Adobe

Anyone who has ever used Flash can appreciate this. It's an amusing flash movie titled Animator vs Animation:
http://www.albinoblacksheep.com/flash/animator
(I wish I could remember who showed this to me but I'm sure there's a link to their site on the side of this page)
and the sequel can be viewed here:
http://www.weebls-stuff.com/toons/Animator+vs+Animation+2/

All of this silliness naturally made start thinking about how ADBE looks these days, chart-wise. Check it out: (ADBE)

A head & shoulders pattern appears to be forming. I also highlighted a similar occurrence (to give an idea of how these can play out) at the beginning of '08.

Adobe just reported good earnings yesterday and plan on having a good Q3, but also said they are not recession proof... So basically if your market outlook is bearish, ADBE could be a good way to play it.

Front month Put Open Interest appears to be significant, though I would recommend looking at least out to July. Finally, be aware that IV is a little high in the short-term.


Trading for a Living
Head-and-shoulders tops mark the ends of uptrends. The
"head" is a price peak surrounded by two lower peaks, or "shoulders." A
neckline connects the lows of declines from the left shoulder and the head.
The neckline does not have to be horizontal-it may be flat, rising, or
falling. A downsloping neckline is especially bearish - it shows that bears
are becoming stronger.