I had already cut some Skyworks Solutions (NASDAQ:SWKS) on its original break of support, bringing it down to about 1% exposure (after selling some earlier in the month near $17). But the action continues to be poor, and frankly the whole "chip" sector is acting quite unwell, even the names that have just put out some very nice earnings reports [May 4, 2010: Skyworks Solutions Impresses the Street]. So, either the market is telegraphing some bad news in the future, or the market is in one of those moods where it is doing its thing regardless of fundamentals.
Simply following my discipline, I cut back on the first break of support in a stock and give it some breathing room to see if it can quickly reverse and prove me wrong. But when it does not, I cut back (or close) the position, which is what I am doing here. Taking it down to about a 0.3% exposure with a sale at around $14.90. This is now a chart that looks prime for shorting on bounces so I might be exiting completely soon. (Click to enlarge)
Disclosure: Long Skyworks Solutions in fund; no personal position.