$AMD update, why technicals matter

I watched $AMD for a possible bounce at 4 dollars but very quickly withdrew the play upon the close below 4 bucks.

http://investorshangout.com/post/view?id=98560

Bottoming play setups are great risk reward when managed properly because price can rip quickly as shorts cover and/or get squeezed and create momentum for follow on trades. However, this is a game of catching a falling knife right on the hilt and the execution has to be precise on entry and exit.

As you can see in the chart below, 4 dollars did not hold and price continues to move lower. With impending market weakeness expected, I will not be looking for bottoming setups in the near future and will instead be looking for short trade setups.