Editor's Note:

Bears began to scurry for cover when the market failed to retreat on Monday. Our bullish play on PMTI has hit our first target. NUE was stopped out on morning weakness. FSS, a new bearish play, has been closed.

Current Portfolio:


BULLISH Play Updates

Broadcom Corp. - BRCM - close: 34.09 change: +0.42 stop: 31.40

Semiconductor stocks were strong performers today; the SOX index gained 2.4%. Shares of BRCM did not see any follow through on Friday's bearish reversal pattern. Instead the stock rebounded 1.2%. I am not suggesting new bullish positions at these levels. Our first target is $34.95. Our second, more aggressive target is $37.40 with a time frame of several weeks.

Current Position: BRCM stock @ 32.66

Entry on March 11 at $32.66
Earnings Date 04/21/10 (unconfirmed)
Average Daily Volume: 8.0 million
Listed on March 10th, 2010


CITRIX Systems - CTXS - close: 48.19 change: -0.15 stop: 46.25*new*

CTXS's lack of participation in today's rally could be a warning sign. More conservative traders may want to exit early. I am adjusting our stop loss to $46.25. I'd rather get stopped out near breakeven and have the freedom to look for a new entry point later. I am not suggesting new positions at current levels. Our target to exit is $49.65.

Current Position: CTXS stock @ 46.08

Entry on March 10 at $46.08
Earnings Date 04/29/10 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on March 9th, 2010


Fortune Brands Inc. - FO - close: 49.02 change: +0.13 stop: 44.70

We will probably have to exercise some patience with FO. The stock did not see any follow through on Friday's failed rally. Shares remain very overbought so we don't want to chase it. The plan is to buy FO on a dip at $46.00. If triggered our first target is $49.95. Our second target is $53.50 given enough time, which could take a few weeks. FYI: The Point & Figure chart is very bullish with a $60 target.

Use a trigger to buy the dip at $46.00

Suggested Position: FO stock @ 46.00 (unopened)

Entry on March xx at $xx.xx
Earnings Date 04/30/10 (unconfirmed)
Average Daily Volume: 805 thousand
Listed on March 20th, 2010


Inland Real Estate Corp. - IRC - close: 9.67 change: +0.27 stop: 8.49

IRC delivered another strong session with shares up 2.8% and closing at new 52-week highs. Another day like today and IRC could hit our first target. I am not suggesting new bullish positions at current levels.

The first target to take profits is $9.99. Our second target is $10.95. Investors could probably hold on to IRC for months and aim for the $12.50-13.00 zone.

Current Position: IRC stock @ $9.25

Entry on March 17 at $ 9.25
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 417 thousand
Listed on March 13th, 2010


Linear Tech. - LLTC - close: 28.84 change: +0.48 stop: 26.95

Strength in technology, especially the semiconductors, helped fuel a 1.69% gain for LLTC. I would prefer to launch new positions near the $28.00 level. Our first target is $29.95. Our second target is $30.95.

Current Position: LLTC stock @ 28.25

Option Traders:

Current Position: CALL APR 28.00 (LLTC 10D28.00) @ $1.00

Entry on March 16 at $28.25
Earnings Date 04/13/10 (unconfirmed)
Average Daily Volume: 3.9 million
Listed on March 11th, 2010


Palomar Medical Tech. - PMTI - close: 11.58 change: +0.61 stop: 10.40 *new*

Target achieved. The rally in PMTI continues and shares added 5.5% on Monday. Our first target to take profits was at $11.45. Shares hit $11.60 this afternoon. I am raising our stop loss to $10.40. We would not open new positions at current levels. Our longer-term target is $12.75. The next obstacle is potential resistance near $12.00 and the 200-dma.

Current Position: PMTI stock @ 10.55

1st Target Hit (03/22/10) @ 11.45

Annotated chart:

Entry on March 16 at $10.55
Earnings Date 04/29/10 (unconfirmed)
Average Daily Volume: 132 thousand
Listed on March 13th, 2010


Wells Fargo - WFC - close: 30.41 change: +0.03 stop: 28.75

Shares of banking giant WFC are still consolidating sideways but it's taking on a more bullish posture. Financial stocks continue to look bullish but the group, like most of the market, is short-term overbought. Our first target to take profits on WFC is $31.35. Our second target is $32.40.

Current Position: WFC stock @ 29.53

Entry on March 11 at $29.53
Earnings Date 04/22/10 (unconfirmed)
Average Daily Volume: 38.1 million
Listed on March 10th, 2010


BEARISH Play Updates

Bally Technologies - BYI - close: 38.32 change: +0.60 stop: 40.05

The gambling sector was one of the best performers today with a 6.0% rally. That makes me nervous about our bearish trade on BYI. The trend for BYI is still down and shares hit another new relative low this morning but the industry strength fueled a decent rebound inside of BYI today. If the casino stocks continue to rally BYI could try and catch up with its peers. I am not suggesting new positions at this time. If we see BYI close over $39.00 I'll be tempted to exit this trade.

Our first target to take profits is at $35.05 since the $35.00 level has been support in the past. Our second target is $32.00. More aggressive traders could aim for the $30 level.

FYI: This should be considered an aggressive trade. The most recent data available listed short interest at nearly 13% of the 52 million-share float. That is above average and if BYI makes a sudden move higher it raises the risk of a short squeeze.

Current Position: SHORT BYI stock @ 37.63

Entry on March 16 at $37.63
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on March 15th, 2010


Corrections Corp. of America - CXW - close: 19.65 chg: -0.18 stop: 21.26

CXW continues to underperform the market with a 0.9% decline on Monday. Nimble traders may want to consider launching new bearish positions on a bounce or failed rally near $20.50, which should be short-term resistance. Our target is $18.00. The low in February 2010 was $17.50.

Current Position: SHORT CXW stock @ 19.90

Entry on March 19 at $19.90
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on March 17th, 2010


CLOSED BULLISH PLAYS

NUCOR - NUE - close: 44.66 change: +0.27 stop: 43.85

Our NUE has been stopped out. Shares gapped open lower at $43.74, which was under our stop loss of $43.85. NUE did manage a nice bounce off its intraday lows but it looks like upward momentum from the February rally is fading.

Stopped out @ 43.85

Closed Position: NUE stock @ $43.74
Entry was $42.98

Annotated chart:

Entry on February 16 at $42.98 (small positions)/gap higher entry
Earnings Date 04/22/10 (unconfirmed)
Average Daily Volume: 6.1 million
Listed on February 16, 2009


CLOSED BEARISH PLAYS

Federal Signal Corp. - FSS - close: 9.38 change: +0.46 stop: 9.31

The short-squeeze in shares of FSS continued on Monday. There was no follow through on Friday's failed rally pattern. The stock immediately began to climb and broke out past significant resistance near the $9.30 level. Our bearish trade was closed at $9.31. This was an aggressive, higher-risk trade.

Stopped out @ $9.31

Closed Position: (SHORT) FSS stock at $9.31
Entry was at $8.84.

Annotated chart:

Entry on March 22 at $ 8.84 small positions
Earnings Date 04/30/10 (unconfirmed)
Average Daily Volume: 257 thousand
Listed on March 20th, 2010