Editor's Note:

Warning! We want to take profits now and exit early in some of our candidates tonight.

The major U.S. indices and several high-profile names have all produced a bearish reversal on Thursday. Stocks initially rallied this morning on a potential solution to Greece's debt problems. Unfortunately negative comments from EU Central Bank President Jean-Claude Trichet sent the market lower. Germany and France had come to an agreement that any aid to Greece would be led by the IMF and Trichet believes that is a bad idea. Technically the action in the markets today is very bearish but it needs to see follow through. Unfortunately once momentum reverses the sell-off could be very sharp following such a big upward rally in the markets.

Current Portfolio:


BULLISH Play Updates

Broadcom Corp. - BRCM - close: 33.55 change: +0.02 stop: 31.75 *new*

The market reversed lower mid afternoon and BRCM failed near $34.25, which has been resistance the past few days. More conservative traders may want to consider an early exit given the market's weakness. I am still looking for support near $32.00. We will raise our stop loss to $31.75. 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: 34.84 change: -0.09 stop: 33.90

Hmm.... today marks the second day in a row that CHKP has broken out above the $35.00 level and yet it has not been able to hit our trigger at $35.25. The lack of strength makes me cautious. I am raising our trigger to $35.35. If triggered we will use a stop loss at $33.90. Our target is $37.95.

Trigger to open bullish positions at $35.35

Suggested Position: BUY CHKP stock at $35.35 (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: 48.04 change: -0.49 stop: 46.25

The early morning rally failed near the $49.00 level. By the closing bell today's session looked like another bearish reversal. More conservative traders may want to take profits early right now. 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: 18.73 change: -0.09 stop: 18.45

Today was our lucky day! EMC broke above resistance at $19.00 and shares hit $19.04 before fading lower. Our trigger to open positions remains at $19.05 so we're still on the sidelines. We're lucky because the stock has formed a bearish reversal with today's action. If we see EMC lose under $18.50 we'll drop it as a bullish candidate. I am raising our trigger to open positions to $19.11 and I'm raising our stop to $18.45.

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 $19.11

Suggested Position: BUY EMC stock at $19.11 (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: 49.29 change: +0.08 stop: 44.70

FO is still consolidating 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


Linear Tech. - LLTC - close: 27.91 change: -0.33 stop: 27.45

Semiconductor stocks saw a second day of profit taking. LLTC has broken down under the $28.00 level, which should have been stronger support. More conservative traders will want to seriously consider an early exit immediately. I am not suggesting new bullish positions at this time. 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: 11.22 change: -0.27 stop: 10.60 *new*

The correction in shares of PMTI continue. I warned readers yesterday that Wednesday action looked like a short-term top and we should expect PMTI to correct lower. I am moving our stop loss to $10.60. 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


Shaw Group - SHAW - close: 35.72 change: -0.17 stop: 33.90

We were expecting a bullish breakout in SHAW and the stock delivered one this morning. Unfortunately shares also reversed lower this afternoon. The move now looks like a bull-trap pattern and we just got trapped. The plan was to open bullish positions at $36.25 so the play is open. We put our stop under $34.00 near the bottom of the trading range. More conservative traders may want to use a tighter stop loss. I am not suggesting new positions at this time. Look for a dip back toward $35.00.

Our target to exit is $39.90. FYI: The point & figure chart is bullish with a $49 target. Please note that we will plan to exit ahead of the April 7th earnings report so we only have a couple of weeks.

We have been triggered at $36.25

Current Position: SHAW stock @ 36.25

chart:

Entry on March 25 at $36.26
Earnings Date 04/07/10 (unconfirmed)
Average Daily Volume: 669 thousand
Listed on March 24th, 2010


BEARISH Play Updates

Bally Technologies - BYI - close: 38.66 change: +0.04 stop: 40.05

Shorts were getting squeezed this morning and BYI spiked to $39.95. Shares just didn't have enough fuel to get past resistance near $40.00. The failed rally at $40.00 is very encouraging but I would want to see some follow through before initiating new bearish positions.

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: 19.64 chg: +0.14 stop: 21.26

The oversold bounce in CXW continues. Shares gained 0.7% on the session. 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


CLOSED BULLISH PLAYS

Inland Real Estate Corp. - IRC - close: 10.02 change: +0.18 stop: 8.99

Target achieved! I am adjusting our exit strategy. We had a target to take profits on IRC at $9.99 and a second, final target at $10.95. Shares surged to an intraday high of $10.29 before paring its gains. Our first target has been hit. I'm suggesting we exit completely because the stock is overbought and today's reversal off its highs looks like a short-term top.

I'd much rather exit now and look for a new entry point on a correction.

Exit early.

1st target hit at $9.99 on 03/25/10.

Closed Position: IRC stock @ $10.02
Entry was $9.25

chart:

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


Veeco Instruments - VECO - close: 43.72 change: +0.22 stop: 37.95

Target achieved. We are also adjusting our exit strategy on VECO and we're abandoning the second, higher, more aggressive target. Shares hit our first target at $44.00 this morning as shares rallied toward the $45 level. VECO reversed at $45.00 with a perfect failed rally at resistance. I am suggesting we exit completely. I'd much rather take the money off the table and look for a new entry point down the road. Our second suggested target was $47.40.

Exit early.

1st target hit @ 44.00 on 03/25/10.

Closed Position: VECO stock @ $43.72
Entry was $39.99

chart:

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: 31.06 change: +0.20 stop: 29.45

Target achieved. WFC hit our first target at $31.35 today. Shares actually spiked to $31.99 before paring its gains. I am suggesting we exit completely and give up on the second ,higher target at $32.40. The move today looks like a bearish reversal and short-term top.

Exit early.

1st target hit @ 31.35 on 03/25/10.

Closed Position: WFC stock @ 31.06
Entry was @ $29.53

chart:

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