Here’s a chart to consider for tomorrow. AMD is a stock I’m sure most of you have heard of. We’ve bought and sold this one a few times in the past. They are actually a pretty good company, but in a very competitive industry that has seen its prices for components slashed drastically over the past few years.

Since the beginning of August, this stock has risen over 50%. But Wednesday’s action could spell the end to that run. There is a couple of ways to play this one. With the recent selling dating back to last Friday, we could see a bounce of sorts, whether it is sustainable is up and the air. We’re going to short this one at around 6.24/share. Next thing is to pre-determine a stop-loss, which depending on your level of risk, can vary. For you risk-adverse folks, a trailing stop just above Tuesday’s highs, would be one way to trade this stock, which would be a little over 6.50/share, while those with ice in their veins may opt to use the 200-day moving average as a stop, particularly since it has been eons since it was last breached. We’ll probably aim for a price target of 5.70 but we’re not dead-set on that. Any case, whether you decide to trade in this yourself, make sure to use caution and to do your own diligence. Happy Trading!

Here’s the AMD Chart…

AMD 9-3-08