Although I base my trading on charts, I get some of my ideas simply by observing companies which I think are past their prime and seeing what they look like from a chart perspective.
For instance, I've always thought Yahoo was a 1990s has-been. I'm flabbergasted they are as big as they are, frankly. Can you imagine what the morale must be like there? They've got a CEO who seems to drop F-bombs at every opportunity, and everyone who works there knows that those who ditched Yahoo and switched to Google have made themselves rich with stock options, while YHOO stock has been a complete dog.
Another similar stock I decided to look at – – and short – – is Research In Motion (RIMM). Simply stated, where I live, everyone uses Apple products. If you don't use an iPhone, people wonder what's wrong with you. Running around with a Blackberry, typing little emails with your little thumbs just makes you look like a dork. So RIMM has become ungodly uncool over the years, and that compelled me to take a serious look at the chart – – and short it.
There are other tech stocks in a similar vein that I'm short (Unisys, for instance), but I'd love to hear your ideas. What other tech stocks are yesterday's news and have been left behind by craftier, more innovative outfits?
