NEW BEARISH Plays

Xilinx, Inc. - XLNX - close 25.71 change -0.64 stop 25.60

Company Description:
Xilinx, Inc. (Xilinx) designs, develops and markets programmable platforms. These programmable platforms have components that include integrated circuits (ICs) in the form of programmable logic devices (PLDs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP) cores. In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support.

Target(s): 25.00, 24.60, 24.30
Key Support/Resistance Areas: 26.75, 26.00, 25.30, 25.00, 24.00
Time Frame: 1 to 2 weeks

Why We Like It:
XLNX has experienced a slew of downgrades in recent weeks and I believe the stock is on the verge of a further correction towards its September lows. Analyst have also been issuing cautious comments on the semiconductor sector as a whole. XLNX's 50, 20, and 100 day SMA's are all converging which should provide resistance on any attempted bounces. Let's initiate short positions with a trigger of $25.80 or $25.59 which should get us in the position tomorrow. If triggered at $25.80 our targets range from -3% to -6% lower.

Suggested Position: Short XLNX stock if it trades to $25.80 or $25.59

Options Traders: Buy November $25.00 PUT, current ask $0.94

Annotated chart:

Entry on October xx
Earnings: 10/20/10 (unconfirmed)
Average Daily Volume: 7.3 million
Listed on October 6, 2010