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: 15.98 change: +0.17

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

Comments:
06/28 update: We are still sitting on the sidelines with SCHW. The plan is to launch 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: 46.86 change: +0.72

Stop Loss: 50.05
Target(s): 47.00, 45.25
Current Gain/Loss: + 8.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/28 update: STJ is still trying to bounce from support near $46 and its exponential 200-dma. We can expect shares to try and fill the gap. That means a bounce back toward the $48.65 area. I am thinking about lowering our stop down to $49.05 soon. 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: 10.09 change: +0.22

Stop Loss: 10.40
Target(s): 9.25, 9.00
Current Gain/Loss: - 1.6%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
06/28 update: Uh-oh! XRX has rallied back above the $10.00 level and back above its 50-dma. The only consolation for the bears is that volume was very light. We are still in danger that XRX might try and breakout from its multi-month bearish trend. Currently we have a stop loss at $10.40, just above technical resistance at the 100-dma. More conservative traders may want to limit their risk and use a tighter stop loss instead. I am not suggesting new positions at this time. Our plan was to keep positions sizes small to limit our risk. We do not want to hold over the late July earnings report.

- small positions -

Current Position: short XRX stock @ 9.93

- or -

Long Aug $9.00 PUT (XRX1120T9) Entry @ $0.20

Entry on June 27 at $ 9.93
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 11.7 million
Listed on June 25, 2011