GILD

Above is a daily chart of GILD with what we think is the EW labelling.

GILD broke an important trendline today. We have been eyeing GILD for sometime now as a potential tasty short. 

We missed entering this position at the break of the line today, as were away. 

Nevertheless we initiated a small short position, sometime later in the day, though not an ideal spot.

As is often the case, GILD may try to test the underside of the line. We will probably more shorts at that point. Our stop is a weekly close above the 50W/descending trendline connecting the tops from aug 2008 and Feb 09 (Somewhere near 49). We know it is a bit far. But if & when GILD closes below 44, we will feel better since it would set up a patten of lower lows. Our target is the atleast the october low of 36.