BRCM Follow Up

Yesterday I mentioned our short in BRCM and what it would take to see a bounce there as opposed to follow through selling. At the very bottom of the post, you can see what the conditions would have been. Now take a look at this chart and you'll see why we are seeing more downside today. It's not so much a trade idea as it is just a heads up on what to look for, especially on high volume days.

What we'd look for for a dead cat bounce yesterday would have been (as you can see in the linked post from yesterday above) very high volume which we saw, but it would also need to show a strong close, at least in the upper half of the trading range. As you can see, BRCM closed just off it's lows for the day. For anyone trying to trade around the position, the close would have told you the probability was going to be more follow through selling today.