Editor's Note:
The stock market's three-day bounce is nearing resistance. Can it keep climbing?

I have removed ATI as a trading candidate. The play never opened.

-James

Current Portfolio:


BULLISH Play Updates

Cheesecake Factory Inc. - CAKE - close: 31.45 change: -0.35

Stop Loss: 28.95
Target(s): 33.95, 37.00
Current Gain/Loss: - 0.2%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
06/29 update: Uh-oh! Our CAKE play has turned negative again. Shares reversed course at resistance near $32.00. I would expect a dip back into the $31.00-30.50 zone. 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: 55.32 change: +0.26

Stop Loss: 52.45
Target(s): 57.00, 59.90
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29 update: ECL continues to inch higher and the stock is testing its all-time highs set two weeks ago. The larger trend is up but I would not open 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


Interpublic Group - IPG - close: 12.18 change: +0.10

Stop Loss: 11.25
Target(s): 13.20
Current Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/29 update: Hmmm... the action in IPG today was not very encouraging. The stock gapped open higher at $12.17, saw a brief rally to $12.32, and then closed where it opened. If anything this could be viewed as a short-term top sort of formation. I would wait for another dip toward $12.00 or worse case a dip toward $11.80 before considering new bullish positions.

Our plan was to keep our position size small. Our first target is $13.20 near the 2011 highs. FYI: We do not want to hold over the late July earnings report.

- small positions -

Current Position: Long IPG stock @ $12.17

- or -

Long Aug $12.00 call (IPG1120H12) Entry @ $0.85

Entry on June 29 at $12.17
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 7.5 million
Listed on June 28, 2011


Macy's Inc. - M - close: 28.76 change: +0.03

Stop Loss: 27.45
Target(s): 29.90, 32.25
Current Gain/Loss: + 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29 update: Macy's is still slowly drifting higher. It just didn't make much progress today. Readers may want to wait for another dip near $28.00 before launching new positions. 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: 18.81 change: -0.59

Stop Loss: 16.49
Target(s): 19.25, 22.00
Current Gain/Loss: +11.8%
Time Frame: 6 to 8 weeks or more
New Positions: see below

Comments:
06/29 update: Not surprisingly NANO hit some profit taking albeit on lighter volume. 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

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

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: 51.54 change: -0.23

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 0.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29 update: Healthcare stocks lagged the market today and UNH actually saw a little profit taking. I would still consider new positions here but more conservative traders may want to wait for a dip near $50.00 instead.

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: 50.69 change: +0.96

Stop Loss: 52.05
Target(s): 47.00
Current Gain/Loss: + 1.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29 update: Caution! AON has broken through resistance at $50.00 and is headed for the next level of resistance at $51.00. More conservative traders may want to exit early or lower their stops. Currently our stop is at $52.05. 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


Eaton Corp. - ETN - close: 50.15 change: +0.68

Stop Loss: 50.50
Target(s): 42.50
Current Gain/Loss: - 5.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/29 update: The stock market's widespread bounce continues to fuel gains for ETN. The stock managed to breakthrough significant resistance near $50.00 and its 200-dma. More conservative traders will want to seriously consider an early exit right here. We have a stop loss at $50.50 and ETN rallied right to its 50-dma and stalled near $50.38. I am not suggesting new positions at this time.

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: 13.42 change: +0.09

Stop Loss: 13.85
Target(s): final target @ 12.55
Current Gain/Loss: + 6.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29 update: Ford is still churning sideways under resistance near $13.50. There is no change from my prior comments. 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: 58.62 change: +0.24

Stop Loss: 59.05
Target(s): 54.00
Current Gain/Loss: - 1.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29 update: HON rallied right to resistance at its simple 50-dma and stalled. The high today was $58.91. We have a stop at $59.05. If stocks rally again tomorrow HON will probably hit our stop loss.

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: 43.92 change: +0.32

Stop Loss: 45.25
Target(s): 40.25, 37.50
Current Gain/Loss: - 1.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
06/29 update: It was a generally quiet day for IR with the stock churning sideways near $44.00. Shares still managed a +0.7% gain. I'm not suggesting new positions at this time.

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: 50.43 change: -0.29

Stop Loss: 51.75
Target(s): 47.50, 45.25
Current Gain/Loss: - 1.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29 update: KSS rallied to resistance near $51.50 and reversed. This is great news for the bears but given the market's short-term bounce I would not launch new positions yet.

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: 35.21 change: -0.36

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:
06/29 update: MAR saw its bounce continue this morning but the rally ran out of steam at resistance near $36.00 and eventually the stock reversed. 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: 16.37 change: +0.39

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

Comments:
06/29 update: Financial stocks were some of the market's best performers today and SCHW added +2.4%. The stock is nearing resistance at its prior trading range near $16.50.

We are still waiting for a breakdown with a trigger to open bearish positions at $15.60. 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: 47.61 change: +0.75

Stop Loss: 50.05
Target(s): 47.00, 45.25
Current Gain/Loss: + 6.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29 update: STJ has bounced back above short-term resistance at $47.50 and will likely make a run at filling the gap, which means rising toward the $48.70 area. 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: 10.25 change: +0.16

Stop Loss: 10.40
Target(s): 9.25, 9.00
Current Gain/Loss: - 3.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
06/29 update: This is it for XRX. The stock's rebound has pushed shares toward major resistance at the seven-month trendline of lower highs. The stock should fail right here. I'd probably wait for a new decline under $10.10 or $10.00 before initiating new positions.

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


CLOSED BEARISH PLAYS

Allegheny Technologies - ATI - close: 64.29 change: +2.66

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:
06/29 update: After three weeks of churning sideways ATI is finally making a move. Shares rallied toward resistance near $65 and its 50 and 100-dma. This stock never hit our trigger to open positions at $57.40 and I'm removing it from the play list.

Our Trade Never opened.

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.

chart:

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