Chipmaker in trouble

Shares of Intel (INTC) have been in a steady downtrend from $58 to a low of $43 this year, amid competition from AMD and other chip makers, large investments in new fabs, and the overall chip shortage plaguing the industry.  As cell phones and tablets from makers such as Apple who make their own chips, continue to grow, demand for PCs and chips from this giant will wane.

As shares have bounced off the recent low we like taking a short position on this company for a short term trade. We are shorting shares of INTC at $46.30, on a medium risk trade with a stop at $50.00.