Novellus Systems, Inc. (NASDAQ: NVLS) is a good short-side play.

On November 11 at $29 the Trade of the Day said of Novellus Systems, “This maker of equipment used in the fabrication of integrated circuits broke from a compound top in late October with a trading target of $33.”

The target was more than exceeded and the TOD recommended taking profits on January 18.  If you failed to act then, sell NVLS now since spikes like those seen in the computer-chip sector occur when there is relatively low volume in the overall market.  But now the sell signal has been given.

Remaining holders should sell calls, buy puts, enter trailing stops, or take other defensive actions since it is likely that the stock will become a better value later this year.  NVLS is also short sale candidate with a target of $32 to $34.