Editor's Note:

Bulls appear to be firmly in control. We can refocus on bullish candidates but I would keep positions on the small side to limit your risk.

Current Portfolio:


BULLISH Play Updates

AU Optronics - AUO - close: 11.97 change: +0.32 stop: 10.90

The rally continues for shares of AUO. The stock actually gapped open higher at $11.77 and surged toward recent resistance near $12.00. Don't be surprised if the stock corrects first before moving higher. I would use any dip in the $11.70-11.50 zone as a new entry point. More conservative traders may want to wait for AUO to clear possible resistance at the $12.00 level first. Our target is the January highs in the $13.20-13.30 zone. FYI: The Point & Figure chart is very bullish and forecasts a $21 long-term target. I suggested we keep our position size small.

Current Position: AUO stock @ 11.77

Entry on April 05 at $11.77
Earnings Date 04/22/10 (unconfirmed)
Average Daily Volume: 2.5 million
Listed on April 3rd, 2010


Broadcom Corp. - BRCM - close: 34.63 change: +1.48 stop: 31.75

Semiconductor stocks were some of the best performers today. The SOX index rallied almost 3% and closed at new 52-week highs. Shares of BRCM managed to keep pace and closed higher with a 3% gain and a breakout past resistance. Odds look good that BRCM will hit our first target tomorrow. Nimble traders could use this move as a new entry point but consider a stop loss just under last week's low. 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


BorgWarner Inc. - BWA - close: 38.37 change: -0.85 stop: 36.90

I was surprised to see the relative weakness in shares of BWA on Monday. The stock saw a brief spike higher and quickly reversed on no news. Nimble traders may want to consider trying to buy a dip or a bounce near the 50-dma. I am suggesting readers stick with our original plan and wait for a breakout over $40.00.

We'll use a trigger to open bullish positions at $40.25. If triggered our target is $44.75. BWA doesn't move super fast so this could take a few weeks for the stock to get there. Our initial entry point and stop loss set up is somewhat aggressive. More conservative traders may want to use a tighter stop. My biggest concern is that BWA might see an intraday spike over $40.00 and then reverse on us. Overall the stock looks bullish after months of consolidating sideways. The Point & Figure chart looks very bullish and is forecasting a long-term $55 target.

Trigger to open bullish positions $40.25

Suggested Position: BWA stock @ 40.25 (unopened)

Option Traders:
Suggested Position: Buy CALL May $40.00 (BWA 10E40.00) current ask $1.15

Entry on April xx at $xx.xx
Earnings Date 04/29/10 (unconfirmed)
Average Daily Volume: 1.8 million
Listed on April 3rd, 2010


Linear Tech. - LLTC - close: 28.99 change: +0.58 stop: 27.70

Semiconductor stocks were showing relative strength on Monday. LLTC managed a 2% rally but shares stalled near $29.00 resistance. The trend of higher lows is still bullish and a close over $29.15 would confirm that the up trend is still alive. 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: 11.04 change: +0.16 stop: 10.60

PMTI outperformed the broader market with a 1.4% gain. The close over the $11.00 mark is also a bullish development. Aggressive traders may want to consider new positions here but if you do I would use a very tight stop loss.

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


BEARISH Play Updates

Corrections Corp. of America - CXW - close: 19.82 chg: +0.02 stop: 21.05

Once again CXW tried to rally and once again the stock failed at resistance near $20.00 and its 50-dma. This could be used as a new bearish entry point. However, more conservative traders may want to use a tighter stop loss. 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


MAXIMUS Inc. - MMS - close: 61.11 change: +0.23 stop: 62.11

Originally our plan was to open bearish positions on a breakdown with a trigger at $59.80. However, with the market's break higher today we are faced with the possibility that MMS will breakout higher from this four-week consolidation. If that happens we need to be flexible. I am adding a trigger to buy the stock at $62.25. If triggered at $62.25 we'll use a stop loss at $59.80. Our bullish target will be $67.00.

If triggered at $59.80 our target is $55.25. I do need to label this trade somewhat aggressive since we normally do not trade stocks with average volume under 250K a day.

TWO TRIGGERS, One Bearish, One Bullish

Trigger for bearish positions at $59.80

Suggested Position: (SHORT) MMS stock at $59.80 (unopened)

Trigger for bullish positions @ 62.25

Suggested Position: BUY MMS stock at $62.25 (unopened)

Entry on April xx at $59.80 (unopened)
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 83 thousand
Listed on March 31st, 2010


Warner Chilcott - WCRX - close: 26.08 change: +0.48 stop: 26.26

WCRX was not immune to the market's widespread gains on Monday. The stock added 1.8% but failed to breakout past its 50-dma. If we do see WCRX close above the $26.50 level we'll drop it as a bearish candidate.

I don't see any further changes from my prior comments. 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


CLOSED BULLISH PLAYS

UltraShort Russell2000 ETF - TWM - close: 19.43 change: -0.39 stop: 19.65

I am giving up on the TWM as a bullish candidate. The market's widespread strength and surge to new 52-week highs is evidence the bulls are still in control. This ETF never hit our trigger to open bullish positions so I'm dropping it as a trading candidate.

Trade Never Opened

Trigger to buy the TWM at $20.85

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

chart:

Entry on March xx at $xx.xx *never opened*
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume: 4.5 million
Listed on March 27th, 2010


CLOSED BEARISH PLAYS

EastGroup Properties - EGP - close: 38.56 change: +0.86 stop: 39.55

The market's widespread rally spooked bearish investors on Monday and the REIT stocks saw a short squeeze. Shares of EGP gained 2.2%. While the larger picture for EGP still looks bearish I am suggesting we exit positions early right now to cut our losses. We can reconsider new positions if the rally fails under $40.00.

Exit Early

Closed Position:(SHORT) EGP stock at $38.56
Entry was at $37.83

chart:

Entry on April 01 at $37.83
Earnings Date 04/28/10 (unconfirmed)
Average Daily Volume: 137 thousand
Listed on March 31st, 2010


MACERICH Co. - MAC - close: 40.43 change: +1.66 stop: 41.51

MAC also saw a sharp rally most likely fueled by short covering. The breakout back above the $40.00 level is short-term bullish. I am suggesting we exit bearish positions early. The plan was to keep positions small.

Exit early

Closed Position: SHORT MAC stock at $40.43
Entry was at $38.80

chart:

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