Editor's Note:

We sold LLTC today on the late afternoon strength and are recommending readers get defensive this week. We have moved up some of our stops and lowered targets on a few of our plays.

Current Portfolio:


BULLISH Play Updates

AU Optronics - AUO - close: 11.58 change: +0.11 stop: 10.90

AUO continued its bounce today closing higher by almost +1.00%. AUO looks poised to rally from here but needs to get moving soon or we will be looking to exit this trade. We need AUO to break above $12.00 for this trade to work and hit our target $13.25. If it breaks below $11.00 we will honor our stop at $10.90 and step aside to preserve capital. Aggressive traders could still consider entering the trade as I believe there is a lot of support with the SMA's just below AUO. However, if the market sells off AUO probably won't be spared. Our time frame is one to two weeks. Note: I consider this an aggressive trade and recommend small position size to limit risk.

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: 34.06 change: -0.22 stop: 33.25

The SOX semiconductor index is at a new 52-week high. BRCM is not. The stock the SOX index are both holding their upward trend lines and both are above their respective 20-day SMA's. BRCM also bounced off its 20-day SMA. In addition, BRCM and the SOX are at the bottom end of their upward channel which continues to remain intact. However, at some point the stock will have to break-out of this channel and my guess is it will be to the downside. There is no question the stock is bullish and looks poised to rally higher but the broader market must also cooperate. Our target on BRCM is $34.95 but I would like to lower that $34.40, which is just below today's highs, and will exit the position if the stock trades to this level. I am suggesting conservative traders exit positions now. I moved our stops up to $33.25 on Saturday. This will ensure a winning trade if BRCM can't rally.

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: 38.74 change: +0.55 stop: 36.90

BWA closed up +1.44% on Friday. Officially our trigger to open positions is at $40.25. If triggered our target is $44.75. BWA doesn't move very 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. Aggressive traders may consider opening positions if BWA trades above $38.60 but I would view this as a quick trade with a tight 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 $2.40

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: 40.73 change: +0.06 stop: 38.99

CSH was relatively quiet today. The stock is finding resistance just below the $41.00 level which about break-even for our trade. CSH looks poised to continue its rally and we are looking for the stock to at least retest its highs from last week at $41.50. If the stock trades to this level conservative traders should begin to tighten stops or sell into strength. We need to see CSH follow through or we will be looking exit our position. I am not suggesting new positions at this time. I am going to lower our target on CSH to $42.90. Our time frame is one to two weeks.

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


MAXIMUS Inc. - MMS - close: 62.33 change: +0.01 stop: 59.75

MMS hit a new 52-week high today and is above our key $62.00 level. The stock looks poised to breakout higher and I expect follow through. This is a new all time high for MMS so I am suggesting readers be careful. I would like to place a stop at $59.75 to give this some room but if there is overall market weakness readers may want to exit the position early. Our time frame is several weeks. Our target on MMS $67.00 and our time frame is several weeks. I want to remind traders that this is a somewhat aggressive trade since we normally do not trade stocks with average volume under 250K a day.

Current Position: MMS stock at $62.25

Entry on April 9 at $62.25
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 83 thousand
Listed on March 31st, 2010


Patterson Companies - PDCO - close: 31.03 change: -0.10 stop: 29.95

PDCO continues to see resistance at $31.30. It is forming an ascending triangle on its daily chart. We are waiting for PDCO to breakout to new relative highs prior to initiating long positions. 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


Powershares UltraShort Real Estate - SRS - close: 5.62 change: +0.08 stop: 5.63

We are waiting for SRS to break above its downtrend line which started in early February. Real Estate stocks have had a monster rally off of their February lows and we believe a pull back is overdue. If a pullback in RE stocks gains steam SRS will benefit. Officially, I am suggesting we initiate positions if SRS trades to $6.10. Use a trigger to open long positions in SRS (which is a bearish play on RE stocks) at $6.10. Our first target is $6.85 which is just below prior support from December. Our second target is $7.15 which is just below the low on January 19 and I anticipate SRS reaching this level if there is overall weakness in the market. Aggressive traders may want to consider positions at current levels with a stop at $5.38. This is an aggressive play so please use smaller position size to limit risk. If triggered, our stop at $5.65 which is just below the recent swing low on March 25. Our time frame is about two to three weeks. *NOTE: Although this is listed as a long position in our portfolio, this is a bearish position on real estate stocks*

Trigger to open long positions at $6.10

Suggested Position: Buy SRS if it trades to $6.10, Stop Loss $5.65 (unopened)

Entry on (unopened)
Earnings Date Not Applicable
Average Daily Volume: 11.0 million
Listed on April 8, 2010


BEARISH Play Updates

Corrections Corp. of America - CXW - close: 19.71 chg: +0.05 stop: 20.55

Our comments on remain the same. CXW still looks vulnerable here but we need the stock to break down through $19.00 which has been acting as support. The stock's 20-day and 50-day SMA's are overhead which should provide resistance. If CXW breaks down we should have a good chance of hitting our target of $18.00. Our time frame is a couple of weeks.

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


Powershares QQQQ Trust - QQQQ - close: 49.07 change: +0.04 stop: 50.95

QQQQ traded in a tight range today closing marginally higher. I am looking for QQQQ to initially trade down to its 20-day SMA which is currently at $48.18. The ETF should find some support at that level but we are ultimately looking for a target of $47.00 which is just above the lows from March 15. Our stop is $50.95 and our time frame is a couple of weeks.

Current Position: Short QQQQ at $49.05, Stop Loss $50.95

Option Traders:
Suggested Position: Buy PUT May $40.00, current ask $1.00

Entry on (unopened)
Earnings Date Not Applicable
Average Daily Volume: 49.4 million
Listed on April 10, 2010


Warner Chilcott - WCRX - close: 25.46 change: -0.23 stop: 26.26

Our comments remain the same on WCRX. The stock has been bouncing off of the $25.00 level since late January. The stock appears to have formed a new lower high and may be forming a descending triangle. Its 20-day, 50-day, and 100-day SMA are all overhead. We're still waiting for a breakdown under support at $25.00 but will need the overall market to cooperate.

I am suggesting we use a trigger to open bearish positions at $24.80. If triggered our first target is $23.00. The 200-dma is nearing the $23.00 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 MAY $25.00 PUT (WCRX 10P25.00) current ask $1.00, estimated ask at trigger price $0.60

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

Linear Tech. - LLTC - close: 29.34 change: +0.23 stop: 28.90 *NEW*

As mentioned in the weekend update we closed our position in LLTC today at $29.50 as the stock rallied in the afternoon. LLTC reports earnings on Friday and we wanted to ensure a profitable exit before their announcement. We had a nice +4.42% gain. Traders who haven't exited the position may want to move up their stops to protect profits. A logical stop would be $28.90 which is just below today's low. I suggest selling the LLTC prior to their earnings on Friday.

Closed Position: Sold LLTC stock @ 29.50, entry was at $28.25

Annotated Daily Chart:

Entry on March 16 at $28.25
Earnings Date 04/13/10 (unconfirmed)
Average Daily Volume: 3.9 million
Listed on March 11th, 2010