VMware, Inc. (NYSE:VMW) — This subsidiary of EMC Corp. (NYSE:EMC) is a leader in virtualization software. VMware reported strong second-quarter earnings and was raised from a “hold” to a “buy” by analysts in July. But recommendations are being lowered because of a sharp decline in orders from the federal government and the financial services industry. The stock is very expensive at 63 times earnings, and the stochastic has issued a “sell” signal from an extremely overbought condition. Sell VMW short at $95 or more with a stop-loss at $100. The target for this trade is $83.