Editor's Note:

Technology stocks, especially the semiconductor sector, finally saw some profit taking today. In the scope of the market's recent rally the dip today was very minor and stocks remain overbought. We have five days left before the first quarter ends.

Current Portfolio:


BULLISH Play Updates

Broadcom Corp. - BRCM - close: 33.53 change: -0.67 stop: 31.40

Ouch! Profit taking in the semiconductor sector shaved off 1.9% from the SOX. Shares of BRCM followed suit with a similar decline. If BRCM continues to dip I would look for support in the $32.50-32.00 zone. I am not suggesting new bullish positions at current 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


Check Point Software - CHKP - close: 34.93 change: +0.08 stop: 29.95

CHKP displayed some strength today with a new 52-week high. The stock managed to briefly trade over resistance near $35.00 and hit $35.12 intraday. Volume was above average on the session. I don't see any changes from my prior comments.

I am suggesting a trigger to buy CHKP at $35.25. If triggered our target is $37.90. We'll use a stop loss at $33.90.

Trigger to open bullish positions at $35.25

Suggested Position: BUY CHKP stock at $35.25 (unopened)

Option Traders:
Suggested Position: BUY APRIL $35 call (CHKP 10D35.00) current ask $0.65

Entry on March xx at $xx.xx
Earnings Date 04/27/10 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on March 23rd, 2010


CITRIX Systems - CTXS - close: 48.53 change: +0.53 stop: 46.25

Today was a good day for CTXS. Shares were showing relative strength with a 1.1% rally and the stock looks poised to breakout from this sideways consolidation we've seen over the last few sessions. 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


EMC Corp. - EMC - close: 18.82 change: -0.12 stop: 18.35

EMC failed at the $19.00 level again this morning. I'm surprised the stock did not show more strength, especially after shares were upgraded this morning. A Wall Street firm gave EMC a $23 price target. There is no change from my prior comments.

I'm suggesting a trigger to buy the stock at $19.05. If triggered our first target is $20.00, since this level has been resistance in the past. Our second target is $21.00 but that could take a few weeks to achieve.

Trigger to buy the stock at $19.05

Suggested Position: BUY EMC stock at $19.05 (unopened)

Entry on March xx at $xx.xx
Earnings Date 04/21/10 (unconfirmed)
Average Daily Volume: 20.4 million
Listed on March 23rd, 2010


Fortune Brands Inc. - FO - close: 49.21 change: -0.59 stop: 44.70

FO continues to drift sideways under resistance at the $50.00 level. There is no change from my previous comments. I do not want to chase it with a 20% bounce from its February lows.

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: 9.84 change: +0.13 stop: 8.99 *new*

The rally continues for IRC. Shares posted another rise with a 1.3% gain and another new multi-month high. Our first target to take profits is at $9.99. I full expect that shares will see a correction once they tag the $10.00 mark, which will probably be round-number resistance. More conservative traders may want to exit completely and just re-enter once the correction is over. We have a second, more aggressive target at $10.95. Please note I am raising our stop loss to $8.99. I am not suggesting new bullish positions at current levels.

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: 28.24 change: -0.74 stop: 27.45

Profit taking in the semiconductor sector pushed LLTC to a 2.5% decline. Shares are nearing what should be support near $28.00. Nimble traders could buy a bounce near the $28 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: 11.49 change: -0.17 stop: 10.40

Uh-oh! The action in PMTI today looks like a failed rally and short-term top. The stock spiked to $11.83 before reversing. I would expect a dip back toward $11.00, possibly lower. More conservative traders may want to exit immediately.

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 pullback 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: 43.50 change: +0.14 stop: 37.95

Lack of profit taking in VECO after yesterday's big gain is a show of strength. The stock consolidated sideways the entire session and drifted higher into the close. Our first target to take profits is at $44.00. Our second target is $47.40. I am not suggesting new positions at this time.

Current 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: 30.86 change: -0.22 stop: 29.45 *new*

WFC almost hit our first target this morning with the spike to $31.28. The intraday reversal lower could be the sign of a short-term top. I am not suggesting new positions at this time and we are raising the stop loss to $29.45. 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: 38.62 change: +0.06 stop: 40.05

Gambling and casino stocks continue to show relative strength but the sector pared its gains intraday, forming what might be a short-term top. Shares of BYI also trimmed its early morning gains. BYI is trading under technical resistance at its simple 200-dma. I remain cautious given the sector strength so 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: 19.50 chg: +0.10 stop: 21.26

CXW produced a minor oversold bounce but in reality spent the session drifting sideways in a very narrow range. 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