Bearish on AT&T after Net Neutrality Proposal

Today the FCC Chairman Tom Wheeler announced that the internet would remain neutral and ISP's and telecom providers couldn't discriminate users based on bandwidth usage.  Major telecom carriers have been hoping that regulation would allow them to charge more fees for users who stream video or use higher bandwidth on the open internet.  

AT&T (T) is trading at $34.41, which is at the higher end of it's short-term trading range.  Since January 28th it has moved up 5% from $32.68 in 5 trading sessions, riding on the tailwinds of the major bounce in the S&P 500.