NEW BEARISH Plays
Western Digital Corp. - WDC - close: 33.58 change: -0.97 stop: 36.55
Why We Like It:
WDC produces storage devices (a.k.a. hard drives). The rally in technology has fueled a big move in WDC. Now that the NASDAQ is breaking down we're seeing a similar reversal in WDC. This week's fall under support at $35.00 and its 50-dma is very bearish.
I would prefer to open bearish positions on a bounce or failed rally near $35.00 but we may not get the chance. I'm suggesting bearish positions now but only small positions. I'd start with a 1/4 position (25%) of your normal trade size. That way if WDC does bounce we can add to it as the bounce rolls over. Our initial target is the $30.50 mark. Our second target is $27.75.
Entry on October 28 at $33.58
Change since picked: + 0.00
Earnings Date 10/22/09 (confirmed)
Average Daily Volume: 4.2 million
Listed on October 28, 2009