Editor's Note:

I remain very cautiously bullish. The trend is up but traders need to stay on top of their stop losses. Adding new positions could be difficult with the market so overbought.

Current Portfolio:


BULLISH Play Updates

Broadcom Corp. - BRCM - close: 34.20 change: +0.11 stop: 31.40

BRCM continues to drift higher. The stock appears to be facing short-term resistance at the $34.30 level but it looks like shares should break out soon. The semiconductor stocks were strong performers today with the SOX breaking out past its January highs. 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: 48.00 change: -0.19 stop: 46.25

I remain very cautious on CTXS and today's under performance only reinforces that outlook. Shares were under performing this morning and tried to bounce back but didn't quite make it to positive territory. I am not suggesting new bullish positions at this time. 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: 49.80 change: +0.78 stop: 44.70

The market refuses to correct so we're still sitting on the sidelines with FO. I do not want to chase it with a 20% bounce from its February lows. Currently shares are testing resistance at the $50 level.

Right now 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: 9.71 change: +0.04 stop: 8.49

IRC saw a little bit of volatility this morning but eventually closed higher albeit not by much. The lack of profit taking is a show of strength but shares are very overbought. 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: 28.98 change: +0.14 stop: 27.45 *new*

I'm a little disappointed with LLTC. The consolidation is narrowing and the stock looks poised to rally higher. Yet the SOX broke out to new highs and I would have expected LLTC to breakout to new relative highs. I am raising our stop loss to $27.45. 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: 11.66 change: +0.08 stop: 10.40

PMTI started to see some profit taking this morning but traders bought the dip at $11.35 and shares eventually closed higher. The stock is very overbought. I am not suggesting new positions at this time. PMTI has already hit our first target at $11.45. Our second and final target is $12.75. We expect to see resistance and probably a pull back near $12.00 and its 200-dma.

Current Position: PMTI stock @ 10.55

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

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


Veeco Instruments - VECO - close: 43.36 change: +3.48 stop: 37.95 *new*

VECO looked bullish yesterday but I wasn't expecting an 8.7% rally today. The stock exploded higher on strong volume to close at new multi-year highs. Our first target is $44.00. I'm adding a second target at $47.40. We will adjust our stop loss to $37.95.

Suggested Position: VECO stock @ 39.99

Entry on March 23 at $39.99
Earnings Date 04/27/10 (unconfirmed)
Average Daily Volume: 1.7 million
Listed on March 22nd, 2010


Wells Fargo - WFC - close: 31.08 change: +0.67 stop: 29.24 *new*

Banking stocks were struggling a little to keep pace with the rally today but the trend is still up. WFC out performed its peers with a 2.2% gain. The high today was $31.12. I am adjusting our stop loss to $29.24. 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: 38.56 change: +0.24 stop: 40.05

The rally in gambling stocks seemed to stall after yesterday's huge gains. BYI only rose 0.6% and failed to breakout over its simple 200-dma. I remain nervous given the strength of the sector so I'm not suggesting new bearish positions in BYI 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: 19.40 chg: -0.25 stop: 21.26

The sell-off in CXW continues. Shares lost another 1.2% while the rest of the market rallied higher. I don't see any changes from my prior comments. 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