Editor's Note:

As the major indices continue to creep higher I continue to see plenty of bullish candidates. Yet I hesitate to load up the newsletter with a bunch of new plays with the major looking overbought and due for a pull back. We are adding a couple of new candidates tonight but readers should be cautious.

I'm providing a small list of additional stocks that caught my eye.

Check them out:

CHKP, if this stock can clear its recent highs this could be a buy.

LLTC looks poised to breakout over resistance near $28 and its 50-dma.

SBUX is showing strength and just closed above previous resistance near $24.00.

EMC is breaking out to new multi-year highs. I would prefer to buy a dip near $18.25.


NEW BULLISH Plays

Broadcom Corp. - BRCM - close: 32.83 change: +1.20 stop: 30.70

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. We provide 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:
Semiconductor stocks just broke out over short-term resistance and BRCM helped lead the way with a 3.7% gain and a rally to new multi-year highs. The stock has been consolidating sideways under $32.00 and its 2010 highs the last there weeks this new rally should see some follow through. I am suggesting readers buy the stock now. We'll use a stop loss at $30.70. Our first target is $34.95. I'm setting a second, more aggressive target at $37.40. Our time frame on the second target is several weeks.

Suggested Position: BRCM stock @ 32.83(?)

Annotated chart:

Entry on March xx at $xx.xx
Earnings Date 04/21/10 (unconfirmed)
Average Daily Volume: 8.0 million
Listed on March 10th, 2010


Wells Fargo - WFC - close: 29.57 change: +0.59 stop: 27.90

Company Description:
Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally. (source: company press release or website)

Why We Like It:
I have been watching the banking indices for a while. The financial sector has been trading sideways for months. However, in just the last couple of weeks the bounce has turned into a real rally. Now the BKX and BIX are breaking out past resistance. After months of digesting their 2009 rally this group could be set to lead the markets higher. Investors may want to consider a banking ETF or sector index instead of taking on individual stock risk but I'm suggesting we buy WFC. WFC is one of the big cap names investors will flock to. Technically shares of WFC appear to have formed an inverse (bullish version) head and shoulders pattern. I'm suggesting positions now at current levels. We'll use a stop at $27.90. Our first target is $31.35. The inverse H&S pattern would suggest at $34 target.

Suggested Position: WFC stock @ 29.57(?)

Annotated chart:

Entry on March xx at $xx.xx
Earnings Date 04/22/10 (unconfirmed)
Average Daily Volume: 38.1 million
Listed on March 10th, 2010