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New Long Plays

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New Short Plays

Broadcom - BRCM - close: 27.75 change: -1.38 stop: 30.25

Company Description:
Broadcom Corporation is a global leader in semiconductors for wired and wireless communications. Our products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. Broadcom provides the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. (source: company press release or website)

Why We Like It:
The semiconductor sector has continued to sink and last week's downgrade for semi-giant Intel didn't help matters. The oversold bounce in BRCM has failed with shares rolling over under the top of its descending, bearish channel. Friday's 4.7% decline was a breakdown under minor support near $29.00. Volume came in way above average on the sell-off, which is also bearish. Plus, the MACD on the daily chart is nearing a new sell signal. We are suggesting shorts in BRCM with the stock under $29.00. We are using a wide, aggressive stop above $30.00 for now. In reality, broken support near $29.00 should be new resistance. We are suggesting two targets - a conservative target at $25.05 and a more aggressive target at $22.75. Please note that BRCM is due to report earnings on Thursday, July 20th and we do not want to hold over the report.

Picked on July 09 at $27.75
Change since picked: + 0.00
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 15.5 million

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IAC/Interactive Corp. - IACI - cls: 25.49 chg: -0.18 stop: 26.55

Company Description:
IAC operates leading and diversified businesses in sectors being transformed by the internet, online and offline...our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. Online properties include Ask.com, Chemistry.com, CitySearch, Domania, Evite.com, GetSmart, Gifts.com, HSN, HSE24, iNest.com, Interval Intl., LendingTree.com, Match.com, PRC, RealEstate.com, Shoebuy.com, Ticketmaster, uDate.com (source: company press release or website)

Why We Like It:
Internet stocks seem to be struggling, unless you're Google. The oversold bounce in IACI has failed and the technicals have turned bearish. The MACD on the daily chart is nearing a new sell signal. Meanwhile the Point & Figure chart is bearish (bull trap pattern) with a $16 target. We are putting our stop loss at $26.55, which is above the 50-dma. We'd consider shorts anywhere under $26.00. Our target is the $24.00-23.75 range. We do not want to hold over the early August earnings report. Readers should note that IACI has relatively high short interest at 4.8% of its 195 million-share float.

Picked on July 09 at $25.49
Change since picked: + 0.00
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume: 2.3 thousand

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Maxim Integrated - MXIM - close: 29.75 chg: -0.50 stop: 31.25

Company Description:
Maxim Integrated Products is a leading international supplier of quality analog and mixed-signal products for applications that require real world signal processing. (source: company press release or website)

Why We Like It:
MXIM is another semiconductor stock that is breaking down on multiple levels. Shares produced a failed rally near its 50-dma and the top of its descending channel a few days ago. Two days ago the daily chart's MACD indicator produced a new sell signal. On Friday the stock broke down under support at the $30.00 mark on above average volume, which is bearish. In addition to general weakness in tech and the semiconductor sector MXIM is one of many companies being investigated for its stock option practices. We are suggesting shorts with MXIM under $30.00. Our target is the $27.00-26.75 range. The Point & Figure chart points to a $17 target. We do not want to hold over the early August earnings report. FYI: more aggressive traders may want to play with a wider stop (above the 50-dma) and aim for the $25.00 region.

Picked on July 09 at $29.75
Change since picked: + 0.00
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume: 5.5 million
 

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