Editor's Note:

I have adjusted the entry points on both the SMN and TWM plays.

Current Portfolio:


BULLISH Play Updates

Broadcom Corp. - BRCM - close: 33.20 change: -0.02 stop: 31.75

No change yet. BRCM is slowly consolidating lower and we're looking for a dip toward short-term support near $32.00. I am not suggesting new bullish positions at current levels. Wait for a bounce from $32.00 before considering new positions. 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


Linear Tech. - LLTC - close: 28.25 change: -0.35 stop: 27.70

Uh-oh! The action in LLTC looks like another short-term bearish reversal. If the stocks sees any follow through lower we could end up getting stopped out soon. I am not suggesting new bullish positions at this time. Keep an eye on the simple 30-dma for potential support. I'm also watching the SOX to see if it breaks down. 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: 10.87 change: +0.16 stop: 10.60

After five days of profit taking PMTI finally managed a bounce. Shares dipped to $10.65 this morning before bouncing back toward the $11.00 level. The bounce coincided with a test of the rising 20-dma. It also coincided with a test of the 38.2% Fibonacci retracement of the March rally. Aggressive traders may want to consider new positions here but given the status of the wider market I am not suggesting new positions.

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


UltraShort Basic Materials - SMN - close: 7.07 change: -0.00 stop: 6.90

Basic material stocks did not see any follow through on their recent bounce even though the dollar edged lower today. I suspect this sector is about to correct. We are adjusting our strategy for the SMN. We'll move the trigger to buy the SMN to $7.45. We'll adjust the stop loss to $6.90. If triggered our first target is $8.80. Our second, more aggressive target is $9.75. It could take the SMN several weeks to get this high. By its very nature this can be a volatile issue. Keep your position size small.

FYI: Don't forget the SMN is the ultrashort, which will rally higher as the basic material sector retreats.

Trigger to buy the SMN at $7.45

Suggested Position: BUY SMN stock @ 7.45 (unopened)

Entry on March xx at $xx.xx
Earnings Date --/--/--
Average Daily Volume: 3.3 million
Listed on March 27th, 2010


UltraShort Russell2000 ETF - TWM - close: 20.61 change: +0.36 stop: 19.65

If you look at an intraday chart for the small cap index it looks like someone was trying to get out early with a sudden move lower in the last hour of trading. This could be the very beginning of a market correction now that the first quarter is over. You can see the affect this had on the TWM with the spike higher.

I am adjusting our entry point. More aggressive traders may want to jump in right now. I am moving our trigger for bullish positions to $20.85 and we'll adjust the stop to $19.65, which is under the March low. Our first target is $23.95 since the $24.00 level was support in the past it could be resistance now.

Trigger to buy the TWM at $20.85

Suggested Position: BUY TWM stock @ $20.85 (unopened)

Entry on March xx at $xx.xx
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume: 4.5 million
Listed on March 27th, 2010


BEARISH Play Updates

Corrections Corp. of America - CXW - close: 19.86 chg: -0.01 stop: 21.05 *new*

The oversold bounce in CXW appears to be struggling with round-number resistance near $20.00. This could be a new entry point for bearish positions. I am adjusting our stop loss down a little to $21.05. 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


MACERICH Co. - MAC - close: 38.31 change: -0.61 stop: 41.51

Our new bearish play on MAC is off to a good start. Shares opened at $38.80 and slipped 1.5% toward the $38 level. I would still consider new bearish positions at current levels. Our target is the $35.15 level. Keep in mind the 50-dma nearing $35.00 could offer some technical support. I do consider this somewhat aggressive. The most recent data listed short interest at 10% of the float, which is above average and raises our risk of a short squeeze. Plus, the Point & Figure chart is still bullish. I would keep positions small.

Current Position: SHORT MAC stock at $38.80

Entry on March 31 at $38.80
Earnings Date 05/04/10 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on March 30th, 2010


Warner Chilcott - WCRX - close: 25.52 change: +0.09 stop: 26.26

WCRX managed another bounce from support near $25.00 but the path of least resistance appears to be down. I am suggesting we use a trigger to open bearish positions at $24.80. If triggered our first target is $22.60. The 200-dma is nearing the $22.50 region and could offer technical support. Our second, more aggressive target is the $20.25 mark.

Trigger to open bearish positions @ 24.80

Suggested Position: SHORT WCRX stock at $24.80 (unopened)

Option Traders:
BUY the April $25.00 PUT (WCRX 10P25.00) current ask $0.50

Entry on March xx at $xx.xx
Earnings Date 05/11/10 (unconfirmed)
Average Daily Volume: 1.5 million
Listed on March 29th, 2010