5 Trades to Take After the "Obama Crash"

Intel

Intel (INTC) has been a mess lately. Shares are off more than 21% in the last three months, dragged lower by a struggling semiconductor industry that's coincided with a correction in the broad market. So, should you buy Intel here? Depends.

Intel has been consolidating sideways for the last couple of weeks in a price pattern called a rectangle. Consolidations are common, especially after a stock has made a large up or down move -- they indicate that investors are taking a breather to figure out their next moves in a stock. When shares break outside of the rectangle, we know whether buyers or sellers have won out.

In other words, you want to trade in the direction of a breakout in Intel. If shares are able to break out above the top of the rectangle at $22, then Intel is a buy. Otherwise, if shares fall through the bottom at $20.90, then this stock becomes a sell. Either way, I'd recommend keeping a tight stop on shares.

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