INTC - Intel Corporation $140.88 +2.88 (+2.69)

Producing the vast majority of chips that run the world's PC's, laptops, and servers, Intel (INTC) is at the center of the microprocessor market. The company's decision at the beginning of last year to push forward with an Internet focus has helped it to stay at the forefront of microprocessor advancement and growth. Because of its strong historical growth, we're hoping for Intel shares to gain additional momentum as they run to their payable date of 7/30. On 5/17, the BoD announced a 2:1 stock split. Currently, the company has 10 billion shares authorized with 3.35 billion shares outstanding. After pulling back from its recent advance, shares of INTC have again formed a nice consolidation zone on decreasing volume. This drop in volume tells us that there are fewer people willing to sell at lower prices, offering the bulls an opportunity to re-gain their momentum. A close above $143 (top of near-term range), when followed by good volume (20 million shares or more), will likely be our first signal to a breakout. Further up, the all time high of $147.50 should offer the next level of resistance. For support, look at $138 to offer a good initial base, as reinforced by previous highs and recent lows. Secondary support should follow near the top of another previous high at $134.50. We'll be placing stops below these support levels at $134. Use sharp bounces from support or advances through resistance as potential entry points when accompanied by good volume. The payable date for the split is 7/30, so we plan to tighten stops as the payable date approaches.

Picked on July 25th @ $140.88 Change since picked +0.00

SIMG - Silicon Image Incorporated $55.69 +3.94 (+1.31)

If you think Silicon Image is a company that manufactures breast implants, then you might be a Redneck. SIMG develops and markets semiconductors for applications that require cost-effective, integrated solutions for high-speed data communications. On Tuesday, the folks at Lehman Brothers tipped their hat to SIMG and upgraded the stock to a "buy" rating. On July 17th the company reported second quarter earnings and showed a profit of $0.03 per share, beating the consensus estimate. Shareholders received an added bonus when the company also announced a 2:1 stock split with an effective paydate of August 18th. Technically, the stock has bounced off a trend line that stretches back to May and has formed a tight ascending triangle, which is a bullish pattern. Leading into the split we see the possibility of further upside gains. The stock is a member of the semiconductor sector and in addition to the split run, further positive movement in the sector from earnings could also yield higher results. We now see support at the 20-dma at $53.50 and below that at $50. Resistance is being challenged at the 100-dma of $57 and then the 200-dma of $60. Possible new plays might be opened if a bounce comes off support on good volume, or a decisive move through resistance with good momentum in the sector and the Nasdaq Composite. We will place a protective stop at $49 below the lower support to limit potential losses.

Picked on July 25th @ $55.69 Change since picked 0.00