Current Portfolio:


BULLISH Play Updates

AU Optronics - AUO - close: 11.57 change: -0.09 stop: 10.90

Shares of AUO continued to correct after touching resistance at $12.00 on Monday. We have been suggesting readers use a pull back toward the $11.50 region as a new bullish entry point but you could wait for a bounce first. Cautious traders could just wait for AUO to clear resistance at the $12.00 mark before initiating positions. 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: 34.13 change: -0.27 stop: 31.75

The SOX semiconductor index displayed relative strength with a 0.3% gain but that didn't stop shares of BRCM from seeing a little profit taking. On a positive note traders did buy the dip twice near the $33.75 level intraday. The stock looks poised to rally higher as long as the broader market doesn't collapse on us. More aggressive traders could use the intraday bounce as a bullish entry point but if you do I would consider a tighter stop loss. 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: 37.47 change: -0.58 stop: 36.90

We remain cautious on BWA as a bullish candidate. Originally our plan was to open bullish positions on a breakout over the $40.00 level. Upon further review we might want to consider buying the stock on a bounce from the $37.00 level and its rising 50-dma. I'm a little concerned that the consolidation over the last three months might be considered a bear-wedge pattern. On a short-term basis Monday's session was a bearish reversal and now we have two days of follow through lower. For the moment we are still on the sidelines and will wait for a breakout over $40.00 but more nimble traders may want to keep a close eye on the $37.00 level.

Officially our trigger to open positions is 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. 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


Cash America - CSH - close: 40.23 change: -1.02 stop: 38.99

CSH experienced some profit taking today which sent the stock lower -2.47%. I have concern with the stock's daily chart but it still has trend line support and its 20-day SMA average in the $40.00 area. We are looking for the stock to bounce from here. Today's sell-off could have shaken out the weak hands before it continues higher. Conservative traders should consider tightening up stops or selling into strength if the stock rallies. Aggressive traders can consider opening positions at current levels. Our first target is $44.90.

Current Position: CSH stock at $41.05

Entry on April 06 at $41.05
Earnings Date 04/22/10 (unconfirmed)
Average Daily Volume: 263 thousand
Listed on April 5th, 2010


Linear Tech. - LLTC - close: 29.03 change: +0.25 stop: 27.70

Strength in semiconductors was certainly evident in shares of LLTC today. Traders bought the dip near $28.50 and the stock was rebounding higher into the closing bell. LLTC looks poised to breakout past short-term resistance near the $29.00 level. If it does we expect the stock to challenge its 2010 highs. If you own April options don't forget that they expire in less than two weeks. 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


Patterson Companies - PDCO - close: 30.82 change: -0.24 stop: 29.95

Wednesday proved to be a quiet session for PDCO. The stock's consolidation has narrowed, which might be considered indecision on the part of investors. We are waiting for a breakout to new relative highs. Currently PDCO has resistance near $31.30. I am suggesting we open bullish positions at $31.50. If triggered we'll use a stop at $29.95. Our multi-week target is the $34.50 level.

Trigger to open bullish positions at $31.50

Suggested Position: PDCO stock at $31.50(unopened)

Entry on April xx at $xx.xx
Earnings Date 05/17/10 (unconfirmed)
Average Daily Volume: 975 thousand
Listed on April 6th, 2010


Palomar Medical Tech. - PMTI - close: 11.33 change: -0.24 stop: 10.80*new*

I have yet to find any news behind Tuesday's spike over the $12.50 level. Shares displayed some relative weakness this morning but traders bought the dip at the $11.00 mark. PMTI eventually lost 2% on the session. The trend of higher lows is still in place. The simple 20-dma has risen to $10.89. I am raising our stop loss to $10.80. I would hesitate to launch new bullish positions at this time. Please note our new target below.

PMTI has already hit our first target at $11.45. We're adjusting our second and final target down from $12.75 to $12.40.

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: 19.55 chg: -0.12 stop: 20.55*new*

The roll over in shares of CXW continues. The oversold bounce's failed rally at round-number resistance near $20.00 and its 50-dma looks like a new bearish entry point. We are adjusting our stop loss down to $20.55. 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: 61.55 change: +0.37 stop: 62.11

MMS remains stuck inside its $60.00-62.00 trading range. However, if you look more closely shares appear to be coiling more tightly and inching toward a breakout higher. I do not see any changes from our prior comments. We have two different triggers - one for a bullish trade and one for a bearish trade.

If MMS hits our bearish trigger for shorts at $59.80 our target is $55.25.

If MMS hits our bullish trigger at $62.25 our target is $67.00. 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: 25.78 change: -0.54 stop: 26.26

The bounce in WCRX has failed and the stock appears to have formed a new lower high with today's 2% decline. I do not see any changes from our prior comments. We're still waiting for a breakdown under support at $25.00.

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