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Play Editor's Note: There has been a lot of talk of a potential bottom. Volume is surging on the declines. Volatility is spiking. New lows are hitting extreme levels. Yet this doesn't appear to be a true capitulation. A lot of people want to call a bottom and that is actually bearish. We don't want to add new bearish plays when the market is so oversold and due for a bounce. Of course the other side of that coin is the old market maxim, "the trend is your friend". There is going to be a lot of investors looking for the bounce as a new entry point for shorts. Don't expect any market rebound to last longer than a week (if we're lucky it lasts that long). One signal to watch for that might change my tune would be a spike in the Volatility index to the 34-35-36 region.

New Long Plays

Broadcom - BRCM - close: 28.94 change: +1.17 stop: 27.49

Company Description:
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. (source: company press release or website)

Why We Like It:
BRCM has been showing some relative strength. While the rest of the market has been sinking shares of BRCM continue to consolidate sideways and even tick higher. The stock looks poised to breakout over resistance at the $30.00 mark. After a three-month consolidation the breakout could be powerful. We're suggesting readers buy BRCM at $30.05. If triggered our short-term target is $34.75. This is going to be a short-term trade since BRCM is due to report earnings on July 22nd after the closing bell. We do not want to hold over the announcement so that gives us five trading days to be triggered and see the stock rally. The P&F chart is negative but a move over $30.00 would reverse that into a new triple-top breakout buy signal.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/22/08 (confirmed)
Average Daily Volume: 13.8 million

New Short Plays

None today.

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