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Even the strongest market sectors have their laggards, and Intel Corporation (NASDAQ:INTC) is the technology sector’s laggard. It has been dropping since early June, but it really took a turn for the worse after the company reported earnings in late July.

Just looking at the headline numbers Intel reported for the quarter — beating revenue estimates by $180 million and earnings estimates by $0.07 per share — you would think the company was doing well, but there is a big difference between doing well and exceeding expectations.

The technology sector has been growing by leaps and bounds, not because it has simply been doing well, but because it has seen accelerating growth with the expectation of even more growth. That’s where Intel is falling short. Its growth acceleration rate (especially in its data center earnings) is tapering off, while its major competitors, especially Advanced Micro Devices, Inc. (NASDAQ: AMD), are seeing their growth rates explode.

Looking at the chart of INTC, you can see the stock has been bouncing lower within the confines of a down-trending channel that is slowly getting narrower, and it has recently confirmed a strong resistance bounce lower from down-trending resistance.

We are looking for the stock to continue falling toward the down-trending support level the stock has already hit three times during the past three months. This bearish move could certainly be accelerated if the stock market in general continues to drift lower.

‘Buy to open’ the INTC October 19th $46 Put (INTC181019P00046000) for a maximum price of $1.22.

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