NEW BEARISH Plays
Cabot Microelectronics - CCMP - close: 32.70 change: -0.66
Stop Loss: 34.05
Current Gain/Loss: unopened
Entry on April 03 at $--.--
Listed on April 02, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 104 thousand
New Positions: Yes, see below
Why We Like It:
The semiconductor sector could be in trouble. The SOX index is reversing under its early 2012 highs in what looks like a bearish double top. Today saw the SOX breakdown below technical support at its 50-dma. CCMP is underperforming its peers in the chip sector with a -1.9% drop today and a breakdown below support near $33.00 and its simple 200-dma.
I am suggesting small bearish positions at current levels. We want to limit our risk because CCMP is arguably already short-term oversold. Of course it can get a lot more oversold. We are using somewhat of a wide stop loss at $34.05. Our target is $30.25.
Suggested Position: short CCMP stock @ (the open)