BULLISH Play Updates

Current Portfolio:

AU Optronics - AUO - close: 11.47 change: +0.18 stop: 10.90

AUO bounced off of its 50-day SMA on Thursday and also closed over its 20-day SMA on Friday. AUO has been consolidating between the $11.00 and $12.00 area for about 4 weeks. 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. Readers who have not initiated positions could still consider entering as I believe there is a lot of support with the SMA's just below AUO. 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

Annotated Daily Chart:

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: 34.28 change: +0.58 stop: 33.25 *NEW*

The SOX semiconductor index regained most of Thursday's losses on Friday. BRCM had a great day closing up +1.72%. BRCM and the SOX index both bounced off their upward trend lines this week and BRCM also bounced off its 20-day SMA. In addition, BRCM and the SOX are at the bottom end of their upward channels which have remained intact over the past two months. The stock continues to look poised to rally higher as long as the broader market cooperates. We are nearing our first target on BRCM which is $34.95. We are up about +5.00% in this trade right now so I am suggesting traders begin to exit positions, especially if BRCM continues to rally next week. I would like to move our stops up to $33.25 which is just below Thursday's low. This will ensure a winning trade if BRCM can't rally. We have a more aggressive 2nd target of $37.40 with a time frame of several weeks.

Current Position: BRCM stock @ 32.66

Annotated Daily Chart:

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: 38.19 change: +0.42 stop: 36.90

BWA closed up +0.42% 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 $1.15

Annotated Daily Chart:

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: 40.67 change: +0.39 stop: 38.99

CSH ended the week very strong. The stock is trading in a recently formed upward channel and is holding its longer term upward trend line. 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 for a quick exit on this trade. Aggressive traders can consider opening positions at current levels. Our first target is $44.90.

Current Position: CSH stock at $41.05

Annotated Daily Chart:

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: 28.56 change: -0.47 stop: 27.70

LLTC closed the week near its highs which also correspond to the intraday highs on March 17. LLTC looks poised to breakout from theis level but could see some resistance early next week. If it does breakout we expect the stock to challenge its 2010 highs near $30.00. If you own April options don't forget that they expire in 5 trading days. I would recommend selling those options to prevent any further time decay. Our first target is $29.95. Our second target is $30.95. LLTC reports earnings on Friday so we will be looking to exit the trade in the next few days. Selling into any strength, or near current levels if LLTC stalls, is probably the best strategy heading into the week.

Current Position: LLTC stock @ 28.25

Option Traders:
Current Position: CALL APR 28.00 (LLTC 10D28.00) @ $1.00

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

MAXIMUS Inc. - MMS - close: 62.32 change: +0.74 stop: 59.75

MMS hit our bullish trigger and we are now long the stock. The stock has continued to peak its head out to new 52-week intraday highs and on Friday it closed at a new 52-week high. It 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 do need to label this trade somewhat aggressive since we normally do not trade stocks with average volume under 250K a day.

Current Position: MMS stock at $62.25

Annotated Daily Chart:

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: 31.13 change: +0.20 stop: 29.95

PDCO is forming an ascending triangle on its daily chart. We are waiting for PDCO to 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)

Annotated Daily Chart:

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: 5.54 change: -0.18 stop: 5.63

This was a new play on Thursday and our comments remain the same. Real Estate stocks have had a monster rally off of their February lows and we believe a pull back is overdue. SRS appears to be breaking its downtrend line which began on February 10. If a pullback in RE stocks gains steam SRS will benefit. I am suggesting we initiate positions if SRS trades to $6.10 which is above 20-day SMA in the coming days. 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. This is an aggressive play so please use smaller position size to limit risk. If triggered let’s place our stop at $5.65 which 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)

Annotated chart:

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: 19.60 chg: +0.05 stop: 20.55

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 numbers.

Current Position: SHORT CXW stock @ 19.90

Annotated Daily Chart:

Entry on March 19 at $19.90
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on March 17th, 2010

Warner Chilcott - WCRX - close: 25.69 change: -0.01 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 April $25.00 PUT (WCRX 10P25.00) current ask $0.50

Annotated Daily Chart:

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