PM was actually added as a short trade when it made a very brief fake-down (false breakdown) of the daily rising wedge pattern all the way back in August.  However, the stock is still only about 4 points or roughly 5% above that previous entry and as the chart has remained bearish and very toppy looking for months now, I’ve left it on as an Active Trade.

Based on the charts (2-day & weekly shown below), I am adding PM back as a new short setup or add-on trade to be triggered on a break below this 2-day period uptrend line (same uptrend line from the previous daily charts).  I do see some minor support just below the large rising wedge pattern but I’d expect any reaction there to be minor, if any.  As T1 (first target) is a slightly upward sloping trendline, I cannot list a specific price target but assuming that level is hit in the next few weeks or so, it would come in around the $83-84 area.  PM is one of many over-loved, over-owned blue-chip dividend stocks that are for the first time in a long while, starting to set up as attractive swing short candidates IMO.  Just a theory but I would not be surprised to hear Bernanke give some indication that he is open to the possibility to beginning to start tapping on the breaks when he speaks tomorrow.  If so, which we all know will have to happen sooner or later, there will eventually be a rush for a very crowded exit on bonds and dividend stocks.  More setups to follow soon.