Teradyne (NYSE:TER) — The semiconductor group has been a leader this year, but TER has not participated and belongs to a group of stocks that should be sold on a rebound. One reason for its failure is that earnings are expected to fall to $1.38 (recent lower adjustment) this year versus $1.73 last year.
On July 1, at $15, I recommended selling TER. The stock has reached our downside objective but could rally back to its resistance at $13 (50-day moving average). Since neither fundamentals nor technicals have improved, the stock should be shorted again at $13 or higher with a downside target of $10.