KEI - Keithly Instruments, Inc. $80.25 +3.50 (+9.75)

Keithley Instruments develops, manufactures and sells measurement systems geared to the specialized needs of electronics manufacturers. On Tuesday, the investment firm of Thomas Weisel upgraded the stock to a buy rating ahead of third quarter earnings scheduled for October 20th. Estimates are for a profit of $0.35 per share versus a profit of $0.31 in the same quarter last year. The stock became a in our opinion once it crossed the half-century mark. To date the company has effected four stock splits; the most recent occurring last June. At present there are 30 million shares authorized with 14.7 million outstanding. Therefore, the board of directors could announce a split with earnings without shareholder approval. In late August, the stock made an attempt to conquer $80.00 and was unsuccessful. On Thursday, the stock closed over that level and now looks poised to move higher on its pre-earnings run. Currently, light support can be found at $80.00, followed by $77.00 and finally the 5-dma of $75.10. We are looking at tight support levels due to earnings fast approaching. When considering new play entry points, look for good volume (over 700 thousand) to take the stock higher. A bounce off a support level if accompanied by good volume and supporting momentum in the INDU and the PHLX Semiconductor Index (SOX), would be helpful too. We will place a stop loss at $72.50 to limit our losses in the event of a sell-off.

Picked on October 5th @ $80.25 Change since picked 0.00

NEWP - Newport Corporation $176.25 +1.75 (+17.00)

NEWP designs, manufactures and markets high-precision optical equipment, and the company is experiencing a whole never level of demand for its products. With the expansion of the Internet finally forcing wire and cable companies to either keep up or fall behind, demand for fiber optic equipment makers is running high. Combine this demand with a strong uptrend in the fiber optic sector and we've got the makings of a momentum play. Even more interesting, on May 17th, shareholders approved an increase in authorized shares from 20 million to 75 million at the annual shareholders meeting. So, with 28.2 million shares currently outstanding and 75 million shares authorized, we're looking at a possible split play as well. Are you getting excited yet? We certainly are, and think traders are as well. Advancing back toward its all time high of $192.06 this week, NEWP has handily reversed its recent short-term downtrend. Strong volume remains a good indication that an extended advance may occur. An aggressive early entry signal will come when prices cross above today's intra-day high of $182. Further up, we'll look for the next levels of resistance to be felt at the $192.06 (all time high) and the $195 levels. Potential plays will be present when the stock can close above resistance, on good mid-day volume of 750 thousand shares. We'll look for the stock to meet its first support at the 20-dma of $167.73, which has been providing good intra-day buying points over the past couple of weeks. If this level is broken, we recommend placing a stop at $166, to prevent against a meltdown. This time of the year is known for its downside volatility, which is why we'll keep the stop relatively tight. Look for good volume to reconfirm bounces from support before opening positions.

Picked on October 5th @ $176.25 Change since picked 0.00

QCOM - QUALCOMM $82.88 +4.44 (+11.63)

QUALCOMM sells digital wireless communications products and services based on its proprietary CDMA (code division multiple access) technology to more than 80 telecommunications equipment manufacturers worldwide. QCOM was one of last year's high-flyers. The company's shares traded to an all-time high of $200 on January 3rd, at the height of wireless stock mania. As the tech sector began to sell off, so did QCOM. On 7/11, the stock hit a relative low of $51.50, representing a 74% correction. QCOM then spent over two months building a base in the $60-$70 range until 9/19, when it broke through resistance to a relative high of $78.75 on three times average daily volume (ADV). On Wednesday, shares of QCOM hit an intra-day high of $79.50, taking out the 9/19 high. QCOM extended its winning streak on Thursday, trading as high as $85 on two times ADV. We believe that QCOM is ready for an earnings run. The company is expected to announce earnings on 11/2. The company currently has enough shares for a split with 3.6 billion shares authorized and 741 million shares outstanding. However, the share price is below historic split announcement range. Going forward, QCOM has support at Wednesday's high of 79.50 with additional support at $75.63, the 9/27 high. Resistance is the Thursday's high of $85 and then $89, just below the 5/19 intra-day low. We are looking for entry points on a bounce off of $89.50 or a move above $85 on midday volume of at least 9 million shares. We plan to use stops at $75.50 as protection.

Picked on Oct 5th @ $82.88 Change since picked +0.00